Executive Summary
After successfully resolving $84 million in Oracle Database and Middleware compliance gaps in their first engagement with LicenseFortress, a major water and sewer service company turned to them again to tackle Java licensing challenges. Faced with $259,200 in annual costs due to Oracle’s subscription model, the company enlisted LicenseFortress for a Compliance and Optimization Review (COR). By identifying over-purchasing and compliance risks, they saved $259,200 annually. With a $35,000 project cost, they achieved a 640% ROI.
$35K
Project Cost
$260K
Annual Savings
640%
ROI
Challenges
Oracle’s transition from a free usage model to a subscription-based model for Java has greatly increased the complexity of managing Java licenses and heightened compliance risks. Consequently, Java audits and compliance have become significant concerns for many organizations, including this water and sewer service company.
The company faced several challenges:
At a Glance
1. Complex Licensing Agreements
Managing various Java licensing models, such as employee-based subscriptions, each with specific requirements and costs was challenging across a large organization.
2. Cost Management
Furthermore, the company faced substantial costs associated with Java SE Universal licenses, totaling $259,200 annually. Accurate tracking of usage and preventing over-purchasing were crucial to managing these expenses.
3. Compliance Risks
Ensuring adherence to Oracle’s licensing agreements was essential to avoid legal and financial penalties. The company needed to effectively manage these risks.
Solution
As part of its ongoing relationship with LicenseFortress, the water and sewer service company opted for a Compliance and Optimization Review (COR) to tackle these challenges. The process began with a comprehensive audit of the company’s Java usage, starting with a detailed assessment of their IT environment. Additionally, LicenseFortress experts collaborated with the IT staff to review all Java deployments, including desktops, servers, and other critical applications.
Next, LicenseFortress examined the entitlements, comparing the acquired licenses with actual deployments. Ultimately, this analysis revealed discrepancies, such as underutilized licenses and areas where additional licenses were needed. Now, understanding the full scope of the company’s licensing requirements was crucial to ensuring accurate documentation of all Java usage.
The audit revealed several key points:
1. Usage Analysis
Licenses were purchased for 1,800 employees at $12.00 per employee, but actual usage was lower, indicating potential over-purchasing.
2. Cost Analysis
However, licenses were purchased for 1,800 employees at $12.00 per employee, but actual usage was lower, indicating potential over-purchasing.
3. Error Identification
Additionally, errors in tracking employee license usage were identified, which could lead to compliance issues if not corrected.
4. Pricing Tiers
Pricing tiers for Java SE Universal licenses varied based on the number of employees, with annual prices ranging from $10.50 to $15.00 per employee.
Now, armed with a comprehensive understanding of the environment and entitlements, LicenseFortress developed the Effective License Position (ELP). This detailed snapshot of the company’s licensing status highlighted areas of non-compliance, potential risks, and optimization opportunities. The ELP was essential for creating a strategy that aligned licensing with actual usage, preventing unnecessary costs and ensuring compliance with Oracle’s agreements.
Additionally, LicenseFortress corrected tracking errors for employee licenses, implementing more accurate methods to better manage licensing needs. They reviewed the Java SE Universal licenses’ pricing structure, helping the company adjust its strategy to maximize cost savings based on the number of employees.
Results
After establishing the baseline ELP, LicenseFortress implemented strategies to address identified issues, including correcting tracking errors and optimizing licensing strategies based on employee numbers. Furthermore, as part of their ongoing support through the ArxPlatform, the water and sewer service company benefits from continuous monitoring and compliance assurance for their Java usage. This proactive approach allows the company to focus on core operations without worrying about licensing issues.
In conclusion, the collaboration with LicenseFortress has led to significant cost savings and ensured compliance for the company. Through the audit and subsequent license optimization, they reduced unnecessary expenditures, saving approximately $259,200 annually. With an investment of $35,000 for the Compliance and Optimization Review, the company achieved an impressive return on investment (ROI) of 640%. This partnership has streamlined Java licensing management and provided ongoing compliance assurance, enabling the company to deliver essential water services without the burden of licensing concerns.
Facing the Oracle Java Pricing Changes?
LicenseFortress specializes in navigating the complexities of Oracle Java licensing. Our team will help you identify cost-saving opportunities, mitigate compliance risks, and/or transition to alternative technologies. Achieve substantial savings and long-term compliance with our expert guidance.
Learn more about how we can help you navigate these challenges and secure a more stable future for your organization.
