Top 10 Oracle Licensing and Cost Optimization Challenges
A list of the top 10 Oracle licensing and cost optimization issues:
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Forced ULA Renewals: Oracle pressures customers to renew Unlimited License Agreements (ULAs), even when unnecessary. They often leverage alleged non-compliance to coerce renewals, leading to unnecessary costs. Oracle ULA Certification is the best way to get out of the trap and save money.
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Unlicensed Feature Usage: Oracle Database Enterprise Edition installs with nearly all features enabled, placing the burden of compliance on the customer. Unintentional use of unlicensed features results in non-compliance and potential fines.
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Incorrect WebLogic Installation: WebLogic’s single installer includes all editions, making it easy to inadvertently use features from higher-tier editions, leading to immediate non-compliance.
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Complex Java Licensing: Frequent changes to Oracle Java licensing (2019 and 2023) have created a complex landscape, making compliance difficult and generating significant revenue for Oracle. This complexity puts many businesses at risk of non-compliance. Java license cost can be very prohibitive for customers. Getting a Java license assessment is the best option to reduce costs.
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Virtualization Licensing Ambiguity: Oracle’s “soft partitioning” and “hard partitioning” definitions create confusion and are often used to justify higher licensing fees. Non-compliance with these (sometimes non-contractual) interpretations can drastically increase licensing costs.
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Resistance to Support Cost Reduction: Oracle resists customer efforts to reduce support costs, despite rising fees (6-8% annually) and the availability of cheaper, often better, third-party support options. Discussions about support cost reduction can trigger license compliance scrutiny.
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Increased License Audits (Soft and Formal): Oracle has increased audit activity. “Soft audits” by sales executives create the illusion of a formal audit to uncover potential non-compliance and drive sales. Formal audits, conducted by License Management Services or legal counsel, are also on the rise.
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SaaS Compliance Challenges: Despite initial expectations, Oracle SaaS deployments present compliance challenges related to user roles, license metrics, and third-party access, leading to unexpected costs.
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Lack of Price Controls in Contracts: Failing to negotiate price caps, holds, or rate contracts exposes customers to significant cost increases during renewals. Usage reductions don’t automatically translate to lower prices.
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Changing Sales Bundles and Metrics: Oracle’s frequent changes to sales bundles, license SKUs, and (especially in SaaS) license metrics create confusion, compliance issues, and potential price increases.
