Myth #1- You don’t have to license Test/Development/QA environments. We hear this one all the time, and I think some of the confusion is caused by Oracle’s Licensing and Services Agreement (OLSA). The OLSA states; “Testing: For the purpose of testing physical copies of backups, your license for the  Oracle Database (Enterprise Edition, Standard Edition or Standard Edition One) includes the right to run the database on an unlicensed computer for up to four times, not exceeding 2 days per testing, in any given calendar year.” Many times this gets misinterpreted as “I don’t have to license Test/DEV environments.”

Myth #2- We don’t have to worry about Licensing, because we have an Unlimited Agreement. This myth may or may not be true depending on your agreement. If you’re not aware, an Unlimited Agreement (ULA in Oracle parlance) is typically an agreement that grants a right to use specific products, for a defined period of time. In many case this is in unlimited quantities, but in other cases there may be caps placed on the quantity of products you can use. For many organizations we have worked with this can lead to licensing compliance issues, because of the lack of understanding of the specifics of the agreement.

Myth #3- You don’t have to license Disaster Recovery environments. Much like Myth #1, Oracle has a very specific definition for allowing end users to have “Failover” servers in their data centers. It’s important to understand the specifics of the failover definition found in the OLSA and as defined in the OLSA, would not include what most organizations would consider a Disaster Recovery environment.

Myth #4- Oracle Enterprise Manager (OEM) is included with the database. Oracle Enterprise Manager is included with all version of the database; however, the Management Packs (Diagnostic, Tuning, Change Management, Configuration Management, etc.) that come with OEM are for fee options and only available on Enterprise Edition. Here’s a very useful, but not complete, link to the features and options for Oracle database products: http://www.oracle.com/us/products/database/enterprise-edition/comparisons/index.html

Esley Gustafson

1. Financial Risk

Lack of budget control and planning, including unbudgeted compliance liabilities and/or overspending.

2. Operational Risk

Lack of control over IT asset allocation and availability.

3. Legal Risk

Breach of contractual entitlements, software license agreements and corporate governance legislation.

Check out Oracle’s Compliance Policy: http://www.oracle.com/us/corporate/license-management-services/policy/index.html

Ed Hut

The first thing to keep in mind about your software is that it’s a company asset and should be managed as an asset. Far too many companies turn their software assets into a liability by improperly managing them. It’s like your car. Your car is an asset and you have expenses like gas, tires, insurance, etc. to care for it. If you don’t account for these expenses, your car becomes a very big liability. And just like your car, with software there are ongoing costs that can become a very big liability if not managed properly.

From my experience working with a variety of companies large and small, here are the top 5 reasons to manage your software assets:

1) Limit the financial risk to your company. Referencing a study by Ernst & Young, “Software Compliance Without Tears”, 63% of Software manufacturers in the survey use compliance as a revenue generating activity. Of the companies audited, 75% were not effective in managing their software, which often leads companies to undertake very large corrections. Many of those corrections cost the companies millions of dollars of unplanned spending. A well-structured review and continuous process of managing your software can save your company the exposure of software compliance. Set up a software management group or at least someone responsible to perform the task to mitigate the company’s exposure to license audits.

2) Unlimited License Agreements are not the easy way to manage licensing. Every business wants recurring revenue, correct? It’s no different for software manufacturers, and it’s not only the recurring maintenance revenue they want. Every software manufacturer associates a certain value with their products. That value is charged to customers in a couple different ways. It’s either through an annual maintenance charge or by purchasing upgrades or new versions and expanding usage. Either way, that revenue is there for the software companies. So, the question I ask is why would the software companies willingly give up this revenue by giving customers Unlimited License Agreements? The answer is, they don’t. Many companies buy into these agreements only to wonder why they did this at the end of the term. Not only did they pay a huge amount for this right, but they also find themselves typically paying a higher percentage of maintenance throughout the term as well. I’ve asked several companies why they bought into an Unlimited License Agreement, and they told me it was so they didn’t have to worry about managing the licenses. To me, this is absolutely the wrong reason to buy into this type of an agreement. It would be much cheaper to hire a staff to manage the licensing. At the end of the term, you still have to manage the licenses, usage, configuration etc., and many times you’re right back where you started with a more complex situation and more costly spend than you were when you started.

3) Know your limitations in licensing. Limits on licenses are very common in the industry today. Limits on usage, hardware environments, user counts are all typical examples of licensing techniques. It’s likely that the limits were written as part of the contract to reduce costs at the time of purchase. But many times, these limits are forgotten and companies are at compliance risk with their contracts.

4) Understand the recurring maintenance cost. In almost every enterprise agreement from a software vendor, there is a maintenance cost, support cost, or whatever the software company calls it. No matter the term, it’s an expense that continues to increase every year. Software vendors used to explain this as the cost for research and development to improve the product features, quality, etc. But for many software vendors, it’s a major component of their revenue. The easiest way to manage this without getting out of control is not to over-buy modules and functionality on the promise that they will be implemented at some point in the future. Avoid the seduction of the discount, rather focus only on the configuration. The value of owning software that you use is more important than the huge discount on the large footprint of products you got on the deal the last day of the software vendor’s quarter.

5) Understand the value of the license. This point is a bit more involved because of the complexity of solutions and integration. You’ll need to realize that many software products have dependencies built on different modules. And just because there are dependencies, it may or may not mean you need to license products separately. For example, runtime versions of software modules abound within software manufacturers and ISV’s (Independent Software Vendors). These can be listed as application specific licenses, runtime licenses, or any other creative name that their marketing department decides to name the product. The point is to make sure you read the terms and conditions around such a license and realize that free really isn’t free. Limits of these licenses are very easily overlooked, and companies quickly realize that they’re out of compliance due to their usages. If there was a PhD given out on how to manage software licenses, this would be the area for the thesis.

Let me know what you think. For information about our comments policy, click here.

Ed Hut

We put together a survey to see if we could quantify the perceptions and reactions of companies like yours to the approach that software vendors are taking to software licensing.

Let us know what you think.

Take a few minutes to fill out our survey: http://www.surveymonkey.com/s/J6PLCGW

Ed Hut

Colorado Companies to Watch honors second stage companies that develop valuable products and services, create quality jobs, enrich communities and create new industries throughout Colorado.  The year-long program is hosted by the Colorado Office of Economic Development and the Edward Lowe Foundation. “Colorado is excited to recognize DBAK as a 2013 Finalist for Colorado Companies to Watch. Since 2005, DBAK has created jobs, grown revenue, and made a significant impact through community engagement. We look forward to support DBAK’s continued success here in our state.” Sam Bailey, Program Director, Colorado Companies to Watch.

“We started this company in 2005 with a strong belief that we could bring our passion and expertise together to service our customers, and we’re pleased that the contributions of all of our employees has resulted in being named a Colorado Company to Watch,” states Ed Hut, CEO and President of DBAK.

With three consecutive years of growth (21%, 39%, and 49%), DBAK continues to draw revenue to Colorado from across the U.S., and in 2012, the company landed contracts with two global organizations. Reaching beyond the mid-market, the company has demonstrated success with large companies as well as the smaller and mid-size companies that have traditionally been served.

In 2012, DBAK expanded into the Northeast U.S. with a business model based on the same principle as the Colorado headquarters – bringing local resources to local projects. DBAK keep costs lower, while delivering higher quality services that ensure a better match in terms of knowing the needs of the business and being better able to serve, communicate, and collaborate based on shared geography and culture.

DBAK is a well-regarded thought leader, selected in 2012 to present on nearly a dozen market-leading issues ranging from Cloud to Big Data to Disaster Recovery. The company’s “CFO Forum” series, “Introduction to the Cloud”, “Cloud: A Deep Dive for CFOs”, and “Technology Risks That Impact the CFO” was well-received, well-attended, and served as a model for other organizations. The goal for the series is to engage executives on the business side in understanding context, costs, risks, and drivers of technology decisions.

DBAK was also a Finalist in 2012 for “Colorado Companies to Watch”; a Finalist for the Denver Business Journal’s 2012 “Fastest Growing Private Companies”; and moved up in 2012 on the CoBIZ “Top 250 Private Companies” list from #150 to #123. DBAK is very well admired throughout Colorado. The company is held in high regard by Oracle and very well-respected by a growing customer base.  

About DBAK
DBAK is a leading technology consulting company and Oracle License Reseller. Key services include Oracle Database, Oracle License Management, Oracle E-Business Suite, Disaster Recovery, and Managed Services. Our consultants bring senior level expertise averaging 20 years of experience and are known not only for software and technology expertise, but also keen business expertise. DBAK was co‐founded in 2005 as an Oracle services provider and has since expanded to deliver a range of services that bring the business and technology sides of an organization together. With a global reach, the company currently operates from offices in the Denver and New York area markets, bringing a successful blend of talent, experience, and expertise grounded in core principles of service, trust, and ethics. For more information: www.dbak.com  

About Colorado Companies to Watch
Colorado Companies to Watch (www.Colorado.CompaniestoWatch.org) is a unique statewide awards program recognizing growing companies that fuel the economic fire of the state. Colorado Companies to Watch honors companies that develop valuable products and services, create quality jobs, enrich communities and create new industries throughout Colorado. The Colorado Office of Economic Development and International Trade launched the program in 2009 in conjunction with the Edward Lowe Foundation, and valuable sponsors, key drivers, community and supporting partners, as well as volunteers from across Colorado.

Contact: Therese Pickard
720-475-8628

The presentations focused on critical issues including software asset management and a disaster recovery panel, as well as a technical presentation on Oracle’s Edition Based Redefinition. Featured speakers and presentations are DBAK’s Ed Hut (Co-founder and CEO of DBAK) and Deb Morton (Senior Principal at DBAK) as well as Charlie Billings (CTO and VP of IT at Lincoln Trust) and Molly Gunning (President at CIO JumStart) – Disaster Recovery: How Much Do I Need, A Real World Look at What Works and What Doesn’t Work; John Darrah (Senior Technology Principal at DBAK) – Using Edition-Based Redefinition; and Esley Gustafson (Senior Licensing Manager at DBAK) – License Management.

DBAK was also an IOUG Sponsor for the conference.

For more information: http://collaborate13.ioug.org/ 

The presentations focus on critical issues including data security via data replication, performance tuning for software applications, security and backup tools, the Cloud, and software compliance.

Featured DBAK speakers and presentations are Frank Bommarito (Co-Founder and Chief Services Officer), two topics – Oracle GoldenGate StraightUp; Tuning Tips III: Application Tuning, John Darrah (Technology Principal), two topics – Using Edition-Based Redefinition; Database Cloning Options in 11g, Bryan Stroble (Enterprise Architect) – The Cloud: Separating Myth From Reality, Ed Hut (Co-Founder and Chief Executive Officer), and Esley Gustafson (Senior Licensing Manager) – Preventing Your Software Assets From Becoming a Liability.

DBAK is a Platinum Sponsor for this year’s conference and has been a frequent presenter at RMOUG Training Days and RMOUG Quarterly Education Workshops in the past. RMOUG Training Days 2013 is the largest regional user group conference in the United States bringing together local Oracle professionals and internationally renowned Oracle experts. The event features more than one hundred technical sessions.

For more information: http://www.rmoug.org/training/training-days-2013/

About RMOUG
The Rocky Mountain Oracle Users Group (RMOUG) started in 1984 as a special interest group to share ideas and information about Oracle products and related information systems technologies.  Today RMOUG has grown to be one of the larger user groups in the Rocky Mountain Region providing many opportunities to the members to broaden their technical knowledge; these offerings include an annual Training Days conference, educational workshops, newsletter, web site, and on-line technical forums. RMOUG members include professional analysts, project managers, database administrators, developers, and designers who work with information systems technology products and services to produce high-quality business solutions. RMOUG is a non-profit organization incorporated in Colorado. For more information: www.rmoug.org

About DBAK
DBAK is a leading technology consulting company focused on helping companies move their business forward. We’re easy to work with, and our straightforward and collaborative approach ensures good communication and success for our customers. Our consultants are senior level bringing an average of 20 years of experience and are known not only for software and technology expertise, but also keen business expertise—providing value and trusted guidance on the business level. DBAK was co‐founded in 2005 as an Oracle services provider and has since expanded to deliver a range of services that bring the business and technology sides of an organization together. With a global reach, the company currently operates from offices in the Denver and New York area markets, bringing a successful blend of talent, experience, and expertise grounded in core principles of service, trust, and ethics.

The announcement caps a great year for DBAK with two additional recognitions as a finalist for the Denver Business Journal 2012 “Fastest Growing Private Companies” and as a finalist for “Colorado Companies to Watch” put out by the Colorado Office of Economic Development and International Trade.

The ranking is good news for DBAK, highlighting the company’s ability as a top tier Oracle services provider and IT consulting company, and affirming the perception of Denver as a high ranking city for tech-related companies.

About ColoradoBIZ Magazine
Continually published for over 30 years, ColoradoBiz is the state’s preeminent business publication and media franchise. ColoradoBiz Magazine is a monthly magazine dedicated to covering the booming Colorado economy, business, finance, high-technology and other fields. The primary mission of ColoradoBiz is to inform and educate the region’s business professionals about the issues, people, businesses, and management trends at the forefront of influencing economic conditions in Colorado and the West. For more information: www.cobizmag.com.

About DBAK
DBAK is an Oracle systems integrator and reseller focused on core technology and E-Business Suite applications. The company has been delivering business solutions to Oracle clients since 2005. With offices in Denver, Colorado and New Jersey, DBAK is comprised of senior level professionals bringing an average of more than 15 years working on Oracle projects for hundreds of companies. With a straightforward and holistic approach, DBAK brings a successful blend of talent, experience, and Oracle expertise grounded in core principles of service, trust, and ethics. www.dbak.com.

“John will be an exceptional asset in growing and managing our operations in the northeast corridor. He’s a skilled business leader, strategist, and team builder,” says Ed Hut, CEO and Co-Founder of DBAK.

“This is a great opportunity for DBAK, and a great opportunity for me.” says John. “It’s a very good time to be entering the New York market as a technology services provider, and I’m looking forward to the work we’ll be able to accomplish for New York companies.”

Prior to joining DBAK, John was Managing Director and Head of Technology Infrastructure and Information Systems Security for TD Ameritrade where he developed and serviced the delivery of legacy and web based business systems. He also served as the Chief Information Officer for Health Management Systems and Vice President of Operations for PaineWebber, Inc. in Lincoln Harbor, New Jersey. John brings more than 20 years of business executive experience – especially in information systems management in the financial services industry including brokerage, banking, and insurance products.

The addition of John and expansion into the northeast market are indicators of DBAK’s overall growth – as demonstrated with recent award nominations to the Denver Business Journal 2012 finalist roster for the “Colorado Fastest Growing Private Companies”, as well as being a selected by the Colorado Office of Economic Development and International Trade as a 2012 finalist for “Colorado Companies to Watch”.

About DBAK
DBAK is an Oracle Systems Integrator and License Reseller focused on Core Technology and E-Business Suite applications. The company was founded in 2005 to deliver business solutions to Oracle clients throughout the Rocky Mountain region. In 2008, the company began providing solutions to a broader national client base and as a result of positive revenue growth, the company has recently expanded into the global market. Based in the suburbs of Denver, Colorado, DBAK is comprised of senior level professionals bringing an average of more than 15 years working on Oracle projects for hundreds of companies. With a straightforward and holistic approach, DBAK brings a successful blend of talent, experience, and Oracle expertise grounded in core principles of service, trust, and ethics.

The Northeast Office will be led by newly appointed John O’Connors, General Manager/Managing Principal, and will offer the same client-centered Oracle business and technology consulting services as the Colorado-based location.

The announcement of the new location demonstrates DBAK’s growing national presence, and comes on the heels of two recent finalist nominations for the company – the Denver Business Journal’s 2012 “Fastest Growing Private Companies in Colorado” and the 2012 “Colorado Companies to Watch” competition presented by the Colorado Office of Economic Development and International Trade. The new office is located at:

101 Hudson Street
Suite 2100
Jersey City, NJ 07302

201-633-6555

For more information: info@dbak.com

About DBAK
DBAK is a Colorado owned and operated Oracle systems integrator and reseller focused on core technology and E-Business Suite applications. The company was founded in 2005 to deliver business solutions to Oracle clients throughout the Rocky Mountain region, and in 2008, the company began providing solutions to a broader national client base. In 2012, DBAK was selected as a finalist for the Denver Business Journal “Fastest Growing Private Companies” and the “Colorado Companies to Watch” competition sponsored by the Colorado Office of Economic Development and International Trade. In 2011 DBAK, was named to CoBIZ’ “Top 250 Private Companies in Colorado”, and in 2008, the company was awarded “Emerging Business of the Year” by the South Metro Denver Chamber of Commerce. Based in Englewood, Colorado, the company has delivered Oracle success for more than 170 clients on implementation, upgrade, conversion, licensing, and support projects. With a straightforward and holistic approach, DBAK brings a successful blend of talent, experience, and Oracle expertise grounded in core principles of service, trust, and ethics. www.dbaknow.com.