Navigating Oracle’s EOFY: Part I — Internal Audit and Data Gathering

Tuesday, 5 December, 2023

Welcome to the first part of our 6-part series, designed to guide you through the crucial process of preparing for Oracle’s fiscal year-end, May 31. Six months may seem like a long time to prepare to make a purchase but we assure you, in this case, it’s necessary. This month focuses on the importance of accurate and detailed internal audits and data gathering.

We’ve previously detailed why starting to plan now is essential: Why You Should Plan for Oracle’s End-of-Fiscal-Year Now, where we provide you with insider tips like building a better relationship with Oracle sales rep. However, over the next six months, we will provide you a month-by-month guide focusing on a one key aspect at a time. This monthly guide will ensure your organization is prepared, compliant, and strategically positioned to leverage Oracle’s products and services as the fiscal year comes to a close without being overwhelmed.

The Internal Audit

1. Navigating Agreements and Order Forms

Your journey begins with a thorough review of all Oracle agreements and order forms. These documents are the bedrock of your relationship with Oracle, outlining the scope and terms of your entitlements. It’s not uncommon to find that the details in these documents have been overlooked or misunderstood, leading to gaps in understanding your true entitlements.

2. Analyzing Annual Support Invoices and Reports

Oracle’s annual support invoices and any accompanying reports are a goldmine of information. They provide a snapshot of your current entitlements and usage. However, interpreting these documents requires a keen eye, as they often contain complex details that are critical to understanding your Oracle landscape.

3. Unraveling Discounting and Commercial Terms

Historical discounting and commercial terms, such as price protections, play a significant role in your Oracle strategy. These elements can impact future negotiations and budgeting. It’s essential to have a clear record and understanding of these terms, as they can offer leverage or insights into potential cost-saving opportunities.

4. Confronting Discrepancies and Missing Documentation

One of the most challenging aspects of the internal audit is dealing with discrepancies between your records and Oracle’s view of your entitlements. It’s not uncommon for companies to discover gaps in their documentation or differences in interpretation. Resolving these discrepancies is crucial, as they can significantly impact your negotiation position and compliance status.

When it comes to Oracle agreements, the legal complexities cannot be overstated. As one of our legal team, Joel Muchmore, eloquently put it, “The legal issues begin and end with the contract.” However, these issues can rapidly grow in complexity.

Consider the following aspects:

1. Historical Contracts and Their Evolution

Many organizations have Oracle master agreements that date back 25 to 30 years. These contracts were drafted long before many of today’s issues could even be contemplated. As a result, they may not adequately address current challenges or technological advancements.

2. Layered Ordering Documents

Over the years, numerous ordering documents with their own binding terms may have been added to the original contract. These documents can significantly alter or add to the original agreement’s terms, creating a layered and complex contractual landscape.

3. Shifting Focus of Oracle

It’s not uncommon for Oracle, or any licensor, to overlook certain aspects of a contract for years, only to shift their focus and enforce these terms later. What was acceptable practice for decades can suddenly become a compliance issue.

The Power of Detailed Data Gathering

Data gathering is more than just collecting documents; it’s about building a comprehensive picture of your Oracle usage.

1. Documenting IT Infrastructure

How do Oracle products integrate with your existing IT infrastructure? Understanding this landscape is crucial for identifying potential areas of optimization or risk.

Are there patterns in how your organization uses Oracle products? Usage trends can reveal insights into potential overuse or underuse, guiding future strategy decisions.

3. Preparing for Negotiations

The information gathered during this phase is instrumental in preparing for negotiations. Knowing your position, backed by solid data, puts you in a stronger position when discussions with Oracle commence.


Month 1 of preparing for Oracle’s fiscal year-end is a critical period of internal audit and data gathering. This phase sets the tone for the entire year-end strategy, providing the necessary insights and data to navigate the complexities of Oracle’s fiscal cycle. By thoroughly understanding your current position, you are better equipped to make informed decisions and avoid unexpected compliance costs. However, consider the implications of not properly assessing your contracts. In navigating this intricate contractual environment, the guidance of lawyers well-versed in software asset management is invaluable. These legal professionals specialize in:

  • Dissecting Complex Contracts: They have the expertise to unravel the complexities of historical and current Oracle contracts, providing clarity on your entitlements and obligations.
  • Identifying Hidden Risks: Legal experts can spot potential risks in your Oracle agreements that might not be apparent at first glance.
  • Strategic Advice: They offer strategic advice on how to align your Oracle usage and agreements with your business objectives while staying compliant.
  • Negotiation Support: Their insights are crucial in preparing for and conducting negotiations with Oracle, especially when dealing with nuanced contractual terms.

Stay tuned for our next month’s installment, where we will delve into the crucial phase of analyzing current usage and needs, ensuring that your Oracle strategy aligns seamlessly with your organizational objectives. Join us on this strategic journey towards a successful Oracle fiscal year-end.

And of course, if you’d like to discuss your situation, we are happy to help. Book a consultation here.