Executive Summary
The VP of IT at a mid-sized leisure services provider faced complex Oracle database licensing challenges and the risk of costly penalties due to limited in-house licensing expertise. After evaluating other SAM solutions, they chose LicenseFortress’ ArxProtect service for the added assurance, which includes a financial guarantee. If a vendor successfully challenges the customer’s compliance in court, the guarantee covers the cost of additional licenses, offering peace of mind alongside comprehensive compliance management. When an unauthorized activation of Oracle AWR reports occurred, the ArxPlatform system quickly detected it, preventing a potential $10 million Oracle LMS claim, underscoring the critical importance of continuous compliance management.
$20K
Annual Cost
$10M
Savings
49.9K%
ROI
Challenge
Organizations often face the challenge of undetected activation of unlicensed software features, which can lead to significant compliance risks and financial penalties. Despite proactive measures during database configuration, the unauthorized use of features such as Oracle AWR reports can still occur. As detailed in this blog, these unlicensed activations can result in severe contractual exposure and high claim values.
At a Glance
Solution
In the case of a mid-sized leisure services provider, the ArxPlatform monitoring system detected the unauthorized activation of Oracle AWR reports. Despite their best efforts to prevent such occurrences, it is still possible to have accidental activations due to misconfigurations or software updates. As an ArxProtect customer, they benefited from the LicenseFortress team’s prompt detection and notification, allowing them to rectify the situation immediately. This quick response neutralized the compliance issues, avoiding potential exposure estimated at $200,000 and an Oracle LMS claim value of nearly $10 million. Thanks to LicenseFortress, the provider experienced peace of mind knowing that any future risks would be swiftly managed.
Why would the Oracle AWR claim value higher than the actual compliance issue?
This discrepancy between the actual compliance fee and the claim value can be attributed to several factors:
1. Licensing Fees
Oracle’s Automatic Workload Repository (AWR) is a feature of the Diagnostics Pack that requires a separate license. When users generate AWR reports without the proper licensing, Oracle can charge for the entire Diagnostics Pack.
Additionally, the Diagnostics Pack requires the Enterprise Edition, but the leisure company used the Standard Edition. The pricing structures differ significantly: Oracle prices the Enterprise Edition based on the number of physical cores, while the Standard Edition is priced based on the number of sockets. This difference typically results in a tenfold increase in cost for the Enterprise Edition.
2. Backdated Licensing Costs
Oracle often calculates backdated fees from the time the unauthorized feature was first used. This means the compliance cost could include several years’ worth of licensing fees, significantly increasing the total amount.
3. Support and Maintenance Fees
Oracle can add backdated support and maintenance fees to the claim. These fees cover the period when users utilized unlicensed features, compounding the overall cost.
4. Oracle Policies
Oracle often introduces policies, such as the virtualization policy, designed to substantially escalate costs. These policies typically require customers to license all physical cores in a virtualized environment, regardless of the actual usage, leading to significantly higher expenses.
Results
The leisure services provider’s investment in the ArxPlatform solution at $20,000 annually delivered substantial benefits far beyond cost savings. By avoiding a potential $10 million Oracle LMS claim, they safeguarded their financial health while ensuring comprehensive compliance management. ArxProtect provided real-time monitoring, automated alerts, and detailed reporting. Additionally, the inclusion of legal services and a financial guarantee offered an extra layer of security, ensuring that the provider was fully protected against any unforeseen licensing challenges. This robust, proactive approach allowed the organization to operate with confidence. The leisure service’s provider can rest easy knowing their licensing environment was compliant, secure, and free from the threat of costly disruptions.
Expert Licensing Support for Small IT Departments
For organizations with small in-house IT teams, navigating the complexities of software licensing can be a significant challenge. Without dedicated licensing expertise, your organization may be vulnerable to costly compliance issues. LicenseFortress provides the specialized support and monitoring needed to ensure compliance, along with a financial guarantee to protect your bottom line.
Strengthen your IT department with expert licensing assistance. Contact us today↗
