An International Steel Manufacturer Re-Architects it’s Oracle Software Environment
The customer in this case study is an international steel manufacturer that recycles scrap and turns it into quality steel. Their products and services serve the construction, industrial, agricultural and automotive sectors. As the company has expanded and modernized operations its IT environments have grown more sophisticated to accommodate facilities on multiple continents with a diverse customer base. These environments include dozens of applications built on numerous Oracle databases hosted on multiple servers.
The company made an effort to manage their license portfolio accurately but they knew that Oracle’s software license terms were complex and difficult to follow. As the business experienced rapid growth their IT team found it difficult to keep up with the high demands on their database environment. In 2011 an Oracle audit confirmed the organization’s concerns by identifying several breaches of Oracle’s licensing terms.
Recognizing that the internal IT resources were insufficient to rectify the situation and prevent future problems, the business turned to a third party to perform an independent licensing assessment. While the assessment did identify differences between the database licensees the organization needed for its various environments and the licenses that it had purchased, the assessment did little to target the business conditions that had led to the gap. Additionally, the 3rd party auditor turned its findings over to Oracle without giving the business a chance to correct the situation, landing the company right back where it started.
The business recognized that its expertise lay in steel and not database licensing but it was clear that a different kind of partner would be required. The partner would need to address licensing gaps but also help the company to change the business policies that had created the situation in the first place. This would require an accurate assessment of the licensing situation as it stood but also a plan to control the growth of the changing IT environment while still maintaining compliance with Oracle’s terms and conditions.
The customer selected Eagle Datagistics as a third party licensing expert with a reputation for putting the customer’s needs and privacy first. As an advocate for the customer, Eagle Datagistics began its licensing assessment with their best interests in mind. Eagle Datagistics used software to scan the businesses environments, a more effective method than the assessment that had been completed in 2011.
This scanning, combined with interviews of key individuals at the company, produced an inventory of the following components:
-Total number of Physical and Virtual Servers (including DR, Backup, Failover, Test, Pre-production and Production)
-Server Manufacturer / Model / Type and Operating System
-Quantity of CPUs and Cores per Server
-Location of servers
-Proposed Scope of Oracle Products to review
-Value of client’s total Oracle support renewal
-Current license assets
-Current and planned utilization of hardware/software
-Hardware performance requirements
-IT policies regarding software usage
These pieces of information allowed Eagle and the company to create a physical map of the existing environment, including the licensing requirements and processes that led to unplanned changes.
Using the map created during the assessment phase, the business was able to bring its environment into compliance with Oracle’s licensing terms and put improved IT governance policies in place. These policies led to a more coherent strategy for the growing IT department.
Eagle Datagistics assessed the client’s software use, their actual need, and their current licenses owned. Eagle found that the company was currently using a significant amount of unlicensed Enterprise Edition and Standard Edition database software. The total cost to license and support this software was about $2 million. The proposed solution reduced the cost by $1 million.
Numerous databases were consolidated onto a smaller number of servers, reducing required purchases and more than off set the cost of the assessment. More than 15 licenses that were no longer in use were discovered, allowing the business to cease paying annual support for those unused assets. The increased control offered by a partner like Eagle Datagistics put the business back in the driver’s seat, reducing costs and allowing Oracle purchases to be made strategically, rather than reactively.
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