OPTIMIZING ORACLE LICENSING IN

VMWARE ENVIRONMENTS

Will Monin, Director of Strategic Alliances, VMware

Jason Keogh, CTO & Founder, iQuate

Agenda

• Introduction

• Oracle licensing 101

– Why Inventory is difficult for Oracle

• VMware„s Perspective

• Delivering Detail on Oracle

• Optimizing your VMware Oracle environment

• VMware summary

• Questions and Answers

NETWORK

The Problem

NETWORK

The Problem

IT Networks are Complex

NETWORK

The Problem

License metrics require

more and more complex

details as software

vendors model new

(virtual!) realities

NETWORK

The Problem

? What do I actually have?

How do I get the data?

Is it correct?

Am I out of compliance?

Am I spending too much?

Oracle licensing 101 What data is required?

Oracle Licensing: Complexity

• To license Oracle you need to understand the

platform underpinning the technology

• 2 primary license options:

– “Processor”

– Named User Plus

Oracle license costs

Servers: Moore‟s Law and the Data explosion

12

Core

$47,500

$285,000

4 Core 6

Core 8 Core

2 Core 1 Core

CPU history

<2006 1 Core (single

2006 – 2007 2 Core (dual)

2007 - 2009 4 Core (quad)

2009 - 2011 6, 8, 10 Core

2012 - 2013 12 Cores

2014 onwards 24, 48, 64, 128 Cores ??

The effect of Moore‟s law on licensing

• As servers became multi-processor in the late 1990‟s,

IBM, Oracle and others introduces “Processor”

licensing

• As processors became hyper-threaded and multi-core,

IBM introduced PVU licenses and Oracle introduced

Core Factors

Not all cores are created equal

Source: http://www.oracle.com/us/corporate/contracts/processor-core-factor-table-070634.pdf

Sun, Fujitsu UltraSPARC T1 (1.0 or 1.2GHz)

SPARC T3

Core Factor 0.25

Sun, Fujitsu UltraSPARC T1 (1.4 GHz)

Intel Xeon Series 56xx, 65xx, 75xx

Core Factor 0.5

Sun UltraSPARC T2

HP PA-RISC

Core Factor 0.75

All Single Core Chips

IBM P6, P7

Core Factor 1

Effective price per core

47,500*0.25 = $11,875

Effective price per core

47,500*0.5 = $23,750

Effective price per core

47,500*0.75 = $35,625

Effective price per core

47,500*1 = $47,500

Oracle Licensing: Complexity

• Processor License

– Core factor

› CPU Type: x86/x64 (Intel and AMD), Power, RISC, Itanium, etc.

› Purchase date!

• NUP License

– Processor Minimums

Oracle in a Virtual world

• Virtualization & Partitioning

– Hard v Soft partitioning

– Hard partitioning isolates a “Server” to specific hardware

– VMware is always considered Soft partitioning

• When running on a server which is “soft partitioned”

Oracle state that they require ALL underlying

processors which the server may run on be licensed

Optimization

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VMware cluster, 96 cores 1VM running Oracle Enterprise Edition

Intel Xeon chips (Core factor = 0.5)

4x 6=24 cores per server

4x 24=96 cores in cluster

How many Processor Licenses are required?

a) 1 as 1 CPU is assigned to VM

b) 12 as only 1 physical machine (24*0.5=12) is

running Oracle

c) 48 as there are 4 servers in the cluster (4*12)

d) It depends on who you ask

VM

The VMware customer‟s perspective

•Virtualization with VMware is very popular

• 960 Fortune 1000 corporations run VMware products

•VMware customers are moving toward cloud models

• Better workload consolidation ratios

• More dynamic workload placement

• Highly accurate cost accounting and compliance management

• Negotiating with vendors for practical licensing models

17 Confidential

vSphere brings many benefits

Provisioning times reduced from weeks to minutes

Optimized test/dev environments

Lower hardware and software costs with 5X - 10X consolidation

Reduced Opex with intelligent policy management

Better performance with dynamic resources and scalability

Enhanced availability and automated DR for all apps

Accelerate App

Time-to-Market

Improve App

Quality of Service

Improve App

Efficiency

Cost Reduction

SLAs

Agility

18 Confidential

38%

43%

53%

25% 25%

18%

% of Workload Instances Virtualized by VMware Customers

MS

Exchange

MS

SQL

MS

SharePoint

Oracle

Middleware

Oracle

DB SAP

Source: VMware customer survey, Jan 2010 and April 2011 interim results,

Data: Total number of instances of that workload deployed in your organization and the percentage of those instances that are virtualized

Jan

2010

The Trend Is Clear

Apr

2011

42%

47%

67%

34% 28% 28%

Why is Oracle growth slower?

• Fear of unexpected licensing liabilities on high-cost products

• Highly mobile virtual workloads don‟t fit “old school” EULAs

• IT infrastructure teams haven‟t focused on licensing before

Why is VMware interested in accurate inventory?

• Customers that have the facts make smart decisions

• Virtualizing (or not) based on real costs and benefits

• Choosing VMware (or not) based on real value

• Evolving their infrastructure toward their strategic needs, not

compromising based on unquantified risks

• Customers that optimize licensing in their virtualization plan get better

ROI and fewer surprises

• Licensing based on physical hardware is an inventory problem

• Customers with the tools to manage their plans focus on achieving

operational benefits, instead of avoiding licensing liabilities

21

• VMware customers are virtualizing Oracle:

• Optimizing licensing costs

• Significantly improving their operational capabilities

• Re-deploying licenses to automated DR functions

• Increasing uptime

• Increasing IT manpower efficiency

• Developing the skills to manage highly dynamic infrastructures

that will evolve to hybrid cloud architectures

Why is VMware interested in accurate inventory?

VMware‟s Perspective: Solve fear, solve the problem

Visibility provides clarity Removes the Fear

Understanding Oracle, virtual and physical

Per Instance Data 1 Physical

7 Virtual

Virtual Server listing

258 Virtual servers 176 cores 6 Physical

1 Cluster

Maximizing value

Optimization

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VMware cluster, 96 cores $47,500 per processor

Core factor = 0.5

48 processors =

$2,280,000 VM

Optimization

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VMware cluster, 96 cores

VM

VM

VM

VM VM

already licensed

for Oracle

VMware Server, 24 cores

VM

Optimization

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VMware cluster, 96 cores

VM

VM

VM

VM VM

already licensed

for Oracle

VMware Server, 24 cores

VM

0 processors = $0 $47,500 per processor

Virtualization

P P P P P P P P

8x physical servers with 2 single core processors each, 16 processor licenses.

VM

VM

VM

VM

VM

VM

VM

VM

VMware cluster, with VMotion, 2x Quad core Xeons in each server 8x virtual servers with 2 cores each.

• Newer cores out perform older CPU’s • Environment now has failover • Cost to license Oracle is halved

Accurate and complete

How complete is your inventory?

Where VMware customers are going:

• Any software license terms agreed to must be honored

•Some customers negotiate better terms for themselves to

make deployment with virtualization easier

• Awareness that deploying Oracle workloads carelessly can

create an expensive license liability

• Motivated to optimize Oracle workload deployment

• Achieving the benefits of virtualization on key workloads

• Using tools to enforce policies and control the environment

• Increasing ROI by active management of licensing costs

Introduction

Founded in 2002

Dublin - Ireland

San Francisco - USA

Sydney - Australia

Paris - France

Large Enterprise

Organizations

Complex networks

License

Deployment

Intelligence

Purpose built Agentless

Discovery, Inventory and

Measurement Platform

Questions?

jason.keogh@iquate.com @JasonKeogh

wmonin@vmware.com