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

Introduction: DIME
Discovery
Defining 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.

Inventory
Definitive 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
Measurement
Gathering 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.

Extensibility
Supporting 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: Moores Law and the Data explosion

1 Core

2 Core

4 Core

$47,500

6 Core

8 Core

12 Core $285,000

CPU history
<2006:

1 Core (single) 2 Core (dual) 4 Core (quad)

6, 8, 10 Core 12 Cores

2006 2007:
2007 - 2009: 2009 - 2011: 2012 - 2013: 2014 onwards:

24, 48, 64, 128 Cores ??

The effect of Moores law on licensing

As servers became multi-processor in the late 1990s, 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

Sun, Fujitsu UltraSPARC T1 (1.0 or 1.2GHz) Effective price per core SPARC T3

Core Factor 0.25

47,500*0.25 = $11,850

Sun, Fujitsu UltraSPARC T1 (1.4 GHz) per core Intel Xeon Series 56xx, 65xx, 75xx 47,500*0.5

Effective price

Core Factor 0.5

Sun UltraSPARC T2 HP PA-RISC

= $23,750

Effective price per core

Core Factor 0.75

All Single Core Chips IBM P6, P7

47,500*0.75 = $35,625
Effective price per core

Core Factor 1

47,500*1 = $47,500

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

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
VMware cluster, 4 ESX servers each with 4x 6 core Xeon processors = 96 cores (4 x 24 cores)
1 VM with 1 core assigned.
VM VM VM VM VM VM VM VM VM

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

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The VMware customers perspective

Customers love virtualization and VMware
960 Fortune 1000 corporations run VMware products VMwares 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

vSphere is a better platform for any workload

SLAs
Improve App Quality of Service Better performance with dynamic resources and scalability Enhanced availability and automated DR for all apps

Cost Reduction
Improve App Efficiency Lower hardware and software costs with 5X - 10X consolidation Reduced Opex with intelligent policy management

Agility
Accelerate App Time-to-Market

Provisioning times reduced from weeks to minutes Optimized test/dev environments

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Confidential

The Trend Is Clear

% of Workload Instances Virtualized by VMware Customers
67% 53% 42% 47% 43%

34%
38%

28%
25%

28%

25%

18%
MS Exchange MS SharePoint MS SQL Oracle Middleware Oracle DB

Apr 2011 Jan 2010

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 17 Confidential

Why is Oracle growth slower?

Fear of unexpected licensing liabilities on high-cost products Highly mobile virtual workloads dont fit old school EULAs IT infrastructure teams havent 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?

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

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VMwares Perspective: Solve fear, solve the problem

iQSonar
Visibility provides clarity

iQSonar Dashboard View

iQSonar: Oracle, virtual and physical

7 Virtual

1 Physical

Per Instance Data

iQSonar

iQSonar

Virtualization
VMware cluster, 4 servers with 4x 6 core Xeon processors = 4 x 24 cores
1 VM with 1 core assigned.
VM VM VM VM VM VM VM VM VM

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

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Correct answer: d) Not enough information to tell.

VMware cluster details relating to VMotion required to know.

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iQSonar: Virtual Server listing

1 Cluster

6 Physical

258 Virtual servers

176 cores

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
VMware cluster, 96 cores
VM VM VM VM

$47,500 per processor 48 processors = $2,280,000

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VMware server, 24 cores

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

VMware cluster, with VMotion, 2x Quad core Xeons in each server 8x virtual servers with 2 cores each.
VM VM VM VM

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Newer cores out perform older CPUs 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?