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Oracle licenses: do you really know what you're using... and what you're paying for?

  • Writer: Jean-Michel Alluguette – OP&S
    Jean-Michel Alluguette – OP&S
  • Dec 17, 2025
  • 5 min read

Many companies have been paying for Oracle licenses for years.


They generally know what they have purchased (Enterprise Edition, Standard, some options…), but one question often remains unanswered:


Which Oracle options are actually used today, on what basis, and since when?

And that's where the risk lies.

Because there is a very common scenario:

An Oracle option is activated (by test, by mistake, by tool configuration, by script), then it remains activated.


On a daily basis, nobody notices it.


But on the day of a publisher audit, the bill can become very high.


In this article, we will look at:


  • Why is this subject so tricky?

  • the most frequent causes of license discrepancies,

  • a simple method to regain control,

  • and how OP&S can help to objectify the situation before it becomes a problem.


Licenses used vs. licenses purchased

Why this topic is so sensitive (and often underestimated)


Oracle is not just a database.

It's an ecosystem of features, options, and packages that can be:


  • consciously activated (architectural choices),

  • activated indirectly (tool, parameter, job),

  • activated during a POC

  • or activated “for convenience”, then forgotten.


And in many organizations, no one has a consolidated vision:


  • based

  • by environment (PROD / pre-prod / DEV),

  • per period (since when it was activated),

  • And most importantly: is it actually being used?


The result: we discover it too late.



The 3 classic causes of Oracle license discrepancies


1) Activation “out of curiosity” (or by default)


A DBA, an architect, an application integration team… tests a feature:


  • “just to see”

  • “to speed up treatment”

  • “to make a report”

  • “for a migration”


Then the environment changes, we go into production, the team rotates… and the option remains.


The catch: it's not necessarily visible to the application.


Everything “works”.


But when it comes to licenses, that's a different story.



2) The POC was never cleaned


This is extremely common:


  • An option is activated during a POC (or in a project context).

  • Everyone is focused on the go-live.

  • and nobody does a "licenses & options" review before switching over.


A few months later:


  • The option is still there.

  • and the company has incorporated a “silent” licensing risk.


3) The lack of consolidated visibility (the real problem)


In most companies, information is scattered:


  • A DBA has a view of their database.

  • Another team has a view of a different perimeter.

  • FinOps focuses primarily on infrastructure.

  • and the purchasing department only sees the contracts.


But a licensing audit requires a cross-functional perspective:


  • complete park

  • options enabled,

  • actual use

  • historical,

  • non-production environments (often overlooked),

  • databases associated with ERP systems (JDE, EBS) or internal applications.



“Used” vs. “Activated”: Costly confusion


The critical point: activating an option does not mean that it is “used” in a business sense.


But for an organization, what matters is knowing:


  • Which options are enabled?

  • Which options appear to actually be used?

  • Is the usage recurring or occasional?

  • Since when?

  • On what environments?


In practice, this is the only way to decide:


  • This is what needs to be rectified.

  • what needs to be disabled,

  • what needs to be documented,

  • and what must be contractually assumed.



The simple method to regain control (without spending weeks on it)


I recommend a 4-step approach.


Step 1 — Inventory the Oracle infrastructure (completely)


This seems trivial, but it's often the first flaw:

  • all Oracle databases, all versions,

  • On-Premise and Cloud,

  • PRODUCTION and non-PRODUCTION

  • ERP bases (JD Edwards, E-Business Suite) included,

  • “Temporary” environments (projects, integrations, sandbox).


Without this inventory, you're missing out on the risks.


Step 2 — List the options/packs activated by database


Objective: to have a simple matrix:

Database

Edition

Options enabled

Activated packs

Environment

This is the step that often reveals surprises, especially in non-production environments.


Step 3 — Correlate with actual usage (and history)


This is where you go from a raw list to a usable view:


  • Option activated temporarily → risk to be assessed

  • Option activated “always” → high risk if not covered

  • Option activated for months/years → structural problem

  • Option enabled on DEV only → to monitor, but impact differs


Without a history, you can hardly prove anything.


Step 4 — Produce a “licensing” action plan


At this stage, you need to be able to decide quickly:


  • What do we keep (because it's useful/acceptable)?

  • What do we disable (because it's unnecessary)?

  • What do we document (as a precaution)?

  • What are we escalating in purchases (renegotiation / regularization)?



How OP&S provides concrete assistance


OP&S was designed to avoid this classic scenario:

“We only discover a licensing problem when it’s too late.”


With OP&S you can:


  • monitor the options enabled across the entire Oracle infrastructure (multi-database, multi-environment)

  • correlate with usage observed over time

  • identify at-risk environments (PROD and non-PROD)

  • generate readable reports for DBA, CISO, internal audit and procurement

  • be alerted when an option suddenly “appears” (recently activated)


And most importantly: you have a factual basis for internal discussion (and with an editor if necessary).


Example of an automated license audit under OP&S with historical data
Example of automated license audit under OP&S with history

Checklist: 10 points to check now (in 30 minutes)


  1. Do you have a complete list of all your Oracle databases (including non-PROD ones)?

  2. Do you know which databases are in Enterprise Edition vs. Standard?

  3. Do you know the list of options activated by database?

  4. Do you have a history of these activations (since when)?

  5. Do DEV/TEST environments use options not covered?

  6. Were any options activated during a "forgotten" POC?

  7. Do application teams have access to advanced Oracle features without governance?

  8. Do you have a license review procedure after migration/rebuild/upgrade?

  9. Are you able to produce a consolidated report in less than a day?

  10. Do you have a clear plan: disable / document / regulate?


If you check “no” for several points, you have a real topic.



Mistakes to avoid (very common)


Mistake #1: Waiting for the “audit” to act


The day an audit is announced, you no longer have time to work properly:


  • We panic.

  • We deactivate it urgently.

  • We lose traceability,

  • and we damage the internal relationship between teams.


Mistake #2: only watching the production


Non-production environments are often the riskiest:


  • more experimentation,

  • less governance

  • options activated “just for testing”.


Mistake #3: Confusing “legal” and “real”


Even if you have purchased X licenses, the real question is:


  • Does your actual usage correspond to your contract?

  • And can you demonstrate this factually?



Concrete examples encountered with our clients


  1. The "compress=yes" option during Datapump export => ADVANCED COMPRESSION enabled


  2. An IT service provider who runs an AWR report without checking the licenses acquired by their client => Diagnostic Pack activated


  3. SQL Profiles positioned on inefficient SQL_ID queries to fix an execution plan => Tuning Pack enabled


  4. TDE (Transparent Data Encryption) tested to encrypt data files => Advanced Security enabled


  5. Golden Gate deployed in a test environment. Licenses sufficient only for production => Golden Gate activated



Conclusion


Most Oracle licensing problems do not stem from “fraud”:

They stem from a lack of visibility, forgotten POCs, and options activated without governance.


With a simple approach (inventory → activated options → actual usage → action plan), you can:


  • reduce the risk,

  • to avoid unpleasant surprises,

  • and often identify potential cost savings.


A game-changing preventative audit


We offer a free one-month audit with a comprehensive report included.


Useful for:

– audit your compliance,

– prepare for negotiations with the publisher,

– sleep more peacefully



JM Alluguette

About the author


Jean-Michel Alluguette is the founder of OP&S, a software dedicated to Oracle and ERP (JD Edwards / E-Business Suite) environments to manage performance, costs (FinOps) and security/licenses.


Do you want a factual analysis of your Oracle databases?Request a free 1-month PoC.


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