AnsweredAssumed Answered

Oracle Licensing Breach Notices and Cloud Sales - Is anyone experiencing this in the community? 

Question asked by eric.bannon on Aug 10, 2015

Oracle's New Nuclear Option:

Killing the Filibuster —Nuclear option.jpg

We all know that Oracle and Microsoft have used some tricky tactics in the past when it comes to its licensing sales, but it seems like these tactics are transforming to fit a new kind of sales model, one that benefits its Sales People with lofty incentives and bonuses. Whereas before Oracle might have just slapped you with a big breech of compliance bill (a pain by itself), they are now trying to leverage these audits for increased sales in Oracle's Cloud Services.  Essentially when a customer is out of compliance, Oracle sends a "breech" notice telling them that their software will be discontinued in 30 days of they don't pay up.  The kicker here is that Oracle then incentives them by discounting the software renewal and offering "Cloud Credits" for Oracle's Cloud Services.  The customer pays less for renewal, avoids a major database overhaul, avoids lengthy negotiations with asset management, and gets access to test new cloud services:  Seems like a win, win right?

 

In Julie Bort's article from Business Insider - Oracle is using an ugly 'nuclear option' to boost cloud sales  It seems like there are two varying perspectives on the issue

 

     Opinion 1: Oracle is misleading the customer to dish out more compliance breeches and increase its sales cloud services.  In this light customers aren't truly interested in buying the cloud services, they are simply trying to avoid compliance headaches

 

     Opinion 2: Oracle is strategically offering a way for customers to test cloud for their applications with less risk and at a lower cost.  Those in favor of this point of view would essentially be killing two birds with one stone: avoiding compliance overhaul while testing cloud services for the right reasons.

 

i personally believe that the customer should get to "choose" when and how they buy these cloud services.  The fact that Oracle's cloud offerings are being tied to audit breeches simply introduces a gray area that makes distinguishing between Opinion 1 and 2 very difficult (for me at least). In one of my previous blog posts "What you don't know can cost you...BIG" - I had proposed that "virtualization technology and architecture today has escaped the ability of these older mechanisms to truly manage compliance at scale and that there needs to be a way to offload this management task to software and alleviate the responsibility of IT administrators – and ensure an audit doesn’t cost big dollars"

 

I am curious to see what the VMTurbo community thinks.  Has anyone experienced this new tactic from Oracle? What do you think about it?

Outcomes