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Oracle licensing consultants

Oracle licensing revenue up slightly is not a need to panic

Apr 03 2008: Published by under Uncategorized

So, I’ve waited until the reporters, stories, rumors and commentary has died down somewhat before weighing in on Oracle (ORCL, Fortune 500) third quarter earnings.  OK, so the numbers didn’t quite meet projected growth.  Did people really expect that to happen with today’s environment and Oracle aggressive acquisition strategy?

The theory that companies will stop buying applications or “squeeze more” out of their current applications to save money is just not realistic. A company can stop buying new Oracle licenses, but it doesn’t stop working on its business – which means moving forward, making changes, etc. Changes to any business very likely means changes to applications and the need for different licensing. Remember, one of the golden rules for Oracle licensing is make certain you have the right amount of licensing because over-licensing or under-licensing can also lead to money not well spent.

New software license revenue was up 16% from a year ago (though projected growth was 15 percent to 25 percent). Many say that Oracle license growth indicates whether Oracle is growing wallet share among CIOs. With this quarter’s license revenue at the lower spectrum of the company target, investors are panicking. But, here at Miro, we’ve been seeing more licensing purchases (and smarter decisions on Oracle licensing). We still have one quarter to go. And, let’s not forget about Oracle’s maintenance fees (there’s still growth in that area).

Among the key figures for 3rd quarter earnings:

Total Oracle software revenue was $4.24 billion in the third quarter.

On demand sales were $174 million, up from $167 million in the previous quarter.

Services revenue was $1.1 billion in the third quarter, down slightly from the second quarter.

Week in Review (Around the World): Software Licensing and Compliance

Mar 21 2008: Published by under Uncategorized

In the News This Week

·    CIO How a European Bank Got Oracle to Surrender Key Software Licensing…

·    CNN Money Virtualization Real Issue For Software Licensing/

·   ComputerWeekly Court ruling strengthens UK patents on software

It follows an appeal case brought by software licensing company, Symbian, after a patent application was rejected by the Intellectual Property Office.

·   Trusted Views Microsoft Licenses Adobe Flash For Windows Mobile

·   WebProNews Enterprise Software Up Google’s Alley?

Week in Review (Around the World): Software Licensing and Compliance

Mar 14 2008: Published by under Uncategorized

In the News This Week

· BizJournals.com Former Quovadx execs agree to SEC fines

The SEC alleged the two in 2003 orchestrated “the fraudulent recognition of over $12 million in software licensing revenue” by Greenwood Village-based …

· ComputerWeekly.com CIOs in strong position to help businesses fight slowdown

… which carry the double costs of migrating away from the custom code, and the software licensing costs of the migration tools themselves….

· CNN.com Red Hat adds top intellectual property lawyers

· ComputerWorld Office Live Workspace — does it work for you?

· InfoWorld Serena extends Creative Commons license to mashups

….representations of a workflow, and because they’re graphics, you can’t use traditional software licensing rules,” said Kyle Arteaga, Serena spokesman. …

· IT Week Licence to cut down IT bills

Publishers are taking more steps to take software asset management seriously, and to ensure compliance. If

· Web Services Journal Enterprise Compliance Manager(TM) Now Certified for Windows Server …

· eBizQ Gartner Identifies Cost-Cutting Maneuvers While Supporting Data …

With typical investment in data integration tools falling in the range of $200000 to $500000 for software licensing and $50000 to $100000 for annual

· Computer World NZ British licence reseller adjusts to MS changes

· PC World How to Play It Safe With Software Licenses (and avoid hefty fines!)

Term vs. Perpetual Licensing—When Does Choosing a Term License Make More Sense Than a Perpetual License?

Jan 22 2008: Published by under Uncategorized

If you’re anticipating the need for additional Oracle licensing and your budget is small, you may be better off with a term license.  Depending on the business need – it may work out to your business’ benefit.

What exactly is a term license? Oracle, for example, generally offers a one, two, three, four or even five-year term license. These licenses can be extended by purchasing an additional term or a perpetual license. The cost of a term license depends upon its length in time and, of course, its use.

Many software licenses specify a limited time period or term during which the user will be permitted to use the software. At the end of the term, you must stop using the software unless a new license is purchased or the term is extended through an agreement with the software provider.

HOWEVER, there is a caveat, which is why it’s important to know ahead of time how the licenses you need will be used. Term licensing‘s annual support costs are always calculated per Oracle‘s perpetual price, not the term license price, so you‘ll pay proportionally more for annual support with a term license than you would for the same perpetual license. 

As an example, if your company has taken on a project and has the need for additional licenses for contract employees for an 18-month period – term licensing would be the way to go. If you foresee those licenses being needed in the future for additional projects or growth of the company, a perpetual license would be more effective to cut down on the additional support costs. 

Depending upon your requirements and the future business environment, it is important to weigh the difference between a term license and an ongoing perpetual license, including the restrictions, support and implementation costs, the likelihood of potential business changes and the impact on the current and future environment. If the proper planning is put in place, it can result in significant cost savings.

Virtualization: The Promise land?

Jan 11 2008: Published by under Uncategorized

Software can be sold as a virtual appliance with its own OS to run as a virtual machine on your existing server or VMware using cloud computing. Is this the future? The benefits: flexibility and maintenance for software delivery. But many don’t support virtualization platforms….yet. Oracle’s virtualization technology goes hand in hand with support for their apps. In fact, Oracle has announced that its virtualization software will support both Oracle and non-Oracle applications. They are one of the ones ahead of the curve. SAP and Microsoft have both announced that they are joining the virtual world.

Virtualization will also mean that more time will need to be spent managing software assets and licensing. Because, you better believe that the software vendors will be watching. Compliance will be the name of the game and if you’re not in compliance, you’ll find that you cannot “pass go.” So, managing your software license and assets will be of key importance as more software companies and CIOs decide virtualization is the key to the promise land.

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