RE: Term Licenses to reduce Support costs

  • From: "Joseph Reid" <jreid@xxxxxxxxxxxxxxxxxx>
  • To: "'Chitale, Hemant Krishnarao'" <Hemant.Chitale@xxxxxx>
  • Date: Thu, 3 Nov 2011 22:50:12 -0400

That even furthers my argument regarding term licenses vs Perpetual
Regardless if the license prices stay static or increase, the support costs
will always increase by 3% yearly. From 2000-2007 your support price
increased 21% although the license prices remained dormant. 
If you had purchased term licenses yearly with a 15-20% discount and no
support, your TCO would have been significantly less than buying Perpetual
licenses with yearly maintenance. 

Food for thought.    

-----Original Message-----
From: Chitale, Hemant Krishnarao [mailto:Hemant.Chitale@xxxxxx] 
Sent: November 3, 2011 10:04 PM
To: jreid@xxxxxxxxxxxxxxxxxx
Cc: oracle-l@xxxxxxxxxxxxx
Subject: RE: Term Licenses to reduce Support costs

I still have a copy of the 04-Sep-2007 price list.  EE was US$40K  then and
it had been the same price for many years.
After then, Oracle revised the price twice in quick succession -- to US$44K
and then US$47.5K (as it appears in the price list of 29-Jan-2009).  I can
only surmise that it was in response to the drop in the value of the USD in
forex markets.
Since the price has held at US$47.5K  (as of the price list of 01-Sep-2011)
for more than 2.5 years, after two revisions in less than 2 years ....
Oracle must have had their own reasons for the changes.

Hemant K Chitale 

-----Original Message-----
From: oracle-l-bounce@xxxxxxxxxxxxx [mailto:oracle-l-bounce@xxxxxxxxxxxxx]
On Behalf Of Joseph Reid
Sent: Thursday, November 03, 2011 11:40 PM
To: Freek.DHooge@xxxxxxxxx; oracle-l@xxxxxxxxxxxxx
Subject: RE: Term Licenses to reduce Support costs

Thanks Freek, 

You are absolutely correct. 
However companies typically have their maintenance costs have increased
yearly 3% inflation. Since 2000 the EE database price has gone up by 18.75%.
I believe in 2000 the cost for the database EE Database was 40k(US) now it's
47.5k(US), in that same period support cost have risen by 33% 


-----Original Message-----
From: oracle-l-bounce@xxxxxxxxxxxxx [mailto:oracle-l-bounce@xxxxxxxxxxxxx]
On Behalf Of D'Hooge Freek
Sent: November 3, 2011 10:14 AM
To: jreid@xxxxxxxxxxxxxxxxxx; oracle-l@xxxxxxxxxxxxx
Subject: RE: Term Licenses to reduce Support costs

As you need to buy each year the full term license instead of "only" the
maintenance fee of 22%, it would be only cheaper for the first 5 (4.xx)
Certainly since the license prices seem to rise quicker then the inflation
(by which the maintenance fee is corrected), or is that just me  ;-) ...

Freek D'Hooge
Oracle Database Administrator
email: freek.dhooge@xxxxxxxxx
tel +32(0)3 451 23 82

-----Original Message-----
From: oracle-l-bounce@xxxxxxxxxxxxx [mailto:oracle-l-bounce@xxxxxxxxxxxxx]
On Behalf Of Joseph Reid
Sent: donderdag 3 november 2011 15:01
To: oracle-l@xxxxxxxxxxxxx
Subject: Term Licenses to reduce Support costs

Perhaps I am way off base here if so my apologies. Collectively with the
experience, knowledge and wisdom in this group you all can support
yourselves and not having to rely on Oracle Support to resolve your DB
issues. I know updates is the paramount concern amongst you all but if you
went to a term license matrix without Product Support/Updates and found a
vendor which could supply you a discount on these, you would be saving allot
on yearly support.  
If you bought term licenses I believe the released patches, bug fixes,
security, etc.. should be made available for that version of the DB.
As a 1 yr term license is 20% of the perpetual price and support is 22% or
the perpetual price(this figure also increases yearly) you would be ahead of
the game. If you got a 10% discount on the term licenses you would defiantly
free up some budget an possible shine in your department. 

Again if I have missed or overlooked something here please let me know.





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