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Procuring and Effectively Managing Your Oracle Estate
Part 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
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.

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.”
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
“

And still continue to be so…
Acquisitions

Company Overview
Product
Releases
Terms &
Conditions

Oracle Revenues 30+ years
Research
Gartner

Forrester

 In average 19% of a IT budget contains
of software and license costs



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
Company Overview
training, research and productivity
improvement.

 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
New Challenges in the Datacentre

 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.
,

Company Overview

 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 View
Possibly 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 View
End User View
SAN and disk
configuration
Service and
Process
information

Map Virtual
Machines to
Physical Hosts

Who is using what
All software
installed, versions
& patches

CPU Model, # of
CPU’s, cores, etc.

EM Packs

Options installed,
Options in USE
Oracle Licensing
Why 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 Licensing
What 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 Licensing
Gotchas 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 Vendor
The traditional 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*
Server

Name

2

3

4

5

Oracle Instance Connect Version
DB /
Standar
IAS Name String d (SE)
Enterpri
if DB
if DB se (EE)
Version

6

7*

8

9

10*

11*
Estimated # of
Application App
Status
Arch
Estimated #
max.
Client/Serv different
simultaneous
Name Provider Dev (D)
er
users
users
" Named
" Concurrent
Test (T) Three Tier
Users"
Device"
Inter/Intra/
Prod (P) ExtraNet
etc.
etc.

12*

13

Generic
Login
Used
Y /N/No
Login

Server

Model

14
15
Processo No.
r
of

type

16
17
18
19
No.
of Proc.
Op
Virtual
Spee
Environme
Proc. Cores d System
nt
(Ghz)
Understanding Discovery
Our preferred approach
Cust

Tool

Tool
Tool
Physical Virtual
Oracle
Machine Machine Id
Oracle Product Id / Host / Host
CSI
Category Name
Name
Oracle
Product Physical Virtual
CSI
Category Hostname Hostname

Database ARES

N/A

Tool

Tool

None

N/A

Cust
RSC/ Tool
Cust
RSC/ Tool
App
Status
(prod,
User Count
Top
App
test, dev, (DBA
User Count Concurrency
Name
train..)
Users)
(App)
Timestamp
Top
Applicatio Applicatio DBA Users App User Concurrency
n Name n Status Count
count
Timestamp

Enterpri IQOR
se
CL

Tool Tool Tool

20

V$License Count OS
CPU Highw’ Level

Tool

Versi Options
Port on
Installed

RSC/ To RSC/ To
ol
ol

RSC/ Tool

Tool

Tool

Options in
use
Packs Granted

Versi Options
Options
Port on
Installed
Used
P,S,AS,RAC
10.2. ,OLAP,DM,
1798 0.4.0 RAT
P,AS

Packs Agreed

Packs Granted

Packs Agreed

ASC,ASD,DCO,DD,
DT
None

Tool

Tool

Tool

Company Overview
Devices Inst Sess
Sessions seen
Highwater
Instance
Max
Devices Session
Sessions Seen
Highwater

27/01/2010
06:01
1
3
Tool
26/01/2010 Tool
CPU
06:36 Total Max poss
0
1

24

Total
Sockets Sockets Physical
Cap
Pop
Cores

Tool

CPU Databas Datab
Partitionin Pinne e
ase
g Method d
Edition Name
CPU
Partitionin Pinne
g Method d
Edition Name

Cust

Tool

Tool

Server
Install Date Manuf

Server Model

Sever
Install Date Manuf

Server Model

09/11/2009 Hewlett10:27 Packard
10/11/2009 Hewlett
7
11:18 Packard
4

Logical No.of alloc
CoresCPU
Processor Identifier

1

2

2

1

2

1

1

1

1

1

AMD Turion(tm) X2 Ultra
Dual-Core Mobile ZM-82
Intel(R) Itanium 2
processor (1.5 GHz, 6
MB)

Op Sys
Microsoft
HP Pavilion dv5 Windows 7
Notebook PC Ultimate
RSC/ T RSC/
RSC/ T
ia64 hp server Tool
rx2600
HP-UX

CPU Proc
Speed Factor
2200

1500

Op Sys

Proc Lic
Req

NUP Min
And When It Goes Wrong
 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
Company Overview
 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 Case
Where are the savings?
Reduce support and
maintenance costs

Fit license strategy to
business
requirements

Manage ongoing
requests against
capacity

You can leverage relationships and scale,
to deliver benefits through
negotiation of exceptional terms

Reduce cost of
ownership
Taking Control
The 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
 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

Company Overview

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SoftwareONE Oracle Licensing Introduction 18.02.14

  • 1. Procuring and Effectively Managing Your Oracle Estate Part 1: Oracle Licensing February 2014 Robert Lamb Oracle Practice Head Dave Bloxham Head UK Marketing
  • 2. Subject Matter SoftwareONE Oracle Software Licensing - Difficulties and Challenges Oracle License Review (Audit) - Preparation and getting a win Taking Control and Summary
  • 3. A Global Company 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. 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.”
  • 4. 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
  • 6. “ And still continue to be so… Acquisitions Company Overview Product Releases Terms & Conditions Oracle Revenues 30+ years
  • 7. Research Gartner Forrester  In average 19% of a IT budget contains of software and license costs  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 Company Overview training, research and productivity improvement.  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
  • 8. New Challenges in the Datacentre  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. , Company Overview  Multiple platforms such as Terminal Servers, application virtualisation, server virtualisation, all with different dependencies on your license optimization and compliance. Source: Gartner
  • 9. Oracle Licensing – Procurement View Possibly 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
  • 10. Oracle Licensing Complexity- IT View End User View SAN and disk configuration Service and Process information Map Virtual Machines to Physical Hosts Who is using what All software installed, versions & patches CPU Model, # of CPU’s, cores, etc. EM Packs Options installed, Options in USE
  • 11. Oracle Licensing Why 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”
  • 12. Oracle Licensing What 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
  • 14. “ Just fill in the spreadsheet.”
  • 15. 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
  • 16. 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?
  • 18. The Vendor The traditional 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* Server Name 2 3 4 5 Oracle Instance Connect Version DB / Standar IAS Name String d (SE) Enterpri if DB if DB se (EE) Version 6 7* 8 9 10* 11* Estimated # of Application App Status Arch Estimated # max. Client/Serv different simultaneous Name Provider Dev (D) er users users " Named " Concurrent Test (T) Three Tier Users" Device" Inter/Intra/ Prod (P) ExtraNet etc. etc. 12* 13 Generic Login Used Y /N/No Login Server Model 14 15 Processo No. r of type 16 17 18 19 No. of Proc. Op Virtual Spee Environme Proc. Cores d System nt (Ghz)
  • 19. Understanding Discovery Our preferred approach Cust Tool Tool Tool Physical Virtual Oracle Machine Machine Id Oracle Product Id / Host / Host CSI Category Name Name Oracle Product Physical Virtual CSI Category Hostname Hostname Database ARES N/A Tool Tool None N/A Cust RSC/ Tool Cust RSC/ Tool App Status (prod, User Count Top App test, dev, (DBA User Count Concurrency Name train..) Users) (App) Timestamp Top Applicatio Applicatio DBA Users App User Concurrency n Name n Status Count count Timestamp Enterpri IQOR se CL Tool Tool Tool 20 V$License Count OS CPU Highw’ Level Tool Versi Options Port on Installed RSC/ To RSC/ To ol ol RSC/ Tool Tool Tool Options in use Packs Granted Versi Options Options Port on Installed Used P,S,AS,RAC 10.2. ,OLAP,DM, 1798 0.4.0 RAT P,AS Packs Agreed Packs Granted Packs Agreed ASC,ASD,DCO,DD, DT None Tool Tool Tool Company Overview Devices Inst Sess Sessions seen Highwater Instance Max Devices Session Sessions Seen Highwater 27/01/2010 06:01 1 3 Tool 26/01/2010 Tool CPU 06:36 Total Max poss 0 1 24 Total Sockets Sockets Physical Cap Pop Cores Tool CPU Databas Datab Partitionin Pinne e ase g Method d Edition Name CPU Partitionin Pinne g Method d Edition Name Cust Tool Tool Server Install Date Manuf Server Model Sever Install Date Manuf Server Model 09/11/2009 Hewlett10:27 Packard 10/11/2009 Hewlett 7 11:18 Packard 4 Logical No.of alloc CoresCPU Processor Identifier 1 2 2 1 2 1 1 1 1 1 AMD Turion(tm) X2 Ultra Dual-Core Mobile ZM-82 Intel(R) Itanium 2 processor (1.5 GHz, 6 MB) Op Sys Microsoft HP Pavilion dv5 Windows 7 Notebook PC Ultimate RSC/ T RSC/ RSC/ T ia64 hp server Tool rx2600 HP-UX CPU Proc Speed Factor 2200 1500 Op Sys Proc Lic Req NUP Min
  • 20. And When It Goes Wrong  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 Company Overview  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
  • 21. Taking Control & Summary
  • 22. Business Case Where are the savings? Reduce support and maintenance costs Fit license strategy to business requirements Manage ongoing requests against capacity You can leverage relationships and scale, to deliver benefits through negotiation of exceptional terms Reduce cost of ownership
  • 23. Taking Control The basic steps           “A successfully implemented SPM service ensures IT investments support evolving business needs while delivering value, innovation, and alignment to cost management initiatives.”
  • 24. 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
  • 25.
  • 26. Info.uk@ softwareone.com +44 (0)203 5300 270 @ SoftwareONE LinkedIn: SoftwareONE Software Portfolio Management
  • 27. Software Contract Negotiation  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 Company Overview