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Virtualizing Oracle to Save on Licensing Costs
David Gallant, VMware, Inc.
Donnie Hamlett, iQuate
Daniel Hesselink, License Consulting
APP-BCA1751
#vmworldapps
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Disclaimer
This session may contain product features that are
currently under development.
This session/overview of the new technology represents
no commitment from VMware to deliver these features in
any generally available product.
Features are subject to change, and must not be included in
contracts, purchase orders, or sales agreements of any kind.
Technical feasibility and market demand will affect final delivery.
Pricing and packaging for any new technologies or features
discussed or presented have not been determined.
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Best Practices for Oracle Licensing
VIRTUALIZATION
Daniël Hesselink
License Consulting
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Story of a recent client
• Had virtualized Oracle, but didn’t think about ‘how’
• Oracle was expected to conduct an audit soon
• Within a week, License Consulting revealed a $14.8 Million license compliance issue
• Potential increase of annual Oracle support fee: >300%
• CFO insisted on research and resolution of the issue
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Subjects
Oracle LMS position towards virtualization
• Software Investment Guide
• Oracle Hard/Soft Partitioning Whitepaper
• Oracle’s response to complaining clients
Contractual position towards virtualization
• What’s in your contract
• How does it match with VMware’s whitepaper
Dealing with Oracle audits
• The wrong way
• The right way
Steps to get in control
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Position from Oracle LMS
Example: Oracle Database Enterprise Edition
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VMware cluster , 192 cores 6 servers • (Almost) Oracle dedicated VM
cluster
• $4,560,000 License Cost
VM
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Oracle Virtual Machine
Other Virtual Machine
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Position from Oracle LMS
Example: Oracle Database Enterprise Edition
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VMware cluster , 192 cores 6 servers • One Oracle VM with 2 Cores
• $4,560,000 License Cost
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Oracle Virtual Machine
Other Virtual Machine
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Software Investment Guide
Page 26 on the SIG (available at
http://www.oracle.com/us/corporate/pricing/software-
investment-guide/index.html)
Partitioning Servers
See the Partitioning document on http://www.oracle.com
/corporate/pricing/specialtopics.html for detailed information on
partitioning.
The footnote in Oracle’s Software Investment Guide:
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Oracle Hard/Soft Partitioning
Whitepaper
http://www.oracle.com/us/corporate/pricing/specialty-topics/index.html
“Soft partitioning is not permitted as a means to determine
or limit the number of software licenses required for a
given server.”
The footnote in Oracle’s Whitepaper:
The footnote in Oracle’s Partitioning Whitepaper:
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What do your contracts refer to?
• None of the (hundreds) OLSA’s we’ve seen contain any
wordings about Virtualization and/or Software Partitioning
• None of the OLSA’s contain any references to the Oracle
Software Investment Guide
• None of the OLSA’s contain any reference to Oracle’s
Hard/Soft partitioning whitepaper
• Oracle.com/contracts is mentioned in (newer) contracts, but
contains no information about virtualization at this time.
• The applicability of such a hyperlink in the contract
depends on your jurisdiction
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Oracle’s response to
customers
Customers send letters to Oracle Legal about this, arguing
• They did not know
• It’s not in any contractual agreement
Get the following reply from Oracle LMS (never from Oracle Legal):
"Our agreement is defined in the OLSA. Such a license agreement only
describes under what conditions you are allowed to use Oracle
software within your organization.
If a certain type of usage is not described in the agreement, it does not
mean that this type of use is therefore allowed".
Quote was freely translated from Dutch
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What lawyers think
“Leading Law Firm”
by Who’s Who Legal, commenting about Oracle
defending their SIG and Partitioning whitepaper:
‘Oracle’s whitepapers are not contract language, and the opinion
of LMS is not decisive. What applies, is the mutually agreed
contract and the meaning that both parties could have reasonably
attached thereto. If Oracle wants the whitepapers to apply, Oracle
should explicitly include them as part of the OLSA in a contractual
form, similar to Microsofts integration of the practices described in
the Product Use Rights (PUR) documents.’
Judica Krikke, sollicitor and ICT expert at
De Brauw Blackstone Westbroek, The Netherlands
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Contractual position towards
virtualization
OLSA (Oracle License and Services Agreement) typically states that
you must buy licenses in the quantities as defined in the applicable
license definition:
Processor: shall be defined as all processors where the Oracle
programs are installed and/or running.
It’s that simple
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VMware’s whitepaper
Written towards the simple fact that you must license the number of
Processors that Oracle can run on.
URL: http://www.vmware.com/files/pdf/techpaper/vmw-understanding-
oracle-certification-supportlicensing-environments.pdf
• Explains how to limit the number of Processors where the Oracle
software can be running within a virtual farm
• Describes (correctly) the different approaches you could take
• All movements of VM’s can be logged and thus audited
• Audit scripts to are freely available
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Dealing with Oracle Audits
Oracle has the right to audit the use of Oracle software. A typical
Oracle agreement will state that:
• Oracle may not audit you more than once a year
• Oracle must announce the audit in writing with a 30 or 45 day
notice
• You agreed to provide reasonable assistance and information in
conducting such an audit
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Oracle audits: Manage it the
wrong way
Being unprepared will cost a lot of money
• You did not understand why what Oracle software is running
where
• Footprint-data shows historical use of Enterprise Edition
options and Management Packs that you don’t want to be
using
• You did not optimize your environment
• You did not agree/specify what information is considered to
be reasonable and relevant
• Your internal teams provide ‘any’ information to Oracle’s
auditors (not just ‘reasonable/relevant information)
Having just ‘some’ virtualized ‘somewhere’, will cost you $4.56
million.
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Example of irrelevant information:
vCenter screenshots
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Claim from Oracle LMS
Example:
Including 5 out of >20 Options/Packs used at one or more VM’s
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VMware cluster , 192 cores 6 servers $4,560,000 Database
$47,500 per Processor
One or more VM’s used:
•Partitioning ($11,500)
•Tuning Pack ($5,000)
•Diagnostics Pack ($5,000)
•Advanced Security ($11,500)
•Advanced Compression ($11,500)
Total claim
Database: $4,560,000
Options: $3,312,000
Man. Packs: $960,000
GRAND TOTAL: $8,832,000 (excluding 22% annual support)
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Oracle audits: Manage it the
right way
• You made IT decisions (partially) because of your licensing
infrastructure and costs
• You are aware of hidden risks in footprints of your Oracle
infrastructure (and fixed them wherever needed)
• You pre-assessed your compliance situation prior to sending
information to Oracle
• You have an NDA in place in regard to script results
• You made Oracle liable for negative effects of Oracle’s scripts
• You agreed to what information is reasonable and relevant
• Screenshots from your VMotion console are irrelevant: Only
information about ‘installed and/or running’ is reasonable and
relevant (remember!)
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…end of our story
STEPS:
• In depth analysis of current infrastructure and usage / footprint
information
• Re-evaluation of the virtualized deployment
• Proposals of alternate strategies and their operational/financial
impact
• Implementation of desired scenario
RESULTS:
• The $14.8 million compliance issue was eliminated
• No negative impact on database availability, performance or
support
• Oracle auditors audited the client shortly afterwards, but were
unable to substantiate any compliance claim
• YES, the company still runs Oracle happily on VMware.
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Thank you for your time!
Daniel Hesselink
www.licenseconsulting.eu
www.licenseconsulting.nl
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VIRTUALIZING ORACLE TO SAVE
ON LICENSING COST
Donnie Hamlett Technology Specialist
The Process and Tools
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An Intro to iQuate
• iQuate has been working in the industry since 2002
• The world leader for discovery, inventory, and measurement
of complex networks and datacenters
• Our iQSonar tool was the 1st tool of its kind to verified by
Oracle LMS.
– This means that they will accept the output as accurate enough to be
used in a formal License review.
• Our iQSonar for Oracle automatically produces output in the
OSW (Oracle Server Worksheet) format needed to make a
declaration to Oracle.
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“Are you into gambling?”
$ 4,560,000
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“Are you into gambling?”
$ 4,560,000
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Would You be Willing to Bet Your Job ?
• Exactly how many Oracle databases do you have?
• What Servers do those Oracle databases live on?
• How many cores does each of the Servers have?
• How many Oracle Servers are Physical Machines?
• How many Oracle Servers are Virtual Machines?
• If the Servers are VM’s, are they part of a Cluster?
• Are the Oracle VM’s using VMotion?
• What Enterprise Edition Options are being used?
• What Management Packs are in use?
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Visibility & Layers of the Network
Physical Hardware
Virtual Hardware
Installed Software
Software Configuration
Cost/Value
Clustering Configuration
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Visibility & Layers of the Network
Physical Hardware
Virtual Hardware
OS and Software Installed
Software Configuration
Cost/Value
Clustering Configuration
Options, Management Packs, Installed Apps, etc.
Oracle Database Version, Windows, Sun OS, Linux, AIX etc.
Active/Active, Active/Passive, etc.
Physical : Virtual relationships, CPU Affinity, etc.
Procs., Cores, Memory, etc.
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NETWORK
The DIME Process
Discovery
Inventory
Measurement
Extensibility
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The hard way or the easy way ?
Vs MANUAL AUDIT AUTOMATED AUDIT
BASED ON FAITH BASED ON FACTS Time consuming / Inaccurate / Inconsistent Fast / Accurate / Consistent
HIGH COST
HIGH RISK
LOWER COST
LOWER RISK
ONCE OFF
LOW # of SERVERS
REPEATABLE
HI # of SERVERS
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Never bring a knife to a gunfight Oracle LMS has well defined repeatable process
Movie : The Untouchables , 1987 Paramount Pictures directed by Brian DePalma
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Discovery
• Need to have an agentless tool that discovers Servers within
a defined IP range
– We do not want to negatively impact Server performance
– We do not want to change the configuration of the Server
– We do not want to miss a server because an agent couldn’t not be
installed
• iQuate’s, iQSonar product specializes in agentless discovery
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Inventory
• Need to securely connect to the Server
– Security Credentials for each layer
• This provides detailed data
– The system has X Processors, and Y cores
– The system is using Oracle Enterprise Edition
– Oracle is running on a Virtual Machine
– Vmotion is being used
– There are a total of X databases on the server
– What Options are installed
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Measurement
• The relationship between the physical, virtual, OS and
application layers
– Most automated tools require you to do this on your own, but
IQSonar does this for you.
• At this level we know
– How Oracle is Configured
– What Options are being used (not just installed)
– If the Oracle VM is part of a VMWARE Cluster
– How many processors and cores are in the VMWARE Cluster
– How many processes have Oracle installed, and or running
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iQSonar: Oracle Instance Listing
1 Physical
Host Per DB Data
7 Virtual
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iQSonar: Database instance information
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Options: Installed or In-Use?
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Options: Installed or in-use cont.. ?
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Licensing Optimization
• Once you understand your Oracle estate looks like you can
optimize it
– Options Installed and in Use
– Consolidation
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Allocation Analysis
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Optimization
Cluster not Licensed for Oracle Ent.
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6 servers VMware cluster , 192 cores
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6 servers VMware cluster , 192 cores
Cluster Licensed for
Oracle Ent.
By simply migrating
License cost goes from
$ 4,560,000 to $0
This is
Just one
Cluster!
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Movie : Rain Man, 1988, United Artist directed by Barry Levinson
The right tools and process stack the odds in your favor!!
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Presenting the
TCO Calculator
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Call to Action
• Oracle is a fantastic database
– You are using it because of the value
– Make sure you are getting the most value out of your licensing
• If you running Oracle then it makes sense to virtualize it
– Cost benefits are enormous
– Easier to Manage
– Easier to Scale
• Get help and do it the smart way
– The right People
– The right Tools
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Virtualizing Oracle to Save on Licensing Costs
David Gallant, VMware, Inc.
Donnie Hamlett, iQuate
Daniel Hesselink, License Consulting
APP-BCA1751
#vmworldapps