Oracle Competitive AnalysisOracle Database Product Licensing

Second Source PricingFeature Oracle EnterpriseDB

Core Database (Enterprise Edition)

$40,000 per CPU $1,000 - $5,000 per CPU

Diagnostic/Tuning Pack $2,000 - $3,000 per CPU Included at no charge

Partitioning $10,000 per CPU Included at no charge

Geo-spatial $5,000 - $10,000 per CPU Included at no charge

Maintenance 22% of list price Included in yearly fee

Why Oracle Licensing?

• Understanding WHAT features/options Oracle is selling allow us to quantify cost/benefit analysis by feature for each Oracle database edition

• Understanding HOW Oracle prices their different database editions.

• Understanding Oracle’s feature/configuration dependencies and limits which force Oracle’s customers to increase their licensing costs

Oracle Database Licensing Semantics

• To minimize confusion and before discussing product, I need to identify and define the nomenclature that Oracle uses in their Database licensing practices.

• Many expressions must be qualified in different scenarios, these shall be identified and examples provided

Oracle Licensing Metrics – Named User Plus

Named User Plus• A person/Thing (noun) which can access the DB

e.g. non-human barcode reader (on a production line), each is a NUhuman using a barcode reader connecting to the Oracle DB is a NUnon-human & human-operated devices connecting to an Oracle DB and are mutually exclusive, all human & non-human need to be licensed

• Used when one can identify a human/non-human ‘user’• When the environment includes multiplexing hw/sw (e.g. TP

Monitor, Web server); one must count at the multiplexed end.• Only licensing method for Personal and Lite Editions• Minimums apply (but differ) depending on the Database Edition• If user population often changes, this method is cumbersome

Oracle Licensing Metrics - Processor

• Oracle counts ALL processors on a server unless the server is HARDWARE partitioned (not usually possible except in Very high end servers)

• Oracle recognizes Each Core of a Processor as a separate Processor. This is a significant cost/value differentiator.

• Used in environments where users cannot be identified and counted (e.g. Providing data to a web service which is externally facing to the Internet)

• Not offered for Personal or Lite editions of the DB

Oracle Licensing Metrics – Processor (EE)

• Oracle recognizes each Core of a Processor as a separate processor. The factor changes by Processor type:

Oracle Processor Licensing:

Cores Processor Factor

CPUs for SW Licenses

UltraSPARC T1 8 0.25 2

AMD/Intel 4 0.50 2

All other Multi-core Chips

2 0.75 2

Single Core Chip 1 1.00 1

Oracle Licensing Metrics - History

• Oracle Metrics have changed over time. • Oracle provides conversion rates (@ usurous rates) • Unless very carefully negotiated, the client may find

themselves w/ a higher licensing cost after conversion.

Concurrent Users: The number of connected users.

Universal Power Units: Tried to normalize performance of different processors.

Oracle Licensing Metrics – Break-Even Analysis/Factors

• The Break-even (cost) between Named User Plus Licensing and Processor based licensing is 50 users per Core.

• i.e. when an Oracle client has more than 50 users per processor core it is cheaper to use processor based licensing.

• The Named User Plus minimums (which increase by Edition) make it difficult to support a small # of users per server.

• i.e. distributed implementations with small number of users per implementation are NOT cost effective from a license perspective.

• Complexity of counting Named Users Licenses induces maintenance and administration cost for this model.

Oracle Database Products

• Now we shall discuss the different database Product Offerings that Oracle Offers

• For Each we shall– Identify the Edition Name– A brief Overview/description of the product– Minimum Cost factors for both Named User and Processor

• [$per User, $NU Min, $per Core]

– A short description of Target Audience– A list of Limitations for this Edition (if any)

• Note that All Editions are sourced from the same code Base

• Shall provide a feature availability by Edition Matrix

Oracle Database Product – Oracle Express Edition

• Oracle Express Edition (XE) [FREE]• XE is an entry-level, small footprint database. Free to

develop, deploy, distribute• A good starter database for:

– Developers working on Java, PHP, .NET, XML, …– DBAs requiring a starter db for training, deployment– ISV’s HW Vendors who want to distribute free of charge– Education Institutes/Students need a free db for curriculum

• Limitations: 1db/machine, 4GM user data, 1GM mem, 1 CPU used per machine

• Dependencies: None

Oracle Database Product – Oracle Standard Edition 1

• Oracle Standard Edition (SE1) [$149,$745, $4995*]

• A NOT Fully featured database for small to medium business environments.

• Target– Organizations supporting 1-400 users– Databases up to 500 Gb

• Limitations: – 5 NU Min– *Max 2 Sockets (i.e. cost max)– No Data or RAM Limitations

• Dependencies: None

Oracle Database Product – Oracle Standard Edition

• Oracle Standard Edition (SE) [$300, $1500, $15000]

• A NOT Fully Featured database for small-medium sized business. Includes Real Applications Clusters (RAC).

• Target– Organizations supporting 1-1000 users– DB’s up to 500 GB– Single System Failure Avoidance

• Limitations: Max 4 Sockets, No MEM or Data Limits• Dependencies: Dictates RAC Implementation method

– Must use Oracle’s Cluster Ready Services – Must use Oracle Auto Storage Management (ASM)

Oracle Database Product – Oracle Enterprise Edition

• Oracle Enterprise Edition (EE) [$800, $20000, $40000]• A fully featured Database (Oracle’s Flagship) supporting

OLTP, DSS and Warehouse workloads.• Target

– Larger Organizations ($ barrier to entry)– Up to 8 Exabytes in size (2^60, 10^18)– Feature Rich

• Limitations: None• Dependencies: None

Oracle Database Product – Oracle Personal Edition

• Oracle Personal Edition (PE) [$400, $400, N/A]

• A Full Featured version of the database for Individuals who require full compatibility

• Target– Single User Development/Test purposes

• Limitations: Single User Only, No deployment• Dependencies: None

Oracle Database Product – Oracle Database Lite Ed

• Oracle Database Lite Edition [$100, N/A, N/A ]• A small footprint database to be embedded in

mobile/lightweight environments (PDA, Laptop, Phone…). Synchronizes to centralized Oracle DB.

• Target– Developers/Corporations with embedded/disconnected mobile

applications

• Limitations: Size of the device• Dependencies: Oracle (EE) DB, Oracle Application

Server

Oracle Features by Edition Analysis - General

• HA: is for EE, others don’t match• Scalability: EE, SE (to the Core Maximums)• Security: EE• Development: XE !support Java, 64 bit• Management: EE (+options),

– XE no OEM, ASAM or Bu/Recovery to Flash Recovery Area

– SE1, SE, XE: No Database resource Mgr.• VLDB/Warehouse: EE only • Integration: Replication: EE as source only• Networking: XE no Oracle Names support

Oracle EE Options

• All the following Options REQUIRE the Enterprise Edition of the Oracle Database. i.e. There is no using these options on an SE1 version w/out upgrading to EE.

• OLAP• Oracle Data Mining• Real Application Clusters

– SE is SE1 with RAC added. See previous pg. on this Product

• Partitioning• Advanced Security• Label Security• Spatial

Oracle EE Options Costs

Option Cost (% EE)

Option Name Option Description

+50% OLAP (Online Analytical Processing)

Multi-Dimensional Engine + Datatypes ( MOLAP )

+50% Data Mining GUI on top of ETL from multiple systems

+50% RAC Node Fault Tolerance

+25% Partitioning Range, Hash, List Partitioning of data

+25% Advanced Security Data encryption (in DB, on Network)

+25% Label Security PPO

+25% Spatial Managing manipulations of space

Oracle Option Pricing AnalysisBecause of the requirement of EE for these options, let us revisit the pricing

relative to the SE1 version ( e.g upgrading to use the Partitioning Option)

Management Packages

• Similar to Options, Management Packs are units of software. The purpose is different in that Packs aid in the management of Oracle Database implementations. Packs include:– Change Management Pack– Diagnostic Pack– Tuning Pack– Configuration Management Pack– Provisioning Pack– Each are at an additional cost of 7.5% of the price of the EE

option. – As with the Options, the price of using the Package is nothing

compared to the price of the requirement to use EE– Usually Oracle will ‘Throw these In’ at some point during the

negotiation phase.

Database Software Environments

Typical Database Software Environments

• Development

• Test

• Performance

• Production

• Backups/Failover/Standby Environments

Development Environments

• In a single user development environment (1 user, 1 server installation); then one can download the Full Use licenses and use them. They may not use this software for training, internal data processing, commercial or production use.

• When multiple developers wish to develop against the same server, then they must be properly licensed

Test/Performance/Production Environments

All programs used in a test environment must be licensed under an Oracle License and Services Agreement (OLSA) or an Oracle re-seller agreement.

This includes Performance environments used prior to Production.

All Production environments must be licensed under an OLSA or an Oracle re-seller agreement.

Backup/Failover/Standby Environments

• Backups [database files of the primary database stored on tape media] may be stored without purchasing additional licenses.

• Failover (Active/Passive): Nodes configured in a ‘cluster’ with the first installed node as primary. If the primary fails, one of the nodes in the cluster acts as the primary.

• Oracle allows the database to be run on the unlicensed spare computer for up to a total of ten separate days in any given calendar year. Any other use requires the environment to be fully licensed in the SAME metric as the primary.

• Standby: One or many copies of the primary database are maintained on separate servers at all times (for disaster recovery). If the primary fails, the standby is activated.

• Oracle requires that both environments be fully licensed in the SAME metric as the primary