Procuring and Effectively Managing Your Oracle EstatePart 1: Oracle Licensing

February 2014 Robert Lamb

Oracle Practice Head

Dave Bloxham

Head UK Marketing

Subject Matter

SoftwareONE

Oracle Software Licensing- Difficulties and Challenges

Oracle License Review (Audit)- Preparation and getting a win

Taking Control and Summary

A Global Company

Software Portfolio Management is a proven enterprise methodology that combines three

core data streams of SAM, technology demand roadmaps & commercial analysis services

to drive an all up view of IT investments”

“ A successfully implemented SPM service ensures IT investments”

support evolving business needs while delivering value, innovation, and alignment to cost

management initiatives.”

As a solution provider with software licensing at its core, SoftwareONE gains added

insight into the challenges and opportunities your software lifecycle presents, enabling

us to provide the highest level of expertise and most complete services throughout the

lifecycle of your investments.

A Proven Partner

Founded in 1985

Authorisations and local presence in 83 countries

Revenue of $3.4B in 2013 Over 25% YoY growth for last 5 years

Microsoft’s and Oracle’s fastest growing Partner

1,900 Publishers Represented

43,000+ Contracts Managed

Software Licensing

Company Overview

“

And still continue to be so…

Terms & Conditions

Product Releases

Acquisitions

Oracle Revenues 30+ years

Research

Company Overview

In average 19% of a IT budget contains

of software and license costs

70% of organisations have a 30%

discrepancy in their actual vs. planned

software use

35% can expect an external audit

20-30% is the expected initial ROI for

implementing a SAM process

Compliance: $10 in software per laptop

or server with regard to compliance

Licence optimisation: From $50 per

desktop to $300 per server

Other costs: 10% in IT support, costs in

training, research and productivity

improvement.

Gartner Forrester

New Challenges in the Datacentre

Company Overview

Gartner: In 2014; 69% of a datacenter budget is software and license costs

Complex licenses rules, policies and price models for business software e.g. ERP, CMDB, etc.

Multiple platforms such as Terminal Servers, application virtualisation, server virtualisation, all with different dependencies on your license optimization and compliance.

Source: Gartner

Oracle Licensing – Procurement ViewPossibly your estate is bigger than you realise

Database

Oracle Database 11g

Enterprise Edition

Options

Data Warehousing

Database Security

Data Integration

Exadata

Enterprise Manager

MySQL

Middleware

Java

Application Grid

Exalogic Elastic Cloud *

SOA | BPM

Content Management

Enterprise 2.0 and

Portals

Enterprise Performance

Management and

Business Intelligence *

Identity Management

Enterprise Manager

Applications

Oracle Fusion

Applications

Oracle E-Business Suite

PeopleSoft Enterprise

Oracle Policy

Automation

Siebel

ATG

Oracle CRM On

Demand

JD Edwards

EnterpriseOne

JD Edwards World

Hyperion

Primavera

Server and Storage

Systems

Exadata ‘ Logic

SPARC Servers

Sun Storage and Tape

Sun Oracle Database

Machine

Oracle Solaris

Oracle Linux

Virtualization

Enterprise Manager Ops

Center

Sun Blade Servers

• Multiple Price Lists

• 000’s of Products

• Many new Acquisitions

Oracle Licensing Complexity- IT ViewEnd User View

Service and

Process

information

All software

installed, versions

& patches

Map Virtual

Machines to

Physical Hosts

Options installed,

Options in USE

SAN and disk

configuration

Who is using what

CPU Model, # of

CPU’s, cores, etc.

EM Packs

Oracle LicensingWhy is it difficult to manage?

Procurement

License Agreements (OLSA’s - OMA may vary

Lack of understanding of Pre-requites and dependencies of Products

Overlooked in the heat of the sales _ internal price list

Supplements

Technical/Business

Pre-loaded software (Availability of license assumes right to use)

Contractor implementation

Infrastructure changes

Software Estate Management

Oracle

Constant licence agreement and rules changes

Changes to Business Practices

Inconsistent account engagement

Or to quote clients…..” It’s Oracle”

Oracle LicensingWhat may be the consequences?

“ Drifting” Non - Compliance Due to a mixture of Procurement, Technical And Oracle

Commercial advantage of centralising known spend on Oracle Knowledge of Oracle Products diluted by multiple sourcing

Ability to maximise ROI Movement of assets x-border and x-company

Duplication of Assets

Overspend on Support and Maintenance

An unplanned visit from Oracle LMS or COLs Emergency and unplanned compliance spend

Oracle LicensingGotchas and Trade Secrets

“ Just fill in the spreadsheet.”

Oracle Licensing Audit (Review)Steps into & through a review (i)

Precipitation causing Stress on Current License Position

OSW from Oracle requesting, or escalated to LMS

Strategic review required for compelling Business reason

Or you simply do not know should state a position

Time Window

Pressure from Oracle

Business pressure for Finance or M&A

Is the outcome financial or administrative

Support – Redundant Product – Compliance & SAM standards

Oracle Estate information

A support renewal spread sheet from Oracle is not good enough

OLSA / OMA and any contract details

Discovery – Methodology and Tools

What information is available from Oracle

Factor in any decommissioning, Project roll-outs, and M&A

Oracle Licensing Audit (Review)Steps into & through a review (ii)

Project Plan

Set timescale with clear objectives

Oracle expertise required from Vendor Independent or Internal

Engagement with Oracle

Who – When – Where – Why

Oracle Relationships

Use review and any engagement to maximise Oracle relationships for

technical / procurement and any relevant stakeholder

…. Where do we start?

Review Outputs

The VendorThe tradit ional approach

A first Approach – Soft Review OSW

Oracle Rep CSR TSR OD

Invite from the Client

Classic Mistakes They are on your side

LMS are involved

The DBA understands Oracle Licenses

Scripts or Worksheet?

Client interprets SIG or other documentation

Company Name: ORACLE SERVER WORKSHEET Date:

Details provided by:

1* 2 3 4 5 6 7* 8 9 10* 11* 12* 13 14 15 16 17 18 19

Server Oracle Instance Connect Version Application App Status Arch Estimated #

Estimated # of

max. Generic Server

Processo

r

No.

of

No.

of Proc. Op Virtual

Name

DB /

IAS Name String

Standar

d (SE) Name Provider Dev (D)

Client/Serv

er

different

users

simultaneous

users

Login

Used Model type Proc. Cores

Spee

d System

Environme

nt

if DB if DB

Enterpri

se (EE) Test (T) Three Tier

" Named

Users"

" Concurrent

Device"

Y /N/No

Login (Ghz)

Version Prod (P)

Inter/ Intra/

ExtraNet

etc. etc.

Understanding DiscoveryOur preferred approach

Company Overview

Cust Tool Tool Tool Tool Tool Tool Tool Tool Tool Tool Tool Tool Tool

Oracle

CSI

Oracle

Product

Category

Physical

Machine

Id / Host

Name

Virtual

Machine Id

/ Host

Name

Partitionin

g Method

CPU

Pinne

d

Databas

e

Edition

Datab

ase

Name Port

Versi

on

Options

Installed

Options in

use Packs Granted Packs Agreed

CSI

Oracle

Product

Category

Physical

Hostname

Virtual

Hostname

Partitionin

g Method

CPU

Pinne

d Edition Name Port

Versi

on

Options

Installed

Options

Used Packs Granted Packs Agreed

Database ARES N/A None N/A

Enterpri

se

IQOR

CL 1798

10.2.

0.4.0

P,S,AS,RAC

,OLAP,DM,

RAT P,AS

ASC,ASD,DCO,DD,

DT None

Cust Cust RSC/Tool Cust RSC/Tool

RSC/To

ol

RSC/To

ol RSC/Tool Tool Tool Tool

App

Name

App

Status

(prod,

test, dev,

train..)

User Count

(DBA

Users)

User Count

(App)

Top

Concurrency

Timestamp Sessions

Devices

seen

Inst Sess

Highwater Install Date

Server

Manuf Server Model Op Sys

Applicatio

n Name

Applicatio

n Status

DBA Users

Count

App User

count

Top

Concurrency

Timestamp

Max

Sessions

Devices

Seen

Instance

Session

Highwater Install Date

Sever

Manuf Server Model Op Sys

24

27/01/2010

06:01 1 3 4

09/11/2009

10:27

Hewlett-

Packard

HP Pavilion dv5

Notebook PC

Microsoft

Windows 7

Ultimate

20

26/01/2010

06:36 0 1 7

10/11/2009

11:18

Hewlett

Packard

ia64 hp server

rx2600 HP-UX

Tool Tool Tool RSC/T RSC/Tool RSC/T

Sockets

Cap

Sockets

Pop

Total

Physical

Cores

V$License

CPU Highw’

CPU

Count OS

Level

Total

Logical

Cores

Max poss

No.of alloc

CPU Processor Identifier

CPU

Speed

Proc

Factor

Proc Lic

Req NUP Min

1 2 2 1 2

AMD Turion(tm) X2 Ultra

Dual-Core Mobile ZM-82 2200

1 1 1 1 1

Intel(R) Itanium 2

processor (1.5 GHz, 6

MB) 1500

And When It Goes Wrong

Company Overview

Actual customer numbers:

>6,000 devices. 47 Oracle servers, 83 instances

RAC, Partitioning, OLAP, Data Mining, Advanced Security

3 Servers from manual declaration were 100% accurate – 44 were not

Over spent: $1,500,000

Under spent: $ 920,000

Oracle Settlement: $ 560,000 *

* Recovered in 3 years from reduced support bills

SAM & Discovery now in place as part of ongoing license management

process

Taking Control & Summary

Business CaseWhere are the savings?

Reduce support and

maintenance costs

Fit license strategy to

business

requirements

Manage ongoing

requests against

capacity

Reduce cost of

ownership

You can leverage relationships and scale,

to deliver benefits through

negotiation of exceptional terms

Taking ControlThe basic steps

“A successfully implemented SPM service ensures IT investments

support evolving business needs while delivering value,

innovation, and alignment to cost management initiatives.”

In Summary

Oracle Estate

What is the current understanding

Continuous review Process

What steps are in place should Oracle approach

Strategy for Vendors Oracle

SAM

Procurement

Oracle Relationships

Who and what is their motivation

Revenue/Product/Support Industry Leader

Info.uk@softwareone.com

+44 (0)203 5300 270

@SoftwareONE

LinkedIn:

SoftwareONE

Software Portfolio Management

Software Contract Negotiation

Company Overview

Understanding your spend profile,

How to gather vendor spend

Leakage – what is it and how to avoid

Which vendors do we start with? (defining quick wins)

Future Requirements

Build A Roadmap

Calculate full contract costs

Tools available

Virtualisation Modelling

SQL Modelling

Software Procurement Platform Demo

Discovery Tools

SAM Tools