If there is a secret sauce to optimizing Oracle expenses, then it’s the combined analysis of maintenance contracts with existing infrastructure. Simply stated, Oracle’s policies are such that it’s difficult to save money on maintenance without substantially reducing software usage. Successful (that is, money-saving) optimization efforts typically include analysis of alternate deployment options that have a server consolidation ratio of between 5 and 10 to 1. After all, deploying underutilized servers and failing to implement Oracle in a commoditized manner are the leading causes of wastefulness.

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I often find that IT organizations are fractured between architecture, operations and finance. In other words, the people who design applications are motivated differently from the people who maintain them. While that may be an obvious organizational dynamic even to non-technical people, how to address it is another. Specifically, many financial types or those responsible for IT budgeting often wonder how Oracle has become such a large percentage of spend.

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I mentioned earlier that reducing Oracle support renewal spend is very difficult. This is due to two key Oracle technical support policies:  repricing and the definition of a license set.  More on those policies later.

The reality of Oracle cost optimization is that all Oracle-based assets and the associated costs must be assessed together, the top categories being:

1. Order documents and support renewal amounts for Oracle software
2. Server make, model, core-count, etc., including CPU utilization
3. Maintenance fees for related software and hardware, including refresh schedules for hardware
4. Application growth estimates and sunset timelines
5. Net new projects, including application implementation and infrastructure modernization

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op·ti·mi·za·tion (op’t?-mi-za’sh?n)

n.  The procedure or procedures used to make a system or design as effective or functional as possible, especially the mathematical techniques involved.  -Dictionary.com

I used to approach customers (and they approached me) with the goal of reducing their support payments to Oracle. Let me state up front that it’s nearly impossible to do that, especially in any short-term time frame. We’ll undoubtedly cover why at some point later in this blog.

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