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Oracle Licensing Optimization
(Complexity, Compliance, Configuration)
Ed HutKaren O’NeillOct 23, 2014
PresentersEd Hut, CEO, DBAKEd is the Chief Executive Officer at DBAK and has been working with Oracle products and technologies for more than 20 years. He has talked with and counseled a broad range of clients on Oracle Licensing in a variety of industries that include financial services, technology, communications, oil & gas, retail, and professional services. He focuses on direct communication, business strategy and business outcomes. Ed brings deep knowledge of a wide range of technology complemented by an ability to understand critical business issues. In addition to his experience with Oracle Licensing and Software Asset Management, Ed provides strategic direction, manages business development, and oversees top-line leadership functions for DBAK.
Karen O’Neill, Certified Software Manager (CSM) and LMS Manager at DBAKWorks directly with companies on the complexities involved in achieving licensing compliance including the Software Review Process, Software Inventory, Configuration, Risk Mitigation, Contract Management, Pricing Strategies, and overall licensing strategy. More than 19 years in IT including database engineering, software analysis, project management, system administration, hardware and software evaluation.
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Company Snapshot
Oracle Gold Partner
Oracle Experts, easy to work with
Oracle License Reseller
Oracle Database and Applications Consulting
Expert Managed Services
Average 20+ Years of Oracle Expertise
150+ Clients
Global reach - offices in Denver, Dallas and NY
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Disclaimer
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DBAK is an Oracle Gold Partner in good standing with Oracle Corporation.
This presentation does not constitute legal advice. Your Oracle licenses are governed by your Oracle License and Services Agreement and the Oracle Software Technical Support Polices.
This presentations is intended to give you a better understanding of Oracle products, product versions, licensing policies and the common application of these policies.
Agenda
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License ComplianceLicense and Support AgreementsOracle Licensing Policies and MetricsConfiguration – Right-SizingKey Support Concepts• Break – 10 min.
Working with DBAK
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Top 7 Reasons to be Compliant with Oracle Licensing:1. Reduce risk2. Avoid penalties3. Complexity with Software contracts4. Staying on track with software deployment5. Audit readiness6. Simplifying organization of software licenses7. Reduce time and resources required to participate in
audits
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Context – Compliance Use Cases
License revenue reconciliation as a result of audit activity
1.9BCompany
146M Company
750M Company
$3.2M$8M $2M
69M Company
$4.8M
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How Vendors Select a Customer For Audit
*Source: "Software compliance without tears - Monitoring customers’ software usage in a complex world", Ernst & Young, 2013
How vendors select a customer for audit
75%
50% 50%
25%
13%
Internal inconsistency in purchasing patterns
History of poor licence compliance
Size of customer
Mergers and acquisitions
Number of countries operating in
*Respondents were able to choose more than one option.
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Why Customers Struggle to Achieve Compliance
*Source: "Software compliance without tears - Monitoring customers’ software usage in a complex world", Ernst & Young, 2013
Vendors’ views on why customers struggle to achieve compliance
75% 63%
50% 50%
25%
13%
Inadequate management tools at end–user
Lack of understanding
Complexity of contracts/user rights
Lack of management attention
Lack of due diligence in mergers and acquisitions work
High cost of software
*Respondents were able to choose more than one option.
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License and Support Agreements
OLSA- Oracle Licensing and Services AgreementDefines terms, conditions between Oracle and End User. Also, commits End User to the terms and conditions Oracle Technical Support Policies
Oracle Master Agreement/Transactional Oracle Master Agreement/ License Rules & DefinitionsThese documents have replaced the OLSA
ELA- Enterprise Licensing Agreement ULA- Unlimited Licensing AgreementTypically defines the users right to use specific quantities of specific products for a defined period of time. Usually discounted and usage must be certified at the end of the period. Typically used for deployments where it is impossible or impractical to track product usage or the IT environment is growing rapidly.
Ordering documentsDescribes quantities and price. May contain licensing terms and language that augments or amends OLSA.
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License and Support Agreements
Common Myth “You don’t have to license TEST environments”.
“We were subject to a license audit that resulted in almost a million dollar non-compliance bill, and one of the things we got nailed on was that we had test environments and we were not properly licensed for the test environments. We are not a large organization, so this was significant.”
Director of IT for a high-tech manufacturer
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License and Support AgreementsKey Terms:Common Myth “You don’t have to license DR”.
Failover: “Subject to the conditions that follow below, your license for the programs listed on the US Oracle Technology Price List, which may be accessed at http://www.oracle.com/corporate/pricing/pricelists.html, includes the right to run the licensed program(s) on an unlicensed spare computer in a failover environment for up to a total of ten separate days in any given calendar year (for example, if a failover node is down for two hours on Tuesday and three hours on Friday, it counts as two days). The above right only applies when a number of machines are arranged in a cluster and share one disk array. When the primary node fails, the failover node acts as the primary node. Once the primary node is repaired, you must switch back to the primary node. Once the failover period has exceeded ten days, the failover node must be licensed. In addition, only one failover node per clustered environment is at no charge for up to ten separate days even if multiple nodes are configured as failover. Downtime for maintenance purposes counts towards the ten separate days limitation…”
Software Compliance Spectrum
•Installs•Usage Metric Selection
•Attributes•License Demand
Determine usage and
license demand
•Review Discovery Data
•Determine License Demand
•Assess Financial Liability
Define Compliance Position and
Financial Liability
•Optimization of License Allocations
•Infrastructure Optimization
Optimize Oracle
Footprint and
Licensing Need
Software license audits are a legitimate way for vendors to ensure they're getting paid for software that's actually being used. However, CFOs can be unaware of software contract provisions permitting these audits, which can result in an unexpected budget shock when presented with a true-up bill.
*The cost of these true-ups can be significant, so CFOs should take the necessary steps to reduce their risk by implementing software license management processes and technologies to help ensure continual compliance.
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Oracle Database LicensingLicense Metrics• Limited single user• Named User• Processor• Legacy Metrics – UPU (Universal Power Units), etc.
Management Packs and Options• Oracle Real Application Clusters (Oracle RAC) • Oracle Active Data Guard• Real Application Testing (Oracle RAT)• Partitioning• Tuning• Diagnostics• Etc…
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Oracle Database Environments/Oracle Database EditionsWhich one do you need?
Database environment: Environments to license• Development – Limited or Full Use• Test/Staging – Full Use• Production – Full Use
Oracle Database Editions, each suitable for a different scenario:• Standard Edition One: Full-featured database for servers with up to
two sockets.• Standard Edition: Full-featured database for servers with up to four
sockets. • Enterprise Edition: No restrictions on core count.
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Per Processor LicensingLicense count • Based on total number of CPU Cores on server• Adjusted using ‘core factor table’
– Factors are x 0.25, 0.5, 0.75 and 1.0 depending on chip
Two steps to calculate total licenses• #server licenses=ROUNDUP(SUM(cores* core factor)) • #total licenses=SUM(server licenses)
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Processor Example
Oracle Core Factor.5
(8 cores) x (.5 core factor)= 4 cores/processors
You must License 4 “processors” of Oracle DBEE
Dell PowerEdge 605
2-Quad Core AMD Opteron 2.4GHz
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Named User Plus’ LicensingLicense count based on• ‘Named Users’ – active or not
– Named humans – ‘Non-human operated devices’ i.e. Automated data feeds
Number of CPU cores or sockets (‘processors’)
Database Edition• Enterprise Edition min 25 per core• Standard Edition (& SE One) min 5 per core
Required licenses• Whichever is the greater (of minimum or actual count)
– Named User minimum licenses per processor * number of processors
– Total number of actual ’named users’
License allows access to any instance on the server
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Named User Example20 Users 2 Single-core Processor Server
=
*DBEE user minimum 25 Named Users per processor
50 Named UsersOracle Database EE
Rule: You must calculate the actual number of users AND the user minimums per processor.
**You must license whichever is greater**
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Virtualization
The Evolution of Oracle’s Policy on Virtualized Environments
You can’t do it!!!!
You can’t do it! If you do; we won’t support you!!
You shouldn’t do it. If you do; we’ll make it difficult to support you!
You can do it and we will help you if it’s known problem.
Virtualization FAQ
Q: Can I run Oracle products in a “virtualized” environment?A: Yes
Q: Are Oracle products certified in “virtualized” environments?A: No
Q: Will Oracle support me if I have a “virtualized” environment?A: Maybe, if the issue is a known issue on the native OS or can be demonstrated not to be the result of running VMware. Covered in Oracle Support Note ID 249212.1
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VirtualizationMy Oracle support document ID 249212.1
“Oracle has not certified any of its products on VMware virtualized environments. Oracle Support will assist customers running Oracle products on VMware in the following manner: Oracle will only provide support for issues that either are known to occur on the native OS, or can be demonstrated not to be as a result of running on VMware. If a problem is a known Oracle issue, Oracle support will recommend the appropriate solution on the native OS. If that solution does not work in the VMware virtualized environment, the customer will be referred to VMware for support. When the customer can demonstrate that the Oracle solution does not work when running on the native OS, Oracle will resume support, including logging a bug with Oracle Development for investigation if required. If the problem is determined not to be a known Oracle issue, we will refer the customer to VMware for support. When the customer can demonstrate that the issue occurs when running on the native OS, Oracle will resume support, including logging a bug with Oracle Development for investigation if required. NOTE: Oracle has not certified any of its products on VMWare, and use of Oracle products in the RAC environment is also not supported.”
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Fully Licensed VSphere Clusters
When you have enough Oracle application instances to rationalize creating a dedicated cluster for those applications, all the hosts in the cluster can be fully licensed for the application. This approach has numerous advantages:
Customers can deploy an unlimited number of virtual machines running the Oracle application on the cluster.
The cluster becomes an “all you can use” cluster from an Oracle licensing standpoint.
Typically, this enables a significant reduction in licensing requirements by consolidating physical processors and licenses.
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Oracle Product Licensing Configurations and Their Optimization
Oracle Licensing in VMware EnvironmentsWhen running products that are licensed by physical processor on vSphere, customers should ensure the following:
Virtual machines are running on hosts fully licensed for Oracle.
Virtual machine movement within a cluster is restricted to hosts that are fully licensed for Oracle.
Virtual machine movements should be tracked so that customers can validate their compliance with Oracle licensing policies.
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Hard Partitioning vs. Soft PartitioningThere can be two types of virtualized environments: Soft-Partitioning and Hard-Partitioning
Soft-Partitioning, CPU capacity can be changed on runtime as additional resource is needed. This is a flexible way of managing resources.
Hard-Partitioning, a physical server is separated into distinct smaller systems, each with its own CPUs. Oracle licensing is straightforward. One has to license for all the CPUs configured on the system in case of soft partitioning and only for number of CPUs configured to that partition in case of hard partitioning.
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Right-SizingSize According to Need: Example
IBM P750 server 24 core 5 year cost = $240,000Oracle prices
+ Enterprise Edition = $47,500+ Table Partitioning = $11,500= EE + TP (std config.) = $59,000
+ Annual Maintenance *5 = $64,900= Per processor 5 year cost = $123,900
Core factor for P750 = 124 core * 1 core factor * $123,900 pp = $2,973,600Total 5 year cost $240,000 + $2,973,600 = $3,213,600 Hardware
= $240,000
Software = $2,973,600
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Right Sizing Your Environment
Using only 1 cpu on ‘soft’ partitioned server
Mixing APPs with DBs on same server
Mixing product options on one server
Memory-starved server
Fractional licenses with core-factor adjustment
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Rules of Thumb for Licensing Oracle
Only license what you need, only install what you needUse hardware exclusively Max out memory to boost computing powerCombine like with like – at the licensed option levelAvoid fractional counts
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RecommendedSoftware License Review Process
Information GatheringConsolidate InformationReview and ConfirmCompliance CheckAvenues for ComplianceEliminate Compliance RiskInstitute Forward Compliance Process
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Oracle Support22% of the net price of your purchaseEntitles you to updates and supportIs governed by your OLSA and Oracle technical support policiesSupport is difficult to change!
Know the support implications of your licensing decisionsUnderstand what you can and can’t doUnderstand key support concepts: license sets, de-supporting, back-support, penalties, co-terminate, etc.Review and monitor your support agreements
Key Support Concepts
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Summary - What to Consider
Maintain up-to-date software informationDevelop a strategy and process for vendor auditsMeasure the benefits of software asset management effortsPrepare for new technologiesCommunicate• Build a relationship with software vendorDBAK can help you with all of this
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Break – 10 min
Don’t go away
Drawing for a
GoPro Hero 3+ Camera
at the end of the presentation
DBAK Can Help
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Dedicated resourcesBroad experience and institutional knowledgeImplement software discovery toolsTrusted advisorEducation and trainingReduce costEnsure license optimization
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DBAK Oracle Licensing ServicesComprehensive set of services around Oracle Licensing• License Sales• Software Advisory Solution• Risk Mitigation• Compliance• Licensing Strategy
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Questions?
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