Medical Robotics Company Avoids $4.4M in Oracle License Fees After Prolonged Audit Battle

Challenge

Oracle Delays and VMware-Centric Licensing Claims Threatened Millions

The medical robotics company received an audit notice from Oracle License Management Services, launching what was initially expected to be a routine process. Internally, the Software Asset Management team maintained well-documented license records and had confidence in the company’s infrastructure setup. However, the team also knew Oracle’s approach to VMware deployments was aggressive, often based on policies not found in any signed agreement.

After submitting all requested data—including software deployment, entitlements, and user counts—the company expected a timely conclusion. Instead, the prolonged Oracle audit stalled for weeks with no feedback. When Oracle re-engaged, the focus had shifted: the audit team claimed that because the company used VMware, all processors across the virtualized environment required licensing—even those not running Oracle software.

Oracle’s findings included:

• 66 processor shortfall for Oracle Database Enterprise Edition
• 114 processor shortfall for Active Data Guard

If left unchanged, these claims would have resulted in over $4.4 million in license and backdated support fees. The SAM team was now in a high-stakes situation—despite having followed industry-standard best practices for virtualization.

At this point, and on VMware’s recommendation, the company engaged LicenseFortress to take over the audit response. With a reputation for defending Oracle licensing positions in VMware environments, LicenseFortress provided the contractual and technical clarity the SAM team needed.er who could push back with facts, contracts, and technical credibility.

Solution

Isolation Strategy and Contractual Defense Stop Oracle in Its Tracks

LicenseFortress quickly reviewed the audit findings and redirected the conversation from Oracle’s internal Partitioning Policy to the company’s contractual rights. LicenseFortress collaborated with the SAM and infrastructure teams to map the deployment. They then built a defensible architecture based on the signed Oracle Master Agreement.

The team developed a comprehensive virtualization isolation document, structured specifically to withstand Oracle’s scrutiny. It demonstrated that Oracle workloads were fully isolated and incapable of migrating to non-licensed infrastructure.

Key architectural elements included:

• Dedicated ESXi clusters: The infrastructure team assigned Oracle Database workloads to a dedicated cluster, while WebLogic workloads ran on a separate cluster supporting the Agile platform.
• VLAN isolation: The team configured network segmentation with VLAN 150 for Database VMs and VLAN 151 for WebLogic VMs, ensuring vMotion traffic remained confined to subnets accessible only by hosts within each respective cluster.
• Storage access controls: PureStorage Fibre Channel SANs presented unique LUNs to each cluster, ensuring VMs were not visible or transferable across boundaries.
• Migration restrictions: vMotion and Storage vMotion were restricted at both the hypervisor and network layers, eliminating Oracle’s ability to claim risk of cross-cluster movement.
• DR considerations: The disaster recovery environment used standalone ESXi hosts with isolated storage, further reinforcing the company’s effort to separate Oracle workloads from the broader environment.

LicenseFortress compiled these details into a formal report, complete with diagrams, validation plans, and direct alignment with the Oracle Master Agreement’s language. The company’s environment was positioned as fully compliant—based on contractual terms, not internal policy. LicenseFortress positioned the company’s environment as fully compliant—on Oracle’s own contractual terms, not its policies.

Results

Audit Closed, Oracle Claims Rejected, Compliance Maintained

LicenseFortress’s audit response invalidated the foundation of Oracle’s $4.4 million licensing claim. The findings were not supported by contract language, and the company’s VMware infrastructure was documented to be fully compliant. After navigating a prolonged Oracle audit, the company closed the engagement with no license purchases and saved over $4.4 million.

As a result:

• $25,000 engagement cost for the Compliance & Optimization Review
• $0 in license purchases or retroactive support
• Over $4.4 million in Oracle exposure neutralized
• Audit closed without penalty or concession

Recognizing the value of ongoing defense and visibility, the company enrolled in the ArxSecure SAM managed service. With continuous monitoring, legal oversight, and access to license compliance experts, the SAM team can now proactively detect and remediate future compliance risks—before another audit begins.

Don’t Let Oracle Turn Your VMware Deployment Into a Licensing Nightmare

Oracle’s audit tactics often rely on internal policy rather than contractual obligation. Organizations running Oracle software on VMware face unique licensing challenges. It’s critical to work with a partner who can defend the architecture and licensing position with clarity, credibility, and contract-backed evidence. LicenseFortress helps companies resolve audits and avoid unnecessary costs before they escalate. Book a meeting.