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

VMwares Perspective Delivering Detail on Oracle Optimizing your VMware Oracle environment VMware summary Questions and Answers

The Problem

NETWORK

The Problem

IT Networks are Complex

NETWORK

The Problem

NETWORK

License metrics require more and more complex details as software vendors model new (virtual!) realities

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?

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: Moores Law and the Data explosion

1 Core

2 Core

4 Core

$47,500

6 Core

8 Core

12 Core $285,000

CPU history
<2006 2006 2007 2007 - 2009 2009 - 2011 2012 - 2013 2014 onwards 1 Core (single 2 Core (dual) 4 Core (quad) 6, 8, 10 Core 12 Cores 24, 48, 64, 128 Cores ??

The effect of Moores law on licensing

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

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

Core Factor 0.75

All Single Core Chips IBM P6, P7

Effective price per core 47,500*0.75 = $35,625

Core Factor 1
Source: http://www.oracle.com/us/corporate/contracts/processor-core-factor-table-070634.pdf

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
VMware cluster, 96 cores
VM VM VM VM

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?

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

a)

1 as 1 CPU is assigned to VM

VM

VM

VM

VM

b)
c) d)

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

48 as there are 4 servers in the cluster (4*12) It depends on who you ask

VM

VM

VM

VM

The VMware customers 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

vSphere brings many benefits

SLAs
Improve App Quality of Service

Better performance with dynamic resources and scalability Enhanced availability and automated DR for all apps

Cost Reduction
Improve App Efficiency

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

Reduced Opex with intelligent policy management

Agility
Accelerate App Time-to-Market

Provisioning times reduced from weeks to minutes Optimized test/dev environments

17

Confidential

The Trend Is Clear

% of Workload Instances Virtualized by VMware Customers
67% 53% 42% 47% 43%

34%
38%

28%
25%

28%

25%

18%
MS Exchange MS SharePoint MS SQL Oracle Middleware Oracle DB

Apr 2011 Jan 2010

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 18 Confidential

Why is Oracle growth slower?

Fear of unexpected licensing liabilities on high-cost products Highly mobile virtual workloads dont fit old school EULAs IT infrastructure teams havent 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

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

VMwares Perspective: Solve fear, solve the problem

Visibility provides clarity

Removes the Fear

Understanding Oracle, virtual and physical

7 Virtual

1 Physical

Per Instance Data

Virtual Server listing

1 Cluster

6 Physical

258 Virtual servers

176 cores

Maximizing value

Optimization
VMware cluster, 96 cores
VM VM VM VM

$47,500 per processor Core factor = 0.5 48 processors =

VM

VM

VM

VM

VM

VM

VM

VM

VM

$2,280,000

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

Optimization
VMware cluster, 96 cores
VM VM VM VM

VMware Server, 24 cores

VM VM VM

VM

VM

VM

VM

VM

VM

already licensed for Oracle

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

VM

Optimization
VMware cluster, 96 cores
VM VM VM VM

VMware Server, 24 cores

VM VM VM

VM

VM

VM

VM

VM

VM

already licensed for Oracle

VM

VM

VM

VM

VM

VM

VM

VM

VM

$47,500 per processor

VM

VM

VM

VM

0 processors =

$0

VM

VM

VM

VM

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.
VM VM VM VM

VM

VM

VM

VM

Newer cores out perform older CPUs 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

License Deployment Intelligence

Large Enterprise Organizations Purpose built Agentless Discovery, Inventory and Complex networks Measurement Platform

Questions?
jason.keogh@iquate.com
@JasonKeogh

wmonin@vmware.com