Oracle Licensing - Expert Summit
- 1. ULA – A report from the “frontlines” “By failing to prepare, you are failing to prepare” by Redress Compliance
- 2. Introducing Fredrik Filipsson Principal Licensing Consultant and co-founder 15 yrs+ Oracle Licensing Experience •40+ ULA renewals and certification for companies Sweden, Ireland, UK, Germany, Switzerland, US, Canada, Australia, Italy, Spain, France, Saudi Arabia and NL •50+ License Audits •Over 150 different types of Oracle Licensing & Contract work around the world. •Recently completed a US license audit project and a ULA in Germany
- 3. ULA Basics • Pay Oracle 1-50m $ in License fee, a one license fee. (price is based on business value, not customer size or oracle estate) • You choose which products you want to include. Most common is database products and sometimes mixing with middleware. • For how long (negotiable) 1-5 years (3Yrs most common) • You can theoretically deploy 100 000 processors of unlimited Oracle Software. • End of ULA – Licenses converted to perpetual based on your count. • Support will not increase if you exit Oracle ULA.
- 4. ULA contract mechanics: 2019 You sign an Oracle ULA. You pay a one time license fee. 2022 If the agreement is for 3 years, in 2022. You either exit or renew. RENEW means: new license fee and new support. EXIT means: You tell Oracle how much you have deployed and all those licenses will be made into perpetual. (So ULAs can be incredibly powerful it managed correctly)
- 5. The trade/deal you do with Oracle. Oracle gives you unlimited usage rights “The Trade” You give away the right to terminate support contracts 1 by 1 (all CSI become 1) You also give Oracle a very large lump sum of money (license fee for ULA)
- 6. Contract 1+2+3+4+5 + = 736k $ NEW ULA support = It becomes an UNBREAKABLE contract. Contract 1: - 55k $ Contract 2: 120k $ Contract 3: 244k $ Contract 4: 17k $ Contract: 5: 300k $ Oracle ULAs will make your support contract almost “unbreakable”
- 7. Top4 reasons why you might renew your ULA (against your will) You by mistake deploy Oracle Software not part of ULA For example you deploy 1000 processors of Oracle Database EE. During certification/exit process you give Oracle script output. Script output shows Oracle you have accidentally used Advanced Compression not part of the ULA. Its 240 processors and each CPU license is 11 500 $ - combined value 2,7m $ + 22% support = 3,2m $ Oracle proposes you renew your ULA to avoid purchasing new licenses for 3,2 $ and includes the product that you had a gap for. Often the non ULA renewal proposal is non-attractive and companies renew ULA again. #1Deploying non ULA Software
- 8. You sign a contract in US – ULA. Territory clause only says deployments in the United States. During certification/exit process Oracle is informed that you have deployed software in Brazil. Top4 reasons why you might renew your ULA (against your will) #2 Contract Compliance Why do customers renew ULAs when they don’t want to? 100 processors of Oracle Database Enterprise Edition – A list price value of 4,7m $. Oracle proposes you renew your ULA to avoid purchasing new licenses for 4,7m $ and includes brazil in your ULA. And you pay for a new Oracle ULA (license fees higher or same as before and new and old support.
- 9. But then you use Oracle software on legal entities that are NOT part of the ULA. Example 100 processors of DB EE Top4 reasons why you might renew your ULA (against your will) EXAMPLE 100 processors of Oracle Database Enterprise Edition – A list price value of 4,7m $ Oracle proposes you renew your ULA to avoid purchasing new licenses for 4,7m $ and includes the new entities in the ULA. And you pay for a new Oracle ULA (license fees higher or same as before and new and old support #3 Contract Compliance You sign a ULA on parent/corporate level.
- 10. Top4 reasons why you might renew your ULA (against your will) If you deploy Oracle ULA software in Azure or AWS For example you deploy 100 processors of Oracle DB EE. When the ULA ends those deployments cannot be counted towards the exit numbers. So you are in affect non- compliant. During certification/exit process Oracle is informed that you have deployed software AWS. 100 processors of Oracle Database Enterprise Edition – A list price value of 4,7m $ Oracle proposes you renew your ULA to avoid purchasing new licenses for 4,7m $ and includes some rights to allow cloud deployments the next time you exit your ULA. And you pay for a new Oracle ULA (license fees higher or same as before and new and old support #4Deploying Oracle Software in non Oracle Cloud.
- 11. How 15 companies did in their ULAs
- 12. Why did they enter an Oracle ULA? Audit result, 7 Other reasons, 8 WHY?
- 13. What was the cost of their ULA? 0 6 4 2 3 <1m euro 1m-3m 3m-6m 6-10m 10m >
- 14. ULA experience 6 9 Renew at least once First time ULA
- 15. Why did they renew their first ULA? 4 2 Non compliant Other
- 16. Our ULA compliance statements License gaps 0 2 2 5 6 <1m euro 1m - 3m 3m-10m 10m -30m 50m > Top 4 ULA compliance issues Deployed non ULA Products Combining 1# with virtualization Deployed in public cloud Contract Compliance 21 3 4
- 17. What decision did they make? 5 10 Renew Exit
- 18. If you discover license gaps - what can you do? You can renew the ULA with new products (without alerting Oracle) • Why not alert Oracle? : Because ULA pricing is not transparent, its based on a fictive business value. • If ULA negotiations are based on 20m euro non compliance, ULA Price will be much higher compared to a competitive negotiation ULA. You can try to remove license gaps – then rerun scripts to see if it is removed. You can put "compliance issue" on physical servers (less CPUs) and purchase licenses. Often 90-100% of all license compliance you can resolve without purchasing a license. 1 2 3 4
- 19. Report from the frontlines
- 20. Current status: European Retail company – 120 000 employees. Company had not made decision on their ULA at the start. Previously: 3x ULA renewals, each for 3 years. (9YR ULA) ULA included Database, options and WLS ULA Expiring in Dec 2019
- 21. Their Oracle estate Using Flexera to manage Oracle. 1000 databases, 250 WLS. 10% running in Azure. 5 DCs, globally, both physical and virtual (VMWare)
- 22. Date 1 5 12 19 26 3 10 17 24 31 7 14 21 28 5 12 19 26 Week # in project #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 #11 #12 #13 #14 #15 #16 #17 #18 Project Timeline Oct’ 2019 Nov’ 2019 Dec’ 2019 Jan’ 2020 Contract signature • Setting up project • Scheduling kick off call • Share ULA contract • Onsite meeting • ULA Contract analysis • ULA Training • Project Kick off • Validation of data collection Deployment analysis (script analysis) Data collection from Client (script output) • Project Results • Onsite meeting • ULA Compliance • Non ULA products • Remediation advise Creation of deliverables ULA Decision
- 23. Contract Analysis - example “You shall furnish Orade with a certification signed by a C-level executive of Your entity verifying the quantity of Processors on which the Unlimited Deployment Programs are installed and running” IMPACT It means you shall only sign a document specifying the numbers. This is the “old clause” Oracle is nowadays offering a text saying you need to co-operate with Oracle LMS. “You may not certify Unlimited Deployment Programs that have been deployed into the public cloud (for purposes of this order, examples of the public cloud include, but are not limited to, Amazon EC2, IBM's Blue Cloud, Sun Cloud, Googles AppEngine and Microsoft Azure) as of the date on which the Unlimited Deployment Period ends (such certified quantity, the "Certified Deployment" ).” IMPACT At the end of the ULA if you have any deployments in a third party cloud. They will not be counted towards the certification = automatic non compliance.
- 24. Process Step 1: • Training all stakeholders ULA contract mechanics. • Why 1: Often misconceptions about the ULA prevents maximization by IT/App owners. • Why 2: Allow company to make an more informed decision about ULA: Step 2: • Analysis of the ULA contract • Why 1: to identify any contractual risks in the ULA. • Why 2: To understand the certification process. • Why 3: An incorrect ULA such as missing legal entities or incorrect territory might make a ULA exit very difficult. CONTRACT ANALYSIS REVEALED: 90 days certification instead of standard 30 days. did not say anything about co-operating with Oracle LMS or running oracle scripts. All legal entities were covered. All geographical territories covered (worldwide) did not allow cloud (azure) to be used for exit numbers.
- 25. Process Step 3: • License Compliance • We use Flexera inventory as a baseline where is Oracle installed. • We used LMS options file from Flexera to perform an analysis of all db options. END RESULT: Flexera showing license requirements when there was none. Flexera not showing license requirement when there should have been. Flexera is unable to do basic version recognition for WLS. We used Oracle FMW scripts to analyse versions.
- 26. Oracle Actions: ORACLE BEHAVIOR - Very keen to run scripts on clients environments. (to help count) - As customer was undecided Oracle offered “free” advice by SIA. - ULA Insight workshop was offered to help company make a decision. - No threats about audit Oracle wanted to know about renewal 6 months before ULA expiry. 1. ULA remain as is (same products, same term, same price) 2. ULA with a few new products (slightly higher price) 3. Perpetual ULA (50%+ more then as is ULA) ORACLE OFFERS:
- 27. End results • Signed a 3-year ULA including the products that caused non compliance. • Pricing was the same “as current ULA”. • ULA expired in Dec 30th. • ULA was signed on January 30th.
- 28. 4 Lessons learned 1) Late in reviewing licensing, By being late in renewing licensing there was no time to take remediation steps before ULA exited. Customer felt that the risk identified was easiest eliminated by renewing ULA with new products. Most of the non compliance was due to DBA using something by mistake and was not needed by the business. It can be removed, but it requires time and effort. = cost. 2) No optimization – They had ULA products that were not deployed, some application owners did not know the ULA term and was expecting HW refresh post ULA. If they would have known earlier about the ULA they could potentially have made HW refresh in ULA. 3) License gap identified– Estimated value: 20m euros, this was resolved renewing the ULA with new products at a value lower than €2m. But if Oracle would have known about the licensing gap the ULA price would have been €5m+ 4) SAM tool – Unreliable data. We used it only for discovery purposes “where is Oracle SW installed” by trying to figure out WHY the SAM tool was reporting incorrect data is a waste of time. (Its Flexera SW development) You can use the options file (raw output) and analyze it. Instead of running Oracle LMS scripts where running scripts will take time.
- 29. Get more ULA knowledge • 5 secrets about Oracle ULAs that Oracle does not want you to know about– https://www.linkedin.com/pulse/5-oracle-ula-secrets-what-does-want-you-know-fredrik-filipsson/ • 21-must ask questions about your Oracle ULA license agreement https://www.linkedin.com/pulse/21-must-ask-questions-oracle-ula-agreement-morten-andersen/ • 6 common mistakes companies make when exiting their Oracle ULA https://www.linkedin.com/pulse/6-common-mistakes-companies-make-when-exiting-oracle-ulas-filipsson/ • How to avoid a “forced ULA renewal” https://www.linkedin.com/pulse/how-avoid-forced-oracle-ula-renewal-fredrik-filipsson/ • How to master your Oracle ULA agreement https://www.linkedin.com/pulse/how-master-your-oracle-unlimited-license-agreement-fredrik-filipsson/ • Oracle Masterclass Negotiations: From On Premise Licensing to Cloud Contracts (https://www.youtube.com/watch?v=0k8c2vNErMw&feature=youtu.be) • Oracle License Management Training: How to exit your Oracle ULA https://www.youtube.com/watch?v=jvCHqDWgvDQ
- 30. Thank you CONTACT ME www.redresscompliance.com fredrik@redresscompliance.com +353 168 74903 Oracle License Management – Free Training 31 hours of recorded video training this dealing with Oracle Software topics: https://app.livestorm.co/redress-compliance Newsletter - https://mailchi.mp/168cad9b93c8/oracleplaybook Connect with me on LinkedIn Fredrik Filipsson
- 31. 5min break
- 32. 1. Improve Oracle Capability - > SAM tool • You can improve your understanding of your SAM tool capability. • Run Oracle LMS scripts and have an expert tell you what requires licensing. • Then compare with the SAM tool findings. • Avoid over-purchasing licensing. • Perform remediation & Risk reduction activities • Improve your tool (it can be great, but you need to understand what it can and cant do) • Create processes for dealing with SAM tool weaknesses WHY:
- 33. 2. Stop the ”bleeding” – annual license review • Get control over your Oracle licensing. • Only reliable way is to implement a process where you use Oracle “LMS” scripts. • You can implement a solution where the LMS scripts are run on an annual basis without much overhead. • No fear of Oracle license audits. • Can actually be used to prevent audits. • Massive savings > no more license audit fees • Massive savings > quickly identify unused software. WHY:
- 34. 3. Pay attention Licensing & Versions • Standard Edition if you update your database you will suddenly need SE2 licensing and can fall into Enterprise Edition licensing. • In 19c only, you can have up to 3 PDBs created without a license. (create more and you need a license, also not free in earlier versions) • RAC is no longer included in standard edition in 19c. (need EE) • More risks to be non compliant on SE DB and risk EE licensing per core. • More information and checks to be aware of for Oracle SAM professionals. • Oracle are making Licensing more difficult NOT easier. WHY:
- 35. 4. Java Licensing • Don’t wait for the inevitable audit. • After a license review is complete it may take you 6 months before you are able to make a decision • Most Java installations are not used but deployed as wrongly assuming “free” • Oracle have stopped reselling Java from partners. • Oracle wants you to sign Java ULAs • No formal Java audits seen • Not uncommon to uninstall 90% on desktop Java. • Not uncommon 70% of server Java is not utilized/needed. WHY:
- 36. 5. Oracle Changes to Audit Clause • Contract leverage moved to Oracle. • Previously audit clause did not mention “scripts/data measurement” customers could say they did not want to run them. Oracle usually accepted. • You can renew your old OMA as is or remove the language about data measurement tools. • For various reasons you might not want to run Oracle audit scripts/measurement. • 2 companies have renewed old OMA without the audit clause requirements. • 1 company managed to remove the mentioning about data measurement tools completely. WHY:
- 37. Questions?