Oracle Cloud Will Inevitably Be the Less Risky Approach

April 19, 2017
Eric Guyer


Eric Guyer

Enterprise Software, Hardware and Services Linkedin

The question is not if—or even when—you’ll move to Oracle’s cloud. Rather, it is who your trusted advisor will be in the inevitable transition.

The principles are quite simple. Barb Darrow of Fortune notes that 70% of Oracle is still on-prem. These workloads are simultaneously under scrutiny by IT executives looking to cut costs, while also being targeted by Oracle for its cloud. The alternative paths meanwhile remain unfavorable. If one leaves Oracle, re-architecture costs can run quite high. If companies do nothing, they potentially face what the Campaign for Clear Licensing has dubbed an “aggressive licensing stance” by Oracle. Eventually, remaining on-premises as opposed to moving to Oracle Cloud can become the expensive and risky choice.

Most customers, however, will struggle to assess the value proposition of Oracle Cloud for their businesses:

  • Under what scope, pricing and terms is a move to Oracle Cloud preferable than remaining on-premises?
  • What are the long-term cost implications of adopting Oracle Cloud?

Should you trust SoftwareONE with helping you answer these questions? Perhaps the following will help you decide:

We begin with a free review of traditionally deployed entitlements to assess their cost-effectiveness and contractual flexibility. We roll this analysis into the first step of a paid advisory engagement that begins with a compliance assessment to ensure you go into any discussions with Oracle well-armed. Second, we advise on optimization opportunities that pull unnecessary cost out, based on both legacy support fees and sub-optimized server architecture. Only after these two steps do we consider future-state deployment methodologies, including cloud, hybrid and another round of on-premise server refresh. Finally, with an optimized strategy, we approach and negotiate your value proposition with Oracle on your behalf to get your company the best deal. As an independent advisor, SoftwareONE can do this under non-disclosure, and help you assess staying vs. moving to the Oracle cloud or to other database platforms.

It’s important to pause here and address how Oracle is positioning the move to the cloud for its customers. While we do see and advise our customers on this, the reality is that most will not be audited. As Dan Woods noted in Forbes, “Oracle cannot just show it can protect and increase revenue using its ‘audit, bargain, close’ playbook. Wall Street expects, and Oracle has promised, to show that it is making significant inroads in shifting its business to the cloud.”

For Oracle’s part, it knows the transition will take years to unfold. Oracle’s strategy is to deliver its cloud machinery to your data center while rolling existing entitlements into a subscription, securing $2 for every $1 of annual support. Over time, Oracle will improve its technology, and when you are ready, a flip-of-the-switch will beam those workloads to Oracle. Engaging SoftwareONE ensures that inefficient vendor lock-in is avoided.

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