Oracle Corporation has been very active, and sometimes even considered aggressive, in its audit practices. However negative the image, most companies at least knew what to expect from the software vendor in the past. Lately, Oracle suffered quite some changes, the most recent one related to its audit clause.
But let’s quickly look at another change first. LMS was recently renamed Global License Advisory Services (GLAS), composed of Software Investment Advisory (SIA) and License Management Services (LMS). I’ll dive into this topic more in an article that will be published shortly, so stay close. To shortly describe what changed related to Oracle teams: the SIA team is focused on advising customers whereas the LMS team continues to focus on performing audits and license reviews at Oracle end users. Therefore, it will be no surprise to anyone that the LMS team is contributing significantly to Oracle’s overall revenue.
At the same time a team of consultants performing remote audits was set up in Romania, thereby reducing the number of LMS auditors in the local country organizations. In addition to this, Oracle LMS is introducing more LMS partners: third parties that are performing audits on behalf of Oracle. These LMS partners are not paid for conducting an audit but compensated through a resell margin or referral fee in case the audit results in non-compliance.
The latest change however consists of some modifications in Oracle’s audit clause that was in force for over 20 years. This article provides an overview of what changed, the background of these changes, what they mean for you as an end user and our recommendations to prepare you for the moment when you will be confronted with this revised audit clause.
The most important advice that we can offer is to be always up to date with the changes that software vendors make to their (audit) clauses and products. And to find the right partner to support you on your SAM journey.