Oracle ULA Case Study: Brazilian Bank Successfully Certifies Oracle ULA to Avoid Costly Renewal
Oracle ULA Case Study – Brazilian Bank Certifies Oracle ULA and Avoids $10M Renewal Exposure
Background
- Industry & Country: Banking, Brazil
- Company Profile: A major Brazilian bank with nationwide presence (thousands of ATMs, hundreds of branches) and a growing digital banking platform; ~20,000 employees
- Oracle Environment: Oracle Database is used for core banking systems, ATM transaction processing, and data warehousing; multiple Oracle RAC clusters for high availability; some auxiliary Oracle technologies (WebLogic, GoldenGate) in use
- ULA Synopsis: 3-year Oracle ULA approaching its end. The bank had entered the ULA to support rapid digital expansion, but now, with growth stabilizing, they aimed to exit and lock in their licenses rather than pay for another unlimited term.
Challenges
- High stakes compliance: In banking, any compliance issue is critical. An Oracle license shortfall could not only mean financial penalties but also regulatory trouble if systems were deemed improperly licensed. The bank needed absolute confidence that it could achieve full compliance through Oracle ULA certification.
- USD exchange rate impact: Oracle contracts are typically priced in USD. With Brazil’s currency fluctuating, renewing the ULA could drastically increase costs in local terms. The finance team was eager to avoid a renewal to protect the bank from currency-driven cost spikes.
- Complex architecture: The bank’s Oracle deployment included clustered databases (RAC) and an active-passive disaster recovery site. Oracle’s licensing rules for such setups are nuanced – e.g., whether the DR site needs full licensing or not. The bank had to ensure these were properly counted in the certification to prevent Oracle from disputing coverage.
- Internal resource strain: The bank’s licensing and IT asset management team was stretched thin. They were also in the middle of other critical projects (like a core banking upgrade). Freeing up skilled staff to focus on the intricate process of ULA certification was a challenge.
How Oracle Licensing Experts Helped
- License position audit: Oracle Licensing Experts conducted a thorough audit of the bank’s Oracle estate. They paid special attention to the tricky areas: measuring Oracle RAC usage (ensuring all clustered nodes were counted correctly) and the disaster recovery setup. They clarified Oracle’s policies – for instance, highlighting that the DR databases, if configured as truly passive standby, might not require full licensing, thereby preventing an unnecessary spike in counts.
- Remediation plan: The team identified a couple of compliance gaps that needed fixing before exit. One example was an Oracle GoldenGate instance used for data replication that wasn’t covered under the ULA. OLE helped the bank obtain a regular license for GoldenGate (or alternatively, retire it and use an included feature) so that nothing unlicensed would remain once the ULA ended. They also guided adjustments in the RAC environment, like ensuring a previously active failover node was switched to passive mode to reduce license count.
- Efficient certification execution: Given the bank’s limited bandwidth, Oracle Licensing Experts took on the heavy lifting. They gathered usage data from various systems (production, DR, test) with minimal disruption to staff. They prepared the certification letter and a detailed spreadsheet of usage. Throughout the process, they held brief checkpoint meetings with the bank’s stakeholders to keep everyone informed without burdening them with detailed tasks. OLE also handled communications with Oracle Brasil’s team, heading off any potential challenges by providing evidence and clear explanations of the bank’s deployments.
- Post-certification strategy: Knowing the bank’s goal was to rein in support costs, the consultants developed a post-certification license management plan. This included advice on renegotiating Oracle support on the now-fixed license pool and recommendations on evaluating third-party support in the future. They also delivered a training session to the bank’s IT team on how to maintain compliance and monitor usage moving forward, ensuring the value of the certification is preserved.
Outcome
- Clean certification achieved: The bank successfully certified out of the ULA, and Oracle recognized all current deployments as properly licensed perpetually. This included over 8,000 processor licenses for Oracle Database Enterprise Edition (accounting for the RAC clusters and DR configuration) and dozens of Oracle middleware licenses. No shortfalls were identified in Oracle’s review.
- Avoided renewal costs: By exiting the ULA, the bank dodged a renewal that would have cost an estimated $10 million (USD) over the next three years. This also shields the bank from currency exchange volatility – a significant relief for the finance department.
- Optimized support spending: With Oracle Licensing Experts’ guidance, the bank was able to negotiate a more favorable support structure for its now-fixed license set. They anticipate saving roughly 20% annually on support fees. Additionally, the bank is exploring third-party support for certain Oracle systems, which could further reduce ongoing costs without compromising reliability.
- Team enablement: Despite their small team, the bank got through the ULA exit smoothly. The engagement not only delivered the immediate result (compliance and savings) but also left the internal team better equipped. They now have an up-to-date Oracle deployment inventory and know-how to manage licenses proactively. This positions them strongly against any future audits or licensing changes.
Executive Quote
“Exiting our Oracle ULA seemed daunting for a bank of our size – we just couldn’t afford any mistakes. The currency risks and potential audit fines were a huge concern. Oracle Licensing Experts came in like an extension of our team. They handled the nitty-gritty of the process, from auditing RAC clusters to dealing with Oracle’s people. In the end, we certified with zero issues. We avoided an expensive renewal, which our CFO is thrilled about, and we even trimmed our support costs. It’s been a big win for us, both in cost savings and in peace of mind on the compliance front.”
— CIO, Brazilian Bank
Read about our Oracle ULA License Optimization Service.
How Redress Compliance Helps You Win with Oracle ULA
