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ARTICLE · 13 OCTOBER 2015

Oracle's Aggressive Audit Tactics Draw Increasing Media Attention

Scott & Scott LLP
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A recent article published by Business Insider is the latest in a run of recent media attention that Oracle has received regarding the software audit practices of its License Management Services (LMS) compliance arm.

United StatesIntellectual Property
Christopher Barnett
Christopher Barnett
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"In hindsight, I should have involved our legal team immediately, since they were requesting information that had nothing to do with Oracle."

Wise words.

A recent article published by Business Insider (here) is the latest in a run of recent media attention (more here) that Oracle has received regarding the software audit practices of its License Management Services (LMS) compliance arm. In particular, the article details how Oracle's sales teams may use the weight of oppressive LMS audit findings to drive customers toward the recurring-revenue business model embodied by Oracle's expanding cloud services.

The "enthusiasm" with which LMS pursues undeserved windfalls from previously loyal customers is nearly legendary. The Business Insider article describes the LMS tactic of determining that all hosts in a VMware cluster must be licensed to capacity for an Oracle technology product – even if there is only one VM running the product on a single host in the cluster

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