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!

 

 

HPE; there you go again! Part 1

Updated Sept 05, 2016: Split the blog into 2 parts (Part 2). Fixed several typo’s and sentence structure problems. Updated the description of the Superdome X blades to indicate they are 2 socket blades while using Intel E7 chips.

It must be the season as I find myself focused a bit on HPE.  Maybe it’s because they seem to be looking for their identity as they now consider selling their software business.  This time though, it is self-inflicted as there has been a series of conflicting marketing actions. From what they say in their recent HPE RAS whitepaper about the poor Intel server memory reliability stating in the introductory section that memory is far and away the highest source of component failures in a system.  Shortly after that RAS paper is released, they post a blog written by the HPE Server Memory Product Manager stating “Memory Errors aren’t the end of the World”.  Tell that to the SAP HANA and Oracle Database customers, the latter which I will be discussing in this blog.

HPE dares to step into the lion’s den on a topic with which it has little standing to imply it is an authority how Oracle Enterprise software products are licensing in IBM Power servers.  As a matter of fact, thanks to the President of VCE, Chad Sakac for acknowledging that VMware has a Oracle problem.  On August 17th, Chad penned what amounts to an open letter to Larry & Oracle begging them …. No, demanding that Larry leave his people alone.  And, by “his people”, I mean customers who run Oracle Enterprise Software Products licensed by the core on Intel servers using VMware.

Enter HPE with a recent blog by Jeff Kyle, Director of Mission Critical Solutions.  He doesn’t distinguish if he is in a product development, marketing or sales role.  I would bet he it is the latter two as I do not think a product developer would put themselves out like Jeff just did.  What he did is what all Intel marketing teams and sellers have done from the beginning of compute time when the first customer thought of running Oracle on a server that wasn’t “Big Iron”.

Jeff sets up a straw man stating “software licensing and support being one of the top cost items in any data center” followed by the obligatory claim that moving it to an “advanced” yet “industry-standard x86 servers” will deliver the ROI to achieve the goals of every customer while coming damn close to solving world hunger.

Next is where he enters the world of FUD while also stepping into the land of make-believe.  Yes, Jeff is talking about IBM Power technology as if it is treated by Oracle for licensing purposes the same as an Intel server, which it is not.  You will have to judge if he did this on purpose or simply out of ignorance.  He does throw the UNIX platforms a bone by saying they have “excellent stability and performance” but stops there as only to claim they cost more than their Industry standard x86 server counterparts.

He goes on to state UNIX servers <Hold Please> Attention: For purposes of this discussion, let’s go with the definition that future UNIX references = AIX and RISC references = IBM POWER unless otherwise stated.  As I was saying, Jeff next claims AIX & POWER are not well positioned for forward-looking Cloud deployments continuing his diminutive descriptors suggesting proper clients wouldn’t want to work with “proprietary RISC chips like IBM Power”. But, the granddaddy of all of his statements and the one that is complete disingenuous is:  <low monotone voice> “The Oracle license charge per CPU core for IBM Power is twice (2X) the amount charged for Intel x86 servers” </low monotone voice>.

In his next paragraph, he uses some sleight of hand by altering the presentation of the traditional full List Price cost for Oracle RAC that is associated with Oracle Enterprise Edition Database.  Oracle EE DB is $47,500 per license + 22% maintenance per year, starting with year 1.  Oracle RAC for Oracle EE EB is $23,000 per license + 22% maintenance per year, starting with year 1.  If you have Oracle RAC then you would by definition also have a corresponding Oracle EE DB Licenses.  The author uses a price of $11,500 per x86 CPU core and although by doing he isn’t wrong per se, I just do not like that he does not disclose the full license cost of #23,000 up front as it looks like he is trying to minimize the cost of Oracle on x86.

A quick licensing review. Oracle has an Oracle License Factor Table for different platforms to determine how to license its products that are licensed by core. Most modern Intel servers are 0.5 per License.  IBM Power is 1.0 per License.  HP Itanium 95XX chip based servers, so you know also has a license factor of 1.0.  Oracle, since they own the table and the software in question can manipulate it to favor their own platforms as they do, especially with the SPARC servers.  It ranges from 0.25 to 0.75 while Oracle’s Intel servers are consistent with the other Intel servers at 0.5.  Let’s exclude the Oracle Intel servers for purposes of what I am talking about here for reason I said, which is they manipulate the situation to favor themselves. All other Intel servers “MUST” license ALL cores in the server with very, very limited exceptions “times” the licensing factor which is 0.5.  Thus, a 2 x 18 core socket would have 36 cores. Ex: 2s x 18c = 36c x 0.5 License Factor = 18 Licenses.  That would equal 18 Oracle Licenses for whatever the product being used.

What Jeff does next was a bit surprising to me.  He suggests customers not bother with 1 & 2 socket Intel “Scale-out” servers which generally rely on Intel E5 aka EP chipsets.  By the way, Oracle with their Exadata & Oracle Database Appliances now ONLY use 2 socket servers with the E5 processors; let that sink in as to why.  The EP chips tend to have features that on paper have less performance such as less memory bandwidth & fewer cores while other features such as clock frequency are higher, a feature that is good for Oracle DB.   These chips also have lower RAS capabilities, such as missing the MCA (Machine Check Architecture) feature only found in the E7 chips.  He instead suggests clients look at “scale-up” servers which commonly classified as 4 sockets and larger systems.  This is where I need to clarify a few things.  The HP Superdome X system, although it scales to 16 sockets, does so using 2 socket blades.  Each socket uses the Intel E7 processor, which given this is a 2 socket blade is counter to what I described at the beginning of this paragraph where 1 & 2 socket servers used E5 processors.  The design of the HP SD-X is meant to scale from 1 blade to 8 blades or 2 to 16 sockets which requires the E7 processor.

With the latest Intel Broadwell EX or E7 chipsets, the number of cores available for the HD SD-X range from 4 to 24 cores per socket.  Configuring a blades with the 24 core E7_v4 (v4 indicates Broadwell) equals 48 cores or 24 Oracle Licenses.  Reference the discussion two paragraphs above.  His assertion is by moving to a larger server you get a larger memory capacity for those “in-memory compute models” and it is this combination that will dramatically improve your database performance while lowering your overall Total Cost of Ownership (TCO).

He uses a customer success story for Pella (windows) who avoided $200,000 in Oracle licensing fees after moving off a UNIX (not AIX in this case) platform to 2 x HPE Superdome X servers running Linux.  This HPE customer case study says the UNIX platform which Pella moved off 9 years ago was actually a HP Superdome with Intel Itanium processors server running HP-UX.  Did you get this? HP migrated off their own 9-year-old server while implying it might be from a competitor – maybe even AIX on Power since it was referenced earlier in the story.  That circa 2006 era Itanium may have used a Montecito class processor. All of the early models before Tukwila were pigs, in my estimation.  A lot of bluff and hyperbole but rarely delivering on the claims.  That era of SD would have also used an Oracle license factor of 0.5 as Oracle didn’t change it until 2010 and only on the newer 95xx series chips.  Older systems were grandfathered and as I recall as long as they didn’t add new licenses they would remain under the 0.5 license model.  I would expect a 2014/2015 era Intel processor would outperform a 2006 era chip, although if it would have been against a POWER5 1.9 or 2.2 GHz chip I might call it 50-50 J .

We have to spend some time discussing HP server technology as Jeff is doing some major league sleight of hand as the Superdome X server supports a special hardware partitioning capability (more details below) that DOES allow for reduced licensing that IS NOT available on non-Superdome x86 servers or from most other Intel vendors unless they also have an 8 socket or larger system like SGI – oh wait, HP just bought them.  Huh, wonder why they did this if the HPE Superdome X is so good.

Jeff then mentions an IDC research study; big deal, here is a note from my Pastor that says the HPE Superdome is not very good; who are you going to believe?

Moving the rest of the blog to Part 2.

 

 

Oracle blogger speaks with forked tongue!

Oracle blogger “kgee” wrote the following at https://blogs.oracle.com/hardware/entry/2_ways_ibm_has_over.

“Two Ways IBM Has Over-promised and Under-delivered with POWER8 to Date”. “Kgee” goes on to say the the following in which I provide the highlights.

  1. Power8 is More than a Year late.
  2. Where is AIX8?
  3. Fact: AIX 7 TL3 last November just released “WPAR alt_disk ….”
  4. Fact: Apparently per IBM’s roadmaps, AIX does not yet support SR-IOV
  5. Fact: Consider all of the advantages Oracle just released in Solaris 11.2

Just because you can say it, doesn’t make it true. This Oracle blog is full of wrong statements, mis-statements and “so what”.

1) IBM (imo) releases products when the market is ready for them.  Products may be pulled or pushed as the market and competition require it. Also, SPARC & Solaris are no longer considered significant competition much to the chagrin of Larry who thinks Oracle should be the most relevant.

2) Is that all you have to criticize Power8 for?  I’ll take it! Let me know when you want me to publish the side by side comparison of Power vs SPARC delivery dates. Oracle bought Sun so you own their dates as well!

3) Marketing drives model names for hardware and OS. Remember Solaris 2.4, 2.5, 2.6 then 2.7 – I mean Solaris 7? Then Solaris 8, 9, 10 and 11?  Constant major OS re-numbering require ISV’s to re-certify which is costly and often slow. I applaud IBM for sticking with the current OS strategy  that standardizes on the current two OSes in a effort to eliminate the disruption. Customers can now do minor updates for feature & bug enhancements to get to the next server generation without being required to do a major OS upgrade.

4) The author ‘kgee’ seems to have all of the AIX facts so he/she can tell us if AIX8 is late? I do not think it is and I am not expecting one but I wasn’t expecting one so not sure how it can be late.  That said, AIX delivers more concurrent, dynamic, scalable, and secure features than Solaris.  AIX is also integrated with the hypervisor and hardware for performance, security, serviceability and reliability. Can’t say that with Solaris, much of its RAS features are in the OS.  To do it in the hardware requires significant engineering effort which IBM has in spades.

5) For your WPAR Alt_disk…. comment – congrats! You picked a OS virtualization feature to give the impression AIX is lacking or playing catch-up. Solaris only had Zones, which is a OS virtualization feature as an option for years with no hardware level virtualization offering or capability. Power has delivered PowerVM years before Solaris’s OS only option. AIX added WPAR’s with Solaris 6 which was available in 2007 – just 2 years after Solaris.  As far as the “Alt_disk” vs Live Upgrade. AIX has had that feature since 2001. Guess that puts Solaris behind by 4 years.

6) Unified Archives – Oh great, another new feature from Oracle. Just like the T series, what is that 5 generations of servers in 6 or 7 years? Congrats on a new feature. I’ll take investment protection and stability.

7) No compromise virtualization with Solaris Zones – ha, really. Read your documentation. If you say “No compromise” that means none, nada, nothing yet you say in the definition “an even greater …” inferring an improvement. How can that be if it is already “No compromise”?

8) Power, PowerVM and AIX have delivered Quality of Service for cpu, ram, I/O for years. Congrats for catching up and using the latest buzzword “Software Defined”.

9) While Oracle works to lower the compliance effort with their offering, Power and PowerVM eliminate the effort of meeting compliance with IBM i and AIX through the use of PowerSC.

10) (Note: I forgot to add this in my original response to “Kgee’s” blog. Power servers have offered SR-IOV capabilities starting in October 2012 with Power7+ 770 & 780 servers. However, for all of the neat benefits of SR-IOV, those features are mutually exclusive to features  long available in the Virtual I/O Server (VIOS). So, while Solaris was needing SR-IOV to get these features, IBM has been delivering this kind of functionality since 2004 with Power5.

Other than these 9 (now 10) items I thought your article was pretty good.  Look forward to the next one.”

Solaris is a very good OS, just like HP-UX and other Unix OSes. AIX has enterprise features that in my opinion offer customers more features and benefits. It is a bit of Ford & Chevy. However, where there is no comparison is between Power servers vs SPARC servers. Even though Oracle delivers SPARC products, even new products they are years behind in functionality, capability, security, flexibility and performance compared to Power.  At the end of the day – actually at the start of the day, customers want their servers available, secure, using as much of the resources as needed for as many workloads as possible keeping the real costs under control which is with software like Oracle database. Power controls these products while SPARC and x86 for that matter are meant to deliver a software license delivery vehicle to increase licenses for Oracles profit. Nothing wrong with profit but let’s call a spade a spade.  TCO of Power will always beat the TCO of SPARC (and x86) for these kinds of workloads!