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 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.
- 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. Company Overview “ And still continue to be so… Terms & Conditions Product Releases Acquisitions Oracle Revenues 30+ years
- 7. 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
- 8. 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
- 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 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
- 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
- 13. Oracle Licensing Gotchas and Trade Secrets
- 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?
- 17. Review Outputs
- 18. The Vendor The traditional approach A first Approach – Soft Review OSW Oracle Rep CSR TSROD 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 SERVERWORKSHEET 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.
- 19. Understanding Discovery Our 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
- 20. And When It Goes Wrong CompanyOverview 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
- 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 Reduce cost of ownership You can leverage relationships and scale, to deliver benefits through negotiation of exceptional terms
- 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
- 26. Info.uk@softwareone.com +44 (0)203 5300 270 @SoftwareONE LinkedIn: SoftwareONE Software Portfolio Management
- 27. Software Contract Negotiation CompanyOverview 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