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Compliance auditOf course Oracle doesn’t tell me what they are doing anymore. That ship sailed a long time ago. However, based on what we are seeing in the market, it appears that Oracle is targeting smaller customers for audits. (Large customers are still a target, so don’t let your guard down.) The question becomes: why would Oracle do that?

I think the answer lies in Oracle’s push to drive cloud revenue. Of course Oracle is pushing their cloud offerings on all customers, regardless of size, but I think there is a bigger push going on these days with smaller companies. Here’s why:

First, smaller companies are typically easier targets.
Traditionally they may not have dedicated software asset management programs. This lack of infrastructure can lead to severe compliance problems as no one is minding the compliance store.

Second, smaller companies may not believe they are on Oracle’s radar.
I’ve had executives at small companies tell me directly that they were shocked to get that audit letter because they were so small. At Palisade we’ve helped companies smaller than us through Oracle audits. As far as getting the Oracle audit letter, size does not matter.

Third, it’s easier for smaller companies to be forced to move to the cloud.

What I mean by that a smaller company probably has less stuff to move. There is probably less complexity to their environments than you would see in a larger international firm. The easier it is to move, the more likely you are to move it.

Fourth, Oracle can pressure (even bully) smaller companies in a way that Oracle simply cannot do with larger companies.
Don’t get me wrong, Oracle will try to push around large companies as well. Smaller companies are less likely to stand up to Oracle on their own. They are more fearful of an Oracle escalation to legal. The ironic part here is that smaller companies often have more leverage in audits than larger companies. The reason is that Oracle puts their “B Team” auditors on these accounts. With proper guidance (perhaps from Palisade?) these smaller companies can drive their own audit process through the Oracle B Team. The more senior oracle auditors are out there trying to catch the big fish.

All these factors seem to be pointing to Oracle’s increased pace of auditing smaller companies. Oh, there is one more reason why I think Oracle is doing this. That is, the Palisade phones are ringing off the hook from smaller companies looking for help with their Oracle audits. The really good news is that Palisade doesn’t have a B Team. We put our A Team on these engagements and that really drives optimal results for our clients.

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