Assessing Whether Oracle Customers Run the Risk of Being Audited

Like most large software providers, Oracle routinely audits its customers to ensure compliance with its software licensing rules, but also to help in generating an increased level of revenue. Even though Oracle auditors are known to characterize the various customers under audit as having been selected randomly, the reality is that many of the audits come about from a request by the Oracle account executive or as a target generated from Oracle’s audit department.  The Oracle audits are known to be infamously long, financially costly, and resource intensive.

Factors to be considered by customers for the risk of being audited:

  • If you have not being audited for the past few years, then you might be at risk of being audited by Oracle. Oracle is looking to generate revenue from an audit and customers who have been recently audited will typically not have any material changes to their system landscape that would place them out of compliance in only a few years. However, when you have not been audited for the last five to six years you are at a higher risk of being audited due to hardware refreshes and other system landscape changes that happen over time, as there is now a greater likelihood of a customer being out of compliance which creates a revenue-generating opportunity for Oracle.
  • Additionally, if your organization has had any recent merger and acquisition activity, or has experienced significant organic growth, then your risk of being audited will increase no matter how many years since your last audit. When there is organizational growth, this typically results in additional headcount, rise in licensing business metrics, or modifications to system landscapes and which would require an additional license purchase to account for this growth. If you do not have any recent license purchases after these type of events, this triggers Oracle to consider adding you to their audit list.

How to protect yourself from being selected for an audit:

It is not easy to protect yourself from the risk of being audited. However, there are a number of different factors that can heighten your risk of being audited by Oracle which can provide insight as to the likelihood of you being audited and give you time to prepare before an official audit from Oracle. There are some different web-based online tools which will help in calculating the likelihood of being audited. These tools will help you in assessing whether you run the risk of being audited. For more information, you can visit and answer a few questions to determine the likelihood of your organization being audited. To conclude, Oracle looks at certain factors to determine who is a candidate for being audited and this assessment will help you understand what the likelihood is for your organization so that you can better prepare.