The language “license audit” are sure to strike fear to the center of almost any Oracle customer today. In the beginning, moving during the audit process is an inconvenience. At worst, this may cause a unexpected hit to the IT budget — even in case you have been trying in good faith to play by owner’s rules. Across the world, CIOs are trying to maximize IT budgets and lessen the responsibility of expensive annual vendor maintenance fees. They would like to focus on driving creation and innovation into their companies. 

Vendor audits on average occurring at least once every three to four years to get Oracle. If your organization is not prepared, an audit can divert tens, if not tens of thousands of dollars apart from jobs that are critical. Proving that you’re in compliance and clearing up any issues might just be high priced and a drain on resources. In the current market, where new licensing earnings could be harder and more difficult to find, software vendors are likely eager to seek out their next meal. 

Don’t throw bait to the sharks by being unprepared or worry about your applications permit rights and obligations. It’s wise to understand that the risks in a vendor license audit and safeguard against them.Many industry analysts estimate a program licensee can expect an Oracle or some other big seller audit every three to five years. These seller audits are costly, not only with potential non compliance findings, but with requirements on internal tools to encourage audit queries or vendor scripting requirements.

As per a analysis conducted by the ITAM Review, the typical pc software audit takes greater than seven months and also consumes nearly 200 hours of IT section period. That’s time that could have been spent creating efficiencies or innovation.But seller audits aren’t going off. Audits are proven to drive license sales revenue for vendors and can provide owner with leverage when they wish to push a client to embrace emerging revenue channels such as cloud product lines. 

 Consequently, applications licensees need to organize themselves for the inevitable audit also, through this particular diligence, mitigate the risk of a license compliance finding and excessive demands on internal funds.Many businesses believe that they have been compliant with vendor license arrangements yet most of these businesses don’t fully know the many licensing drawbacks which could ensnare even the most diligent of asset management teams.  So how can a business implement a license compliance strategy that will successfully mitigate the probability of compliance findings from future seller audits? Regrettably, there’s absolutely no silver bullet to eliminate all license compliance risk, but here are several recommendations to reduce risk.

  1. Tally your software license assets: the building blocks of almost any Asset Management program is the whole accounting of license assets owned by an organization. Review vendor ordering records and service quotes to identify current assets that are licensed. Maintain a listing of licensed assets at a centralized area for easy reference.
  2. Keep an Oracle Server Worksheet: Document all Oracle applications implementations to accurately track where permits are used. All surroundings (Generation, Test, Development) needs to be recorded and also make note of hardware CPU allocations to permit for accurate license usage counts. Some SAM tools provide a version of the Oracle Server Worksheet as part of their offering.  
  3. Perform an annual internal Oracle audit of permit usage: Assess the usage of most Oracle products and compare findings to the Oracle Server Worksheet and also present quantities of assets that are accredited. An exact measurement and allocation of permit usage might be challenging. Most licensees will require the aid of the competent and independent license compliance firm to properly check their license compliance position.

Vendor licensing policies are often complex and will vary with emerging technologies, and this may make it difficult for licensees to stay informed. The trick is always to be more educated on the Oracle audit process, licensing theories, and Software Asset Management plans to prepare internal tools and mitigate the organization’s risk in case of a seller audit.