Re: Pricing Increases

From: LS Cheng <exriscer_at_gmail.com>
Date: Fri, 17 Jul 2009 21:15:48 +0200
Message-ID: <6e9345580907171215j78222336qc928a968ee0f7279_at_mail.gmail.com>

Oracle raised Database License prices in new FY as well

Was 30576 Euros per CPU (Enterprise Edition), new prices is 34081, raised almost 11.5%

I have customer who also complained that soon after Bea was merged all Bea products license raised up

Looks like "grab the money and run" not a very long term strategy :-)

--
LSC


On Fri, Jul 17, 2009 at 6:57 PM, kyle Hailey <kylelf_at_gmail.com> wrote:



> Maybe this is of interest more to the procurement departments and not DBAs,

> but I find it intriguing to hear Oracle is increasing the performance pack

> pricing from $3000 to $5000 per CPU especially in this economy:

>

> http://www.cio.com/article/497418/Oracle_Hikes_Prices_on_Database_Options

>

> Oracle Hikes Prices on Database Options

> Oracle has apparently raised the cost of some management options for its

> flagship database by 40 percent, according to an official price list dated

> July 1.

>

> Leave a comment (1)

> By Chris Kanaracus

>

> July 16, 2009 — IDG News Service —

>

> Oracle has apparently raised the cost of some management options for its

> flagship database by 40 percent, according to an official price list dated

> July 1.

>

> Processor licenses for the company's diagnostic and tuning packs, as well

> as a database configuration management pack, are now US$5,000, up from

> $3,500 listed on a 2008 price list.

>

> The first two products are meant to help database administrators target and

> resolve performance problems. The latter tool is used for a range of tasks,

> such as tracking database configuration changes and ensuring policy

> compliance.

>

> Agility is SOA Payoff

> SPONSORED BY CIO AND IBM

> Meanwhile, a processor license for the enterprise edition of Oracle's

> database remains priced at $47,500, following a roughly 20 percent increase

> last year.

>

> It wasn't clear Thursday whether other Oracle products also have seen price

> hikes. A company spokeswoman could not immediately comment.

>

> It is also not clear when the increases took place, but the lower prices

> were in effect on a price sheet dated Dec. 1, 2008. Oracle posts its updated

> price lists on the company's Web site, but does not typically announce when

> changes are made.

>

> Forrester Research analyst Ray Wang said Thursday his firm began examining

> the most recent price lists for changes after a sudden swell of chatter from

> sources in recent days.

>

> Although list prices are rarely what customers actually pay for software,

> the increases nonetheless raise the starting point for discount

> negotiations, and could upset customers prepared to buy new licenses even in

> the face of a global recession.

>

> But there may also be another game afoot, according to Wang.

>

> By raising list prices for licenses, vendors such as Oracle may simply be

> catering to the needs of corporate IT procurement managers, who are under

> pressure to get good deals for their employers and whose compensation can be

> affected by the level of discount they garner from a vendor, he said.

>

> When it comes time to negotiate, the vendor simply agrees to a steeper

> discount on the now higher-priced product, creating a "win-win" situation

> for both sides, Wang said.

>

> This is a potential problem for IT organizations, Wang added. "If you just

> focus on procurement, then you're not focused on the product adoption

> strategy."

>

> Copyright © 2008 IDG News Service. All rights reserved. IDG News Service is

> a trademark of International Data Group, Inc.

>

>  Print Comments (1)

> Share [+]

> READER FEEDBACK

> Anonymous Fri, 2009-07-17 05:40

> Why there is big customer reaction when SAP do a minimal hike is

> support.... Here Oracle incresed their price astronomially..No one here to

> lodge a protest here ??? ..This is too bad

>

>

> Kyle Hailey

> http://oraclemonitor.com

>


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Received on Fri Jul 17 2009 - 14:15:48 CDT