Executive Summary
After an Oracle audit revealed a $4.2 million licensing gap, the Director of IT and Director of Procurement at a leading SaaS provider sought advice from their network. When two independent sources recommended LicenseFortress, they enlisted their services for audit defense. LicenseFortress successfully guided the company through the audit, reducing their liability by $3.2 million. Still reeling from the audit, the company sought to review their Oracle Java usage in light of the latest licensing changes. After LicenseFortress helped align their Java usage, their final step to ensure ongoing security and compliance was to become an ArxProtect customer, safeguarding their license position.
$40K
Project Cost
$3.2M
Savings
79K%
ROI
At a Glance
Challenges
The company, known for its diverse range of sector-focused software portfolios, required a robust solution to mitigate compliance risks and enhance security measures to continue delivering reliable services to its clients. Their challenges began when Oracle conducted an audit and identified several compliance gaps and potential under-licensing issues, particularly related to the use of VMware. The audit revealed a potential exposure of approximately $4.2 million due to the mismanagement of Oracle licenses across various datacenters. Key issues included a misalignment between the number of Oracle licenses owned versus the actual usage, inadequate tracking and documentation of software entitlements and renewals, and the risk of significant financial penalties due to non-compliance with Oracle’s licensing policies. Additionally, the company faced security vulnerabilities that needed addressing to protect their critical systems and sensitive customer data.
Solution
To address these challenges, the company engaged LicenseFortress for a comprehensive solution encompassing audit defense, compliance management, and security enhancements. The first phase involved Oracle audit defense and compliance gap analysis. The experts conducted a thorough analysis of the Oracle audit findings, identifying the exact compliance gaps and areas of under-licensing. They deployed advanced tools to map out the company’s entire software usage landscape. This ensured a detailed understanding of current entitlements and compliance status.
Following the initial audit defense, the company embarked on a focused Oracle Java compliance project. This phase included reviewing and verifying all Oracle Java contracts and entitlements, conducting a legal review and deep dive into the Oracle Java architecture, and implementing a compliance and optimization report to streamline Oracle Java usage and mitigate any compliance risks.
A strategic plan was created for the SaaS provider that outlines the necessary steps and timelines for phasing out Oracle Java and adopting alternate solutions that meet the provider’s operational requirements. By transitioning away from Oracle Java, the SaaS provider is positioned to avoid ongoing licensing complexities and reduce associated costs, ensuring greater long-term stability and flexibility in their technology stack.
Results
Despite their actual compliance gap being $0, external pressures led the company to settle with Oracle. LicenseFortress helped them reach a deal for $1 million rather than pursuing legal action. The strategic investments and phased approach ultimately saved the company $3.2 million. LicenseFortress successfully mitigated their financial exposure and achieved full compliance with Oracle licensing requirements. The company avoided hefty penalties and streamlined their software asset management. Ultimately, leading to more efficient use of existing licenses and a reduction in unnecessary purchases.
Today, the company is an ArxProtect customer, leveraging a comprehensive software license management solution that is meticulously tailored to their unique requirements. ArxProtect deploys the ArxPlatform across all infrastructure layers—virtual, cloud, and physical—ensuring seamless integration and oversight. This solution offers continuous scanning and monitoring to proactively detect and address security vulnerabilities, while also providing the added assurance of a financial guarantee that covers any unexpected compliance costs, ensuring their environment remains secure, compliant, and protected.
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