Software Licensing Audits

If you're a service provider and Microsoft hasn't audited you yet, it's not because you're compliant. It's because it's not your turn yet. — SPLA audits will happen to every service provider eventually. The process is disruptive, time-consuming, confusing, and the results are always unexpected. — Most service providers underestimate their shortfalls by 80%. If you think your debt is $1 million, it's probably between $3 and $7 million. — We've defended over a hundred SPLA audits and are rarely wrong when we estimate shortfalls this way. — The most significant shortfalls relate to user licenses (SALs), accounting for 50-80% of total penalties on average. — Windows Server license shortfalls are the most difficult to mitigate during audit defense. — Microsoft appoints "independent auditors" from the Big Four: EY, PwC, KPMG, or Deloitte to verify your compliance. — SPLA stipulates that you'll pay 125% of list price for missing licenses. If non-compliance exceeds 5%, you'll cover all audit expenses too. What our experts recommend having learnt from 100+ audits: — Don't leave SPLA audit preparation to chance. The financial exposure is too severe for improvisation. — Start building robust historical data collection now. Every month you delay improvements, your debt to Microsoft grows. — Understand that this isn't a pleasant experience, but it's manageable with proper preparation and expert guidance. — Correct reporting mistakes immediately when you find them. Don't let them carry over to future periods. — Have emergency processes, tools, and trained personnel ready before the audit letter arrives. The question isn't if Microsoft will audit you, it's when. Are you ready? #microsoft #compliance #audit #samexpert

(DAY-5): Common Oracle Licensing Pitfalls to Avoid Oracle Licensing is complex, and even minor mistakes can lead to significant compliance issues or unexpected costs. Today, let’s explore the most common pitfalls organizations face and how to avoid them. --- 1. Misinterpreting Licensing Metrics Using the wrong metric (e.g., NUP vs. Processor) can lead to non-compliance. Always confirm which metric applies to your deployment and ensure correct calculations. Example: Deploying Oracle Database Enterprise Edition on a multi-core server requires precise calculations using the Core Factor Table. --- 2. Overlooking Virtualization Rules Oracle’s policies often require licensing all physical cores in virtualized environments, even if only a portion is used. Many organizations assume virtual machines can be licensed independently, leading to under-licensing. Pro Tip: Review Oracle’s Partitioning Policy to understand how virtualization affects licensing. --- 3. Ignoring License Mobility and Cloud Rules Migrating from on-premise to cloud or hybrid setups without understanding license mobility policies can cause compliance gaps. Example: Licenses purchased for on-premise may not automatically transfer to Oracle Cloud Infrastructure (OCI). Always verify mobility options. --- 4. Inadequate User Tracking For NUP licenses, organizations often fail to monitor and document the actual number of users. Even inactive accounts can trigger compliance issues during audits. Solution: Regularly audit user accounts and align them with your licensing agreements. --- 5. Underestimating Audit Preparation Oracle conducts audits frequently, and lack of preparation can result in hefty penalties. Best Practices: • Maintain accurate usage records. • Regularly review contracts for updates. • Engage experts to simulate audits and identify gaps. --- 6. Misjudging Licensing Needs for Test/Dev Environments Test or development environments are often overlooked, leading to unlicensed deployments. Fact: Oracle requires full licensing even for non-production environments unless explicitly stated otherwise. --- 7. Not Leveraging Support and Updates Failing to keep up with annual support renewals can restrict access to critical updates and patches, creating security risks. Tip: Build support renewals into your budget to maintain software health and compliance. --- 8. Assuming "Free" Software is Always Free Oracle offers free editions like Oracle Database XE, but expanding beyond its limitations requires proper licensing. Example: Moving from XE to a full edition without licensing triggers compliance risks. --- Stay tuned for Day-6! Tomorrow, we’ll deep dive into "Preparing for Oracle License Audits" to explore practical solutions and best practices to stay ahead of compliance challenges. What challenges have you faced with Oracle Licensing? Let’s discuss in the comments below! #OracleLicensing #ITCompliance #SoftwareAssetManagement

Licensing is changing (again). CFOs, here’s what you need to know. Microsoft released their 2025 Dynamics 365 licensing updates and yes, it’s going to impact your budget, your users, and your compliance status. Here’s the short version: • Monthly billing now costs more. There’s a 5% premium for paying month-to-month. Annual billing avoids the markup and should be your default unless there's a good reason not to. • New Premium licenses are live. Finance Premium and SCM Premium include forecasting, budgeting, demand planning. If your team uses those features, you’ll need the higher-tier licenses. • License enforcement is happening. Starting November 1, any user without a valid D365 license gets blocked from Finance and SCM. No more “ghost” users or loose role assignments slipping through. • Custom roles = hidden risks. If someone has access to features that require a higher license, even by accident, that’s going to get flagged and blocked. We’re actively doing D365 licensing audits for clients right now to help them get ahead of this. If you're not sure where you stand, it’s worth a look. Clean license mapping gives peace of mind before these changes bite. Need a gut check? Message us and we’ll walk you through it. #Caf2Code #Dynamics365 #D365Licensing #ERP #FinanceTransformation Caf2Code LLC