Adapting to Oracle’s Transformations: What Your Business Needs to Know

Oracle is driving substantial changes in its licensing, cloud offerings, and support structures. These shifts impact businesses across industries, requiring strategic planning and proactive measures.

Here’s a breakdown of the key changes and how to cope with them effectively:
Java Licensing Overhaul
Cloud Migration Trends
Licensing Agreements and Compliance Risks
Support Fee Hikes

Oracle’s new Java licensing model is now based on total employee count, including external contractors. Customers must adopt this model or stick with their prior licensing agreements, except for embedded Java usage in Oracle products. Oracle has increased audits and tracking efforts to enforce compliance.

Challenges:

• Cost Increases: Licensing costs can surge under the new model.
• Vulnerability Risks: Unsupported software poses operational risks.
• Audit Threats: Non-compliance increases the likelihood of penalties.
• Deployment Visibility: Many organizations lack a clear understanding of Java usage across their environments.

How to Navigate:

• Consider OpenJDK: Open-source options like Azul or other third-party support can mitigate costs.
• Oracle ELP for Java: Use Oracle Enterprise License Positioning (ELP) to assess compliance and manage risks.
• Vulnerability Management: Address security concerns through detailed Java instance assessments and version updates.
  

Cloud Migration Trends

Organizations are increasingly moving to Oracle Cloud’s Exadata Cloud@Customer (ExaCC) for enhanced performance, licensing efficiency, and support. However, costs can vary significantly based on the hosting environment.

Insights:

• Performance Gains: ExaCC offers better efficiency and support within Oracle Cloud.
• Cost Dynamics: Hosting on Oracle Cloud Infrastructure (OCI) is often more budget-friendly than Azure or AWS.
• Strategic Decisions: Cloud choice impacts long-term operational costs and performance outcomes.

How to Navigate:

• Migrate Strategically: Transition to ExaCC for improved performance.
• Optimize Costs: Analyze hosting costs between OCI, Azure, and AWS to choose the best fit.
• Leverage Expertise: Consult on cloud strategies for cost-effectiveness and efficiency. 

Licensing Agreements and Compliance Risks

Oracle’s Unlimited License Agreements (ULAs) can lead to unforeseen costs, especially during the transition after these agreements expire. Inaccurate reporting increases compliance risks, while many customers overpay for unnecessary licenses.

Challenges:

• Unexpected Costs: Certifying usage post-ULA can incur high fees.
• Compliance Risks: Audits and penalties stem from inaccurate usage data.
• Overpayment: Inefficient licensing stresses budgets unnecessarily.

How to Navigate:

• Cost Analysis: Evaluate potential fees when discontinuing ULAs, to plan budgets.
• Accurate Reporting: Mitigate risks through precise usage tracking and reporting.
• Licensing Optimization: Develop cost-efficient strategies for Oracle licensing. 

Support Fee Hikes

Annual increases of 8% on Oracle support fees are straining IT budgets. Many customers unknowingly pay for premium or extended support - highlighting the need for better awareness of support levels.

Challenges:

• Budget Impact: Rising support costs strain operational finances.
• Unnecessary Spending: Organizations often pay for support they don’t need.
• Resource Inefficiency: Misaligned support services lead to wasted budgets.

How to Navigate:

• Support Cost Assessment: Identify savings opportunities and clarify budget impacts.
• Awareness Campaigns: Ensure an understanding of support needs and options.
• Tailored Solutions: Recommend cost-effective support strategies aligned with business needs. 

Final Thoughts

Oracle’s changes in licensing, cloud solutions, and support structures demand careful attention and strategic action. By addressing these challenges head-on, businesses can turn potential disruptions into opportunities for optimization and growth.