I recently hosted an “Oracle Licensing in the Cloud” webinar with Terry Divelbliss of Eracent Software. My part was to explain how Oracle licenses software in the public cloud and Terry’s part was to explain how Eracent’s SAM solution discovers Oracle software in the public cloud. The focus of this blog is to understand what types of applications/functionality companies are migrating to the public cloud.
IT executives are initially attracted to the public cloud by the potential of financial savings that can result from reduced capital expenditures, and paying only for what’s used. Another feature that IT executives like is the ability to quickly expand the server platform both vertically and horizontally to meet growing application capacity demands. Typically, software licensing is an afterthought. In the case of licensing Oracle software, costs can be more expensive than the underlying hardware infrastructure.
Another factor that determines what public cloud offering companies select is how much control IT organizations are willing to relinquish to their cloud provider. Generally, cloud offerings are:
- Infrastructure as a Service (IaaS): provides OS, hardware, virtualization
- Platform as a Service (PaaS): provides IaaS plus database and applications
- Software as a Service (SaaS): provides PaaS plus managed services and licensing
IaaS provides IT organizations more control of the installation and configuration of the Oracle database and applications. They lose a little more control with PaaS because now the cloud provider is configuring and managing the database and application installations. With a SaaS cloud offering you are turning the “keys to the kingdom” over to your cloud provider.
In our experience, most companies haven’t completely pulled the plug on their current on-premise IT infrastructure. Instead, they are moving to a hybrid cloud environment. A hybrid cloud environment means you continue to utilize your on-premise infrastructure, but move some components of that on-premise infrastructure to the public cloud. The hybrid cloud brings integration into the mix. You now have to integrate your on-premise infrastructure with the public cloud infrastructure. Integration is twofold: it requires additional network and security considerations with regard to your cloud provider, as well as a need to understand how well your cloud provider can support Oracle databases and Oracle applications (i.e. Oracle Database and Oracle E-Business Suite). Are they certified by Oracle, what versions can be supported, etc.?
My experience is that companies are kicking the tires of the different cloud offerings. They are experimenting with the new cloud development environment that utilizes Docker containers, or they are using the public cloud as a disaster recovery solution, or they are moving their applications into a non-production environment. I haven’t worked with a customer who has migrated a critical production database and/or application (i.e. Oracle Database and E-Business Suite) into the public cloud.
I would be interested to know what applications/functionality you are migrating to the public cloud. Feel free to reach out via the comments section, below.
In the meantime, you can watch the replay of our “Oracle Licensing in the Cloud” webinar. If you’re running Oracle in cloud, or are considering a move to the cloud, it’s a must-see.