OPTIMIZING ORACLE LICENSING IN VMWARE ENVIRONMENTS

Will Monin, Director of Strategic Alliances, VMware

Jason Keogh, CTO & Founder, iQuate

Agenda

• Introduction• Oracle licensing 101

– Why Inventory is difficult for Oracle

• The iQuate Approach• iQSonar – Delivering Detail on Oracle• IQSonar – Optimizing your VMware Oracle environment• Questions and Answers

Introduction

Vendors

Tech Partners

iQuate (DIME)

Advisors

Introduction: DIME

• DiscoveryDefining the scope of possible “universe” – what may be there.  Example activity: Checking a network range for active IP Addresses or identifying details for database connectivity strings.

• InventoryDefinitive translation of Discovery data into definitive, unique, identifiable hardware & software assets, specifically servers, installed software, processes, services, hard disks, etc.Example activity: Logging into a Unix server, issuing and parsing commands

Introduction: DIME

• MeasurementGathering details beyond a simple count. Understanding configuration of applications, clusters and relationships between applications to establish full data required for license metric  identification. Example Activity: Querying Oracle database to identify options and packs installed and in-use.

• ExtensibilitySupporting the ability to extend the data queried to enable iQSonar  to gather site specific details and to export iQSonar data to site specific “down-stream” repositories. Example Activity: Adding a new query for MS SQL to identify  use of an internally written application.

Oracle licensing 101

What data is required?

Oracle Licensing: Complexity

• To license Oracle you need to understand the platform underpinning the technology

• 2 primary license options:– “Processor”– Named User Plus

Oracle license costs

Servers: Moore’s Law and the Data explosion

CPU history

<2006: 1 Core (single)

2006 – 2007: 2 Core (dual)

2007 - 2009: 4 Core (quad)

2009 - 2011: 6, 8, 10 Core

2012 - 2013: 12 Cores

2014 onwards: 24, 48, 64, 128 Cores ??

12Core

$47,500

$285,000

4 Core 6Core 8

Core

2 Core1 Core

The effect of Moore’s law on licensing

• As servers became multi-processor in the late 1990’s, IBM, Oracle and others introduces “Processor” licensing

• As processors became hyper-threaded and multi-core, IBM introduced PVU licenses and Oracle introduced Core Factors

Not all cores are created equal

Source: http://www.oracle.com/us/corporate/contracts/processor-core-factor-table-070634.pdf

Sun, Fujitsu UltraSPARC T1 (1.0 or 1.2GHz)SPARC T3Core Factor 0.25

Sun, Fujitsu UltraSPARC T1 (1.4 GHz)Intel Xeon Series 56xx, 65xx, 75xxCore Factor 0.5

Sun UltraSPARC T2HP PA-RISCCore Factor 0.75

All Single Core ChipsIBM P6, P7Core Factor 1

47,500*0.25= $11,85047,500*0.5= $23,75047,500*0.75= $35,62547,500*1= $47,500

Effective price per core

Oracle Licensing: Complexity

• Processor License– Core factor

› CPU Type: x86/x64 (Intel and AMD), Power, RISC, Itanium, etc.› Purchase date!

• NUP License– Processor Minimums

Oracle in a Virtual world

• Virtualization & Partitioning– Hard v Soft partitioning– Hard partitioning isolates a “Server” to specific hardware– VMware is always considered Soft partitioning

• When running on a server which is “soft partitioned” Oracle generally requires that ALL underlying processors which the server may run on be licensed

Virtualization

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VMware cluster, 4 ESX servers each with 4x 6 core Xeon processors = 96 cores (4 x 24 cores)

VM

1 VM with 1 core assigned.

If customer intends VMotion to be freely enabled on the cluster – all 96 cores must be licensed.

If VMotion is NOT enabled on the cluster, the 24 cores in the physical server must be licensed

The VMware customer’s perspective

•Customers love virtualization and VMware

• 960 Fortune 1000 corporations run VMware products

• VMware’s growth is very fast

• $3.77 billion revenue in 2011, up 32%

• $1.06 billion revenue in Q4 2011, up 27%

•VMware customers are moving toward cloud models

• Better workload consolidation ratios

• More dynamic workload placement

• Highly accurate cost accounting and compliance management

• Negotiating with vendors for practical licensing models

16 Confidential

vSphere is a better platform for any workload

Provisioning times reduced from weeks to minutesOptimized test/dev environments

Lower hardware and software costs with 5X - 10X consolidation

Reduced Opex with intelligent policy management

Better performance with dynamic resources and scalabilityEnhanced availability and automated DR for all apps

Accelerate AppTime-to-Market

Improve AppQuality of Service

Improve App Efficiency

Cost Reduction

SLAs

Agility

17 Confidential

38%

43%

53%

25% 25%

18%

% of Workload Instances Virtualized by VMware Customers

MSExchange

MS SQL

MS SharePoint

OracleMiddleware

OracleDB

SAP

Source: VMware customer survey, Jan 2010 and April 2011 interim results,Data: Total number of instances of that workload deployed in your organization and the percentage of those instances that are virtualized

Jan 2010

The Trend Is Clear

Apr 2011

42%

47%

67%

34% 28% 28%

Why is Oracle growth slower?

• Fear of unexpected licensing liabilities on high-cost products• Highly mobile virtual workloads don’t fit “old school” EULAs • IT infrastructure teams haven’t focused on licensing before

Why is VMware here today?

• Customers that have the facts make smart decisions

• Virtualizing (or not) based on real costs and benefits

• Choosing VMware (or not) based on real value

• Evolving their infrastructure toward their strategic needs, not compromising based on unquantified risks

• Customers that optimize licensing in their virtualization plan get better ROI and fewer surprises

• Licensing based on physical hardware is an inventory problem

• Customers with the tools to manage their plans focus on achieving operational benefits, instead of avoiding licensing liabilities

Why is VMware here today?

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• VMware customers are virtualizing Oracle:

• Optimizing licensing costs

• Significantly improving their operational capabilities

• Re-deploying licenses to automated DR functions

• Increasing uptime

• Increasing IT manpower efficiency

• Developing the skills to manage highly dynamic infrastructures that will evolve to hybrid cloud architectures

VMware’s Perspective: Solve fear, solve the problem

iQSonarVisibility provides clarity

iQSonar – Dashboard View

iQSonar: Oracle, virtual and physical

Per Instance Data1 Physical

7 Virtual

iQSonar

iQSonar

Virtualization

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VMware cluster, 4 servers with 4x 6 core Xeon processors = 4 x 24 cores

VM

1 VM with 1 core assigned.

How many Processor licenses of EE are required?a) 1b) 12c) 48d) Not enough information to tell.

Correct answer:d) Not enough information to tell.

VMware cluster details relating to VMotion required to know.

iQSonar: Virtual Server listing

258 Virtual servers 176 cores6 Physical

1 Cluster

iQSonar: VMware server configuration detail

Maximizing value

Maximizing value

• Visibility provides control• When under control, using VMware as a platform to underpin

Oracle deployments provides operational benefits while reducing TCO

Virtualization

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VMware cluster, 96 cores

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VMware server, 24 cores

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$47,500 per processor

48 processors = $2,280,000

Virtualization

P P P P P P P P

8x physical servers with 2 single core processors each, 16 processor licenses.

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VMware cluster, with VMotion, 2x Quad core Xeons in each server8x virtual servers with 2 cores each.

• Newer cores out perform older CPU’s• Environment now has failover• Cost to license Oracle is halved

Accurate and complete

How complete is your inventory?

Where VMware customers are going:

• Any software license terms agreed to must be honored

•Some customers negotiate better terms for themselves to make deployment with virtualization easier

• Awareness that deploying Oracle workloads carelessly can create an expensive license liability

• Motivated to optimize Oracle workload deployment

• Achieving the benefits of virtualization on key workloads

• Using tools to enforce policies and control the environment

• Increasing ROI by active management of licensing costs

Questions?