Licensing Oracle in a cloud environment

31 aug '17 - Richard Spithoven - share: LinkedIN Mail

Software asset management? Cost optimization? With the growing use of cloud, that’s no longer an issue, because you know exactly what you pay for, right? Even though cloud solutions deliver huge benefits to organizations, it is more important than ever to manage your software licenses.

More and more end users are planning on or have already moved to a cloud computing environment. The benefits for organizations are quite clear: purchase software efficiently (much easier and more transparent) and pay only for effective use (pay-per-use). Virtualization also contributes to bring IT spending down. Nevertheless, enterprises tend to underestimate the complexity of license management introduced by virtualization and cloud technologies.

Licensing Oracle in the cloud

If you have software programs and applications on premises and you want to move them to the cloud, and remain compliant, you have to pay attention to all the layers the programs are built on. For example, not all your on premises Oracle licenses can be used in the cloud – on premise Oracle Application licenses are not eligible for cloud usage. So, if your solution relies on Oracle Applications, you cannot use your existing on premises licenses when moving the solution to the cloud.

Similarly, you need to be careful when choosing a cloud provider, as Oracle has authorized only two vendors, Microsoft Azure and Amazon Web Services, as eligible for hosting Oracle Programs in the public cloud. This means that if you are deploying Oracle Programs with these two providers, you are eligible to license only the vCPUs allocated to the VMs supporting Oracle Programs. If you want to move to the cloud, but not with the two approved vendors, you will most likely have to license all the underlying physical infrastructure supporting the cloud platform, much like VMWare.

Move to the cloud prepared

At a first glance, it may seem clear what are the benefits of cloud, but licensing in a virtual environment remains a complex matter. Organizations often misunderstand or ignore the complexity, which puts them at risk of non-compliance.

Following the steps below will help you to have a good base when moving to the cloud:

  • Before moving your licenses to cloud, do your research
  • Be smart when choosing a cloud partner
  • Get the best cloud service for your needs
  • Figure out what on premises licenses you can use in the cloud
  • Compare whether it’s cheaper to use BYOL or get an Included License
  • Verify if your on premises customizations can be replicated in the cloud
  • Don’t forget about security, as your data will no longer be on your premises

This fall, B-lay will be present at the IAITAM conference that will take place in Rome, September 13-14. For more insights into the nitty gritty details of cloud and how it influences your SAM strategy, join us at the event and attend the presentation or contact us to schedule a meeting.

Expert session: Oracle E-Business Suite license metrics analyzed

B-lay experts Richard Spithoven & Tudor Stoenescu share their insights on complexities and differences in Oracle E-Business Suite license metrics.

Expert session: Oracle E-Business Suite license metrics analyzed


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