Microsoft licensing terms update
Microsoft’s June Product Terms update brings several notable changes across Microsoft 365, Generative AI services, and new product availability:
- Add-on Licensing: Clarified that only Cloud Add-ons to Software Assurance must be purchased under the same agreement as their base license, not all add-ons with prerequisites.
- Dragon Copilot: Added to Core Online Services’ security terms and Microsoft’s EDUB commitments.
- Azure Updates:
- App Service Plan added to MCA table
- New microphone access disclosure for Azure Communication Services
- Entra ID Governance use clarified for External Users
- Azure AI Foundry replaces Azure AI Studio, with renamed Azure AI Foundry Models
- Power Platform: Copilot Studio added to the Customer Copyright Commitment.
SAMOSA Returns: Software oversight act could impact organizations beyond U.S. government agencies
The U.S. Senate has reintroduced the SAMOSA Act (Strengthening Agency Management and Oversight of Software Assets Act), signaling a renewed crackdown on software mismanagement across federal agencies. While the bill is aimed at public sector efficiency, its implications extend well beyond government walls, to contractors, vendors, and any business interacting with federal IT systems.
SAMOSA mandates comprehensive software audits, the elimination of redundant or unused licenses, and formal reporting to oversight bodies like the OMB and GSA. Its bipartisan backing and projected $750 million in annual savings suggest that momentum is building and scrutiny is coming. This follows the MEGABYTE Act’s $4 billion in documented savings, showing that real financial impact is possible with better software governance.
For organizations doing business with federal entities or relying on similar procurement models the message is clear; unmanaged software estates are now a compliance and financial risk. If your organization can’t produce clear records of what software is deployed, used, and licensed, you may soon find yourself under the same microscope.
Certero customers already understand the value of complete visibility. For those still relying on spreadsheets and siloed systems, SAMOSA is a wake-up call: act now, before the audit is at your door.
Microsoft 365 Business Premium and Office 365 E1 licenses will be discontinued for non-profit customers
Microsoft has confirmed that its Microsoft 365 Business Premium grant for nonprofits will end starting July 1, 2025. At each organization’s next renewal following that date, the free Business Premium licenses will no longer be available. Instead, eligible nonprofits will receive up to 300 free Business Basic licenses and will be able to purchase other plans with discounts of up to 75 percent.
This marks a significant change in how Microsoft supports the nonprofit sector. Business Basic includes only web and mobile versions of Office applications. It does not include desktop Office, Intune, Defender for Business, or other premium security and management tools. Organizations that rely on these features will need to transition to paid plans to retain access.
Importantly, the transition does not happen automatically. Administrators will need to manually acquire the free Business Basic licenses within the tenant, reassign users accordingly, and cancel unused Premium licenses. Any leftover Premium seats that are not removed will begin generating charges once the renewal date passes. For nonprofits that still require Business Premium, the licenses remain available but must now be paid for, even at a discounted rate.
For IT asset management and software asset management teams, this development introduces immediate challenges. License assignments and usage profiles will shift. Desktop applications and security features will disappear for many users, which may lead to new tool adoption or unauthorized workarounds. The removal of the grant also makes renewal planning critical. Every nonprofit now faces a countdown tied directly to their subscription end date.
Organizations using Certero are well positioned to manage this transition. The platform enables visibility of current assignments, dependency on Premium features, and potential cost modelling based on different license combinations. Tracking these changes accurately and in real time will help nonprofits stay within budget and avoid unexpected charges.
Microsoft’s grants have long given nonprofits a buffer against licensing risk. That buffer is ending. The organizations that adapt early and clean up their software estates will be the ones best prepared for what comes next.
Adobe licensing updates
Product Rebranding & Entitlement Enhancements
Effective 17th June, 2025, Adobe has officially rebranded Creative Cloud Pro to Creative Cloud Pro Plus.
- Entitlement Update: Monthly Firefly generative AI credits have been increased from 3,000 to 4,000 per user.
- Commercial Impact: No pricing adjustments have been announced at this time.
Reduction in AI Credits for Single App Plans
Effective 1st July 2025, Adobe will implement a significant change to generative AI credit allocations for Single App entitlements:
- New Purchases: Monthly credits will be reduced from 500 to 25 per user.
- Grandfathering Clause: Existing customers with active Single App subscriptions or under a 3-Year Committed Term Agreement will retain the 500 credits per user and may continue to add seats under the current entitlement.
Price Adjustment for Creative Cloud Edition 4
Effective 1st July 2025, Adobe will apply an 8% price increase to Creative Cloud Edition 4.
- Exemption: Customers under an active 3-Year Committed Term Agreement will be price-protected and not subject to this increase.
Certero Recommends
With these changes, organizations should:
- Review current Adobe licensing portfolios.
- Assess the impact of AI credit reductions on creative workflows.
- Consider long-term agreements to mitigate future price increases.
Certero offers the tools and expertise to help organizations maintain compliance and optimize their Adobe licensing strategy.
Dutch court enforces VMware Support continuity
Ruling: Broadcom Obligated to Maintain VMware Support for Rijkswaterstaat
In a landmark decision, a Dutch court has ruled that Broadcom must continue providing VMware support to Rijkswaterstaat, the Dutch government agency overseeing public infrastructure and water management. This follows Broadcom’s acquisition of VMware and the subsequent restructuring of its licensing and support model.
Licensing Implications:
- Contractual Continuity: The court determined that Broadcom is obligated to honour the pre-acquisition support terms previously agreed with Rijkswaterstaat.
- Temporary Enforcement: Support must be maintained until the agency has had sufficient time to transition to alternative solutions, ensuring operational continuity.
- Public Interest Consideration: The ruling emphasized the critical nature of Rijkswaterstaat’s services and the public interest in uninterrupted IT operations.
Potential Precedent for Public Sector Licensing
While the ruling is specific to Rijkswaterstaat, it may serve as a precedent for other public sector or critical infrastructure entities facing similar licensing pressure following vendor acquisitions or licensing model changes.
C️ertero Recommends
Organizations operating in regulated or public service sectors should:
- Review contractual protections in software agreements, especially during vendor transitions.
- Document support dependencies and ensure continuity clauses are enforceable.
- Engage legal and licensing experts early when facing unilateral changes from vendors.
Expectation of increased Java audits in new Oracle fiscal year
Oracle’s Java Licensing Model Triggers Global Backlash
Oracle’s licensing and cloud strategy continues to evolve rapidly in 2025, with significant implications for enterprise software asset management. The most disruptive change stems from Oracle’s overhaul of its Java SE licensing strategies, which has introduced new cost structures and intensified audit activity.
Key Licensing Changes
Universal Subscription Model: Introduced on 23rd January 2023, Oracle’s Java SE Universal Subscription is now priced per employee, not per actual Java user.
- Impact: Organizations with limited Java usage (e.g., 25 developers) may be required to license all employees (e.g., 7,500 staff), resulting in up to 5x cost increases for the same usage footprint.
- Gartner Insight: Analysts warn this model significantly inflates licensing exposure and complicates entitlement management.
Customer Sentiment & Migration Trends
- Customer Dissatisfaction: Surveys conducted in early 2025 reveal that nearly 90% of Oracle Java customers are actively evaluating alternatives.
- Regional Impact: Discontent is highest in Europe, with over 90% of respondents in France and Germany indicating plans to migrate to non-Oracle Java platforms.
Audit Activity Intensifies
Oracle’s Global License Advisory Services (GLAS) has ramped up audit efforts targeting Java deployments:
- Monitoring Mechanisms: Oracle is tracking Java downloads, patch updates, and IP/domain activity to identify unlicensed usage.
- Historical Audit Logs: LMS is leveraging multi-year download histories since at least January 2022 to flag organizations that deployed Oracle JDKs without valid subscriptions.
Certero Recommends
Organizations should take immediate steps to:
- Conduct a Java usage inventory across all environments
- Review employee counts vs. actual Java users to assess exposure under the Universal Subscription model.
- Evaluate alternative Java distributions (e.g., OpenJDK, Amazon Corretto, Azul Zulu) to reduce licensing risk.
- Prepare for audits by documenting historical usage and entitlement coverage.
All of the above should be carried out using an Oracle verified tool. Cetero is an Oracle verified Vendor for Java, so you can rest assured our data will give you the leverage in a commercial discussion with Oracle.
Many organisations were caught off-guard by the end of free Java updates as illustrated below:
- Version 8 April 2019 Update 211 & higher are now licensed under the OTN licensing rules
- Version 17 October 2024 Update 13 & higher are now licensed under the OTN licensing rules
- Version 21 October 2026 Update 13 & higher will be licensed under the OTN licensing rules
Certero offers our Certero for Oracle verified tool. and expertise to help organizations navigate Oracle’s evolving licensing landscape, mitigate audit risk, and optimize Java licensing strategies.
Exiting an Oracle ULA in May 2026 – Now’s the time to consider the implications & create your business plan
Exiting an Oracle ULA: Why Early Internal Audits Are Critical
As organizations approach the end of their Oracle Unlimited License Agreement (ULA) term, the decision to certify, renew, or rescope the ULA carries significant financial and operational implications. A proactive internal audit is not just recommended—it’s essential.
Understanding the ULA Exit Process
An Oracle ULA provides unlimited deployment rights for specific Oracle products over a fixed term (typically 3–5 years). At the end of the term, organizations must choose to:
- Certify: Declare actual usage and convert to perpetual licenses.
- Renew: Extend the ULA term, often with revised terms and pricing.
- Expand: Add products or increase scope, typically at additional cost.
Risks of Delayed Audit Preparation
Without a comprehensive internal audit early in the process:
- Underreporting can lead to non-compliance and audit exposure especially when considering VMware environments.
- Overreporting may result in oracle disputing your calculations and causing licensing compliance situations.
- Missed optimization opportunities can lock in inflated entitlements or restrict future flexibility.
Advantages of Early Internal Audits
Conducting an internal audit 9–12 months before ULA expiration enables organizations to:
- Accurately quantify deployments across all environments (prod, dev, test).
- Identify unused or underutilized entitlements to optimize certification.
- Validate deployment eligibility under ULA terms (e.g., virtualization, cloud usage & products).
- Model cost scenarios for certification vs. renewal.
- Negotiate from a position of strength with Oracle, backed by our verified data.
Certero Recommends
Certero’s Oracle License Management services provide:
- Automated discovery of Oracle deployments using our Certero for Oracle verified products.
- ULA-specific entitlement mapping.
- Certification readiness assessments.
- Strategic guidance for renewal negotiations or exit planning.
If your Oracle ULA is set to expire within the next 12–18 months, initiate your internal audit now to ensure a data-driven, cost-effective licensing decision.
Exiting an Oracle ULA in May 2026 – Now’s the time to consider the implications & create your business plan
As software publishers seek to expand market share and accelerate adoption, freemium and open core licensing models are gaining traction across the enterprise software landscape. While these models offer clear benefits to vendors and users alike, they also introduce new risks and complexities for IT asset managers and procurement teams.
What Are Freemium and Open Core Models?
- Freemium Licensing: Offers a fully functional product at no cost, with premium features gated behind a paid tier (e.g., Slack, Zoom, Trello).
- Open Core Licensing: Provides a free, open-source base product, while advanced enterprise features are commercialized under proprietary licenses (e.g., GitLab, Elastic, Redis).
Pitfalls and Compliance Risks
Despite their appeal, these models can create significant licensing and operational challenges:
- Shadow IT proliferation: Freemium tools are often deployed without IT oversight, leading to unmanaged risk and data sprawl.
- Untracked upgrades: Users may unknowingly activate premium features, triggering commercial licensing obligations.
- License ambiguity: Open core models often blur the line between open-source and proprietary components, complicating compliance.
- Vendor lock-in: Once embedded, transitioning from freemium to enterprise tiers can involve steep costs and contractual constraints.
C️ertero Recommends
To manage freemium and open core licensing effectively, organizations should:
- Implement SaaS discovery tools to identify unmanaged deployments.
- Establish governance policies for evaluating and approving freemium tools.
- Track feature usage to detect when free tools cross into commercial territory.
- Review open-source license terms to ensure compliance with redistribution and usage clauses.
Certero provides the visibility and control needed to manage emerging licensing models and reduce exposure to unplanned costs and compliance risks.
Trends: Legal and compliance pressures intensify across the software licensing landscape
As global regulatory scrutiny increases and software vendors tighten enforcement, organizations are facing mounting legal and compliance obligations tied to software licensing. These pressures are reshaping how enterprises manage entitlements, negotiate contracts, and prepare for audits.
What’s Driving the Shift?
- Regulatory Expansion: New data protection, cybersecurity, and digital sovereignty laws (e.g., GDPR, NIS2, DSA) are influencing how software is licensed, accessed, and monitored.
- Audit Acceleration: Vendors are increasing audit frequency and scope, particularly in high-risk areas like cloud usage, indirect access, and hybrid deployments.
- Contractual Complexity: Licensing agreements now include more granular terms around usage rights, geographic restrictions, and termination clauses—often favouring the vendor.
Pitfalls for Organizations
- Audit Exposure: Inadequate entitlement tracking or undocumented usage can lead to significant financial penalties.
- Contractual Traps: Ambiguous or one-sided licensing terms can result in unexpected costs or restrictions during renewals or vendor transitions.
- Operational Disruption: Legal disputes or audit escalations can delay projects, impact service continuity, and damage vendor relationships.
Strategic Response for ITAM & Procurement Teams
To mitigate legal and compliance risk:
- Conduct regular internal audits to validate license usage against entitlements.
- Centralize contract management to ensure visibility into renewal terms, usage rights, and compliance obligations.
- Engage legal counsel during contract negotiations to clarify ambiguous clauses and secure favourable terms.
- Implement compliance automation tools to monitor usage, flag violations, and generate audit-ready reports.
Certero Recommends
Certero offers comprehensive compliance readiness assessments, contract risk analysis, and audit defense services to help organizations:
- Reduce legal exposure
- Strengthen vendor governance
- Optimize licensing strategies under regulatory pressure
Trends: Legal and compliance pressures intensify across the software licensing landscape
Siebel CRM’s on-premises licensing framework is highly granular and subject to strict audit scrutiny. Below are the 5 most common compliance risks organizations face—and actionable strategies to remain audit-ready.
- Custom Integration Exposure
Risk: Custom-built integrations may trigger additional licensing obligations under Oracle’s access policies.
Mitigation: Review integration architecture for licensing implications and document all third-party access points.
- Indirect Access Violations
Risk: Underreporting user counts by excluding users accessing Siebel data via integrations, middleware, or portals.
Mitigation: Ensure all users or devices consuming Siebel data—regardless of access method—are included in license calculations.
- Lack of Usage Visibility
Risk: Absence of real-time usage data leads to misalignment between entitlements and actual consumption.
Mitigation: Implement monitoring tools to track user activity and align licensing with operational needs.
- Inactive User Inflation
Risk: Dormant or legacy user accounts remain active in the system and are counted during audits
Mitigation: Regularly deprovision or retire unused IDs to avoid unnecessary license consumption
- Audit Preparedness Gaps
Risk: Incomplete documentation and lack of audit trails can result in unfavourable audit outcomes
Mitigation: Maintain comprehensive records of user, license agreements and system configurations
Certero Recommends
With these changes, organizations should:
- Review current Adobe licensing portfolios.
- Assess the impact of AI credit reductions on creative workflows.
- Consider long-term agreements to mitigate future price increases.
Certero offers the tools and expertise to help organizations maintain compliance and optimize their Adobe licensing strategy.