When engaged to provide support with an Oracle ERP implementation project for a UK financial services organisation, it came to our attention that the required licensing provisions had yet to be made for the licensing estate.
The company was in the process of a legal separation from their parent company and subsequent acquisition by an international conglomerate. The original parent company and the future acquiring company had a significant existing Oracle ERP & Core licensing estate in place.
The transition was anticipated to take 24 months, with approximately $20M allocated to fund the transformation process.
HGK consultants were initially brought on-site to assist with the future architecture definition. However, it quickly became apparent that the client had not factored in the ‘bridge cost’ of Oracle ERP & Core licenses to the project budget.
The client was unaware that on the date of the legal separation, they would lose legal rights to use any Oracle products; however, the acquiring company had no way of factoring in the cost of new licenses into their next multi-year Oracle contract renewal without either incurring significant cost or becoming immediately non-compliant.
HGK Solutions assisted by independently auditing and providing a detailed report of the current and future Oracle licensing estate and re-negotiating a mutually beneficial agreement with Oracle.
HGK Solutions’ engagement & negotiations saved our client over £1.5m in transformational costs immediately. We then proceeded to support the new parent company in re-negotiating all future contracts to incorporate the newly acquired financial institutions licence requirements to ensure their license estate remains fully compliant.
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