We are always talking about software asset management (SAM) as a means to cut costs and also keep up with compliance. For financial firms, SAM, combined with a Governance, Risk and Compliance (GRC) program are a necessity to keep those regulators happy. Many firms choose to use GRC software to automate the process should they get audited (which the frequently do) to have information at the ready. Here are some tips for those that are in need of a GRC program to track data and remain in compliance:

Some processors have a dual core, single chip that appears to be two CPUs within the Oracle kernel (the Oracle kernel determines the number of CPUs on a system during start-up). This is the case with Intel Hyper-threading, where the number of physical CPUs doubles when running on Linux or Windows with a hyper-threading setting of OS or BIOS.

Oracle will charge a CPU license fee for the extra cores in multiple core CPUs. Therefore, you will need to license for each CPU core in multiple core CPUs, meaning that a hyper-threading CPU is considered a single CPU for licensing, but a dual core CPU is considered 2 CPUs for licensing.

However, when Oracle audits/asks the OS how many CPUs are in the system, the OS just reports the total number of logical CPUs. In the case of Intel Hyper-threading, if the one core looks like two processors, then it is counted as two; therefore, two separate licenses are needed.

A number of years ago, Oracle introduced its Embedded Software License (ESL) model – available to Independent Software Vendors (ISVs). Once in a while, we get an extremely nervous ISV who didn’t understand the licensing restrictions on ESL …..

The ESL is a highly restrictive license that allows ISVs to embed Oracle technology into their products. The end-user would not necessarily know that they are using an Oracle-powered product.  Examples of possible systems using this licensing model include point of sales systems, kiosks, online commerce or an electronic library. It can be any system that requires a database to capture or become a repository for information or transactions.

The one item to note in the ESL model is the party responsible for Oracle software licensing agreement (SLA) – the ISV. Therefore, if you happen to be using the ESL within a market or markets, be cognizant of the usage, users and any alterations to the program that might affect your Oracle licensing.

Hmmm, an online self-service resource – Microsoft License Advisor for Volume Licensing – can be used to figure out what licensing needs your company has.  This is a great initial start to understanding licensing needs.  It’s also a great marketing tool for online self-service resource.

Only issue is that it doesn’t give you insight into how you AREN’T compliant. Devil is in the detail!

Ignore the too-chipper voiceover. It gets on your nerves after the first 30 seconds.

Software vendors have different licensing rules. With Oracle, you have to understand that you’re licensing per processor (CPU) for running the Oracle software, versus per user. There are various scenarios and factors that change the licensing and pricing. For example, multi-core processors are counted by number of cores, and processors have a different multiple.

Note: There are many variables that may change the core processor count or formula. But, in general, the above count is a good baseline.

I wouldn’t have said it better myself….

Yesterday’s Open Q&A Forum on Oracle licensing, audit and procurement was very much a success. Chris Kanaracus (@chriskanaracus) did a great condensed summary on one of the points being made – what’s happening during Oracle discussions. 

Read the entire article from ComputerWorld: Consultant: Oracle Holding Firm on License Discounts

Many of our clients think that once a Service Level Agreement (SLA) is signed and agreed upon, it’s untouchable until the end of the term. This is not the case in most circumstances. In fact, a good SLA should be changed periodically. Particularly, in the case of penalties and rewards built into the SLA, where there is often a need for change. Let’s say, for example, the software vendor is repeatedly missing deadlines and it has become detrimental to your business. Re-negotiating the SLA and increasing the penalties is a motivation tool to get that vendor to meet your deadlines. Otherwise, you’ll have to find another vendor that can do the job. This is the same should the rewards be paying out very well to the vendor – if the goals are being met so easily, perhaps a higher goal should be set to raise the bar?

SLAs are a tool, to be used by the purchaser and by the vendor, to insure quality service is provided over the life of the contract. Just because its signed, sealed and delivered, does NOT mean there is no room for re-negotiation.

One of the best uses of a Service Level Agreement (SLA) in our eyes is its use as a way of setting goals for the vendor. When implemented successfully, an SLA can be a means to manage risk, and create accountability on both the part of the vendor and your own obligation to the technology investment.  We have seen many SLAs with built in penalties for vendors for non-performance, and/or missed deadlines. This can certainly work in your favor in two ways- cost savings and motivation for the vendor to get the project done on time and in good form.

The reality is, that the goal set forth by the SLA is a shared goal. If the terms are not met, everyone loses. Therefore, it’s equally as important as the vendor’s participation, for you to be actively involved in the goals of the project in order to be successful.

Oracle is making moves again to help customers battle the recession. At COLLABORATE, Oracle announced that it will delay for customers the maintenance increases they would’ve started to pay next year on aging software products, as rates moved from the premier to the extended support stage of product life cycles.

Extended support rates have been waived for the following products:

Oracle’s Extended Support includes major product and technology releases; product updates; fixes and security alerts; tax, legal and regulatory requirements; upgrade scripts; and technical support.

Oracle will take a slight “hit” for clients in the short-term, but I know a lot of companies will sure be glad that Oracle is willing to make this concession. Older products typically cost much more to maintain and they will be losing an increase of an average of $22,000 per customer, per year.