Dynamic SAM delivers $33m in software cost savings

project results

• Total in cost savings of $33m
• Full analysis on existing ULAs & utilisation
• Modelling of different client scenarios for optimal outcome
• Recommendations covered ULA, products, certifications & support

the challenge

For our client based in the United States of America who had two active ULAs each spanning 5 years with Oracle, this was a particularly complex and confusing situation. The differing termination dates and product dependencies made any option besides renewal almost impossible. In total these agreements were costing the client more than $30m USD per year.

how we engaged

The ULAs did not fully overlap on which legal entities could use the products and also limited the cloud certification options through lengthy and often complex terms and conditions, that included harsh penalty criteria. The criteria were designed so that no customer could abide by them, leaving the client with 2 options: renew the contracts or hire a professional software licensing advisory team. This is where the client selected Synyega due to their expertise in this area and its track record with Oracle agreements.

our solution

Once engaged, Synyega first looked at the client’s options to stabilise their Oracle spend, by auditing their usage we were able to confirm possible strategies to reduce the client’s costs. This was no easy task: the ULAs were designed to terminate one year apart, with database options and packs covered in the ULA terminating first, while the database licensing itself was governed by the second ULA.

working with the client

A decision on which route to take had to be made within months, this was challenging given that the client had never measured their full Oracle deployment before. To address this, Synyega’s team of experts couldn’t use the usual reporting approach, because there simply wasn’t enough time. Instead, our team developed a bespoke solution to use the client’s existing inventory tools to capture the information. This data was then independently verified by spot checks into the software estate. The remaining questions about unused products were addressed during interviews with the client.

client benefits

After the infrastructure and software usage were recorded, Synyega modelled three different scenarios to answer three questions:

1. How much of the ULA’s financial value remained unutilised?
2. How could the client achieve a high-water mark value at the point of certification?
3. How much would the client save over 3 years if it certified the ULAs?

Our report concluded that almost half of the ULA value (over $12m worth of product) had never been deployed by the client—this was calculated to be costing the client in excess of $20m per annum. It was also clear that the client needed to undergo the cloud certification route, because this could save over $10m per annum compared to renewing the ULAs. Finally, our team of experts found an option to save the client an additional $1m per annum on technical support and budget for additional Oracle spend post-ULA.