Licence  Audit    

 

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Understand  the  process  and  minimise  your  exposure  

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The  Oracle  

The  Madora  Consulting  e-­‐Guide  Series    

Welcome  to  The  Oracle  Audit  e-­‐Guide  from  Madora  Consulting.  

The   aim   of   this   E-­‐book   is   to   take   you   through   the   Oracle  License   Management   Service   (LMS)   auditing   process   so  that  you  understand  what  Oracle  is  trying  to  achieve,  what  will  be  asked  of  you,  how  you  should  respond  to  Oracle  and  how  to  prepare  for  the  results.    

 

A true audit is when the contractual right to audit clause in your Oracle contract is invoked

 

Introduction  

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Often   we   talk   to   Oracle   Users  when   they   have   either   been  audited   or   have   been   recently  approached   by   Oracle   for   an  audit;   unfortunately   there   is   a  lot   of   misunderstanding   about  the   actual   term   ‘audit’.     The  majority  of  end  users  we  speak  to   or   partners   we   work   with  are   in   fact   referring   to   an  Oracle  review.    The  problem  is  that   for   many   end   users   they  think   they   are   the   same   thing,  but  they  are  not.  

A   true   audit   is   when   the  contractual   right   to   audit  clause   in   your   Oracle   contract  is  invoked;  this  is  not  the  same  thing   as  a   request   from  Oracle  to   “review  your   licences”  or   to  “help  you  optimise”  them.    

You  can  find  the  audit  clause  in  your   Oracle   Licence   and  Services   Agreements   (OLSA)  and   the   newer   Oracle   Master  Agreements   (OMA).   Here   the  licence  agreement  gives  Oracle  the   right   upon   generally   45  days’   notice   to   request   access  to   your   systems   where   its  products   are   installed.   If   after  

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Oracle   investigates   you   are  found   to   be   under-­‐licensed  then   you   are   required   to  purchase   licences   to   make   up  the   shortfall   without   the  discounts   you   may   have   been  used   to   and   possibly   with   the  addition   of   back   support.   This  un-­‐budgeted   spend   can   be   a  major   dent   in   finances   and  usually  elicits  a  pretty  negative  response   from   Oracle  customers.    

However  many  so  called  Oracle  ‘audits’   are   really   Oracle  reviews   in   disguise.   These  Oracle   ‘Audit’   imitators   could  be   licence   reviews   instigated  by   Sales   or   in   collaboration  with   Customer   Optimisation  License  Services  (COLS),  part  of  the  UK  Sales  Organisation.  

Oracle   may   well   present   the  review   as   an   opportunity   to  confirm   your   current   licenses  and   understand   ways   to  optimise  your  licence  position.    

   

What  is  an  Audit?  

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But   let’s  not  kid  ourselves;   the  focus  is  on  revenue  generation.  Optimisation   rarely   means   a  reduction  in  licence  or  support  fees.    Do  you  know  of  any  cases  where  COLS  have  engaged  and  reduced   licence   or   support  fees,   without   new   spend?   We  would   love   to  hear   from  you   if  you  do.  

The   key   point   to   remember   is  that   if   Oracle   makes   any  inquiries   about   your   licence  position,   unless   they   explicitly  provide   in   a   letter,   you   can  assume   it   is   not   an   audit.     In  other   words   you   are   not  contractually   obliged   to  cooperate  with  Oracle   in   these  non-­‐contract   instigated  reviews.  

If   you   do   get   approached,   our  advice   is   to   proceed   with  caution   and   provide   no  information   until   you   have  taken   expert   advice,   and   of  course  read  this  eGuide.    

However   we   do   recommend  you   are   cooperative   and   keep  an   open   dialogue   with   Oracle.  See   our   blog   Oracle   is   from  Mars   Customers   are   from  Venus   to   understand   what  makes  Oracle  tick.  

If   you   suspect   you   may   be  under-­‐licensed  bring   in  a   third  party   to   support   you   and  quickly   investigate   your   level  of  risk.  

Do  not  fill  out  the  Oracle  Server  worksheet   unless   you   fully  understand  what  is  required  of  you   and   know   that   you   are  accurately   filling   it   in.     Any  information   provided   that   is  

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incomplete,   vague   or   incorrect  will   draw   more   attention   and  scrutiny.    

If   you   think   you   may   have   an  issue,   seek   independent   third  party   advice   to   help   you   to  understand   the   full   financial  impact   and   also   the   possible  process   to   mitigate   the  exposure.  

Madora   can   help   here,   a   free,  no   obligation   and   confidential  call   can   often   help   you  understand   your   situation  better   and   diffuse   the   stress  and   concern   you   may   have.  Oracle  understands  the  process  can   take   some   time   so   do   not  feel  under  pressure  to  respond  straight   away.     You   have   time  to   seek   advice.     Madora   have  been   through   the   process  many,  many   times   so   allow   us  to   advise   you   on   when   and  what  to  communicate.  

In  summary,  do  insist  that  any  request   is   stated   via   a  letter/email   and   check   if   the  contractual   right   to   audit  clause  is  referenced.    

If   you   are   not   sure   ask   Oracle  directly   whether   this   is   an  actual  audit.    

If   it   isn’t   then   decide   if   you  wish  to  proceed  with  an  Oracle  review.   Our   advice   is   that  carrying   out   a   review   can  actually  be  a  good   thing   to   get  your  house   in  order,  but  do   so  with   the   knowledge   and   know  how,   to   be   empowered   when  dealing  with  Oracle.    

Either  way  a  quick  call  with  Madora  will  set  you  in  good  stead.  

insist that any request is stated via a letter and check the contractual right to audit clause is referenced.

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A true audit is when the contractual right to audit clause in your Oracle contract is invoked.

 

What  is  the  Oracle  Audit  Process?  

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You   may   not   have   been  officially   audited   by   Oracle,  but  you  will  be  at  some   time.    This   section   takes   you  through  the  process  that    LMS  will   follow   and   gives   you  more   information  about   their  tools  such  as   the  LMS  scripts,  what   they   are,   how   they  will  be   used   and   why   you   are  being  asked  to  run  them.  

It  is  intended  we  will  answer  the  following  questions;  

• Why  am  I  doing  this?  

• Why  do  the  scripts  exist?  

• What  do  the  scripts  do?  

• How  are  the  scripts  provided?  

• Where  are  they  run?  

• What  do  I  do  with  the  output?  

• What  happens  next?  

• What  are  the  common  pitfalls  and  questions?  

• Resolution  

 

Why  am  I  doing  this?  

If   you   are   reading   this  document,   it   is   likely   Oracle  will   have   requested   that   a  licence   review  be   carried   out  on   your   Oracle   estate.   You  will   have   signed   up   to   this  

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right   when   you   accepted   the  terms  of   the  Oracle  Licensing  and   Software   Agreement  (OLSA).     Oracle   will   expect  you   to   assist   them   in   this  review  within  45  days  of  their  initial  notification  to  you.  You  will   also   have   agreed   to  reasonable   cooperation   and  to   resolve   any   licensing  shortfall   that   may   be  discovered  within   30   days   of  receiving   the   licence   review  report.  

 

Why  do  the  scripts  exist?  

Oracle   software   is   a   complex  suite  of  products  and  in  order  to   give   the   correct   view   of  your   software   usage   Oracle  provides  a  set  of  scripts   from  its   Licence   Management  Service   (LMS)   for   this  purpose.   The   various   scripts  produce   information   in   the  correct   format   for   loading  into  Oracle's  analysis  tools.  

 

What  do  the  scripts  do?  

There   are   several   groups   of  scripts  but  the  most  usual  are  the   Database,   Middleware  and   the   E-­‐business   Suite  (EBS)  scripts;   these  cover  the  vast   majority   of   licence  reviews  in  the  UK.    

 

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Here   is   a   brief   summary   of  what  they  measure:  

Database  

• Database   and   options  details   including  installation  and  usage.  

• OEM   option   packs   and  Grid  control.  

• CPU   processor   details,  cores  and  sockets.  

 Middleware  

OAS  

• Oracle   Application   Server  products   such   as   Internet  Application  Server  (IAS).  

• Information   about   the  server.  

 

E-­‐Business  Suite  

• Information   on   users,  responsibilities,  applications   and   security  groups   from   the   FND  tables  

• Usage  information  such  as  order   lines,   expense  reports  etc.  

• Any   changes   that   have  been   made   to   the  Applications   database  schema   e.g.   tables,   views,  reports  etc.    

See  Appendix  A   for  a   full   list  and   summary   details   of   the  above.  

How  are  the  scripts  provided?  

The  scripts  are  packaged   in  a  

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Windows   .ZIP   file   with  separate   Database,  Middleware   and   Applications  subfolders.   The   folder  contents   are   detailed   in  Appendix   A.   The   scripts   are  generally   emailed   to   you;   if  your   e-­‐mail   system   blocks  zipped   files   then   inform  Oracle  or  their  JPE  Partner.      

 

Where  are  they  run?  

The  Database  scripts  are  run  against  every  database  server  and   the   ReviewLite   script   is  run   against   every   database  instance   on   every   database  server.  

The   Middleware   scripts   are  run  against  every  middleware  server  as  applicable.  

The   E-­‐Business   scripts   are  run   against   the   applications  schema   on   the   appropriate  database  server.    

 

What  do  I  do  with  the  output?  

The   LMS   scripts   produce   a  mixture   of   text   files   and   tar  files  and  these  will  need  to  be  sent   to   Oracle   or   the   third  party   JPE   Partner.   This   is  usually   achieved   by   either  emailing   as   attachments   if  small  enough,  uploading  onto  the   Oracle   FTP   site   or  producing   a   DVD   and  shipping   this   to  Oracle  or   the  third   party   JPE   Partner,   if  there   is   a   large   amount   of  

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data.  

Details  of   the   secure  FTP  site  will  be  sent  to  you  on  request  and   are   often   provided   with  the  instructions.  

For   the   Oracle   FTP   site   you  will   need   to   set   up   a   Single  Sign   On   (SSO)   Account   and  

The LMS scripts produce a mixture of text files and tar files

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Your data will be sent to Oracle's centralised processing unit in Europe.

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details   of   how   to   do   this   will  be   included   in   the  instructions.  

 

What  happens  next?  

Your   data   will   be   sent   to  Oracle's   centralised  processing   unit   in   Europe.   A  first   analysis   is   returned   to  Oracle   or   their   JPE   Partner  where  it  is  checked  along  with  any   questions   which   Oracle  has  asked  based  on  what  they  have  found  so  far.  This  means  that   there   could   be   one   or  more   rounds   of   questions   to  drill   down   into   particular  areas.   In   order   to   minimise  any   to-­‐ing   and   fro-­‐ing   the  following   section   contains  some   common   questions   and  reasons   for   revisiting   the  details.    

The   final   output   from   Oracle  or  their  JPE  Partner  is  a  report  identifying   your   licensing  position   which   has   been  agreed   with   Oracle   LMS.   This  report  will   then   be   presented  to  you  for  agreement.  

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What  are  the  common  pitfalls  and  questions?  

As  mentioned  above  there  are  a  number  of  regular  questions  that   LMS   will   ask   during   a  review.  These  include:  

Are  you  using  diagnostics,  tuning  or  any  of  the  other  OEM  Packs?  

• There   is   a   setting   that   can  

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be   set   to   “none,   one   or  both”   and   the   default  position   on   installation   is  both.   This   does   not   mean  they  are  necessarily  in  use  but  does  require  Oracle  to  ask  the  question.    

Are   you   using   the   database  Spatial  option  or  Locator?  

• Oracle   can   tell   that   either  Spatial  or  Locator  is  in  use  but  not  which  one;  Spatial  is   an   extra   cost   option,  Locator  is  not.  

Do   you   have   licences   for  Internet   Developer   Suite  (IDS)   and   Programmer   and  how  many  users  do  you  have  of  each?  

• If   you   are   an   EBS  customer   it   is   most   likely  that   you   have  customisations   made   to  the   basic   product.   In   this  case   you   will   require   at  least   one   Named   User   of  both  IDS  and  Programmer.    

If   you   are   using   a   form   of  server  virtualization  

• Oracle   requires   proof   of  the   virtual   to   physical  mapping;  i.e.  in  the  case  of  VMware   and   OracleVM  they   request   screenshots  which   show   this  mapping  for  all  servers/clusters.  

   

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There   may   be   implications  particularly   with   later  versions  of  VMWare  as  every  physical   host   which   has  access   to   shared   storage  may  need   to   be   licensed   for   the  Oracle  products,  regardless  of  where   they   are   installed   and  used.    

The  following  are  examples  of  configurations   which   may  cause   problems   and   care  needs   to   be   taken   when  implementing   these,   Oracle  may  ask  for  more  information  during  a  review:    

• Use  of  a  SAN  or  other  shared  storage    

• External  clusters  or  servers  accessing  the  same  storage    

• Use  of  VShere  which  virtually  links  internal  disks  and  replicates  a  virtual  SAN    

• VMotion  version  5.1  which  allows  you  to  take  a  virtual  machine  and  migrate  it  across  a  cluster    

Resolution  

You've   reached   the   point  where   Oracle   has   provided  you   with   a   report   of   its  findings.    It  is  quite  likely  that  you've  already  had  preview  of  what   is  coming  based  on     the  discussion   with   Oracle   over    the   previous   weeks   or  months.     Once   Oracle   is  satisfied   that   it   has   covered  all   of   the   areas   to   be  examined   it   will   finally   settle  on   a   formal   position  which   it  will   then   present   in  

If you are using a form of server virtualisation then Oracle requires proof of the virtual to physical mapping.

 

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monetrary  terms  also.      

At   this   stage   Oracle   LMS  will  brief   your   account   manager  who  will  “help  you”  overcome  any   shortfall.   This   is   where  the  fun  starts!      

It   is   important   to  understand  what   motivates   the   various  players  in  this  situation.  

Oracle  LMS  has  an  overt  remit  to   protect   Oracle's   support  revenue   stream   by   ensuring  correct  licensing  by  its  clients.    

Oracle  sales   is   incentivised  to  sell  new  licences  and  does  not  focus   on   supporting   long-­‐term   support   revenue.     They  will  of  course  be  looking  for  a  speedy   commercial  resolution.      

It   can   sound   like   you   are  getting   mixed   messages.  Oracle   LMS     may   talk   of   the  need   to   backdate   support   for    any   under   licensed   products.    This   could   be   as   far   back   as  three  years.    All  back  support  will   be   quoted   at   150%   of  support   fees   for   each   year.    Now  that  can  be  a  big  number  but   don’t   panic.   Oracle   are  trying   to   inflate   the   non  compliance   if   there   is   one,   to  as   large   as   possible   so   that  they   can   appear   to   give   a   lot  when  negotiating.    

The   reality   is   that   the   sales  team   and   their   management  are   more   focused   on   new  licence   revenue   and   in   every    instance  we   are   aware   of   the  back   support   was   waived.    This  is  an  easy  thing  for  them  

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to   do,   so   do   not   concede   too  much  on  this.  

 

If   you   have   been   accidentally  using  product  which  you  have  no   interest   in   using   in   the  

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future,     you   can   simply   cover  a   backward   shortfall   by  purchasing  a   term   licence   for  the   usage   term   in   question.  Term   licences   are   obtainable  from  1  to  5  years  at  a  reduced  price  from  the  normal  licence;  however   support   is   still   22%  of  the  full  price  per  annum.    

If   you   have   to   spend   money  on   licences   it  makes   far  more  sense   to   spend   it   on   new  licences   moving   forwards,  ones   which  will   add   value   to  your  business.  

You   will   find   your   Oracle  account   manager   far   more  interested   in   selling   you   new  licences   as   they   will   be  looking   to   position   the  purchase  as  value  add  to  your  business   rather   than  perceived  as  a  ‘fine’.  

It   is   important   to   work   with  the  Sales  Rep  as   really   this   is  your  leverage.    Park  the  fact  it  may   be   non-­‐compliance   for  now   and   work   as   if   it   was   a  net   purchase   and   negotiate  hard.     Oracle   will   say   that  your  price  holds  and  previous  agreed   discounts   don’t   apply.  Push   through   this   and   play  hard.     You   still   have   time   on  your   side.   Oracle   will   be  looking   for   a   quick  commercial   pay   off,   timing  and  quarter   ends   can  make  a  difference   to   negotiating   a  better  discount.      

Beware   though  of  purchasing  product   you   do   not  understand   or   can’t   see   any  use   for.     Apply   the   usual  

During this phase you will get far more value by engaging independent specialists to aid you in your negotiations

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scepticism.   We   have   seen  many   well   balanced  negotiations   which   ended   in  clients   purchasing   useful  product  which  added  value  to  their   future   architectures  rather   than   throwing   good  money   after   bad   in   resolving  a  licence  shortfall.    

During  this  phase  you  will  get  far   more   value   by   engaging  independent  specialists  to  aid  you   in   your   negotiations   and  to   assess   Oracle's   offers,     we  have  been  there  many  times.    

 

 

 

 

   

 

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APPENDIX  A  –  LMS  script  details.  

 

Database        

File   Name   Type   Purpose  

CPU  Queries  Instructions  

  .pdf   Instructions  on  running  lms_cpuq.sh  

lms_cpuq     Window  NT  command  script  

The  attached  scripts  cover  the  following  operating  systems:  Windows,  Novell  Netware,  Sun  Solaris,  IBM  AIX,  HP  UX,  Linux  and  Dec  Alpha  AXP.    The  script  will  detect  the  operating  system  running  on  the  server  where  it  is  called  and  the  appropriate  command  is  executed  to  gather  server  information  

lms_cpuq     SH  file   The  attached  scripts  cover  the  following  operating  systems:  Windows,  Novell  Netware,  Sun  Solaris,  IBM  AIX,  HP  UX,  Linux  and  Dec  Alpha  AXP.    The  script  will  detect  the  operating  system  running  on  the  server  where  it  is  called  and  the  appropriate  command  is  executed  to  gather  server  information  

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ReviewLite14.2.0     SQL  file   This script  checks        *  Database  version  installed        *  Database  CPU  number        *  Stand  by  server  name  (if  is  installed  on  OEE)    Also  checks  for  the  options  installed  and  confirms  if          options  are  being  used:        *  OLAP                              *  SPATIAL        *  PARTITIONING              *  RAC  (Real  Application  Clusters)        *  LABEL  SECURITY          *  OEM  (Oracle  Enterprise  Manager)  PACKS        *  DATA  MINING                *  AUDIT  VAULT        *  DATABASE  VAULT          *  CONTENT  DATABASE        *  RECORDS  DATABASE      *  ADVANCED  SECURITY        *  ACTIVE  DATA  GUARD    *  ADVANCED  COMPRESSION  

ReviewLite14.2     .pdf   Instructions  

 

 

Middleware  OAS  File   Name   Type   Purpose  

OAS-­‐usage-­‐measurement-­‐script-­‐instructions  

  .pdf   Oracle  Application  Server  (OAS)  Usage  Measurement  Script  Instructions

oas-­‐script-­‐unix-­‐v12_4    

lms_cpuq   SH  file   this  script  is  used  to  gather  Operating  System  information  for  use  by  the  Oracle  LMS  team  

  oas_query_v12_4   SH  file   this  script  gathers  information  about  installed  Oracle  AS  products  

oas-­‐script-­‐windows-­‐v12_4  

lms_cpuq.cm_   CM  file   this  script  is  used  to  gather  Windows  Operating  System  information  for  use  by  the  Oracle  LMS  team    

  oas_query_v12_4.cm_   CM  file   this  script  gathers  information  about  installed  Oracle  AS  products  

3

  oam_search.cm_   CM  file   Looks  for  OAM  files  

 

E-­‐Business  Suite  (EBS)  UNIX  File   Name   Type   Purpose  

2_LMS_EBS_Exp_Tool_INSTRUCTIONS  

  .pdf   Oracle  E-­‐Business  Suite  Export  Tool  Instructions  for  UNIX  Operating  Systems  

lms_esb_exp_tool     .tar   EBS  scripts  for  Unix  

  apps_ddl   SQL  file  

THIS  SCRIPT  CHECKS  FOR  DDL  CHANGES  IN  THE  DATABASE  

  expapps   .dat    

  expapps_checkver  

.dat    

  expapps_loginresp  

.dat    

  expapps_loginv8resp  

.dat    

  expapps_logins   .dat    

  expapps_loginsv8  

.dat    

  expapps_WF     .dat    

  expapps_WFv8   .dat    

  expicx    

.dat    

  license_agreement  

.txt   Script  usage  licence  

  lms_ebs_exp   .sh   Agree  to  script  usage  licence  agreement  

4

  usage_based   SQL  file  

This  script  checks  usage  based  products  of  E-­‐Business  Suite  (Versions    11  and  12)  

Enhancement  to  OEEL_11i,  HR_E,  HR_P,  HR_Types,  Removed  iSupplier  Portal.  

Removed:  OE_10.7,  OEEL_10.7,  OEEO  (all  versions),  iReceivables    

 

 E-­‐Business  Suite  (EBS)  Windows  File   Name   Type   Purpose  

expapps_win   fndnt   .bat   fndnt.bat  (Original  is  fndnt.rename_to_bat)  

This  script  exports  the  FND  tables  used  in  the  LMS  measurement  process.  The  following  tables  are  exported:  

• FND_LOGINS  • FND_LOGIN_RESPONSIBILITIES  • FND_USER    • FND_APPLICATION_TL  • FND_APPLICATION  • FND_RESPONSIBILITY_TL  • FND_RESPONSIBILITY  • FND_PRODUCT_INSTALLATIONS  • FND_USER_RESPONSIBILITY  • RND_USER_RESP_GROUPS  • FND_SECURITY_GROUPS  • WF_LOCAL_USER_ROLES          

  expapps   .dat   TABLES=(FND_USER,     FND_USER_RESPONSIBILITY,     FND_USER_RESP_GROUPS,     FND_SECURITY_GROUPS,     FND_APPLICATION,     FND_APPLICATION_TL,                  FND_RESPONSIBILITY,                  FND_RESPONSIBILITY_TL,                  FND_PRODUCT_INSTALLATIONS)    

5

  expapps_logins   .dat   TABLES=(FND_LOGINS,     FND_LOGIN_RESPONSIBILITIES)    

  expapps_loginsv8   .dat   TABLES=(FND_LOGINS,     FND_LOGIN_RESPONSIBILITIES)    

  expapps_WF   .dat   TABLES=(WF_LOCAL_USER_ROLES)  QUERY="WHERE  ROLE_ORIG_SYSTEM  =  'FND_RESP'"    

  expapps_WFv8   .dat   TABLES=(WF_LOCAL_USER_ROLES)  

  expicx   .dat   TABLES=(icx_sessions)  

  usage_based   SQL  file  

 

This  script  checks  usage  based  products  of  E-­‐Business  Suite  (Versions    11  and  12)  

Enhancement  to  OEEL_11i,  HR_E,  HR_P,  HR_Types,  Removed  iSupplier  Portal.  

Removed:  OE_10.7,  OEEL_10.7,  OEEO  (all  versions),  Suite  (Versions    11  and  12)  

Enhancement  to  OEEL_11i,  HR_E,  HR_P,  HR_Types,  Removed  iSupplier  Portal.  

Removed:  OE_10.7,  OEEL_10.7,  OEEO  (all  versions),  iReceivables  

  apps_ddl   SQL  file  

THIS  SCRIPT  CHECKS  FOR  DDL  CHANGES  IN  THE  DATABASE  

  1_Enabling_Audit_Function   .doc   Instructions  

  2_Export_Windows   .doc   Instructions  

 

 

 

About    Madora  Consulting  

Madora   Consulting   was   founded   to   provide   Oracle   licence  know   how   to   organisations   operating   within   the   Oracle  ecosystem.  Our   clients   include;   asset  management   vendors,  software   discovery   tool   vendors,   resellers   and   end   users.  With   over   thirty   years   of   Oracle   experience,   Madora  endeavour   to   share   their   knowledge   to   reduce   risks,   costs  and   the   complexity   associated   with   Oracle   Licensing.  Operating   from   the   UK,   but   with   global   reach,   Madora  provide   expert   Advice,   Training,   Project   Management   and  Assurance  Services  remotely  or  on-­‐site.  

P: +44 (0) 1298-27160 E: info@madora.co.uk W: madora.co.uk  

Madora  Consulting  

Culvert Farm, Quarnford, Buxton, SK17 0SR. UK P: +44 (0) 1298-27160 E: info@madora.co.uk  

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1

Keith  

2

Jane   Kay  

1

Charles  

2

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