RE: Term Licenses to reduce Support costs

From: Joseph Reid <>
Date: Thu, 3 Nov 2011 22:50:12 -0400
Message-ID: <000001cc9a9c$7a20d710$6e628530$_at_com>

That even furthers my argument regarding term licenses vs Perpetual Regardless if the license prices stay static or increase, the support costs will always increase by 3% yearly. From 2000-2007 your support price increased 21% although the license prices remained dormant. If you had purchased term licenses yearly with a 15-20% discount and no support, your TCO would have been significantly less than buying Perpetual licenses with yearly maintenance.

Food for thought.

-----Original Message-----

From: Chitale, Hemant Krishnarao [] Sent: November 3, 2011 10:04 PM
Subject: RE: Term Licenses to reduce Support costs

I still have a copy of the 04-Sep-2007 price list. EE was US$40K then and it had been the same price for many years. After then, Oracle revised the price twice in quick succession -- to US$44K and then US$47.5K (as it appears in the price list of 29-Jan-2009). I can only surmise that it was in response to the drop in the value of the USD in forex markets.
Since the price has held at US$47.5K (as of the price list of 01-Sep-2011) for more than 2.5 years, after two revisions in less than 2 years .... Oracle must have had their own reasons for the changes.

Hemant K Chitale

-----Original Message-----

From: [] On Behalf Of Joseph Reid
Sent: Thursday, November 03, 2011 11:40 PM To:; Subject: RE: Term Licenses to reduce Support costs

Thanks Freek,

You are absolutely correct.
However companies typically have their maintenance costs have increased yearly 3% inflation. Since 2000 the EE database price has gone up by 18.75%. I believe in 2000 the cost for the database EE Database was 40k(US) now it's 47.5k(US), in that same period support cost have risen by 33%


-----Original Message-----

From: [] On Behalf Of D'Hooge Freek
Sent: November 3, 2011 10:14 AM
To:; Subject: RE: Term Licenses to reduce Support costs

As you need to buy each year the full term license instead of "only" the maintenance fee of 22%, it would be only cheaper for the first 5 (4.xx) years.
Certainly since the license prices seem to rise quicker then the inflation (by which the maintenance fee is corrected), or is that just me ;-) ...  

Freek D'Hooge
Oracle Database Administrator
tel +32(0)3 451 23 82

-----Original Message-----

From: [] On Behalf Of Joseph Reid
Sent: donderdag 3 november 2011 15:01
Subject: Term Licenses to reduce Support costs

Perhaps I am way off base here if so my apologies. Collectively with the experience, knowledge and wisdom in this group you all can support yourselves and not having to rely on Oracle Support to resolve your DB issues. I know updates is the paramount concern amongst you all but if you went to a term license matrix without Product Support/Updates and found a vendor which could supply you a discount on these, you would be saving allot on yearly support.
If you bought term licenses I believe the released patches, bug fixes, security, etc.. should be made available for that version of the DB. As a 1 yr term license is 20% of the perpetual price and support is 22% or the perpetual price(this figure also increases yearly) you would be ahead of the game. If you got a 10% discount on the term licenses you would defiantly free up some budget an possible shine in your department.

Again if I have missed or overlooked something here please let me know.





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-- Received on Thu Nov 03 2011 - 21:50:12 CDT

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