Tag Archive: oracle cost reduction

How to License Oracle Software

Here’s what I’ve learned after being in the Oracle food-chain for 15 years and advising 100s of clients on Oracle software licensing: license what you need, when you need it, when Oracle is ready to negotiate.

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Entitlement and Gap Analysis

Software licensing is both remarkably simple and immeasurably complex. Just like Calculus can be broken down into elementary steps, so too licensing is simple math stacked up over decades of disparate metrics and contractual terms. Even so, customers are contractually bound to compliance and Oracle is empowered to throw the book at misuse of its software.

Entitlement and gap analysis is the science of understanding products, quantities, contractual terms and policies. Steps include gathering data, rolling it up into meaningful information, making comparisons between entitlement and deployment, and assessing future growth, among others. This is the heart of Costimizer and the foundation of what I do as a vendor-independent consultant.

Oracle Public Cloud

Oracle has yet to publish the fees and terms associated with moving database workloads into its cloud offering, announced one month ago at OOW. The landing page looks good at least.

Anyone familiar with Oracle’s profit model should be wondering if signing up for database cycles from the cloud will facilitate re-licensing. That is, will customers be able to terminate products on traditional support in exchange for a cloud-centric licensing model like Amazon’s EC2?

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Announcing Rational IT Partners

Customers don’t need anyone to help Oracle sell them more software. Quite the opposite.

First, most customers have enough database software to last forever if shown the proper optimization strategies.

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Skip VMware? Oracle on VMware, Part 3

I was reminded this morning that the key to saving money on software is to reduce your need for it. Said differently, executives overseeing IT spend should be asking the following question: why aren’t improvements to hardware, adoption of low-cost x86 servers, cloud computing, fill-in-the-blank-latest-whatever, resulting in overall savings?

As complex as the topic may be, there is one simple truth: vague, undocumented and otherwise overwhelmingly complex software licensing policies have the potential to dictate IT decisions.

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The Fundamentals of Saving Money on Oracle

There are fundamentally three concepts to consider when attempting to save money on Oracle: total cores, software editions and contractual flexibility. Let’s take a quick look at each.

First, most organizations have multiples of more cores deployed than they need to adequately serve the business. It follows that underutilized compute resources comprise the majority of cost and waste within IT. This is especially true considering that Oracle requires licensing for any core that it can land on, regardless of how well utilized it is.

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