Executive Summary
A prominent player in the nuclear energy sector, known for ensuring reliable and sustainable energy solutions, sought to certify out of their capped Oracle Unlimited License Agreement (ULA). Certifying out of a ULA is a complex process where a company transitions from unlimited usage of Oracle products to a fixed number of licenses. A trusted partner managing the energy provider’s infrastructure recommended LicenseFortress. The certification process enabled the company to navigate tight deadlines, complex licensing environments, and stringent regulatory requirements. LicenseFortress recommendations saved the energy provider an estimated $14 million and streamlined their software asset management.
$40K
Project Cost
$14M
Savings
34.9K%
ROI
Challenges
When certifying out of a capped ULA, several critical factors need to be carefully managed. The energy company encountered multiple significant challenges during the certification process of their Oracle ULA:
At a Glance
1. Time Constraints
With only three months to complete the certification process, the company struggled to meet the tight deadline. The limited timeframe added immense pressure to swiftly review and decide on the best course of action, hindering thorough preparation.
2. Complex Licensing Environments and Policies
Operating across various environments, including on-premise VMware and Hyper-V, as well as Microsoft Azure public cloud, posed significant difficulties. Each environment’s complex licensing policies required meticulous management, and Oracle’s policy of counting the maximum vCPUs of an instance type, rather than the actual usage, risked over-licensing and unnecessary costs.
3. Regulatory Hurdles
As a nuclear energy provider, the company faced stringent regulatory controls over system access and changes. These regulatory hurdles complicated the process of gathering accurate data and making necessary adjustments within the limited timeframe, leading to potential non-compliance.
4. Non-Standard ULA Terms
The ULA’s specific non-standard terms, such as a cap of 225 Processor licenses for certification and a 365-day rolling average for Azure counts, required precise tracking and continuous monitoring. The company struggled to accurately calculate usage metrics to ensure compliance with these terms.
5. Accurate License Count
Achieving an accurate count of licenses proved challenging. Overestimating the number of licenses risked substantial unnecessary costs while underestimating could lead to non-compliance and potential financial penalties. The company found it difficult to track and validate deployments accurately to reflect actual usage.
6. Documentation and Evidence
Maintaining detailed documentation and evidence to support the declared license count was problematic. Discrepancies between reported and actual usage could result in non-compliance issues and financial repercussions. Comprehensive reviews of all licensing agreements were not thoroughly conducted, leading to potential misunderstandings of terms and conditions.
7. Legal and Contractual Obligations
Understanding and complying with all legal and contractual obligations was critical but challenging. Ensuring that the certification process adhered to relevant legal requirements and conducting a legal review to understand any contractual obligations were important steps that were not fully accomplished, risking legal disputes and penalties.
By addressing these unresolved challenges, the energy company aimed to successfully certify out of their capped Oracle ULA, streamline their software asset management, and achieve significant financial savings.
Solution
To tackle these challenges, the nuclear energy company partnered with LicenseFortress, leveraging its expertise in software license management and compliance. LicenseFortress developed a comprehensive project plan tailored to the company’s specific needs. They began by conducting a detailed review of the company’s licensing environments, including on-premise VMware and Hyper-V, as well as Microsoft Azure public cloud, to ensure all usage was accurately tracked and reported.
LicenseFortress navigated the complex licensing policies, particularly Oracle’s policies concerning Azure Constrained vCPUs and VM environments, ensuring the company didn’t over-license and incur unnecessary costs. They meticulously tracked the usage against the ULA’s specific terms, such as the cap of 225 Processor licenses and the 365-day rolling average for Azure counts, to maintain compliance.
Additionally, LicenseFortress provided guidance on maintaining detailed documentation and evidence of software deployment and usage, which was critical for accurate license counting and to support the declared numbers during the certification process. They also conducted a thorough legal review to ensure the certification complied with all legal and contractual obligations.
Effective coordination with Oracle was another key aspect of the solution. LicenseFortress facilitated negotiations to defer the certification until all license counts were finalized, ensuring the process was smooth and conducted in good faith.
Throughout the engagement, LicenseFortress’s advanced monitoring tools enhanced the company’s visibility into software usage. LicenseFortress helped the nuclear company to facilitate a more effective license management and strategic planning. Their expertise and strategic approach ensured compliance with software licensing agreements. Resulting in, significantly reducing the risk of future financial penalties and delivering substantial financial savings for the energy company.
Results
The $40,000 investment in this project yielded substantial benefits for the energy company. Thus underscoring the value of strategic management of unlimited licensing agreements. Key results included:
1. $14 Million in Savings
The optimization efforts identified and eliminated unused software licenses, resulting in an estimated total savings of approximately $14M. The nuclear company reduced the number of Oracle Database Enterprise Edition licenses from 440 to 221, under the renegotiated threshold. This resulted in significant savings on license and support costs.
2. Compliance
Compliance with software licensing agreements, significantly reducing the risk of future financial penalties.
3. Improved Visibility
Advanced monitoring tools provided improved visibility into software usage, facilitating more effective license management and strategic planning.
Their Next Chapter
The energy company decided to forgo ongoing protection as an ArxPlatform customer – opting to manage their licensing internally. Post-ULA certifications, it is almost guaranteed that organizations can expect an audit notice. This was the case for the nuclear energy company. Unfortunately, without the continuous support and guidance of LicenseFortress, the company encountered several avoidable compliance issues. Recognizing the complexity and risks involved, the energy company once again reached out to LicenseFortress for audit defense.
Navigate the Complexities of Capped ULAs
Understanding the challenges of certifying out of a capped Oracle ULA is crucial to maximizing savings and ensuring compliance. Download our comprehensive ULA guide to learn how to manage your licensing effectively and avoid costly mistakes.
