An interesting trend is yet again being observed among Oracle clients. They are not receiving Oracle audit letters, but instead are being sent what can appear to be innocuous free compliance check service requests from Oracle directly through License Management Services (LMS). The Oracle LMS has the authority to serve compliance checks based on several criteria including “non-payment of Customer Support Identifier (CSI) annual support.”
What is the process?
Oracle filters all of its potential accounts targeted for audit and can then send a client a “Compliance Check” notification. This process is sent in an Oracle specified format (typically, Oracle server worksheet). Since this is not an audit, and rather proposed as a free service, clients may not be as inclined to question the process and might be very receptive to this approach from Oracle.
What is the outcome?
Despite the innocuous name, the actual outcome is a purchase requirement at a certain discount for a sizeable Oracle bill of material. Oracle softens the approach by also including Oracle Cloud subscription (SaaS, PaaS and IaaS).
What are the pitfalls?
Oracle doesn’t need to disclose any of the software that is needed to purchase up-front, or discuss the realignment of past purchases. Hence, an Oracle client may see an increase of Operational Expenses (OPEX) after an outcome of a “free compliance check.”
What is required?
Clients should consider responding to Oracle in regards to this communication with some guidance from an expert. Questions to ask Oracle might include: is this necessary? What is the scope? Do you need to validate information to be sent to Oracle for possible compliance avoidance? Why Oracle Cloud? Do you validate OPEX impact due to the Oracle cloud subscription? Have you reviewed outdated and invalid Oracle contracts to be terminated or cancelled?
All of the above and more can be a complex landscape to figure out on one’s own; however answers to these questions are critical. And, if needed, SoftwareONE is here to help.