The challenge
A multinational financial organization that handles back office support for credit unions across an entire nation, as well as banks in surrounding territories, had implemented Oracle software to replace an outdated legacy system. The organization was providing core banking services to credit unions across its global footprint. The firm had adopted Oracle’s FLEXCUBE Core Banking application for this function.
The organization had selected Oracle to run the entire implementation project. From the start, Oracle gave recommendations on the way licenses should be structured and the number of licenses needed. This licensing approach extended to FLEXCUBE, but also to other back office software such as Database and WebLogic as well as UAT (User Acceptance Testing) environments.
The firm took Oracle’s guidance on the type and number of licenses needed for the implementation. Despite this, soon after the implementation, the organization received a notice that Oracle was auditing them. What made this astonishing was that Oracle had not only recommended the license configurations, they had built the entire system and conducted the implementation themselves! Many at the firm were understandably alarmed by this development and reached out to the Oracle account manager overseeing the implementation. However, the audit proceeded because the account management and auditing branches of Oracle seemed to be disconnected: the account manager could do nothing to stop the audit.
The solution
Based on the recommendations of the firm’s CFO and others inside the organization who had previously worked with Palisade Compliance on Oracle audits at other businesses, the company contracted with us to help navigate the audit process. Their leaders knew that Oracle audits could be harsh and intrusive and they wanted a way to manage the process as smoothly as possible.
Although the organization pointed out numerous times to Oracle that Oracle itself was managing the software and the licensing, the audit proceeded anyway. With us alongside, the firm knew it could avoid admitting to any license problems that didn’t actually exist and that it would have a knowledgeable partner to decipher the Oracle operating agreements.
Going with Palisade Compliance gave our client the confidence to know when and how to say no to Oracle’s demands.
With our help, the firm began operating only one point of contact with Oracle. All communication was channeled through this point, ensuring unified messaging.
At the outset of the audit process, Oracle requested the ability to run scripts across all of the firm’s production databases. With our backing, the business refused, as that would have revealed financial and personal information of banking clients to Oracle – a clear breach of the company’s security policies. Going with us gave the firm the confidence to know when and how to say no to Oracle’s demands.
Oracle’s initial audit determined that the firm was many licenses short and owed millions of dollars to Oracle. However, because of its partnership with us, the organisation knew this wasn’t accurate. After receiving this finding, the firm, with assistance from us, went back to Oracle and asked for further evidence, while pointing out why their conclusions were wrong.
Subsequent analysis and review by Oracle found the opposite of their initial finding – that the organization actually had too many licenses!
In one of the implementations Oracle handled, Oracle had installed a database add-on without the firm’s knowledge. It was a product that the organization hadn’t asked for or wanted. By going through the audit process with us, the firm was able to point this out to Oracle and have the product removed, saving additional future licensing fees.
The entire process took six to seven months but it was worth it, because the organization was able to avoid paying for licenses that were already allocated correctly.
Outcome summary
With our help, the financial services firm did not have to pay unnecessary compensation to Oracle. They now have the wherewithal and knowledge to stand up to Oracle’s tactics. When the firm pushed back on Oracle’s initial flawed findings, it found that Oracle conceded the point fairly easily. But without us, many companies just acquiesce to Oracle.
The leaders of the firm took home the lesson that Oracle will push for audits on any client – even if Oracle does the implementation itself. They found that really sticking to their guns and not giving into Oracle’s demands put them in a strong position. This was made possible by the relationship with us.