Executive Summary
A leading US-based technology company, with over 8,000 employees and operations in 175 countries, faced a critical challenge: certifying out of a costly Oracle Unlimited License Agreement (ULA) within just six months. Fortunately for the organization, the Director of Procurement met the LicenseFortress team at a industry conference and began to discuss their options. LicenseFortress rapidly assessed and documented the company’s global Oracle deployments, helping them avoid nearly $10 million in fees and secure a stable financial future.
$100K
Project Cost
$10M
Savings
99.9K%
ROI
Customer Challenges
This client was no stranger to tough economic times. In the past, the client company was able to lift itself out of bankruptcy. But, due to unforeseen market forces, there was a downturn in the company’s fortunes once again. Moving into this economic hard time, the company did a significant layoff, which wasn’t enough to stem the monetary bleeding. One of the significant expenses that needed to be managed in this economic crunch was the massive cost of their Oracle Unlimited License Agreement (ULA).
At a Glance
Background
A ULA is a customized contract between Oracle and an organization that allows that company to use all the Oracle products defined within their agreement. ULAs typically last two to three years. At the end of a ULA, the client company must choose whether to enter another ULA or “certify out” of the agreement. To “certify out”, a company must be able to declare what Oracle software is installed and running within the organization and the quantity of each product being certified (number of licenses and seats).
Related: ULA 101
Counting licenses inside an active Oracle ULA differs significantly from what triggers the need for an additional license outside of it. Many customers are surprised to discover that they often fall out of software compliance immediately after certifying out of an Oracle ULA. Oracle frequently audits customers within twelve to twenty-four months following a ULA exit. To certify out and obtain perpetual licenses, companies submit a certification letter to Oracle, detailing the installed and running Oracle products and the quantity of each.
Third-Party Oracle Support
As part of their deliberations, the client engaged the services of one of the world’s largest providers of third-party Oracle support. To save money and help preserve the company, they made the brave (and wise) decision not to renew their Oracle ULA and certify out of that agreement.
In comparison to remaining within an Oracle ULA, the cost savings are substantial for customers who are willing to turn to third-party support options. Oracle customers who switch can save up to 50% on their ongoing support bill. Customers experience expenditure reductions up to 70% or higher when you factor in that the customer no longer doing major upgrades.
Complexity
When a technology company with global infrastructure, like the one in this case study, needs to certify out of a ULA, the process is usually best planned and executed over twelve to eighteen months. However, the client faced a pressing deadline with their ULA up for renewal in just six months.
Certifying out of an Oracle ULA is a complex process for any large organization. In this case, the challenge became even more difficult due to staff reductions from a massive layoff. The reduced staffing left the organization uncertain about the locations of all their databases and middleware deployments.
Another looming concern? The strong likelihood of an Oracle audit, given their decision to depart from the ULA.
Solution
The company needed to move fast. Using LicenseFortress’ proprietary SAM tool, the team was able to validate the client’s worldwide Oracle software deployments in record time. As the technical team began the process of documenting all the client’s Oracle software use for the certification, the legal team stepped in to review both the current ULA and proposed Oracle perpetual license.
LicenseFortress started the work in January and by mid-May had certified the client out of their Oracle ULA. Throughout this process, we helped the client understand their Effective License Position (ELP) post-ULA exit. Which, in turn, helped them save nearly $10M over three years. During a period of fiscal challenges, LicenseFortress continued to help the client avoid the looming ULA renewal fees.
Results
The client is now on stable financial footing and growing again. They avoided nearly $10 million in unnecessary Oracle fees by certifying out of their ULA. They can now scale their Oracle software use predictably without the burden of a ULA.
This case study emphasizes the importance of proactively reviewing a ULA at least a year before the renewal date. In some cases, a ULA benefits a company, while in others, it can be costly and detrimental. LicenseFortress helps companies of all sizes determine their precise Oracle usage, providing clear guidance on whether to renew or certify out of their ULA.
Discover the Best Path Forward for Your Organization
Stuck in a ULA? LicenseFortress can help you explore your options, certify out, reduce costs, and avoid compliance risks. Take control of your Oracle licensing and secure your financial future today.
