Oracle ULA Case Study: Mid-Size U.S. Manufacturer Enters Oracle ULA to Support Rapid Growth
Oracle ULA Case Study – U.S. Manufacturer Cuts Costs and Gains Agility by Entering Their First ULA
Background
- Industry & Country: Manufacturing (industrial equipment), United States
- Company Profile: A mid-size manufacturer with 5,000 employees and multiple plants nationwide, experiencing fast growth through new product lines and an IoT initiative
- Oracle Footprint: Mix of Oracle Database Standard Edition and a few Enterprise Edition instances supporting ERP, supply chain, and a new IoT analytics platform; previously managed via individual licenses
- Situation: Growing Oracle usage was leading to frequent license purchases and rising costs. The company had never had an unlimited agreement before, but was considering an Oracle ULA to simplify management and reduce cost uncertainty.
Challenges
- Escalating licensing costs: Every new plant or IT project required additional Oracle licenses under the old model, making budgeting difficult. The finance team saw Oracle expenses climbing unpredictably quarter after quarter.
- Compliance worry: The IT department was concerned about potential license compliance issues. With various departments spinning up Oracle-based systems, there was a risk that some users weren’t fully licensed. An Oracle audit could have found shortfalls.
- Growth outpacing procurement: The company’s expansion, including a new IoT data initiative, meant Oracle usage could double within two years. The traditional approach of buying licenses one by one was too slow and cumbersome for this pace of growth.
- Negotiation complexity: The manufacturer had little experience in Oracle unlimited license negotiation. Approaching Oracle for a ULA felt daunting, as they worried about getting locked into an unfavorable, expensive contract if they negotiated poorly.
How Oracle Licensing Experts Helped
- Baseline assessment: Oracle Licensing Experts first performed a thorough license audit of the company’s current Oracle deployments. By auditing usage across all plants and business units, they established a clear baseline: exactly how many licenses (and of which editions) the company was consuming and what the projected need was. This exercise also revealed that many systems were using Enterprise Edition features that would have significantly increased costs under standard licensing going forward.
- ULA feasibility analysis: With accurate data in hand, the team conducted a feasibility study comparing the long-term costs of continuing to buy licenses versus entering a 3-year Oracle ULA. The analysis showed that with the expected growth, a ULA would likely save the company 30% or more in license and support costs over three years, while greatly simplifying license management.
- Scope and terms negotiation: Next, OLE guided the company through defining the scope of the proposed ULA. They included Oracle Database Enterprise Edition (with key add-on options) and the middleware products the company relied on. Armed with the baseline and cost analysis, Oracle Licensing Experts handled discussions with Oracle. They negotiated favorable terms – a reasonable fixed fee that was within the client’s budget, rights to deploy in both on-premises and cloud environments, and a clause allowing an exit certification with all deployed licenses if the ULA wasn’t renewed. This ensured the ULA contract was flexible and not a trap.
- Onboarding and planning: After securing the deal, the experts assisted with the transition into the ULA. They set up internal tracking to monitor Oracle usage and trained the IT staff on ULA best practices. These steps ensured the client can fully benefit from the unlimited license while remaining in control of usage.
Outcome
- Cost savings and predictability: By entering the ULA, the manufacturer immediately transformed a variable, unpredictable cost into a fixed yearly expense. Over the 3-year term, they are projected to save roughly 35% compared to what they would have paid buying licenses ad hoc. This is a multi-million dollar saving, improving the company’s margins.
- License compliance assured: The ULA eliminated looming compliance risks. All current and future deployments of the covered Oracle products are allowed under the agreement, so the threat of an Oracle audit finding a shortfall is essentially gone during the term. This brought significant peace of mind to both IT and finance teams.
- Enabled growth: The company’s aggressive expansion plans are now supported by an “all-you-can-use” Oracle model. For new IoT projects and plant rollouts, the IT team can deploy Oracle databases and middleware freely without procurement delays. This agility helps speed up initiatives like the IoT analytics rollout, giving the business a competitive edge.
- Expert partnership: With Oracle Licensing Experts’ support, the manufacturer not only signed a ULA with favorable terms, but also gained know-how in Oracle license management. They have a partner to rely on for any questions during the ULA period and when approaching the ULA’s end (for certification or renewal decisions). In short, they turned a daunting negotiation into a strategic win.
Executive Quote
“Moving to an Oracle ULA was a big decision for us. We’re mid-sized, not a giant corporation, so we had to be sure it was the right move. The Oracle Licensing Experts team made it easy. They showed us the hard numbers – that an unlimited agreement would likely pay off – and then they got Oracle to agree to terms that fit our business. Now we don’t have to worry about counting database licenses every time we spin up a new project, and we actually expect to save money. It feels like we finally have control over our Oracle costs and strategy.”
— CIO, Industrial Manufacturing Company
Read about our Oracle ULA License Optimization Service.
How Redress Compliance Helps You Win with Oracle ULA
