Executive Summary
A major water utility company, led by the IT Asset Manager, sought to address significant compliance issues across its Oracle Database and Middleware platforms. Facing an $84 million compliance gap, the company partnered with LicenseFortress to conduct a comprehensive review and implement the ArxPlatform for licensing management. Through strategic actions such as decommissioning unnecessary databases, reassigning licenses, and leveraging VMware technologies, the company optimized its software usage. With a project cost of $68,000, the company achieved a remarkable return on investment of 123,775%, securing long-term cost management and compliance.
$68K
Project Cost
$84M
Savings
124K%
ROI
At a Glance
Challenges
The company faced a myriad of challenges in managing their software licenses. An in-depth review uncovered a staggering $84 million compliancy gap across their Oracle Database and Middleware platforms. This gap was not merely a financial discrepancy but a potential risk for significant penalties and operational disruptions.
Their licensing landscape was complex due to under-licensing issues. For example, the company was short by 264 licenses for the Database Enterprise Edition and 529 for the WebLogic Suite. These deficiencies were critical as they directly impacted the company’s ability to leverage these technologies effectively. The challenge was not just about filling these gaps but also understanding the intricate licensing requirements within a virtualized environment.
Such challenges are common in large organizations where software usage spans multiple departments and applications. The complexity of managing these licenses is exacerbated by frequent changes in software usage and the evolution of licensing agreements. Without a robust system in place, it becomes challenging to maintain compliance, leading to potential legal and financial repercussions.
Solution
To tackle these issues, the water utility company initiated a comprehensive plan with the setup of the ArxPlatform. The ArxPlatform ingests and analyzes their IT environment, providing a detailed overview of software usage and compliance status. They conducted meticulous reviews of their Database Middleware and E-Business Suite, identifying and addressing the significant compliancy gaps.
Substantial steps were taken to rectify the $84 million compliancy issue. These actions included decommissioning unnecessary databases and reassigning existing licenses to cover critical needs like Active Data Guard. They also utilized VMware technologies to manage Oracle Data Integrator and WebLogic Suite more efficiently in virtualized environments. This strategic move involved creating dedicated clusters for Oracle Business Intelligence and Identity Manager, ensuring that licensing requirements were met without unnecessary expenditure.
A phased approach was adopted to review application usage continually. This involved regular monitoring, end-dating unnecessary users, and ensuring accurate licensing for applications such as Oracle iProcurement and Financial Analytics. By actively managing and optimizing their software licenses, the company not only addressed their immediate compliance issues but also established a sustainable model for future management.
Results
The implementation of these strategic actions resulted in significant achievements. The company successfully brought their Oracle Database and Middleware licenses into compliance, effectively eliminating the $80 million gap. This proactive approach not only avoided potential financial penalties but also optimized their software investments, leading to substantial cost savings. The annual cost of the project was $68,000. Given the initial compliance gap of $84,045,750, the company realized a remarkable return on investment (ROI).
Through diligent management and optimization of their software licenses, the company ensured that they were only paying for what was necessary, thereby maximizing the value of their IT investments. This case study underscores the critical importance of regular software license reviews, strategic planning, and leveraging technology to maintain compliance and achieve significant cost savings. The water utility company’s experience serves as a model for other organizations facing similar challenges in the ever-evolving landscape of IT management.
Building on this success, the company turned its focus to the next phase of their engagement with LicenseFortress: addressing their Java licensing needs to further enhance compliance and efficiency.
