The Cost Savings of a Oracle Software Asset Management programme?

 The Cost Savings of implementing an Oracle Software Asset Management programme? Part 3 in our Oracle SAM series.

In this short interview with Julie we discuss the three key processes that can reduce Oracle licence costs.

  • Licence Recycling
  • Licence Pool management
  • Licence Exemption Register

 Just remember though that the key step before any of this is understanding you inventory and you fully understand your licensing requirements and conditions.

The Full transcript of the interview is below

Julie:                        Hi Kay.

Kay:                           Julie, on your last interview, you ran through the benefits of implementing a SAM program, and the risks attached to not implementing a SAM program. Can you just basically summarize your last interview, please?

Julie:                        Yeah, basically I talked through the benefits of implementing a SAM program. They would be cost savings, compliance, reducing your risks and gaining control. You would want to gain control not only for compliance reasonsi but also to gain the benefits from cost savings. Today, I can talk a bit more about those cost saving benefits.

Kay:                           First, Julie, can you just talk me through the actual processes that you put in place?

Licence Recycling

Julie:                        Yes, of course. To be able to take advantage of these savings that I’m going to be talking about, you need to have implemented some processes, and you have to have control of your license inventory. There are a number of processes that you can implement. The first one, I would say, is probably what I would call ‘license recycling‘. This is the re-use of your existing licenses by transferring them from a server that you no longer need to a new target server. This could make a full or a partial need, depending on the number of licenses you’ve got available on your source server, and the number that is required for your new target server. You need to make sure that you understand the licensing requirements and usage rights in your original purchasing documents.

                                    For example, understanding whether you’ve got worldwide rights if you’re transferring between different countries, because if you haven’t, you then have to do a license novation. You can also maintain a pool of spare licenses in your inventory. You can use these for either a short-term need or a long-term re-use. If you’ve got a project that may have a short-term need, they could borrow the licenses and then return them to the pool when they’re finished with them, or if it’s a new project that’s coming along and they need additional licenses, they could re-use the licenses long-term without having to purchase new.

understanding whether you’ve got worldwide rights if you’re transferring between different countries, because if you haven’t, you then have to do a license novation. 

Licence Pool Management                                   

 For the license pool, I recommend that if you do implement this, that you manage it centrally for the benefit of the whole organization, because what we’ve seen before is that a lot of projects want to manage their own little pools and their own spare licenses, but overall if you’re looking at savings across the whole organization, I would recommend that you manage it centrally as one spare license pool. Both of these methods would save you the capital expense of buying new licenses, and the first-year support and maintenance that most of the software suppliers charge when you do purchase new licenses. You’d also save on your ongoing support and maintenance costs by not increasing it by buying any unnecessary additional licenses 

if you’re looking at savings across the whole organization, I would recommend that you manage it centrally as one spare license pool.

Register Licence Exemptions    

Within your inventory, you can also register license exemptions. This means registering the removal of a licensing liability for a particular architecture. For example, a DR server doesn’t require the purchase of a license if you have a license purchased for the production server that it’s associated with. All exemptions are constrained to specific products and architecture, but you need to make sure that you fully understand what those conditions are and how they apply. Again,If you register those exemptions in inventory as an exemption, then you’ll be able to calculate and report on the savings that you can make. There’re just some of the main areas that you can look at to-

Kay:                           Julie, assuming third parties are not involved, such as yourself, whose role would it be to put these processes in place?

Julie:                        You’ll probably find your IT department or whoever’s managing that inventory for you, so you would give somebody that responsibility to manage your inventory and to maintain that license pool, to register those exemptions and inventory. Whoever you give that role to, really.

Kay:                           Are those the processes, or just some of the processes?

Julie:                        There’re the main areas that I would say you would get the most savings from.

Kay:                           Okay. Julie, are there any other areas that you could make savings in?

Julie:                        Really, there’re the main ones, that I’ve covered today, the re-using of licenses, the pooling of licenses that you’re not using, and keeping track of those. Again, registering exemptions, so making sure you register those in your inventory so you can calculate what your savings are.

Kay:                           Part of what you do, would you go into an organization who didn’t have any processes in place and something from scratch?

Julie:                        Yes, we’d be able to identify … we’d be able to set that up for them, so we’d be able to identify what exemptions that they can apply. We’d be able to look at setting up a process where they can register those in inventory. We’d also look at how they can transfer licenses between servers, and also create a pool of licenses so we can monitor that for them. Then we would monitor whether people were using those spare licenses short or long-term. You could set expiry dates on … classically like a rental, put an expiry date on, so the project wanted to use it for short term, you’d allocate those licenses to that project. Give them an expiry date. Once that date has been reached, then contact the project, make sure that they’ve finished with their licenses, and then they can be returned back to the pool.

Kay:                           Okay, thanks Julie. Finally, any words of caution from you?

Julie:                        Yes. I’d say really that all these processes should only be undertaken if you’ve got control of your inventory and you fully understand your licensing requirements and conditions. If you don’t know what you have and you don’t know what you’re using, then you don’t know what licenses are spare and what can be pooled and available for re-use. Also, if anybody’s got any questions and need advice, then we’re here, to help you get started.

Kay:                           Can I just clarify, Julie, are we just talking about Oracle licensing?

Julie:                        Yes, we are, yes. You can do it for other licensing, but from our point of view, we could look at Oracle licensing in this instance.

Kay:                          Okay, thank you very much, Julie.

Julie:                        Okay. Thanks Kay.