News

Analyst Firms Take Oracle to Task on Licensing

Oracle Corp. customers are calling IT analyst firms to complain that Oracle sales reps are trying to reinterpret their contracts to charge more for Oracle's database software.

Both Meta Group, which first publicized the issue last week, and Gartner, which weighed in this week, urge customers to push back against the software giant.

The problem arises from a contract provision called "multiplexing" that is designed to protect Oracle revenues in cases where a Web server or transaction processing monitor uses a shared pool of connections to the database. Although the users access the database, they do not connect directly. In those cases, Oracle requires that users buy licenses for all the users accessing the database from behind a Web server or TP monitor. Most customers resolve this issue by moving to per-CPU pricing.

However, Oracle sales reps apparently are now broadening the definition of multiplexing to include batch processes, according to the analysts. For example, when data is extracted to an Oracle data warehouse from a non-Oracle application with 5,000 users, Oracle sales reps are now saying customers must pay Oracle for all 5,000 users.

"This bizarre interpretation of multiplexing and subsequent attempts to gain revenue from Oracle's existing client base add momentum to users' displeasure with Oracle pricing," Meta Group analyst Charlie Garry said in a statement.

According to Meta Group, several of its clients are considering moving large data warehouses off Oracle databases after being confronted with the licensing clarification.

In a paper of its own on the topic, Gartner suggests that Oracle's declining year-over-year database revenues in each of the past four quarters is motivating the "highly inappropriate" sales calls.

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

Featured

  • SharePoint Framework 1.8 Now Generally Available

    Microsoft this week announced that SharePoint Framework 1.8 had reached "general availability" status, although some features are still at the preview stage.

  • How To Create Office 365 User Accounts in Bulk

    Manual account creation can be tedious, time-consuming and prone to human error, especially if you have more than a handful of Office 365 users to set up. Brien shows you a better way.

  • System Center 2019 Reaches General Availability

    System Center 2019 has now reached the "general availability" product stage, Microsoft indicated in a Thursday update.

  • SharePoint Online Users Getting News Improvements This Month

    Microsoft plans to roll out new capabilities for SharePoint Online users this month that will add greater control over how News articles appear in SharePoint sites, according to a Wednesday announcement.

comments powered by Disqus

Office 365 Watch

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.