Client Profile:
A $2.3B Leader in Worldwide Bio/Pharmaceutical Services
Business Issue
- Company received a 90-day notice audit letter from Oracle LMS
- Existing investment included multiple product categories (i.e., Technology, Life-Sciences, Business Intelligence, E-Business, Application Server, etc.) with >50 ordering documents
- Leveraging VMware virtualization technology within its physical servers running Oracle technology products and concerned about its audit exposure
- Undertaking a negotiation with Oracle to resolve its current out-of-compliance exposure
- Lacked understanding of Oracle audits, business practices, and negotiating strategies and had limited knowledge of market competitive pricing and commercial arrangements
Services & Results
UpperEdge conducted a compliance assessment to uncover potential exposure related to traditional non-compliance, multiplexing, and virtualization. UpperEdge then developed a negotiation strategy and timeline based on best practices to navigate the audit negotiation efforts most effectively, resulting in the following:
- Compliance assessment uncovered an Oracle financial exposure of over $20M in license and back support fees, mainly associated with overutilization of Oracle applications and technology products through VMware
- Oracle’s own audit confirmed UpperEdge’s compliance analysis
- Resulted in a negotiated deal that resolved 100% of the compliance exposure
- Secured 5 years of support price protections on the purchased Oracle application and technology products
- Achieved a highly competitive divestiture and license assignment rights
