Is Oracle Using License Audits to Push its Cloud Offering?

Oracle uses its sales organization to not only drive revenue, but to push it’s customers into new technologies and new directions. Oracle sales in turn uses the license audit team (LMS) as an arrow in the sales quiver. Where Oracle wants to go, Oracle sales will march and bring LMS with them. Although they may play the good cop/bad cop game, sales and LMS have the same boss and the same goals.

A few years ago we noticed there were quite a few instances where Oracle sales would push Exadata as a way for customers to not only solve their transaction processing problems, but also as a way to magically resolve license audit issue. The pitch was simple: buy this Exadata machines and all/most your audit problems will go away. At Palisade Compliance we have several customers whose Exa machines are sitting quietly unplugged on the data center floor. There was never a need for the machine other than to resolve the Oracle license audit.

Recently we’ve been told the exact same thing is happening. This time, however, substitute “Oracle Cloud” for “Exa-product”. Where customers had no intention of buying into Oracle’s cloud services, they are now being wooed to do so. Because of the nature of our business, we don’t see the wooing around best cloud services, or TOC reduction. We see a sales pitch that goes like this: buy some Oracle cloud and we can help you get rid of/severely reduce those audit findings. One client told us they will never use the service they just bought. To be fair, we have other clients who signed up for Oracle cloud services and were not under audit or threat of an audit.

Knowing Oracle practices, patterns, and motivations is a powerful lever in getting the best out of your Oracle negotiation or audit. This push to use Oracle Cloud to resolve audit findings is just one of many many Oracle idiosyncrasies that come into play when dealing with this particular vendor. You can use this as a tool in your negotiations and strategic planning.

Palisade Compliance is the world’s leading independent provider of Oracle licensing, contracting, and auditing advisory services. Our Oracle license management services empower our clients to take back control of their Oracle environment, achieve compliance, and save money.