Jacqueline Woods

VP, Pricing & Licensing

Strategy
Office of the CEO
Oracle Corporation
An Insiders View:
Oracle Technology
Pricing and Licensing
Agenda

Overview
Database Basics
On Migrations
Resources
Q&A
Overview
 The ability to
gather, arrange and
manipulate data with
computers has given
business people new
tools for managing.
- Peter Drucker
In the beginning
it seemed easier
Client Server:

Desktop Client
Database
Current Business Climate
Increased Complexity & Highly Sensitive
Heightened Security Concerns
Worldwide Economic Downturn Longer
than Expected
Increased Scrutiny On All Business
Transactions -- Corporate Governance
Licensing Snapshot
Current
Environment:
Todays Customers want to buy software as
needed; eliminate shelfware
Customers say they need more flexibility
More inquiries about Utility models,
Capacity and Subscription models
License compliance industry problem
causing customer anxiety
Now its more
sophisticated,
more complex
Multi-tier Climate:

E-Commerce
Application
Database Server
Desktop Client
Is there a holy grail
for pricing and
licensing?
Objectives
Simple

Flexible

Transpare
nt
Technology changes .are catalysts to
licensing changes
Perception is Everything
Perception
1. Pricing is complex
2. Too many changes

Reality
1. Pricing is rich with nuances to treat everyone fairly
Oracle was 1st vendor to publish price list and its licensing policies

2. Licensing is an evolutionary process

IT environment is dynamic
Price is not Just a Number
Metric Term
Named User Plus Perpetual
Processor
Term (1, 2, 4 year)

License Type Support

Software Update
Full Use
Application-Specific Product Support
Embedded

There is a license suitable for every customers needs

Database Pricing
Goals: Streamline Costs
Select the most suitable licensing
metric
Determine appropriate product and
license terms to meet your needs
Evaluate maintenance fees
Financing
Promotions
Database Metrics

Named User Plus

Based on users and non-human operated devices
accessing the Database
Used in environments where users can be counted

Processor
Based on the number of processors in the server where
the Database is installed and/or running
Used in environments where users are uncountable
Named User Plus or Processor?

Important Things to Consider

Is your user population countable?
Is your user population greater than 50 Named
User Plus per Processor?
Does your user population often change and
thus makes it difficult to track?
Do you need unlimited access to the
Database?
Counting Named User Plus
Count all individuals and non human operated devices
accessing the program or minimum, whichever is greater

Individuals: include users accessing the database &

users operating devices that access the database
Non-human operated device examples: temperature
devices in a warehouse
Minimum:
Database EE: 25 Named User Plus per Processor
Database SE: 5 Named User Plus
IAS EE or SE: 10 Named User Plus per Processor
Counting Processors

All processors on the server where the program is

installed and/or running must be counted
Exception: server is hardware partitioned

Minimum: 1 Processor
Maximum: only applies to the Database Standard
Edition where it can be deployed on a server with a
maximum capacity of 4 processors
Term Licenses

Perpetual

4 Year Term
60% of List
2 Year Term
35% of List

1 Year Term
20% of List
Support Offerings

Software
Updates

Software updates and

Product
upgrades Support
24*7 phone support
Email support Advanced
Product Services
Software Updates mandatory

Customized support

E-Business Support Pricing constant

since 2000
License Type

More rights
Full Use
More value

ASFU /
ESL

Less rights
Restricted
Less value Use
E-Business Discount
Transaction Band Discount
$0 - $25,000 0%

$25,001 - $50,000 5%

$50,001 - $100,000 10%

$100,001 - $250,000 15%

$250,001 - $1,000,000 20%

$1,000,001 + 25%

Mandatory discount given to every customer

Based on the size of the transaction (includes license and support fees)
Flexible & Affordable Acquisition Options

Oracle Financing
Monthly Price*
Flexible solutions
Oracle Payment Plans 3.0%
Oracle Leases 2.6%
* 36 months

Customer Benefits
Overcome budget constraints
Conserve capital
Simplify with fixed, predictable payments
Migrations
Migration
Architectural changes drive software license changes

Concurrent Device may be measurable in a 2 tier

environment (older architecture), but isnt measurable
in a multi-tier environments

New metrics must be introduced to address new needs

Database Metric Evolution
Concurrent Device
Network Licenses

Named Single Server

Named User Multi Server
Universal Power Unit

Named Users Plus

Processor
Conversion Factors for Current
e-Business Database Metrics
Objective:
Protect Customers Investment

50 Named User Plus = 1 Processor

75 Concurrent Devices= 1 Processor
1,000 Universal Power Units = 1 Processor
1 Concurrent = 2 Named User Plus
Simple Example
Licenses Owned: 300 Concurrent Device licenses
Need: Unlimited number of users
Proposed conversion: Concurrent Device is no longer adequate metric for desired usage,
customer should migrate to the Processor metric
Conversion factor: 300 Concurrent Devices /75 = 4 CPUs

If the Oracle DB is running on a 6 Processor

machine, you will need an additional 2 Processors:
2 * $40,000 per Processor = $80,000 list license price
2 * $8,800 per Processor = $17,600 list support price
Migrated CD support is the lesser of migrated licenses e-Business Support fee or old support fee
Oracle Software or Shelfware
Todays reality: Many Customers are Downsizing

Whats happens to unused software?

When should you reduce your number of

licenses?
Only if the employee reduction is a long term plan
Not cost effective to cancel support and
license, if having to re-purchase both a year later
Resources
A N N O U N C E M E N T

Specialty Pricing
Seminars
The Software Investment Guide
For an explanation
of:
Pricing &
Licensing
Practices
Software &
Service Offerings
Total Cost of
Ownership
analysis
Links to
Supporting
Documents
Where to Get More
Information

Pricing and Licensing Website

www.oracle.com/corporate/pri
cing

Customer Pricing Inquiries

Pricinginquiry@Oracle.com
Q&
A
QUESTIONS
ANSWERS