Corporate PPT Template

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(No Transcript)
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Jacqueline Woods VP, Pricing Licensing
Strategy Office of the CEO Oracle Corporation
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An Insiders View Oracle Technology Pricing and
Licensing
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Agenda

• Overview
• Database Basics
• On Migrations
• Resources
• QA

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Overview
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The ability to gather, arrange and manipulate
data with computers has given business people new
tools for managing.
- Peter Drucker
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In the beginning it seemed easier
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• Client Server

Desktop Client
Database
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Current Business Climate

• Increased Complexity Highly Sensitive
• Heightened Security Concerns
• Worldwide Economic Downturn Longer than Expected
• Increased Scrutiny On All Business Transactions
  -- Corporate Governance

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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

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Now its more sophisticated, more complex
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Multi-tier Climate
E-Commerce
Application Server
Database
Desktop Client
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Is there a holy grail for pricing and licensing?
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Objectives
Simple
Flexible
Transparent
Technology changes .are catalysts to licensing
changes
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Perception is Everything
Perception

• Pricing is complex
• Too many changes

Reality

• Pricing is rich with nuances to treat everyone
  fairly
• Oracle was 1st vendor to publish price list and
  its licensing policies
• Licensing is an evolutionary process
• IT environment is dynamic

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Price is not Just a Number
Metric
Term
Perpetual Term (1, 2, 4 year)
Named User Plus Processor
Support
License Type
Software Update Product Support
Full Use Application-Specific Embedded
There is a license suitable for every customers
needs
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Database Pricing
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Goals Streamline Costs

• Select the most suitable licensing metric
• Determine appropriate product and license terms
  to meet your needs
• Evaluate maintenance fees
• Financing
• Promotions

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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

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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?

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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

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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

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Term Licenses
4 Year Term 60 of List
2 Year Term 35 of List
1 Year Term 20 of List
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Support Offerings
Product Support

• Software updates and upgrades

Advanced Product Services

• 247 phone support
• Email support
• Software Updates mandatory

• Customized support

E-Business Support Pricing constant since 2000
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License Type
ASFU / ESL
Restricted Use
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E-Business Discount
Transaction Band
Discount
0 - 25,000
0
25,001 - 50,000
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50,001 - 100,000
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100,001 - 250,000
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250,001 - 1,000,000
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25
1,000,001

• Mandatory discount given to every customer
• Based on the size of the transaction (includes
  license and support fees)

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Flexible Affordable Acquisition Options
Oracle Financing
Monthly Price 3.0 2.6 36 months

• Flexible solutions
• Oracle Payment Plans
• Oracle Leases
• Customer Benefits
• Overcome budget constraints
• Conserve capital
• Simplify with fixed, predictable payments

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Migrations
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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
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Database Metric Evolution
Concurrent Device Network Licenses
Named Single Server Named User Multi
Server Universal Power Unit
Named Users Plus Processor
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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
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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

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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 andlicense,
  if having to re-purchase both a year later

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Resources
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A N N O U N C E M E N T
Specialty Pricing Seminars
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The Software Investment GuideEvaluate Our Pricing
Read the Software Investment Guide to understand
pricing licensing policies
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The Software Investment Guide

• For an explanation of
• Pricing Licensing Practices
• Software Service Offerings
• Total Cost of Ownership analysis
• Links to Supporting Documents
• and much more, download the SIG

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Where to Get More Information
Pricing and Licensing Website www.oracle.com/corp
orate/pricing Customer Pricing
Inquiries Pricinginquiry_at_Oracle.com
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A
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Accounting for Data Transfers
Batching

• Definition data transferred from a database to a
  database
• Licensing rule batching included with the
  Processor and Named User Plus licenses
• Historical prior to Named User Plus and
  Processor, batching was counted at the front end

Licensing rule was changed to avoid having
customers pay twice once for Oracle and once for
another relational database vendor
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Accounting for Data Transfers
Multiplexing

• Definition data transferred from an interface to
  a database
• Licensing rule users and/or devices must be
  counted at the multiplexing front end
• Comments
• A multiplexor concentrates and masks users, thus
  making it impossible to count users, unless
  counting at the front end
• Industry-wide licensing practice

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Accounting for Data Transfers
Flat Files

• Definition Data exported/imported to a database
• Licensing rule User and/or devices importing/
  exporting flat files must be counted as actual
  users
• Historical Named User metric users who were
  creating, updating, importing and exporting flat
  files were required to be licensed

Importing/exporting flat files is a highly manual
process and Oracle did not want to penalize
customers by charging users who were only
creating files and not accessing the Database
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Energy Sector Example
House
Meter
Remote Terminal Unit
RTU
RTU
Communication Server
Oracle Database EE
In the energy sector, meters are counted as Named
User Plus licenses
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Example 1

• 2,500 users are uploading flat files (txt) via
  FTP sent manually to communication device once a
  day
• Data stored on the communication device is
  automatically batched into the Oracle Database

Communication device
4 CPU
Automated Batch
2,500 End-User
Oracle DB EE
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Answer 1
The communication device is consolidating the
flat files and concentrating actual users and
actual usage ? the communication device is
acting as a multiplexor Each user at the front
end of the multiplexing process must be counted
(the 2,500 users are counted)
Licenses required
4 Processors or 2,500 Named User Plus (minimum
25 4 Processors, actual users 2,500 users)
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Example 2

• 2,500 users are uploading flat files into a flat
  file database (non-relational database) once a
  day
• Data stored on the flat file database is
  automatically batched into Oracle Database

4 CPU
Automated Batch
Oracle DB EE
Flat File Database
2,500 End-User
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Answer 2
Similarly to the communication device, the flat
file database is consolidating the flat files and
concentrating actual users and actual usage ?
the communication device is acting as a
multiplexor Each user at the front end of the
multiplexing process must be counted (the 2,500
users are counted)
Licenses required
4 Processors or 2,500 Named User Plus (minimum
25 4 Processors, actual users 2,500 users)