ITAM Review Oracle Seminar

Oracle Seminar, 21st November, London #ITAMROracle @itamreview Platinum Sponsor

Welcome & Open
Mark Flynn, ITAM Review

Agenda - AM
09.35 – 09.45 Vendor Introductions Vendors
09.45 – 10.20 Common Oracle licensing contracts and grey areas of
licensing risk
ITAMS
10.20 – 10.55 Oracle ULA – Top Tips for maximising ROI Piaras McDonnell
10.55 – 11.25 Refreshment Break
11.25 – 12.00 What to expect during an Oracle License Audit and how
to prepare yourself
Richard Spithoven
12.00 – 12.35 Taking the bite out of software licensing terms Deutsche Post DHL
12.35 – 13.35 Lunch

Agenda - PM
13.35 – 14.20
Workshop:
Practical Strategy for
reducing Oracle
licensing costs
Workshop:
How to build an Oracle
audit defense strategy
Workshop:
Getting under the hood
of DHL’s unique
approach
14.20 – 15.05
Workshop:
reducing Oracle
licensing costs
Workshop:
Workshop:
of DHL’s unique
approach
15.05 – 15.25 Refreshment Break
15.25 – 16.10
Workshop:
reducing Oracle
licensing costs
Workshop:
Workshop:
of DHL’s unique
approach
16.10 – 16.20 Key Risks in managing Oracle Licensing Report
Summary
Martin Thompson
& Mark Flynn
16.20 – 16.30 Closing Remarks

Platinum Sponsor
Gold Sponsors

CCL’s Oracle Research

Common licensing contracts and
grey areas of licensing
Madalina Chirculescu
Monica State

Agenda
1. Oracle Licensing Complexity
2. Oracle Contract Types:
Ø Standard:
q OLSAs/OMAs (Oracle Licence and Services Agreement/Oracle Master Agreement)
and the ODs (Ordering Document)
Ø Non-standard
q ULA (Unlimited Licence Agreement)
q EA (Enterprise Agreement)
q Campus Agreement
q POF ( Pool of Funds)
3. House-Keeping Rules.
4. Gotchas/Areas of risk
5. Recommendations

Oracle Licensing Complexity
Lack of
restriction
on software
deployment:
no
installation
key
Difficult
software
recognition:
no SKU ID
Compliance
measured
on usage,
not
installation
Features
and options
come
already
enabled
Flexibility
comes with
its
drawbacks

Oracle Contract Types
ULA POF
Enterprise Campus
Standard Agreements
Non-standard Agreements
OLSA/OMA OD

House-Keeping Rules
Oracle Contracts – Handle with care!
q What : Record all purchases – Ordering Documents, Schedules, Addendums, Support
Renewals
q How : In historical order – Register every document chronologically
q When : Periodically – every 6 months, every quarter, year
q Who : Dedicated resource – internal and/or external
This is not sufficient ! Understand what you sign!

Gotchas/Areas of risk
Top 5
1. Audit – standard vs. non-standard
2. Inflated quantities – support related
3. Territory – location where you are allowed to use the licences
4. Customer definition – some ODs, depending on the size of your company,
may hold definitions related to the entities included in the agreement
5. Internet Hosting – use NOT for internal business operations

Gotchas/Areas of Risk
Others
ü Order minimum – usually applicable for EBS products
ü Price Hold – keep track of the negotiated rates and use their benefits
ü Product scope – check unsupported licences
ü Metrics Definitions – although these are included in the LDR (license and
definitions rules) of the OLSAs/OMAs, they can also be included in the ODs
ü Converted/replaced/omitted licences – in conjunction with ULAs
ü Master agreements – usually their clauses prevail over the local ones

Recommendations
q Allocate sufficient time for record keeping;
q Set periodical internal assessments/Set up a SAM program that takes
permanent control over the software lifecycle;
q Make decisions only after being fully aware of your effective license position;
q Build long term relationships with the vendor;
q Understand the NOW to be prepared for the future;
q Keep informed: inside and outside your organization.

Q&A
Thank you!
E: info@itamsolutions.com
T: +44 (0)8704 050509
W: www.itamsolutions.com

Oracle ULA’s
Tips for a
successful exit
Piaras MacDonnell
Suredatum

What is an Oracle ULA
Single Up-front Fee & Fixed
Support
Many license for specific
product
Oracle Unlimited
License
Agreement
Document what’s used at the
end Fixed Timeframe

ULA Exit Tip #1
Start Early!

ULA Exit Tip #2
Plan for Success

ULA Exit Tip #3
What Get’s Measured..….
• Cost Per Core per product
• Number of Cores per product
• Cost of Compliance Risk

ULA Exit Tip #4
Use Virtualization to your advantage

ULA Exit Tip #5
Something old, something new…..

ULA Exit Tip #6
Actively manage products NOT
covered by ULA

ULA Exit Tip #7
Get License Advice

ULA Exit Tip #8
Price Holds & Strategic Purchases

ULA Exit Tip #9
Manage Account Managers expectations

ULA Exit Tip #10
Prepare to Defend Certification

ULA Exit Tip #11
Prepare to wait for official sign off

ULA Exit Tip #12
Harvest what you have sown

Top 3 - Takeaway
1. Start Early
2. Use virtualization rules to your
advantage
3. Get license advice

Wrap-up
Breakout session this afternoon
Piaras.MacDonnell@Suredatum.com
@PiarasMacDonnel #ITAM Tips
Thank you

Refreshment Break

Round Table
Bonus Tips

ULA Exit Tip #13
Awareness Campaign
(without the words ULA)

ULA Exit Tip #14
ULA
Signed
B/E
Time
Know your true breakeven Point
Cost per core

Typical Oracle ULA Life cycle
ULA
Signed
Initial
Review
Price
Hold
Prepare
Negotiate 24 6
Accept
Cert
12 Certify BAU
Review
or
Audit
36
Deploy Measure Certify
Defend

Oracle License Audit:
Are you ready?

Introduction

Agenda
- Common misunderstandings and issues …..
- What is an Oracle Audit?
- Start
- Execution
- Closure
- Under an Oracle Audit?
- Things to consider….
- Tips & Tricks
- Best solution to tackle an Oracle Audit?

Common
misunderstandings & issues…
- Not cooperating or delaying an Oracle audit is ok !?
- COLS Business Review ≠ Oracle License Review ≠ Oracle Audit !?
- End –users being re-active in terms of managing Oracle licenses and
becoming (too late) active/pro-active’ at the start of an audit.
- We are now using an Oracle Verified Tool, so we have full control !?
- It’s all in the details:
- No clarity on the real license entitlements
- No clarity on the real license deployment and (licensable) usage

What is an Oracle Audit?

Start of an Oracle Audit

A closer look at Oracle’s Standard Audit Clause:
Upon 45 days written notice, Oracle may audit your use of the programs.
You agree to cooperate with Oracle’s audit and provide reasonable
assistance and access to information. You agree to pay within 30 days of
written notification any fees applicable to your use of the programs in
excess of your license rights. If you do not pay, Oracle can end your
technical support, licenses and/or this agreement. You agree that Oracle
shall not be responsible for any of your costs incurred in cooperating with
the audit.

- Oracle License Management Services (LMS)
- Organizations are selected for an audit by either:
Oracle LMS
Oracle Sales
- License Compliance Risk analysis includes multiple parameters
(e.g. historical metrics, purchase date, mergers/acquisitions etc.)

- “Notification Letter” to your CIO and/or CFO.
- Oracle License Review = Oracle License Audit!
- Objective to determine compliance issues ($)
and cross/upsell opportunities ($)
- Single Point of Contact
- Kick Off Meeting / Call

Execution of an Oracle Audit
Product Scope:
- Oracle Database, Database Options, Database Mgmt Packs
- Oracle Application Server
- Oracle Weblogic Server
- Oracle SOA Suite
- Oracle JD Edwards
- Oracle Siebel
- Oracle E-Business Suite
- Oracle PeopleSoft
Note: Other products can be included, but are typically not included.
Legal Entity Scope:
- Which legal entities are included in the scope of the audit

License Inventory
._ Oracle software programs
._ Order Nr’s/Order Dates
._ Support Start Date, End Date
._ License Metric
._ License Level
._ License Status
._ other

License Inventory
SP1 PD10g BP
OF OLSA
SR
SP2 PD11g BP
SR SR
SR SR
Time

._ Oracle Server Worksheet (*.xls)
._ CPU queries (OS Commands)
._ Screenshot of Virtual (VMware)
Infrastructure Client
1 Hardware Discovery
License Inventory

._ Oracle Fingerprints
.- Oracle Discovery Tool (OMT)
2 Software Inventory
License Inventory

Oracle Product Specific Queries:
- Review Lite (Database, DB Options, DB Packs)
- FMW Script (Weblogic, OAS)
- Siebel Extraction Scripts (Siebel)
- Audit Trail (E-Business Suite)
- Remote Review Tool (JD Edwards)
3 Software Configuration
License Inventory

Oracle Product Specific Queries:
._ Application Record Form (Database & Middleware)
._ Siebel Usage Tracking feature (Siebel)
._ Usage Based.sql (E-Business Suite)
4 Usage Determination
License Inventory

Other items:
.- company file
.- hosting or not?
.- $ metrics
.- geographical
.- etc.
5 Non-system data
License Inventory

5 Non-system data
Manual Data Gathering
& Analysis
T o o l i n g /
s c r i p t s
Contract Analysis

Closure of an Oracle Audit
- Oracle LMS - Final Report
- Oracle Compliance Policy (30 days policy)
- Back Support Fees
- Oracle Sales - Commercial Resolution
Full details of Oracle’s Compliance Policy can be found through:
http://www.oracle.com/us/corporate/license-management-services/policy/index.html

Why you should care, the cost
of even one PROC out of compliance?
Example:
End-user has 2 Processor licenses Oracle Database Enterprise Edition but
is found to make use of 3 Processor licenses Oracle Database Enterprise
Edition for a period of 6 years:
List License: $ 47,500
List Support: $ 10,450
Standard Discount: 10%
Net License: $ 42,750
Net Support: $ 9,405
Back Support ( 6 years) 6 years x $ 9,405 = $ 56,430
Total Fees: $42,750 + $9,405 + $56,430 = $108,585

Under Audit? Things to consider..

- IRM involvement (sensitive, confidential data)?
- Can data gathered leave your premises?
- Which results are shared when, and with whom from Oracle Sales?
- What is the performance impact of the Oracle Audit tools proposed?

- Make sure that you understand before the data is collected:
- Why is this data collected?
- What data will be collected?
- Where is this data collected from?
- How will this data be used?

- Enforce you know what will happen with the data before you share it:
- What will Oracle do with the data collected?
- Where will Oracle store the data collected?
- Who can access the data collected by Oracle?

Under Audit? Tips & Tricks..
What to do to let things run smooth?
- Quick Risk Assessment
- Share and manage the expectations towards C-level
- Internal Governance, Communication and Escalation Model
- Oracle Project Team
- SPOC (Project Manager)
- Legal, Purchasing/Vendor Management, IT Depts, Outsourcer
- Steering Committee
- C-level / Members of the Board
- Data sharing within your company; (leaking results externally)
- Do your own research before ( and during) the audit(!)

Best Solution
to tackle an Oracle Audit?
Be pro-active and take the control yourself,
and don’t wait until you get audited by Oracle!
How?
Perform regular internal license reviews;
determine your license compliance position
and mitigate financial, operational and legal risks.

Some take aways…..
Make sofware license management a priority at C-level and budget
for the proper software license management practice, tailored to the
specific needs of your organisation .
Create an internal software license management team of multiple
disciplines (procurement, legal, DBA, Infrastructure Managers, Business
Application Mangers, Outsourcers) with C-level sponsorship and review
on a regular basis:
- your real license entitlements (incl OD, OLSA, SR, SP, PD, BP)
- your real deployment and (licensable) usage of the software
- reconcile your license entitlements with your license deployment
and usage in order to identify and adress software license
compliance issues proactively!

Further reading on www.b-lay.com
1. Oracle License Review or License Audit
Answers to your Top 20 Questions
2. Oracle:
Your quick Oracle Licensing Guide.
3. Oracle ULA:
An overview of the major risks you should be aware of.
4. Oracle Pool of Funds:
An overview of the ins & outs of this type of agreement
5. Oracle E-Businesss Suite:
An overview of common license compliance issues

Questions ?
B.Lay – The License Management Company
richard.spithoven@b-lay.com
T: +31 (0) 8 80 23 3702
M: +31 (0) 6 10 40 6619
W: www.b-lay.com
L: nl.linkedin.com/pub/richard-spithoven

PLEASE INSERT CLASSIFICATION HERE
Global Business Services
TAKING THE BITE OUT OF
SOFTWARE LICENSING TERMS
ITAM Review Oracle Seminar, London 21st Nov 2014
Kamal Patheja, Legal Director, Global Software Licensing
Cathy Hamilton, Head of Group License Demand

69
Agenda
1. Introduction
2. Collaboration between commercial, legal and
software asset management teams
3. Approach to negotiating software license
agreements

INTRODUCTION

71
Deutsche Post DHL Facts & Figures
Company Deutsche Post DHL (DPAG)
Bonn, Germany
The integrated Deutsche Post and DHL brands offer comprehensive
services in international express, air and ocean freight, road and rail
transportation and contract logistics. Deutsche Post is Germany’s only
universal provider of postal services and delivers mail and parcel in
Germany and the world.
• National and international mail and parcel services
• Dialog Marketing Services, Outsourcing and System Solutions (Germany)
• International Express
• Air Fright, Ocean Freight, European Road Freight
• Contract Logistics
Approx. 480,000
55.1B EUR*, spans 220+ Countries and territories
HQ
Profile
Services
Employees
Revenue
All as of 03.2012 apart from (*) representing 2013 Fiscal Year

72
The ‘DPDHL house’
“The postal service
for Germany”
International and
Domestic Express
Global Air, Ocean
and Road Freight
Global Supply
Chain Solutions
Corporate Center
and core Business
Services
Domestic Germany
Post – eCommerce
– Parcel (PeP)
“The logistics company for the world”

73
GBS – IT Services
Global Business Service (GBS) division of
Deutsche Post DHL (DPDHL) provides services
to the Group`s business units from a single
source to increase efficiency through scale, boost
service quality and reduce costs.
IT Services, as part of GBS, provides the Group
with specialized IT Build services and
industrialized IT Run services at a quality and
price level competitive with the market while
retaining proprietary information and knowledge
within the Group.
IT Services leverages a multinational workforce
of skilled IT professionals with an intimate
knowledge of logistics industry and IT to
reinforce the Group`s position as the global
market leader in the logistics sector.
Source: DPDHL Intranet
Supply
Chain
Corporate Centers (CC)
Global
Forwar-ding
Freight
Deutsche Post DHL
Express
Customer Solutions &
Innovation
PeP
Global Business Service (GBS)
Service Lines GBS
Claims Management Inhouse Consulting
Procurement Innovation Management
Real Estate Insurance & Risk
Management
Fleet Management IT GBS & Corporate Center
Finance Operations IT Services
HR Operations Legal Services

Tempe, (Data Center) Darmstadt Cyberjaya (Data Center)
74
Bonn Prague (Data Center)
IT Services: Core Locations
Mechanicsburg,
(Data Center)

SOFTWARE ASSET
MANAGEMENT AT
DPDHL

License balances top vendors on target – continuous improvement in
operations
• 20 million
software records
processed
monthly
76
Key Figures on DPDHL License Management
• 400 data feeds /
interfaces many of which
run weekly
• 300-400 file uploads
every month
• 125,000 effective
license records
• 2,600 maintenance
records
• 400 users
• 30 application roles
• 1,100 profiles
• 33,000 license
records
processed
annually
• DPDHL divisions
• 198 countries
• 1,000 legal entities
• 11,000 reporting
units
• 180k + active devices
• 180k + active users
• Highly federated
IT infrastructure
• 1.000+ virtual environments
• 100+ Active Directories

77
Software Asset Management Journey
Vision
Maturity and
Business as
Usual
Cost & Risk
Control,
Automation
2010
2010-2012
2013 - 2014
Time
ü Onboard SAM team
ü Database of maintenance
contracts
ü Implement investment controls for
all software spend
ü Identify major risks
ü Centralized purchasing
ü Tool identification
ü Request Management
ü Develop Licensing Expertise
ü Global Contact Management
(Maintenance & License Agreements)
ü SAM Awareness
ü Process Implementation
ü Technical Discovery
ü Demand bundling
ü Global risk management
ü Automated technical discovery
ü Vendor certification of processes
& tools
ü Expand license capability to
cloud
ü Next strategy S-curve eg
metering
Maturity
2009 - Mar
Transparency,
& Capability

78
Collaboration in Software Contracting
• Compliance
• License
entitlements &
deployment
• License Orders
• Contract
standards
• Legal risks
• Legal advise
• Sourcing process
• Commercial terms
Procurement License
Operations
Legal
License
Demand
Management
• Group license
demand
• Contract terms
• License models
• Cost savings & risk
controls

CONTRACTING
APPROACH

80
Approach
i. Understand planned software usage
and how technical roadmap may
impact on licensing requirements
ii. Understand planned organizational
changes & strategy
iii. Ensure all agreements made during
commercial negotiations have been
captured in Draft Agreement*
iv. Ensure that the Draft Agreement
contains no usage limitations or
other restrictions that have not been
agreed in commercial negotiations
v. Review & prioritize required terms
based on requirements (cost, risk,
criticality)
DPDHL
Standard
Terms
Usage
requirements &
future plans
Vendor
Template
Vendor Negotiations
*particularly in the case of deviations from standard vendor policies or processes

81
Usage Requirements & Organizational Changes
Who will use the software?
• Group/Business Division/Local Entity
• Geography
• Users
• Employees (clarify employing entity)
• Developers
• Customers
• Agents
• Sub contractors
• Consultants
Technical Requirements
• Test, Development, Production, backup/archival,
• Disaster Recovery
• Number of days testing required
• Hot/cold/warm back up
• Server type
• Operating System
• Back up or test copies
Organization Strategy & Plans
• Potential Divestment/Acquisition
• Outsourcing/Insourcing Plans
• Potential Relocation or Consolidation of Data Centres

82
DHL Standard Terms
Technical
Environment
Third Party
IPR
Indemnity
User Group Divestment
License
Outsourcing Grant
Disaster
Recovery Assignment
Vendor
Policies
Governing
Law
Upgrades
Warranty
Support
Termination
Legal
Jurisdiction
Support
Volume
Adjustment
Audit Rights
Off shore
3rd Party
Usage
Website
Terms
Embargoed
Countries
Exit Terms

83
DHL Standard Terms
§ Named User
Licences
§ Data Protection
restrictions
§ Contractors/
outsourcers/other
users/
§ Indirect access via
devices
User Group

84
DHL Standard Terms
§ Divisional Usage plan
§ Limitation to specific user groups/
divisions
§ Access by customer base
§ Production/test/development
§ Perpetual/term
Licence
Grant

85
§ Technical Support Policy
§ Updating of policies post
contract
§ Addition of new policies
E.g. Virtualisation Policy
DHL Standard Terms
Vendor
Policies

86
DHL Standard Terms
§ Right of use to
licenses for purchaser
§ Minimum 12 month
transition period
§ No requirement for
consent
Divest-ment

87
DHL Standard Terms
§ Audit process defined in contract
§ “Black out” period
§ Scope and frequency
§ Define pricing model for license
shortfalls - contractual not list
§ Escalation procedure
Audit
Rights

88
Vendor Template – Potential Risks and Issues*
Examples
• limitations such as
“employee only”
• use prohibited for
Contractors, Agents, 3rd
Party Developers,
Outsourcers, etc.
Third Party
Usage
Examples
• limitations to legal entity,
location, business unit,
server, server type,
operating system,
region, etc.
Limitations to
Usage
Examples
• limit changes to scope of
future support renewals
• allow vendor to re-price
support if volumes are
reduced
Partial Termination
of Support
1. Highlight problematic restrictions
2. Identify acceptable alternative terms
3. Prioritize issues
*Examples only– not intended as an exhaustive list

89
........& Start Negotiations

QUESTIONS?

Lunch
Followed by workshops this afternoon

Campaign / Oracle Progress
Progress to date:
1. Worldwide Survey
2. Roundtable at Home Office
3. Met with Oracle LMS in Reading
4. Report published November
5. IT Press coverage (Strengths and Weaknesses)

Your help please

Q1
Campaign for Clear Licensing (CCL) research
suggests that organizations find Oracle audit
requests unclear and difficult to respond to (88%
disagreed or strongly disagreed that Oracle audit
requests are clear and easy to respond to).
What can Oracle do to clarify the audit
process?

Q2
CCL Research suggests Oracle LMS are not very
helpful during the audit, contract renewal and
negotiation process (only 22% agreed Oracle LMS
were helpful)
How could Oracle LMS improve their support
to customers?

Q3
CCL Research suggests that an overwhelming
92% disagreed or strongly disagreed that
communication from Oracle had been clear and
straightforward.
What steps could Oracle take to improve
communications?

Q4
CCL has developed an Audit Code of Conduct to
provide more clarity around the audit process (this
includes sections on engagement, measurement
criteria, sharing data, working with third parties,
timing and audit results)
What steps could CCL take to allow you to use
this code during the contract renewal process?

Q5
CCL has suggested seven areas for improvement.
Please rate them in order or priority:
Please mark box with 1 – 10 whereby 1 is low
priority and 10 is high priority.
1. One voice please
2. Knowledgebase
3. Communicate
4. Re-Engineer Risk
5. SAM Evangelism
6. Audit Clarity
7. Strategic Focus

And finally….
Any other feedback you wish to share?

Next Steps…
• We will add findings from today (DECEMBER)
• Seek Direct Feedback and timelines from Oracle on our suggestions (DEC/
JAN)
• OPTIONS
– Write open letter to UK/EU/USA on sales practices - measurement
criteria are not clear
– Provide assistance to UK/USA/EU governments on Oracle procurement
best practice
– Competitive analysis – alternatives to Oracle, deployment best practices
– Increase our finance, procurement and legal connections and escalation
paths
What else?

Thank You

ITAM Review Oracle Seminar

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