Does your IT shop use a combination wrench?

More and more, IT shops seem inclined to consolidate and simplify their infrastructure to one platform. A mindset that all workloads can or should run on a single platform incorporated into ‘Software-defined this’ and ‘Software-defined that’.  It tantalizes the decision makers senses as vendors claim to reduce complexity and cost.

Technology has become Ford vs Chevy or John Deere vs Case International.  Whereas these four vendors each have some unique capabilities and offerings they are also leaders in innovation and reliability.  For IT shops, there is this perception that only Intel & VMware are viable infrastructure options to deploy every workload type.  Mission / Life critical workloads in healthcare, high-frequency financial transactions, HPC, Big Data, Analytics, emerging Cognitive & AI but also traditional ERP workloads that run entire businesses – SAP ECC, SAP HANA and Oracle EBS are probably the most common that I see as there are also some industry specific ones for Industrial and automotive companies – I’m thinking of Infor.

When a new project comes up, there is little thought given to the platform. either the business or maybe the ISV will state what and how many of server X should be ordered. The parts arrive, eventually getting deployed.  Little consideration is given to the total cost of ownership or the the impact to the business caused by the system complexity.

I’ve watched a client move their Oracle workloads to IBM POWER several years ago. This allowed them to reduce their software licensing and annual maintenance cost as well as to redeploy licensing to other projects – cost avoidance by not having to add net new licensing.  As it happens in business, people moved on, out and up. New people came in whose answer to everything was Intel + VMware.  Yes, a combination wrench.

If any of you have used a combination wrench,  you know there are a few times it is the proper tool. However, it can also strip or round over the head of a bolt or nut if too much pressure or torque is applied. Sometimes the proper tool is a SAE or Metric box wrench, possible a socket, even an impact wrench.  In this clients case, they have started to move their Oracle workloads from POWER to Intel.  Workloads currently running on standalone servers or at most using 2-node PowerHA clusters.  Moving these simple (little complexity) Oracle VM’s to 6-node VMware Oracle RAC clusters that have now grown to 8-nodes.  Because we all know that Oracle RAC scales really well (please tell me you picked up on the sarcasm).

I heard from the business earlier this year that they had to buy over $5M of net-new Oracle licensing for this new environment. Because of this unforeseen expense, they are moving other commercial products to open-source since we all know that open-source is “free” to offset the Oracle cost.

Oh, I forgot to mention.  That 8-node VMWare Oracle RAC cluster is crashing virtually every day.  I guess they are putting too much pressure on the combination wrench!

Oracle is a mess & customers pay the price!

Chaos that is Oracle

Clients are rapidly adopting open source technologies in support of purpose-built applications while also shifting portions of on-premises workloads to major Cloud providers like Amazon’s AWS, Microsoft’s Azure and IBM’s SoftLayer.  These changes are sending Oracle’s licensing revenue into the tank forcing them to re-tool … I’m being kind saying it this way.

What do we see  Oracle doing these days?

  • Aggressively going after VMware environments who use Oracle Enterprise products for licensing infractions
  • Pushing each of their clients toward Oracle’s public cloud
  • Drastically changing how Oracle is licensed for Authorized Cloud Environments using Intel servers
  • Latest evidence indicates they are set to abandon Solaris and SPARC technology
  • On-going staff layoffs as they shift resources, priorities & funding from on-premises to cloud initiatives

VMware environments

I’ve previously discussed for running Oracle on Intel (vs IBM POWER), Intel & VMware have an Oracle problem. This was acknowledged by Chad Sakac, Dell EMC’s President Converged Division in his August 17, 2016 blog in what really amounted to an Open Letter to King Larry Ellison, himself. I doubt most businesses using Oracle with VMware & Intel servers fully understand the financial implications this has to their business.  Allow me to paraphrase the essence of the note “Larry, take your boot off the necks of our people”.

This is a very contentious topic so I’ll not take a position but will try to briefly explain both sides.  Oracle’s position is simple even though it is very complex.  Oracle does not recognize VMware as an approved partitioning (view it as soft partitioning) method to limit Oracle licensing. As such, clients running Oracle in a VMware environment, regardless of how little or much is used, must properly license it for every Intel server under that clients Enterprise (assume vSphere 6+).  They really do go beyond a rational argument IMHO. Since Oracle owns the software and authored the rules they use these subtleties to lean on clients extracting massive profits despite what the contract may say. An example that comes to mind is how Oracle suddenly changed licensing configurations for Oracle Standard Edition and Standard Edition One. They sunset both of these products as of December 31, 2015 replacing both with Standard Edition 2. What can only be described as screwing clients, they halved the number of sockets allowed on a server or in a RAC cluster, limited the number of cpu threads per DB instance while doubling the number of minimum Named User Plus (NUPs). On behalf of Larry, he apologizes to any 4 socket Oracle Standard Edition users but if you don’t convert to a 2 socket configuration (2 sockets for 1 server or 1 socket for 2 servers using RAC) then be prepared to license the server using the Oracle Enterprise Edition licensing model.

The Intel server vendors and VMware have a different interpretation on how Oracle should be licensed.  I’ll boil their position down to using host or cpu affinity rules.  House of Bricks published a paper that does a good job trying to defend Intel+VMware’s licensing position. In their effort, they do show how fragile of ground they sit on with its approach  highlighting the risks businesses take if they hitch their wagons to HoB, VMware & at least Dell’s recommenations.

This picture, which I believe House of Bricks gets the credit for creating captures the Oracle licensing model for Intel+VMware environments quite well. When you pull your car into a parking garage – you expect to pay for 1 spot yet Oracle says you must pay for every one as you could technically park in any of them. VMware asserts you should only pay for a single floor at most because your vehicle may not be a compact car, may not have the clearance for all levels, there are reserved & handicapped spots which you can’t use. You get the idea.

oracle_parking_garage

It simply a disaster for any business to run Oracle on Intel servers. Oracle wins if you do not virtualize, running each on standalone servers.  Oracle wins if you use VMware, regardless of how little or much you actually us.  Be prepared to pay or to litigate!

Oracle and the “Cloud”

This topic is more difficult to provide sources so I’ll just stick to anecdotal evidence. Take it or leave it. At contract renewal, adding products to contracts or new projects like migrating JD Edwards “World” to “Enterprise One” or a new Oracle EBS deployment would subject a business to an offer like this.  “Listen Bob, you can buy 1000 licenses of XYZ for $10M or you can buy 750 licenses of XYZ for $6M, buy 400 Cloud units for $3M and we will generously throw in 250 licenses …. you’ll still have to pay support of course. You won’t get a better deal Bob, act now!”.  Yes, Oracle is willing to take a hit for the on-premises license revenue while bolstering their cloud sales by simply shuffling the Titanic deck chairs. These clients, for the most part are not interested in the Oracle cloud and will never use it other than to get a better deal during negotiations. Oracle then reports to Wall Street they are having tremendous cloud growth. Just google “oracle cloud fake bookings” to read plenty of evidence to support this.

Licensing in the Cloud

Leave it to Oracle Marketing to find a way to get even deeper into clients wallets – congratulations they’ve found a new way in the “Cloud”.  Oracle charges at least 2X more with Oracle licenses on Intel servers that run in Authorized Cloud Environments (ACE). You do not license Oracle in the cloud using the on-premises licensing factor table.  The more VM’s running in a ACE,  the more you will pay vs an on-premises deployment. To properly license an on-premises Intel server (remember, it is always an underlying proof that Oracle on POWER servers is the best solution) regardless if virtualization is used, assuming a 40 core server, would equal 20 Oracle Licenses (Intel licensing factor for Intel servers is 0.5 per core). Assume 1 VMware server, ignoring it is probably part of a larger vSphere cluster.  Once licensed, clients using VMware could theorectially run Oracle as many VM’s as desired or supported by that server. Over-provision the hell out of it – doesn’t matter. That same workload in an ACE, you pay for what amounts to every core.  Remember, if the core resides on-premises it is 1 Oracle License for every 2 Intel cores but in a ACE it is 1 OL for 1 core.

AWS
Putting your Oracle workload in the cloud?  Oracle license rules stipulate if running in AWS, it labels as vCPU’s both the physical core and the hyperthread. Thus, 2 vCPU = 1 Oracle License (OL). Using the same 40 core Intel server mentioned above, with hyperthreading it would be 80 threads or 80 vCPU.  Using Oracle’s new Cloud licensing guidelines, that would be 40 OL.  If this same server was on-premises, those 40 physical cores (regardless of threads) would be 20 OL ….. do you see it?  The licensing is double!!!   If your AWS vCPU consumption is less vs the on-premises consumption you may be ok. As soon as your consumption goes above that point – well, break out your checkbook.  Let your imagination run wild thinking of the scenarios where you will pay for more licenses in the cloud vs on-prem.

Azure
Since Azure does not use hyperthreading, 1 vCPU = 1 core.  The licensing method for ACE’s for Azure or any other ACE if hyperthreading is not used, 1 vCPU = 1 OL.  If a workload requires 4 vCPU, it requires 4 OL vs the 2 OL if it was on-premises.

Three excellent references to review. The first is Oracle’s Cloud licensing document. The second link is an article by Silicon Angle giving their take of this change and the last link is for a blog by Tim Hall, a DBA and Oracle ACE Director sharing his concerns. Just search for this topic starting from January 2017 and read until you fall asleep.

Oracle
Oracle offers their own cloud and as you might imagine, they do everything they can to favor their own cloud thru licensing, contract negotiations and other means.   From SaaS, IaaS and PaaS their marketing machine says they are second to none whether the competition is SalesForce, Workday, AWS, Azure or any other.  Of course, analysts, media, the internet nor Oracle earnings reports show they are having any meaningful success – to the degree they claim.

Most recently, Oracle gained attention for updating how clients can license Oracle products in ACE’s as mentioned above.  As you might imagine, Oracle licenses its products slightly differently than in competitors clouds but they still penalize Intel and even SPARC clients, who they’ll try to migrate into the cloud running Intel (since it appears Oracle is abandoning SPARC).  The Oracle Cloud offers clients access to its products on a hourly or monthly in a metered and non-metered format on up to 4 different levels of software. Focusing on Oracle DB, the general tiers are Standard, Enterprise, High-Performance and Extreme-Performance Packages. Think of it like Oracle Standard Edition, Enterprise Edition, EE+tools, EE+RAC+tools.  Oracle also defines the hardware tier as “Compute Shapes“. The three tiers are General Purpose, High-Memory or Dedicated compute

Comparing the cost of an on-premises perpetual license for Oracle Enterprise  vs a non-metered monthly license for the Enterprise Tier means they both use Oracle Enterprise Edition Database. Remember a perpetual license is a one-time purchase, $47,500 for EE DB list price plus 22% per year annual maintenance.  The Enterprise tier using a High-memory compute shape in the Oracle cloud is $2325 per month.  This compute shape consists of 1 OCPU (Oracle CPU) or 2 vCPU (2 threads / 1 core).  Yes, just like AWS and Azure, Intel licensing is at best 1.0 vs 0.5 for on-premises licensing per core. Depending how a server might be over-provisioned as well as the fact an on-premises server would be fully licensed with 1/2 of its installed cores there are a couple of ways clients will vastly overpay for Oracle products in any cloud.

The break-even point for a perpetual license + support vs a non-metered Enterprise using High-memory compute shape is 30 months.

  • Perpetual license
    • 1 x Oracle EE DB license = $47,500
    • 22% annual maintenance = $10,450
    • 3 year cost: $78,850
  • Oracle Cloud – non-metered Enterprise using High-Memory shape
    • 1 x OCPU for Enterprise Package for High-Compute = $2325/mo
    • 1 year cloud cost = $27,900
    • 36 month cost: $83,700
  • Cross-over point is at 30 months
    • $79,050 is the 30 month cost in the Cloud
  • An Oracle Cloud license becomes significantly more expensive after this.
    • year 4 for a perpetual license would be $10,470
    • 12 months in year 4 for the Cloud license would be $27,900
    • Annual cost increase for a single cloud license over the perpetual license = $17,430
  • Please make your checks payable to “Larry Ellison”

Oracle revenue’s continue to decline as clients move to purpose-built NoSQL solutions such as MongoDB, RedisLabs, Neo4j, OrientDB, Couchbase as well as SQL based solutions from MariaDB, PostgreSQL (I like EnterpriseDB) even DB2 is a far better value.  Oracle’s idea isn’t to re-tool by innovating, listening to clients to move with the market. No, they get out their big stick – follow the classic mistake so many great clients have done before them which is not evolve while pushing clients until something breaks.   Yes, Boot Hill is full of dead technology companies who failed to innovate and adapt. This is why Oracle is in complete chaos.  Clients beware – you are on their radar!

 

 

Intel Vendors & VMware have a Oracle Problem

Houston, we have a problem!

Intel server vendors Dell, VCE, HPE, Cisco, Lenovo, Fujitsu, Hitachi, Huawei, white box vendor Super Micro and any other server vendor using Intel chipsets have a problem if their customers use VMware to host Oracle Enterprise products (ie Database).

What’s “their” problem

In a nutshell, Oracle’s position is that customers running their Enterprise products like Oracle Enterprise Edition Database,  licensed by core (all cores in the server x 0.5) in a VMware environment must license every core on every server in which that Oracle workload could ever potentially reside managed by vCenter.  Server vendors, VMware, consultants and so on have a vested interest for Oracle to not do this because this Oracle tax is an extreme approach with their licensing terms that concern customers if they are running Oracle on Intel servers for fear Oracle will initiate a LMS audit leading to a substantial license settlement.

Quick Background

In my previous blog I wrote about “Intel; the Great Charade” where I discuss  each new generation of Intel processors having less performance per core than the previous generation.  As you read this and the ones referenced in this article (VCE & HoB) keep this ‘per core’ licensing approach in mind as this topic is central to how Oracle (typically) licenses its enterprise products.  For example, if a clients current server models are Sandy Bridge or Ivy Bridge era servers and plan to upgrade to the latest generation Broadwell you actually decrease the per core performance while increasing the number of cores per socket (if staying with the same SKU). Meaning 12 Ivy Bridge cores requires a little over 13 rounded up to 14 Broadwell cores to deliver equal performance. You don’t upgrade to get equal performance so you now have to move to a 16 or maybe 18 core SKU to gain additional socket performance or go with a higher frequency & lower core per socket SKU to obtain receive more performance per core….but now do you have enough overall performance?  To summarize my previous blog: It takes more cores from Haswell or Broadwell to equal the performance of the previous generation chips.  Since this increase in performance is at the socket and not with the core or thread (where most databases almost almost always prefer a stronger core vs more cores let alone weaker cores in a socket).  Since Oracle’s license calculation on Intel is to license all of cores in the server x 0.5 you may end up buying 1 or 2 extra Oracle licenses for every upgraded Intel server running VMware so be sure to factor that into your budget.

Who is complaining?

I could write the rest of this blog on this topic alone; around the right and wrong of Oracle’s licensing methods in VMware environments but I’ll defer to the thousands already available on this very topic.  This is not the reason I am writing this blog but to call out the self-serving and irresponsible Call-to-Action from House of Bricks and leader of a major CI player; VCE and to discuss why Oracle has no incentive to stop doing what they are doing.

Chad Sakac, the President of VCE which is the the Converged Infrastructure (CI) arm of EMC and soon Dell as the acquisition of EMC should be complete any day.  He is a regular blogger and in my opinion a master of marketing, technology & motivation.  On August 17, 2016 Chad wrote a blog titled “Oracle, I’m sad about you, disappointed in you, and frustrated with you.” in which he lays out how Intel server customers running Oracle Enterprise products, most often Oracle Enterprise Edition Database, are fed-up with Oracle’s abusive licensing tactics when Oracle Enterprise Edition products are installed and running in VMware.  He passionately pleads years of Oracle licensing frustration on behalf of clients while challenging clients to stand up to Oracle and not let them be bullied anymore.  He admits to selfishly partnering with House of Bricks (HoB), a VCE partner by funding their analysis on this situation.  HoB has been a leading voice in this fight in there own right so receiving compensation from VCE check was the proverbial icing on the cake IMHO as they were fighting the fight anyway.  What is VCE’s angle? They either have, or are losing  business due to clients fear of running Oracle workloads using VMware vSphere & vCenter.  There must be enough business at stake or EMC / VCE is desperate enough (not being critical here, just observing) to force them down this path to take such a in your face approach to Oracle.

House of Bricks, who is VCE’s partner and author of the whitepaper had a generally fair and moderated tone throughout the whitepaper.  That said, I do find they are irresponsible by encouraging VMware customers who are running  Oracle Enterprise Edition products licensed by core/processor (not socket or NUP) to run in configurations which are in direct conflict with Oracle’s standard licensing practices.  I’m not arguing the merits, fairness or legality of those licensing practices so save your comments.

Fight Mr Customer So We Can Sell You More!

Simply stated, Chad Sakac, the President of VCE and House of Bricks are actively encouraging system administrators, DBA’s and IT organizations to not only defend your use of Oracle Enterprise products in VMware environments, VMware clusters and VMware environments managed under vCenter but also to license Intel servers using sub-capacity licensing, using the BIOS to limit access to sockets or cores, only license the cores being used by Oracle.  Do these things and stand up to Oracle.  Do it for you….do it for us….just do it!  Of course, VCE funded the HoB paper but they won’t be funding your legal case (or bills) with Oracle.  All of this “encouragement” while at the same time promoting EMC / VMware / VCE products in lieu of traditional Oracle availability & replication products seems a little disingenuous…maybe….why not just keep your argument on the complaint of Oracle licensing with VMware?.  But instead, among many “do this instead of that” statements such as liminating Oracle RAC and use VMware HA and consider EMC RecoverPoint / SRDF in lieu of Oracle Active Data Guard (ADG).

Multiple agenda’s

Much of the HoB whitepaper feels like a marketing slick for EMC / VCE products. Then to have Chad be the front man out front crying on behalf of all customers seems a little too self-serving.

My Good Buddy Larry

Now back to Oracle….everybody knows I am NO Oracle fan.  A good day is any day I beat Oracle (anybody beats Oracle) or reduces their revenue.  But, with regard to Oracle’s practices on how they license their Enterprise products in a VMware environment, they have ZERO (0) motivation to loosen their licensing rules given Intel’s continued growth in the marketplace – Oracle is in the drivers seat!  Oracle wants customers to buy infrastructure from them running OracleVM with Oracle Linux hosting the Oracle software stack.  Oracle receives ALL of the Sales & Support dollars this way.  In addition to this, Oracle is predisposed to litigate.  Larry likes to fight!  HP and now HPE, SAP, Google (2 suits, going to a 3rd), Rimini Street, Oregon Healthcare, Mars and many more.  The Oracle v Mars case is a recent example of how Oracle goes after customers using their License Management Service (LMS) group to drive license revenue thru audits.  “Mars stated that Oracle was unwilling to “come to a mutually agreeable process” for completing an audit. Oracle then sent Mars a letter stating Mars had materially breached its license agreement”.  The greatest leverage clients have is to move off of Oracle products (hardware & software) to alternative solutions; specifically database variants such as IBM DB2, Microsoft SQL Server or Open Source alternative PostgreSQL from EnterpriseDB not to mention the many NoSQL alternatives that probably do a far better job.

Alternatives

If VCE really wanted to partner with an enterprise quality commercial-grade database technology to help clients run VMware with sub-capacity licensing for just the servers where the workloads are running and find an alternative to Oracle, they should look at IBM’s DB2 . DB2 is available in multiple editions from a free edition to Advanced Enterprise Server Edition.  What makes it different and better than both Oracle or SQL Server is that AESE, for example, includes many of the products & features that a client desires of Oracle Enterprise Edition products yet have to pay for À la carte.  DB2’s AESE cost $56,210 (list price for 70 PVU) per license which would match up against the Oracle Enterprise Edition portfolio which when you add up those products cost over $225K (Note: DB2 ESE is a level down from AESE, cost less and probably meets 90% of the customers requirements so the story just gets better).  DB2 always includes its first year of maintenance then 20% each year thereafter while Oracle always charges 22% for the first year then 22% each year thereafter.  Of course, DB2 runs 2X faster with Linux on POWER vs Intel. Clients can try it out for free in SoftLayer for 30 days running Linux on a OpenPOWER server.  Since LoP isn’t the topic of this blog, I’ll save that for another day but know that at least both Intel with VMware and IBM POWER servers support sub-capacity licensing with virtualization.

DB2-S822LC-vs-HPDL380

I didn’t write this blog to be a shill for IBM’s DB2 either, it just came to me as I was reading the HoB paper as it felt like they were trying to slyly present SQL Server as a more agreeable alternative to Oracle – maybe they are … either way thought I would mention DB2 for some balance.

There is ONE Platform …

At the end of the day, clients have a choice if they run Oracle products such as PeopleSoft, JD Edwards, Oracle Apps, Oracle E-Business Suite (EBS) or standalone Oracle Enterprise products like Database, RAC, WebLogic and many others.  Clients can run Oracle on Intel with VMware then surely deal with the risk and issues discussed by Chad and House of Bricks OR clients could run Oracle on the only platform which controls Oracle licensing without all of the consternation, debate and angst; IBM POWER servers running AIX.  For those who have read this far and were begging to say “But POWER servers have a core license factor 2X of  Intel so they cost twice as much”.  Enough please! I may hire House of Bricks to write a paper to put an end to this FUD, myth and farce. With POWER8 outperforming Intel servers generally around 2X per core it eliminates this argument right here. But, since we are talking about licensing a product at the core level it is important to remember that POWER servers support sub-capacity licensing natively, without debate from Oracle.  Last and most importantly, IBM’s Power Hypervisor suite, called PowerVM manages the compute resources more efficiently where it scales the 2X performance per core advantage typically increasing it up to 4X, 8X, 12X, even 20X (your mileage will vary).  This isn’t a performance advantage as much as it is an efficiency statement.  I call it the “Total Cost of Efficiency” as it takes into account the TCA, Performance advantage & Hypervisor efficiency and depending on the discussion, years 2-5 maintenance which is TCO.  I have personally sized, architected and delivered these solutions to customers who have in turn realized these very savings.

Now the Call-to-Action!

If you believe VMware & Intel are a critical part of your business identity that make your products better then continue using them with your Oracle products. You will pay more (compared to POWER) due to lower performance & less efficiency and pay the Oracle tax.  If you view IT as an enabler to your bottom line and use the right tool for the job then give me a call as I can help you as I have helped dozens of others save $100K’s to $M’s with IBM server technology.   Oh, and for those last few sharpshooters who want to remark that IBM servers are more expensive go ahead and save your comment.  First, I’ll shut you down by comparing a proper IBM server with the class of Intel server that you present me.  Next, we won’t go the 1 for 1 server route. As I recently showed a customer a reduction of 24 x Dell servers with 596 cores or 298 Oracle licenses to 7 x POWER8 servers with 168 cores and Oracle Licenses. My 7 servers are far less expensive than your 24 servers  not to mention the infrastructure required to support it (power cables, LAN/SAN cables, switch ports, cooling, etc). What makes me different is I show you how it’s possible to save  significant money running Oracle on IBM servers. What makes Ciber different is we have an Oracle consulting practice to help you implement, migrate or optimize your environment.

Shiny objects & Distractions

Yet another blog on the non-stop marketing tactics by Oracle where they attempt to deflect attention on their many product weaknesses and try to create differentiation where there is none.

This latest attempt by Oracle has them promoting the performance of Oracle 12c over SAP HANA for the SAP Business Warehouse Enhanced Mixed Workload benchmark also known as BW-EML.  Oracle promotes this claim at https://www.oracle.com/corporate/features/oracle-powers-sap.html with a whitepaper posted at http://www.oracle.com/technetwork/database/in-memory/overview/benefits-of-dbim-for-sap-apps-2672504.html available for download as a pdf.

Oracle is known for making wild claims only supported by marketing claims and “Oracle internal tests”.  This is important to understand as these claims may entice customers to consider products that have not undergone any critical analysis.  One example is Oracle’s Exadata product. The Exadata name has become synonymous with Oracle’s family of integrated appliances that include discrete solutions: database, application  and data warehouse. The Exadata database solution  has zero published benchmarks yet the web is riddled with claims by Oracle on its superior performance over competitive offerings. Oracle is now claiming they have submitted their Oracle 12c in-memory database results to SAP for review and publishing for the BW-EML benchmark which SAP has yet to do.

It appears since SAP has chosen to not publish Oracle’s 12c result that Oracle is taking matters into its own hand to publish their BM-EML result since SAP is not. I have no knowledge if SAP is choosing to sit on the results but I do know this; the reason you see very few industry benchmarks on non-Oracle systems using Oracle database (enterprise edition) is for the same reason Oracle is accusing SAP of doing.  As part of Oracle’s end user license agreement they require any user who publishes performance results to submit the results to Oracle for review and approval.  If Oracle does not approve the result that user / vendor cannot publish it.  A good example where Oracle has limited their competition from publishing benchmark results using Oracle database is with the SAP Tier-2 Sales & Distribution benchmark.  Benchmark results are available at http://global.sap.com/solutions/benchmark/sd2tier.epx.  I checked yesterday (Sept 19th) and could not find any current results using Oracle Enterprise Edition database on any non-Oracle or non-SPARC servers (ie Fujitsu has results on their SPARC servers) since a HP result from around 2008.

Oracle is trying to convince SAP customers their 12c database product is relevant for in-memory Business Warehouse workloads. They further tout superior performance with a 2 socket X5-2 server using Intel’s Haswell E5_v3 chipset totaling 36 cores.  Oracle typically achieves higher results by throwing significantly more cores and memory than required by competitors and definitely not by innovation; whether that competition is IBM POWER or Intel.  One of Oracle’s “Go to” tactics is to mask and manipulate the details  stating things like “Our (Oracle) 8 processor beats IBM’s 8 processor by 2X”.  We saw that when they compared their SPARC T5-8 to a Power7+ 780 server. Of course, the devil is in the details and those details are this.  Oracle historically refers to their chips as sockets and  processors (ie the full chip that plugs into the motherboard socket) and this is whats used in published results.  They use these names interchangeably.  IBM tends to use socket when referring to a model of server such as “The S824 is a 2 socket server” or “The E850 is a 4 socket server”.   In almost all cases they refer to performance results using cores or processors which are used interchangeably. IBM tends to use chip or socket synonymously and cores or processors as the component that makes up that socket/chip.  Using Oracle terminology, the T5-8 system is configured with 8 processors of 16 cores each totaling totaling 128 cores.   This specific  IBM Power7+ 780 server only has 32 cores though yet Oracle chose to compare their 128 core server to it.  Why are you asking? This model of Power7+ server uses a 4 core per socket configuration.  Each server chassis of which it can scale from 1 to 4 chassis scales from 4 to 16 sockets or 16 to 64 cores.  This is how Oracle marketing claims 8 socket vs 8 socket which they publish their results.  As you can see though, they do not divulge to the reader that it is really 128 SPARC cores vs 32 Power7+ cores.  They leave it to the reader and consumer to figure this out taking no responsibility that they are intentionally trying to deceive and distort the facts.

With this Oracle 12c result for the SAP BW-EML benchmark you will note several areas of omission and possible deception. They do not publish any pricing data for using the in-memory feature. Using list price will easily run close to $200K per core and of course depends on whether a few features are chosen or not.  Oracle claims their 1 server with 36 cores beats all others by 2X.  They state in the whitepaper this one server is actually one of 8 database servers in the Exadata X5-2 appliance and not a single 2 socket 36 core standalone server. This is very important to understand as it drives up the software by a factor of 8.  There are a few ways to reduce their Oracle licensing but this is not disclosed and I would argue not likely used.  Since the server used is part of a 8 node Exadata, it would require software be licensed for 8 servers times 36 cores times the Intel licensing factor of 0.5.  This equals 144 Oracle licenses which is multiplied by the licensing cost (let’s just use $200K list price for easy math – it is what it is and is not entirely fixed) $200K which comes to a grand total of $28,800,000. Yes, that is $28.8M USD. Of course, Oracle charges an annual maintenance fee that is 22% times the license price. For this example the customer would pay $6,336,000 per year and every year.

Next, Oracle claims to have used just 1 x 36 core X5-2 server for this workload yet it also has the storage that comes with the 8 server solution. They could have just as easily used their standalone X5-2 server in their attempt to achieve these results. Furthermore, why did they not use the 2 node Oracle Database Appliance (ODA)?  It seems obvious they need the full Exadata infrastructure which heavily relies on SSD based PCIe adapters to achieve the desired performance.  The SSD heavy architecture has become the default configuration on Exadata from previous solutions which relied on high capacity but slower 10K rpm HDD as it delivers higher performance and higher margins.  Don’t forget Oracle shifts some of the database processing and subsequent cost from the DB servers to the storage servers then charge $20k per disk…yes, I said per “disk”.  Suckers line up to the left and those who have done their homework are already running Oracle workloads on IBM’s Power servers.

SAP has been clear in their roadmap.  They are moving toward an architecture developed around HANA.  I can’t blame Oracle entirely for touting their product as a viable database alternative.  IBM’s DB2 with BLU technology is a superior product to Oracle Database Enterprise Edition that runs even faster on Power8 (over SPARC & Intel) and is even less expensive.  Yet, IBM has posted an SAP HANA result running Linux on POWER8 servers for the BW-EML benchmark.  If customers wants to see how DB2 on Power8 performs, they are welcome to view the SAP Tier-2 S&D Benchmark mentioned above for results that are 2X+ greater than Intel and anywhere from 3-4X greater than SPARC per core. Customers are absolutely free to choose Oracle or DB2 for their BW workloads but if they plan to stay with SAP for the long term they are probably investigating, evaluating if not implementing HANA technologies already.

The way Oracle could impress SAP shops would be to publish a HANA result on their infrastructure solutions.  They could always use that opportunity to co-sell the benefits of their own software solutions as better alternatives but as usual, they bust-out on stage holding up their shiny object making  wild claims in their non-stop attempt to distract customers.

I’ll close with this. As part of their performance claims they state they achieve 2X more navigation steps using a single 36 core Oracle X5-2 servers (remember it is really 1 of 8 DB servers + all the storage servers). Glad to see Oracle trying to compare per core performance.  I’ll be on the look out for other examples of their newly found realization that performance and cost is largely dependent on per core performance and not just the sum of excessive cores like the T5-8 or M6-32.  Expect the SPARC M7  with 32 sockets of 32 cores per chip to be released in 2016.  It’s really 8 clusters of 4 core chiplets or essentially two of the old Sun ROCK chips IMO.  The latency due to traffic across the interconnects for coherency and data will be unbelievable (horrible). Would not be surprised that for the few benchmarks they do publish that they M7 models with fewer chip to minimize the cross chip penalty.  Then again, they may go with the 1024 core model hoping it can best a 192 core Power8 E880 servers.  I’m guessing it will be close.