Oracle is one of the leading software companies in the world, and a good majority of organizations across the globe use their database management systems. They are reliable and always deliver, and that has played a huge role in their popularity and is the reason why companies continue to buy the licenses for their software. As reliable as they may be, there is a caveat, and every organization that uses Oracle software needs to be compliant with all its terms. This means that companies have to purchase licenses for all Oracle software they use and ensure they are always in compliance with the terms and conditions.
So, why is Oracle compliance necessary? Why do companies have to keep doing internal audits to ensure they are compliant? If these are some of the questions you’ve been asking yourself, then we’ve got the answers for you.
To Avoid Hefty Fines
Companies carry out internal audits to prepare for the time when Oracle decides to do an audit for themselves and find out if these companies have been compliant. Typically, they will audit an organization when they have reason to suspect that the organization is non-compliant, even though they will insist that the audits are purely random as stipulated in the agreement with the organization. In the event that Oracle does an audit and finds that the company hasn’t been in compliance with the terms and conditions agreed, then the company stands to receive hefty fines and penalties for their non-compliance.
Since many companies are usually focused on the bottom line, they would want to avoid this as much as possible, so the best thing to do is to simply ensure that they are 100 percent compliant with all the terms.
To Continue Using Oracle Software
Oracle reserves the right to distribution of their software and can therefore decide who gets to use it and who doesn’t use it. Therefore, in extreme circumstances where a particular organization is in total breach of licensing agreements, they can decide not to supply that organization with their software.
Now, since Oracle is widely regarded as one of the best in the business, every company at the top of their game would want to be using their software. So, to avoid being excluded by Oracle, they need to ensure they are compliant at all times.
To Avoid Legal Action
Non-compliance to Oracle’s terms of agreement can result in a breach of contract, and Oracle can take legal action against companies that have taken it too far. No corporation wants to engage in court battles as they take up loads of resources and could even do some damage to their reputation. This is why most companies would rather conduct internal audits to ensure Oracle compliance.
The above reasons are why many companies find it necessary to comply with the Oracle licensing terms. Software asset management is a common practice used by organizations to ensure that they are in compliance with all their software providers.