Background

*Dynarion, a European based global technology provider for the energy market with approximately 4,000 employees, faced a licensing challenge. The company had acquired Oracle E-Business Suite (EBS) licenses through a divestiture. However, the contractual handling of these licenses was poorly documented, leaving uncertainties regarding their compliance status. With their price hold expiring, Dynarion needed to quickly assess their licensing position and decide whether to purchase additional licenses.

Challenges

• Under-licensing Risk: The company suspected they were under-licensed and faced a potential compliance risk.
• Ambiguous Contractual Documentation: Both Dynarion and Oracle had poorly documented the license definitions and conditions during the divestiture, creating uncertainty.
• Urgency: The expiration of the price hold added time pressure to their decision-making process.
• Potential Financial Exposure: The worst-case scenario indicated a compliance risk of up to €20 million.

The Solution

To address the challenges, ITAA implemented the following steps:

1. Internal Audit: Conducted a thorough internal (friendly) audit to identify the licenses Dynarion was actively using.
2. Contractual Review: Analysed the contracts to establish the true licensing position, identifying discrepancies and clarifying obligations.
3. Scenario Development: Developed best-case and worst-case compliance scenarios:
   o Best-case Scenario: Full compliance.
   o Worst-case Scenario: €20 million compliance risk.
4. Strategic Guidance: Advised the company on defending their position in future discussions with Oracle, based on the available documentation and analysis.
5. Outcome: Provided insights and confidence to support the company’s decision to adopt the best-case scenario and avoid unnecessary license purchases.

Conclusion

Through ITAA’s expert guidance and analysis, Dynarion successfully navigated a complex licensing challenge. By leveraging ITAA’s audit, contractual expertise, and strategic advice, the organisation:

• Avoided a potential €20 million compliance risk.
• Gained clarity on their licensing position.
• Made an informed decision to forego additional purchases.
• Contributed to long-term license strategy navigating within the limitations of the contract documentation.

*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.