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Debunking the Top 5 Myths of Running Oracle Software in the Cloud

Debunking the Top 5 Myths of Running Oracle Software in the Cloud

Debunking the Prime 5 Myths of Operating Oracle Software in the Cloud

posted Might 31, 2019, four:26 PM by

Nathan Biggs (@nathanbiggs), CEO

This blog submit is the newest in a collection of articles that Home of Brick is providing, which use quotes and knowledge from lately filed lawsuits towards Oracle to uncover the truth about their remedy (or maybe higher said, mistreatment) of their clients. This text focuses on operating Oracle within the cloud (AWS, Azure, or VMware Cloud, and so on.) and the myths that folks may be hearing.

As with all fantasy, its potency is enhanced when some parts of fact are mingled in with the misleading elements. Listed here are a few of the commonest myths that we hear when speaking to our shoppers, or others in the business, about operating Oracle within the cloud. We’ll discover the weather of fact in each, but in addition point out how they are deceptive general:

The myths:

  1. The Oracle license settlement is complicated and deliberately obscure in relation to the cloud
  2. It costs twice as much to run Oracle in AWS than it does in the Oracle cloud
  3. Licensing purposes within the cloud is a posh course of
  4. Individuals ought to be afraid of audits in the event that they run in AWS or Azure
  5. The Oracle Cloud is the perfect cloud answer for operating Oracle software


1 – The Oracle license settlement is complicated and intentionally obscure relating to the cloud

Parts of Fact: In terms of bringing your personal database or middleware licenses to the cloud, your contractual license agreement is of little help. It’s because your license settlement is predicated on the bodily processor cores on which the Oracle software program runs. Counting physical cores is an inconceivable process in a multi-tenant cloud setting, corresponding to these offered by AWS or Azure. In consequence, some individuals could be intimidated that they don’t have contractually binding cloud provisions to rely on.

Why is that this a Fantasy? Oracle publishes a coverage document referred to as Licensing Oracle Software program in the Cloud Computing Surroundings (the Cloud Coverage). While non-contractual, this coverage explicitly extends your contractual rights and permits you to rely virtual CPUs in AWS EC2 and RDS, and in Microsoft Azure. In 2017, Pam Fulmer, an lawyer at Tactical Regulation Group, and I revealed an article in the Northern California Oracle Customers Group Journal about licensing Oracle within the Cloud. In within the following quote from that article, she describes how clients ought to think about the Cloud Coverage (emphasis added):

“Reliance on such paperwork could also be dangerous, nevertheless, as Oracle expressly points out within the Licensing Oracle Software program in the Cloud Computing Setting coverage that it’s non-binding and topic to vary at any time. Nevertheless, to the extent that Oracle is knowingly publishing extra-contractual documents on which its clients rely by making giant investments, an argument might be made that Oracle must be estopped or prevented from changing course down the street, particularly if such a change would trigger damage to Oracle clients. Whether a courtroom would settle for this argument, or discover that the client proceeded at their own danger, is an open query.”


In Home of Brick’s vast expertise serving to clients via Oracle audits, we now have now had opportunities to defend shoppers who deployed their Oracle workloads in AWS or Azure, and who used the Cloud Policy to license by vCPU. We found that the Oracle LMS group revered these deployments in response to the phrases of the Cloud Coverage.

We advocate that our shoppers evaluation all the contracts and insurance policies from Oracle with their legal staff when creating a cloud technique. We will also help present steerage on this space.

The place the Misunderstanding Might Come From: The misunderstanding on the complicated and obscure nature of Oracle contracts might come from Oracle itself. As noted within the Consolidated Class Action Grievance filed towards Oracle executives, it’s alleged that the Oracle gross sales teams routinely confused clients by bundling cloud and non-cloud contracts into a sale, even with out the purchasers’ information of such bundling. Listed here are quotes from two former Oracle staff relating to this alleged apply:

[Former Employee 7] said that Oracles (sic) was “effectively hiding from clients the cloud portion [of the contract] because clients, at first, didn’t need to hear about cloud.” [Former Employee 7] reported that “in many instances,” cloud subscriptions can be added to a buyer’s contract despite the fact that Oracle had never discussed that description with them. “Typically they might solely discover out when somebody requested them to renew, or if automated e-mail methods sent out information about their cloud credit.” [Former Employee 6] corroborated that clients typically didn’t know cloud products have been inserted in a deal or tips on how to use those cloud products. [Former Employee 6] said that [Former Employee] he heard from many gross sales representatives that Oracle “would bundle things together and push cloud subscriptions right by means of” and that clients didn’t “underst[and] what they have been getting when it comes to cloud.”


2 – It prices twice as much to run Oracle in AWS than it does in the Oracle cloud

Parts of Fact: On January 23, 2017, Oracle modified their Cloud Policy doc, to take away using the Processor Core Factor Desk in calculating licenses required in AWS and Azure deployments. This alteration successfully doubled the variety of licenses required within the cloud. As Dave Welch, House of Brick’s CTO and Chief Evangelist pointed out in a weblog submit on the time, “Oracle just gave itself a 100% increase on non-SE licensing in Oracle-authorized cloud environments.” I assumed that it was ironic that later that yr, Larry Ellison bragged “We’ll beat Amazon cloud pricing by half”. In fact, you may beat it by half should you first doubled the worth of operating your software program in Amazon!

Why is that this a Fable? When you simply decide up and move your on-premises workloads into the AWS or Azure clouds (raise and shift), and apply the Cloud Policy, then it’s doubtless going to require about twice as many licenses as presently in use. But why would you do a lift-and-shift into the cloud? When correctly developed, an effective cloud technique will reduce the licenses that you simply want. I mentioned this in a presentation at AWS re:Invent 2018. Listed here are some things to think about to attenuate the license influence as you progress into the cloud:

  • Contemplate VMware Cloud on AWS or Amazon EC2 Dedicated Hosts to use core-based licenses somewhat than utilizing the Cloud Policy
  • Contemplate decreasing cores or vCPUs in Azure and AWS to only what the workload needs, fairly than using dramatic over-subscriptions
  • Contemplate cloud options to expensive Oracle products for HA and DR
  • Contemplate Normal Edition as an alternative of Enterprise Edition Database, and evaluate whether the License Included mannequin (Commonplace Edition) from AWS would save license prices
  • Contemplate options to Oracle database, comparable to Microsoft SQL Server, or get help from our associates at AWS Database Freedom


three – Licensing purposes within the cloud is a posh course of

Why is this a Fantasy? Licensing Oracle purposes (EBS, Peoplesoft, JD Edwards, and so forth.) is usually totally different from the core-based licensing of Oracle database and middleware. Check out your software licensing metrics, and you’re more likely to find that they haven’t any dependency on the underlying infrastructure in any respect. This means that you would be able to in all probability run your purposes on-premises, within the cloud; you possibly can run them right here or there, you’ll be able to run them anyplace [1]. The primary factor to watch out of when shifting purposes into the cloud is the licensing for the underlying database and middleware, which we discussed earlier.

four – Individuals ought to be afraid of audits in the event that they run in AWS or Azure

Why is this a Fantasy? I mentioned how Oracle is utilizing audits, and threats of audits, to drive their cloud income in some element in my earlier article. Avoiding an audit from Oracle isn’t necessarily a great factor. When you’ve got not been audited within the last three years or so, there is a probability you could be paying Oracle an excessive amount of money, and they’re leaving you alone. I quoted a very insightful comment from a former Oracle worker (FE 6) in that submit:

FE 6 said that it was a “regular apply” for sales representatives to contact LMS to start out an audit when the client was not going to purchase cloud product, and tell LMS “


Home of Brick helps our shoppers to develop cloud migration methods that take Oracle licensing absolutely under consideration. This consists of evaluating audit dangers, and creating audit preparedness. There isn’t a must be intimidated into not doing the proper thing merely out of worry of an audit.

5 – The Oracle Cloud is one of the best answer for operating Oracle software program

Parts of Fact: Oracle has undoubtedly been making some strides in the cloud, particularly with their new Cloud Gen 2 choices. This consists of cloud-only products resembling Oracle’s Autonomous Database.

Why is that this a Fable? There’s extra to choosing a trusted cloud provider than choosing one or two bullet points as a foundation for a choice. Belief comes from expertise and confirmed success. The business’s cloud leaders are clear, and backed up by Gartner’s evaluation:

The two approved cloud providers in Oracle’s Cloud Coverage are Amazon AWS and Microsoft Azure. They are also Gartner’s clear leaders within the Infrastructure as a Service (IaaS) cloud[2]. The Oracle cloud shouldn’t be only in Gartner’s “Niche Players” quadrant, however they have been moved farther down in 2018 from 2017. Oracle scores greater in Gartner’s magic quadrant for Operational Database Administration Techniques, however that isn’t a cloud evaluation as much as it’s an assessment of the superb nature of Oracle’s database know-how. We are completely fans of Oracle’s software know-how choices, however really feel that our clients are higher served operating that software program in AWS (together with VMware Cloud on AWS) or in Azure than in Oracle’s cloud.

Tell us if you want to speak about your cloud strategy. We will help you develop and implement a plan that is absolutely license-compliant, whereas profiting from all the advantages that as we speak’s trendy clouds supply.


[1] Dr. Seuss:
[2] Gartner: Magic Quadrant for Cloud Infrastructure as a Service, Worldwide