Guess what? Oracle is raising prices again, but this time it’s for those that choose to run Oracle software on AWS.
Oracle’s previous licensing agreement recognized that AWS virtual CPUs were a single thread of a core that runs two threads. This means that each virtual CPU is counted as half a core.
Oracle’s new cloud licensing policy says an AWS virtual CPU (vCPU) is now considered a full core if hyper-threading is not enabled. What this means for those of you that pay the bills is that an enterprise renting two AWS vCPUS must pay full price for both. If you’re good at math this doubles the number of Oracle licenses you’ll need to run Oracle on AWS.
This doubling of pricing comes at a time when mass migration to the cloud is occurring within enterprises, and while some are leaving Oracle behind, many have to take Oracle with them to AWS. This is due to the fact that somebody years ago leveraged proprietary Oracle features, such as stored procedures and triggers, that makes their critical applications tightly coupled to Oracle. Thus, they are stuck unless they rewrite major portions of their software.
I’m not sure of Oracle’s motivations behind effectively doubling the price other than the fact that they have their own IaaS platform, and that they want to shift migrations way from AWS and back to the Oracle cloud. This gives them time to get their public cloud act together, but they are already far behind AWS.
What is clear is that they are abusing their own customer base that happens to need to run on AWS. I suspect that there will be two paths taken. First, enterprises will just pay the full freight for running Oracle on AWS since some will have no choice. Second, enterprises will consider this “the straw that broke the camel’s back” and take the cost and risk hit needed to move their data to another cloud-based database, such as RDS or Red Shift on AWS.
Who loses here? Oracle is effectively committing technological suicide in hurting those that are still loyal to their technology. If I were a CIO, I would be searching for alternatives. Enterprises lose as well. For many, the likely outcome is that they won’t move Oracle workloads to AWS, or any cloud for that matter, unless they can justify the cost.
We know that enterprise cloud adoption can deliver substantial cost savings when done correctly. For Oracle workloads, however, this just got a lot more complicated. Thanks Oracle.