This article about Itanium reminded me that the most strategic decision CIOs make regarding Oracle is where to run databases. Admittedly, my experience with Itanium years before Oracle announced desupport was consoling unhappy customers through support issues. Had Mark Hurd stayed at HP and IBM acquired Sun I suspect Oracle would have continued supporting Itanium for years to come. As the saying goes, a house divided cannot stand, and Oracle continues to rake in piles of cash from Oracle running on HP-UX.
Category Archive: Licensing
The Best Platform For Oracle Databases
The Value of Oracle Software Support
Two common complaints about Oracle are how expensive it is and how inflexible the terms surrounding software support are. In some cases, after closer inspection, a customer realizes that it is actually getting a better deal on annual support than originally thought. The way to determine this is by reverse engineering the effective discount against list price. (Remember, support is typically 22% of net license fees.) As you may suspect, it is common that support payments are at a premium after years of increases. As a side note, Oracle seeks to block purchases designed to reduce existing support by re-licensing identical software at a deeper discount.
Server Partitioning Licensing Policies for Oracle, Part 2
I often feel like Debbie Downer when discussing Oracle licensing policies, especially with regards to server partitioning. The conversations typically involve what may seem to be a loop-hole, i.e., a means by which to forego licensing. Oracle seems to believe that it is abundantly clear on the matter. Meanwhile, the rest of us can produce technical nuances that do not exactly fit into an existing policy.
On that note, here is my tongue-in-cheek check list for whether a core must be licensed in the case that it is ever made available for Oracle to run on. So, if any of the following are true …
Oracle Q4
Spring is in the air, the birds are singing, Larry Ellison is testifying against Google, and once again, it is Oracle’s fourth quarter. Ending May 31st, Oracle’s Q4 is renowned for its deal-making and mad dash to quota attainment for Oracle sales reps everywhere. Emotions can run high, so if you’re involved in a large Oracle transaction, then take a deep breath and consider these two points while negotiating with Oracle.
Vendor Negotiation
It may seem that Oracle is a monopoly if you are trying to reduce software support or negotiate discounts on new licensing. It is possible in most situations, however, to build leverage despite the high cost of migrating databases and rip-replacing suites of enterprise software.
On the other hand, there are nearly irreversible decisions where customers unknowingly forfeit future flexibility and cost-effectiveness. Unlimited agreements, CSI roll-ins, revenue-based metrics, among others, are problematic and must be executed with absolute clarity of the long-term effects. If you are on the precipice of such a decision, then I highly recommend contacting a vendor-independent consultant (e.g., me) to advise.
Feel free to call (888) 620-9832 or email to engage.
SAM Summit 2012
I’ll be presenting at this year’s SAM Summit in Chicago as well as teaching a one-day course on Oracle License Management.
The summit is highly recommended for anyone who touches software licensing. Most major software publishers are represented, discussed, presented, etc. The event is also well-attended and an opportunity to network with other software asset managers.
How IBM Wins With DB2, Part 2
This was my reaction to DB2 9.7 nearly two years ago. My sentiment then and now is that the competitive success of DB2 is a matter of offering flexible, predictable contract terms. As a side note, I never doubted that IBM could simplify migrations to DB2 from Oracle. What I still question is whether customers can actually reduce costs by doing so.
The math is straightforward. If a customer will spend $5M on Oracle software support across five years, then IBM has to offer a value equation that cuts that to $4M, including net new licensing, support, migration services and staff training.
Asset Discovery
The first step in Oracle Optimization is to understand what is running in the data center. Many organizations, however, do not have asset records that are readily available or accurate. It is often necessary to scan the network for what products are in use. Oracle presents a challenge in that its software is freely available online, does not require keys and installs extra-cost options automatically.
There are various options for discovering assets ranging from open-source to enterprise software packages, each appropriate depending on size, complexity and need. I can provide asset discovery services, Enterprise Manager (12c) mentoring, or if necessary, broker discussions with tools providers that fit your budget and scope.
Oracle Management Packs
Oracle recently changed how it offers the extra-cost Packs that extend functionality within Oracle Enterprise Manager (a.k.a OEM, Grid Control and Cloud Control). Diagnostics and Tuning Packs–the two most commonly licensed alongside Enterprise Database–remain unchanged with regards to licensing rules and pricing.
The big news is the appearance of Database Lifecycle Management Pack for Oracle Database (DLM) on the price list for $12,000 per Processor. Configuration Management, Change Management, and Provisioning and Patch Automation Packs are rolled into DLM and removed from the price list. These three Packs were $5,000, $3,500 and $3,500, respectively, so it seems Oracle decided not to extend a package deal for the bundle. Furthermore, DLM is a prerequisite for Cloud Management Pack for Oracle Database, which is $3,000 per Processor.
Oracle Exadata and NetApp
… It is vital to understand the Oracle licensing implications of NetApp solutions to understand how they can actually lower costs …
It’s not enough to buy one Exadata box. You kind of need three: one for production, another for standby and a third for development activities. This is because Oracle Exadata does not offer array mirroring and best practices dictate that development/test/QA be identical to–but not reside on–production servers. The result is copious amounts of Oracle that many can’t afford, not to mention how such licensing contracts marry you to Oracle’s technical support policies.
