Background

*East Coast Health Partners, is a leading healthcare provider in America, delivering services at nearly 30 medical practice locations. The organization relies on Oracle E-Business Suite (EBS), Oracle Technology, and Oracle Middleware for its IT infrastructure.

The Challenge

East Coast Health Partners received an audit notification letter from Oracle at an inopportune time. The organization faced significant potential financial exposure due to licensing non-compliance, including:

• Tech Licensing Risk: $1,000,000
• EBS Licensing Risk: $1,000,000
• “Galaxy Licensing” Risk Exposure: Estimated at $100 million, forming Oracle’s negotiation starting point

The client sought assistance in delaying the audit by four months, conducting a preliminary risk assessment, and minimizing potential financial liabilities. Additionally, East Coast Health Partners needed support in managing Oracle licensing on a virtualized VMware environment to prevent unnecessary scrutiny.

The Solution

ITAA implemented a structured audit defense strategy, including:

1. Audit Delay & Internal Review – ITAA successfully postponed the audit for four months, allowing time for a friendly internal audit to identify and remediate risks before Oracle’s formal review.
2. Risk Remediation – ITAA guided the client’s IT team to reduce compliance gaps, ensuring a stronger negotiation position.
3. Limiting Audit Exposure – ITAA advised the client on restricting unnecessary disclosures to Oracle, particularly regarding irrelevant hardware and virtualized environments.
4. Negotiation Strategy – ITAA developed a commercial approach to address remaining licensing shortfalls, leveraging improved discount structures and optimized contract terms.

Outcome

• Tech Licensing Risk Reduced to $500,000, with a final negotiated payment of only $130,000 due to discounts and improved terms.
• EBS Licensing Risk Fully Eliminated – East Coast Health Partners achieved full compliance with $0 owed after remediation.
• Long-term Savings Secured – The final agreement included better licensing conditions, resulting in savings exceeding $300,000 for future compliance.

Summary

Through strategic audit defense, proactive risk assessment, and expert negotiation, ITAA helped East Coast Health Partners:

✅ Minimize financial exposure
✅ Improve licensing compliance
✅ Secure significant long-term savings.

The project not only prevented costly claims but also provided the client with a stronger foundation for managing Oracle licensing in the future.

*Protecting our clients’ confidence is of the utmost importance at ITAA. While our case studies are based on true projects, we have used fictitious names and removed or changed other identifiable details.