1. OPTIMIZING ORACLE LICENSING IN
VMWARE ENVIRONMENTS
Will Monin, Director of Strategic Alliances, VMware
Jason Keogh, CTO & Founder, iQuate

2. 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

3. The Problem
NETWORK

4. The Problem
IT Networks are Complex
NETWORK

5. The Problem
License metrics require
NETWORK more and more complex
details as software
vendors model new
(virtual!) realities

6. The Problem
? NETWORK
 What do I actually have?
 How do I get the data?
 Is it correct?
 Am I out of compliance?
 Am I spending too much?

7. Oracle licensing 101
What data is required?

8. Oracle Licensing: Complexity
• To license Oracle you need to understand the
platform underpinning the technology
• 2 primary license options:
– “Processor”
– Named User Plus

9. Oracle license costs

10. Servers: Moore‟s Law and the Data explosion
1 Core 2 Core 4 Core 6
$47,500 Core 8 12
Core
Core
CPU history $285,000
<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 ??

11. 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

12. Not all cores are created equal
Sun, Fujitsu UltraSPARC T1 (1.0 or 1.2GHz)
SPARC T3 Effective price per core
Core Factor 0.25 47,500*0.25 = $11,875
Sun, Fujitsu UltraSPARC T1 (1.4 GHz)
Intel Xeon Series 56xx, 65xx, 75xx Effective price per core
Core Factor 0.5 47,500*0.5 = $23,750
Sun UltraSPARC T2
HP PA-RISC Effective price per core
Core Factor 0.75 47,500*0.75 = $35,625
All Single Core Chips
IBM P6, P7 Effective price per core
Core Factor 1 47,500*1 = $47,500
Source: http://www.oracle.com/us/corporate/contracts/processor-core-factor-table-070634.pdf

13. Oracle Licensing: Complexity
• Processor License
– Core factor
› CPU Type: x86/x64 (Intel and AMD), Power, RISC, Itanium, etc.
› Purchase date!
• NUP License
– Processor Minimums

14. 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

15. Optimization
VMware cluster, 96 cores 1VM running Oracle Enterprise Edition
VM VM VM VM Intel Xeon chips (Core factor = 0.5)
VM VM VM VM VM 4x 6=24 cores per server
VM VM VM VM
4x 24=96 cores in cluster
How many Processor Licenses are required?
VM VM
VM VM
a) 1 as 1 CPU is assigned to VM
VM VM VM VM b) 12 as only 1 physical machine (24*0.5=12) is
running Oracle
VM VM
VM VM
c) 48 as there are 4 servers in the cluster (4*12)
d) It depends on who you ask

16. 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. vSphere brings many benefits
SLAs
Improve App  Better performance with dynamic resources and scalability
Quality of Service
 Enhanced availability and automated DR for all apps
Cost Reduction
Improve App  Lower hardware and software costs with 5X - 10X consolidation
Efficiency
 Reduced Opex with intelligent policy management
Agility
Accelerate App  Provisioning times reduced from weeks to minutes
Time-to-Market  Optimized test/dev environments
17 Confidential

18. The Trend Is Clear
% of Workload Instances Virtualized by VMware Customers
67%
53% 47%
42% 43%
34% 28% 28%
38% 25%
Apr
25%
2011
18% Jan
MS MS MS Oracle Oracle
2010
SAP
Exchange SharePoint SQL Middleware DB
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
18 Confidential

19. 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

20. 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. Why is VMware interested in accurate inventory?
• 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
21

22. VMware‟s Perspective: Solve fear, solve the problem

23. Visibility provides clarity
Removes the Fear

24. Understanding Oracle, virtual and physical
7 Virtual
1 Physical Per Instance Data

25. Virtual Server listing
1 Cluster
6 Physical 258 Virtual servers 176 cores

26. Maximizing value

27. Optimization
VMware cluster, 96 cores $47,500 per processor
VM VM VM VM
Core factor = 0.5
VM VM VM VM VM
48 processors =
$2,280,000
VM VM VM VM
VM VM VM VM
VM VM VM VM
VM VM VM VM

28. Optimization
VMware cluster, 96 cores VMware Server, 24 cores
VM VM VM VM VM VM VM
already licensed
VM VM VM VM VM
VM
for Oracle
VM VM VM VM VM
VM VM VM VM
VM VM VM VM
VM VM VM VM

29. Optimization
VMware cluster, 96 cores VMware Server, 24 cores
VM VM VM VM VM VM VM
already licensed
VM VM VM VM VM VM
for Oracle
VM VM VM VM VM
$0
VM VM VM VM
$47,500 per processor
VM VM VM VM
0 processors =
VM VM VM VM

30. Virtualization
8x physical servers with 2 single core processors each, 16 processor licenses.
P P P P P P P P
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
VM VM VM VM
• Environment now has failover
VM VM VM VM • Cost to license Oracle is halved

31. Accurate and complete
How complete is your inventory?

32. 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

33. Introduction
Founded in 2002
Dublin - Ireland
San Francisco - USA License
Sydney - Australia Deployment
Paris - France Intelligence
Large Enterprise
Organizations Purpose built Agentless
Discovery, Inventory and
Complex networks Measurement Platform

34. Questions?
jason.keogh@iquate.com
@JasonKeogh
wmonin@vmware.com