OPTIMIZING ORACLE COSTS IN THE CLOUD...Cloud on AWS. For larger workloads, we demonstrate how the VMware Cloud has a lower total cost of ownership (TCO), even with Oracle’s attempt

©2018 House of Brick Technologies, LLC. This document may not be copied or reproduced except under written contract or agreement with House of Brick Technologies, LLC. All rights reserved.

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OPTIMIZING ORACLE COSTS IN THE CLOUD

VMWARE CLOUD ON AWS VERSUS ORACLE CLOUD

PrincipalAuthor: NickWalter,HouseofBrickPrincipalArchitect

ContributingAuthors: DaveWelch,HouseofBrickCTOandChiefEvangelist JimHannan,HouseofBrickPrincipalArchitect

House of Brick Technologies, LLC received partial financial support from VMware, Inc. for the research andwritingofthiswhitepaper.However,theopinionsandconclusionsexpressedinthispaperarethoseofHouseofBrick, and not of any other company or individual. The third party products referenced in this document,including those from VMware, Oracle, and AWS are copyrighted to their respective owners. House of Brickconsultantsarenotattorneys.Allfindingsandrecommendations,especiallyregardingOraclelicensesshouldbevalidatedwithlegaladvisors.

HouseofBrick–OptimizingOracleCostsintheCloud

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www.houseofbrick.com©2018HouseofBrickTechnologiesLLC

ExecutivePrefaceThiswhitepaperisbeingpresentedtotheindustryasanindependentevaluationoffactorsleadinganorganizationtoadecisiononhowtodeploytheirOraclesoftwareworkloadsinthepubliccloud.Iamreferringtothissectionofthepaperasan“ExecutivePreface”ratherthanan“ExecutiveSummary.”ThereasonforthatisIamnotpresentingacompletesummaryofthefindingsandrecommendationsofthepaper,butrathergivingthereaderasenseofthebusinessandmarketenvironmentthatweareseeinginthecloudindustrygivingrisetothedevelopmentofthiscontent.Thecloudindustryisenteringadynamicphaseinitsgrowthandrateofadoption.ForOracleworkloads,publiccloudadoptionhasclearlylaggedbehindcloudadoptionleaderssuchasSaaSapplications,andnewsoftwaredevelopment.TheopportunityforOracleinthecloud,however,ischanging.WiththeintroductionoftheVMwareCloudonAWS,andtheaggressivepromotionbyOracleoftheirownIaaScloud,wenowhaveatleasttwoviablepubliccloudsthatwecancompare.TherearecertainlymorepubliccloudoptionsforrunningOraclethanthesetwo,suchasMicrosoftAzure,andtheotherAWSdeploymentoptionssuchasRDS,EC2Compute,EC2BareMetalInstances,andEC2DedicatedHosts.Forthepurposesofthispaper,wehavedecidedtofocusonourVMwarecustomers,andthetwooptionsthatmostofthemaretalkingaboutformovingtheirexistingon-premisesOracleworkloadsintothecloud.ThefactorsleadingtoadecisiononacloudproviderforOracleworkloadsareseveralandvaried.Theyincludetopicsshowninthewordcloudtotheright,suchasBusinessRisk,Security,Complexity,andCost.AsIillustrateinthewordcloud,fortheHouseofBrickcustomerswithwhomIhavediscussedtheircloudstrategy,Costisarelativelylowdecisionfactorcomparedtoothermorecriticalissues.Ourcustomershaveinvestedheavilyintheinfrastructure,personnel,operations,licenses,processes,development,andsupportaroundtheirOracle-basedbusiness-criticalsystems.Bytheirverynature,business-criticalsystemsarecostly.Optimizingcostisimportant,butnotbysacrificingothercriticalaspectsoftheseapplications.Inthispaper,weprovidethereaderwithacomprehensivecomparisonofthecostsofrunningvarioustypesofOracle-basedapplicationsintheVMwareCloudonAWS,andtheOracleCloud.Therearecertaincircumstances,suchasverysmallworkloads,wheretheOracleCloudcouldbeconsideredlessexpensivethantheVMwareCloudonAWS.Forlargerworkloads,wedemonstratehowtheVMwareCloudhasalowertotalcostofownership(TCO),evenwithOracle’sattemptto“doubletheprice”forrunningtheirsoftwareinAWS.ThereleaseofthispaperhasbeentimedtocoincidewithVMware’sannouncementoffeaturesthatwillhelpOraclecustomersreducethisTCO.Twoprimaryfeaturesthatweareexcitedaboutaresmallernodecounts,andcoredisablementinVMwareCloudonAWSclusters.AsanyonefamiliarwithOraclelicensingknows,corecountskillcost.Bycontrollingcorecountswithfewernodes,andreducedcorespernode,wecancreateright-sizedenvironmentsforourOraclecustomers.


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AsIstatedbefore,however,thetotalcostofownershipisalowerconsiderationforourcustomersthanmorecriticalfactors.WhilethefrontpageofthispaperclearlystatesthatHouseofBrickreceivedsomefinancialsupportforthecreationofthiscontent,thathasnotinfluencedouropiniononwhatwebelievetobeclearandcompellingreasonsthattheVMwareCloudonAWSisthebetterchoiceforrunningOracle-basedapplicationscomparedtotheOracleCloud.The2018GartnerMagicQuadrantforIaaSwasquitecriticaloftheOracleCloud.Asthereaderwillseeinmoredetaillaterinthispaper,OraclewasdowngradedfromaVisionaryin2017toaNichePlayerin2018byGartner.Thisquotewastelling,whenGartnerdeclaredthattheOracleCloudInfrastructure“remainsabare-bones'minimumviableproduct,'anditisarguablytoominimaltobeviableforabroadrangeofcommoncloudIaaSusecases”1(emphasisadded).Thisisnotthekindoftestimonialthatourcustomersarelookingforindecidingonacloudproviderfortheirbusiness-criticalsystems.LetmeoutlineafewofthebenefitsoftheVMwareCloudonAWSthatourcustomerswillappreciate:

• Seamlessintegrationfromtheon-premisesVMwareenvironmenttothecloud • ThepowerandfortitudeoftheAWSinfrastructureandcloudenvironment • Innovativecostcontrolmechanisms,suchasreducingcorecountsandclustersizesforOracleworkloads • Continuityinexpertisefromcustomers’DBAs,SystemAdministrators,andVMArchitects

Ofcourse,Oraclewilldisagreewithsomeofthesepoints.Theywillalsoarguethatacustomercannotdisablecorestolimitlicenserequirements.AsanyreaderofHouseofBrick’svastlibraryofcontent(includingblogs,papers,conferencepresentations,andcustomer-specificdocuments)willknow,Oracle’sclaimsaboutrunninginaVMwareenvironment(on-premisesorinthecloud)arelargelyspeciousandnon-contractual.Withhundredsofsuccessfulcustomerlicenseengagementsoverthepastfewyears,HouseofBrickhasheldOracletoaccountfortheirnon-contractualassertionsbyhelpingourcustomersunderstandtheirOracleLicenseAgreements,andarchitectingpowerful,flexible,andlicense-compliantenvironmentsfortheirbusiness-criticalsystems.MyprofoundthanksandacknowledgementgototheHouseofBrickarchitects,executives,andmarketingprofessionalswhoputmanyhoursintomakingthispaperareality,andtothesupportofourpartnersatVMwareandAWSwhoprovidedusthetoolsweneededtovalidateourwork.Thankyouforreadingthispaper.Letusknowifwecanhelpyou.NathanBiggsCEOHouseofBrickTechnologies,LLC

1https://www.techrepublic.com/google-amp/article/gartner-reveals-one-big-reason-oracles-cloud-hasnt-caught-on/


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TableofContentsExecutivePreface.............................................................................................................................................ii

TableofFigures................................................................................................................................................2

Abstract............................................................................................................................................................3

Introduction.....................................................................................................................................................4AnalysisObjectivesandMethods..................................................................................................................4VMwareCloudonAWS.................................................................................................................................4OracleCloud.................................................................................................................................................5

CloudFeatureComparison................................................................................................................................7IaaSvsPaaS..................................................................................................................................................7ResourceProvisioning...................................................................................................................................7HybridCloudTools........................................................................................................................................8

CloudLicensingConceptsforOracle..................................................................................................................8Processor,NamedUserPlus,andUnlimitedLicensing...................................................................................8

OracleCloudPolicyandTraditionalLicensing..................................................................................................9GrandfatheringonPriorCloudLicensingPolicyTerms...................................................................................10LicensingintheOracleCloud..........................................................................................................................12

CloudCostComponents..................................................................................................................................12ComputeCosts............................................................................................................................................12OracleLicensingCosts.................................................................................................................................13

ExampleOracleWorkloads.............................................................................................................................13WorkloadComponents...............................................................................................................................13TinyOracleWorkload.................................................................................................................................14SmallOracleWorkload................................................................................................................................14MediumOracleWorkload...........................................................................................................................14LargeOracleWorkload................................................................................................................................14

ExampleConfigurations..................................................................................................................................15ConfigurationsforVMwareCloudonAWS..................................................................................................15

SDDCClusterSizes..........................................................................................................................................15CustomCPUCoreCounts................................................................................................................................16WorkloadPinning...........................................................................................................................................16SDDCPricing....................................................................................................................................................17

ConfigurationsforOracleCloud..................................................................................................................17

CostAnalysis...................................................................................................................................................18CostComparisonforOracleWorkloadsinVMwareCloudonAWS..............................................................18

TinyOracleWorkloadCostComparisoninVMwareCloudonAWS...............................................................18


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SmallOracleWorkloadCostComparisoninVMwareCloudonAWS.............................................................18MediumOracleWorkloadCostComparisoninVMwareCloudonAWS........................................................18LargeOracleWorkloadCostComparisoninVMwareCloudonAWS.............................................................19

VMwareCloudonAWSvs.OracleIaaSCostComparison............................................................................20TinyOracleWorkloadCosts............................................................................................................................20SmallOracleWorkloadCosts..........................................................................................................................20MediumOracleWorkloadCosts.....................................................................................................................21LargeOracleWorkloadCosts..........................................................................................................................21SummaryofVMwareCloudonAWStoOracleIaaS/BYOLCostComparison.................................................21

VMwareCloudonAWSvs.OraclePaaS/UC................................................................................................22

Conclusions....................................................................................................................................................23

AppendixAOracleSoftwareLicenseCostCalculations....................................................................................25

AppendixBOracleCloudIaaSCosts................................................................................................................27

AppendixCOraclePaaSCosts.........................................................................................................................28

AppendixDWorkloadCloudCosts..................................................................................................................29

Table of Figures Table1:OracleCloudPolicy–HistoryofChanges..................................................................................................11Table2:WorkloadComponents.............................................................................................................................14Table3:ExampleOracleEnvironments(bySizeofWorkload)...............................................................................15Table4:SDDCCosts................................................................................................................................................17Table5:TinyWorkloadCostComparison...............................................................................................................18Table6:SmallWorkloadCostComparison.............................................................................................................18Table7:MediumWorkloadCostComparison........................................................................................................19Table8:LargeWorkloadCostComparison.............................................................................................................20Table9:TinyWorkloadCostComparison...............................................................................................................20Table10:SmallWorkloadCostComparison...........................................................................................................20Table11:MediumWorkloadCostComparison......................................................................................................21Table12:LargeWorkloadCostComparison...........................................................................................................21Table13:VMwareCloudonAWSandOraclePaaS/UCCostComparison..............................................................23TableA1:OracleDatabaseLicenseCalculations.....................................................................................................25TableA2:OracleDatabaseLicenseCalculations.....................................................................................................26TableA3:OracleWebLogicLicenseCalculations....................................................................................................26TableB1:OracleCloudIaaSCalculations................................................................................................................27TableC1:OracleCloudPaaSCalculations...............................................................................................................28TableD1:TinyWorkloadCloudCosts.....................................................................................................................29TableD2:SmallWorkloadCloudCosts...................................................................................................................30TableD3:MediumWorkloadCloudCosts..............................................................................................................31TableD4:LargeWorkloadCloudCosts...................................................................................................................32


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AbstractDesigningacost-effectivepubliccloudsolutionforOraclesoftwareworkloadsisatrickychallengeforanyorganizationattemptingtojugglebothcomputecostsandthehighcostofOraclelicenses.Tryingtochoosetherightplatformandarchitecturetominimizecostsrequiresexploringnotjustcostsforcloudresources,butalsorelatedcostssuchasOraclelicensingandone-timecostssuchasrefactoringandmigration.

TherulesforlicensingOraclesoftwareproductsinthecloudarearcane,asOraclestilllicensesmostsoftwarebymetricstiedtophysicalprocessorsandnotvirtualCPUs.FurthercomplicatingtheissueisthefactthatOraclepublishescloudpoliciesforvCPU-basedlicensinginawaythatspecificallycreatesadisadvantageforcompetitorstoitsowncloudoffering.TheVMwareCloudonAWS,beingoneofthefewpubliccloudsolutionsthatcanofferdedicatedphysicalprocessors,offersastrongadvantagetolicensingOraclesoftwareasitallowstraditionalprocessor-basedmetricstobeusedforlicensinginsteadofrelyingonOracle’snon-contractualcloudpolicies.Oracle’sowncloudofferingconsistsoftraditionalvirtualizedInfrastructureasaService(IaaS)andPlatformasaService(PaaS)offerings.ThedistinguishingfeatureofOracleCloud’sofferingisthattheyoffertheirownsoftwareproductswithmorefavorablelicensingrulesfortheirowncloudcomparedtocompetingcloudproviders.Oracle’sstatedgoalwiththeircloudistoundercutcompetitor’sIaaSandPaaSofferingsby50%onprice,andthemanipulationofthelicensingrulesforOraclesoftwareseemstobetheirpreferredmeansofachievingthisforOracleworkloads.

Inthispaper,wemodeledOraclelicensingcostsandcomputecostsforfourhypotheticalOracleworkloadsbasedonHouseofBrick’sexperiencewithcommoncustomerworkloads.Thismodelingallowedanexplorationoftheinteractionoflicensingcosts,licensingrules,andcloudarchitectures.ThefourhypotheticalworkloadsconsistedofequalamountsofOracleDatabaseEnterpriseEditionVMsandOracleWebLogicEnterpriseVMs.Theworkloads,whileidenticalinproductmix,differconsiderablyinsizewiththesmallestcontainingjustafewVMs,andthelargestenterpriseworkloadscontainingdozensofVMs.

InadditiontomodelingcostsbasedoncurrentVMwareCloudonAWSclustersizes,thispaperalsoexploredtheeffectsofapotentialfeatureenhancementthatHouseofBrickstronglyrecommendsVMwaretoimplementinordertooptimizelicensingforsoftwareproductslicensedonaprocessorbasis.Thisfeatureissimplysmallerclustersizesthanthecurrentminimumclustersizeofthreenodes,astwonodeclustersofferanattractivewaytoisolatesmallworkloadsandpreventoverlicensing.ThisisafeaturethatHouseofBricktraditionallyuseswithon-premisesVMwaresolutionstobalancecomputeresourceswithlicensingneedsandstronglyrecommendsVMwareimplementintheVMwareCloudonAWS.

Resultsofthecostmodelingpaintanintriguingpicture.Forverysmallworkloads,theOracleCloudishardtobeatonprice,asthecombinationofvirtualizedcloudflexibilityandcustomer-favorablelicensingrulesallowsOraclesoftware-basedworkloadstoberunforveryattractiveprices,whichisnotsurprisinggivenOracle’sstatedgoaltoundercutallcompetition.However,asworkloadsgrowtosizeswheretheycansaturateVMwareCloudonAWSclusters,thepicturechangesandVMwareCloudonAWSstartstobecomethemostattractiveoption.TheabilitytolicenseentireclustersadvantageouslyforOraclesoftwareproductsusingtraditionalprocessor-basedlicensingmetricsmakestheVMwareCloudonAWSasuperiorofferingtoOracle’sowncloudasitallowsequallicensingefficiency,whileofferingmoreresourcesandfunctionalityforsimilarprices.


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Forallnon-minimalOracleworkloads,theVMwareCloudonAWSoffersanexcellentmixofcloudcomputingfeatures,simplemigrationpathsfromon-premises,andefficientlicensingforOraclesoftwareproducts.TheVMwareCloudonAWSoffersanunbeatablesolutionforhostingOraclesoftware-basedworkloadsinacost-effectivemanner.

Introduction TherecentITtrendtowardspubliccloudcomputinghasmanyenterprisesweighingtheiroptions.Publiccloud,orhybridcloudcomputing,canoffersignificantcostandtechnologyadvantages,buttransitioningtoacloudmayinvolvedifficultrefactoringandmigrationfromon-premisesdatacentersandon-premisesarchitectures.AparticularconcernislegacyapplicationsthatmaybedependentonexpensiveenterprisesoftwarefromOraclesuchasOracleDatabaseEnterpriseEditionorOracleWebLogicEnterprise.Oraclesoftwarelicensingistypicallyquiteexpensive,dwarfingthecostoftheunderlyingcomputeinfrastructure.Inconjunctionwiththefactthatdeterminingthelicensingcostimplicationsofrunninginapubliccloudcanbecounterintuitive,itisextremelychallengingforanyorganizationtoarchitectacloudsolution,andmakesitdifficulttoevaluatethecostsofanypotentialcloudsolution.

ComplicatingtheissueisOracle’sverycleardeterminationtomaketheirownpubliccloudsolutionthecheapestoptionforworkloadsbasedontheirowndatabaseorapplicationsoftware.OraclepublishesdifferentandlessadvantageousmetricsforOraclesoftwarelicensingforcompetingcloudscomparedtothemetricstheypublishfortheirowncloud.AddingtothecomplexityaroundtheOraclesoftwarelicensingissueisthefactthatsomecloudproviders,suchasVMwareCloudonAWS,allowdedicatedphysicalserverstobeassignedtocustomers,whichopensthedoortolicensingOraclesoftwareontraditionalmetricsinsteadofcloudmetrics.

ThepurposeofthispaperistoexploretherelationshipbetweenthefactorsthatdriveOraclesoftwarelicensingcostsintheCloudinordertodeterminethemostadvantageouswaystoleveragepubliccloudcomputingresourceswhileoptimizingcosts.

Analysis Objectives and Methods ThefocusofthispaperistocomparethecostsofrunningOracle-centricworkloadsinboththeOracleCloudandtheVMwareCloudonAWS.Whiletherearemanyfactorsthatcaninfluencecosts,thispaperspecificallyfocusesonthosefactorsthatHouseofBrickdeemedmostmaterialwhenprovidingacomparison.Bycomparingthemostsignficantfactors,theaimwiththispaperistoillustratetheimportantdifferncesbetweentheOracleCloudandtheVMwareCloudonAWS,whichdrivearchitectureofacosteffectivecloudsolutionforOraclesoftwareworkloads.

VMware Cloud on AWSAnnouncedin2016,andfirstmadeavailablein2017,theVMwareCloudonAWSmarriestwoprovenandpopulartechnologyplatforms.UtilizingserversmaintainedandhostedbyAmazonWebServices(AWS),theVMwareCloudonAWSoffersacloud-hostedvSpherevirtualizationsolutiontoenterpriseslookingforpubliccloudorhybridcloudsolutions.ThisofferingisofparticularinteresttoenterprisesalreadyinvestedinVMware


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virtualizationfortheiron-premisesdatacenters,asitoffersaseamlesspathforextendingtheirITfootprintintothepubliccloudwithouttheneedtore-architectworkloadsorretrainstaffonanewplatform.

VMwareandAWScontinuetoprovidemoresizingandtoolingoptionstohelpremovebarrierstoentryforsmallorganizations.However,theVMwareCloudonAWS’initialconfigurationoptionsseemtotargetmorescaledimplementations.ThecurrentVMwareCloudofferingconsistsofaSoftwareDefinedDatacenter(SDDC)containingvSphereclustersofthreetothirty-twohosts.InAWS’swords:

“The VMware Cloud on AWS minimum standard cluster configuration contains three hosts. Each host is an Amazon EC2 I3.metal instance. These hosts have dual 2.3 GHz CPUs (custom-built Intel Xeon Processor E5-2686 v4 CPU package) with 18 cores per socket (36 cores total), 512 GiB RAM, and 15.2 TB Raw NVMe storage.”2

The36hyperthreadedphysicalXeoncorestranslateto72logicalprocessorsinESXi,allowingeachservertohostalargeworkloadofVMs.Aboveandbeyondthecomputehardware,thenetworkinglayeroftheVMwareCloudonAWSisinterestingenoughtomeritmentionaswell.Eachhosthasa25GbnetworkinterfaceandVMwareNSXisutilizedtohandlethevirtualnetworkingineachSDDC.

InadditiontoofferingahostedsolutionforrunningVMwarevirtualmachine(VM)workloadsinapubliccloud,theVMwareCloudonAWSoffersthefollowingdistinguishingfeatures.

• TheHybridLinkedModefeatureallowslinkingthevCenterintheCloudwithon-premisesvCenterinstallations.Oncethisisestablished,itispossibletomanagebothon-premisesandCloudresourcesfromonemanagementview.Inaddition,oncethelinkageisestablished,itisalsopossibletousetraditionalvMotiontomoveworkloadsfromon-premisesclusterstotheCloudandviceversa.

• EachVMwareCloudonAWSSDDCexistsinsideanAWSVirtualPrivateCloud(VPC)networkcontainer.TheVPCmaybelinkedtoanexistingcustomerVPCtoallowdirectlocalnetworkingwithexistingapplicationsresidinginAWS.

• BecausetheSDDCishostedinAWS,popularAWSservicessuchasS3areavailableatlocalnetworkspeeds.

• VMwareSiteRecoveryManager,builtonVMwareSiteRecoveryManagerandvSphereReplication,isaDisasterRecoveryasaService(DRaaS)offeringthatenablesfastdeploymentofnewDRinitiativesorseamlesslyextendsexistingon-premisesVMwaredeploymentstoVMwareCloudonAWS.

Oracle CloudOracleunveiledtheirpubliccloudofferingin2011andhassincebeencreatingnewiterationsandimprovingthatinitialreleaseatarapidpace.TheOracleCloudoffersawidebreadthofInfrastructureasaService(IaaS),PlatformasaService(PaaS),andSoftwareasaService(SaaS)products,whichprimarilytargetcustomerswhoarealreadyrunningOraclesoftware.

2https://aws.amazon.com/vmware/faqs/


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Despitetheimprovementsandnewfeaturesaddedsinceitslaunch,theOracleCloudisstilltrailingasanicheplayerinthepubliccloudmarketaccordingtomostanalysts’estimates.However,itisdifficulttotrackspecifically,asinJune2018Oracleannounced3thatitwasnolongergoingtosplitoutitsSaaS,PaaS,andIaaSrevenuefromitson-premiseslicensesupportrevenue.

OracleCloudisseriouslytrailinginGartner’smagicquadrant4forCloudInfrastructureasaService.ThegapbetweenAWSandOracleincreasedcomparedtolastyear,potentiallydueinparttoGartnerchangingtheirquadrantplacementcriteria.

In2017,OraclewasatthebottomoftheVisionariesquadrant(lowerright).In2018,OraclemovedintotheNichePlayersquadrant(lowerleft).

Becauseofthistrailingmarketposition,Oraclehasbeenveryaggressiveinpricingtheirofferingbelowthecompetition.AtOracleOpenWorld2017,LarryEllisonproclaimed5thatOracleCloudhadatargetofundercuttingAmazonWebServicespricingforIaaSandPaaSofferingsby50%.Ratherthanachievingthistargetthroughtechnicalandbusinessadvances,itappearsthatOracleprimarilyresortedtoraisinglicensingfeesforOraclesoftwareproductsusedincompetitors’cloudenvironments.

3https://techcrunch.com/2018/06/20/oracle-could-be-feeling-cloud-transition-growing-pains/4http://webcache.googleusercontent.com/search?q=cache:dkxE4I5dS2AJ:blog.atscale.com/gartner-magic-quadrant-for-cloud-infrastructure-as-a-service-2018+&cd=1&hl=en&ct=clnk&gl=us5https://www.theregister.co.uk/2017/09/20/oracle_cloud_pricing/

2017 2018


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Cloud Feature Comparison ThekeyfeaturesofVMwareCloudonAWSandOracleCloudastheypertaintohostingOracleworkloadsareverydifferent,asVMwareCloudonAWSispurelyanInfrastructureasaService(IaaS)offeringwhereasOracleCloudhasbothIaaSandPlatformasaService(PaaS)offerings.Whileanexhaustivelistofthedifferencesinfeatureofferingsbetweenthetwocloudswouldbeamassiveexercisefarbeyondthescopeofthispaper,thereareafewkeydifferencesthatshouldbehighlighted,astheyarematerialtoanyoneconsideringthecostsofhostingOraclecentricworkloadsinapubliccloud.

IaaS vs PaaS WhenlookingathostingOracleworkloadsintheclouditisimportanttounderstandthedifferencebetweenIaaSandPaaSofferings.WithIaaSofferings,thecloudproviderisonlyprovidingthevirtualmachineenvironmentandpossiblyapre-stagedOperatingSystemimage.Theinstallation,operation,andmaintenanceofalltheOraclesoftwareistheresponsibilityoftheuser.PaaSofferings,ontheotherhand,provideapre-configuredplatformwithalltheOraclesoftwarealreadyinstalledandconfigured.

ThedifferencesbetweenIaaSandPaaSofferingssoundrelativelysimple,butcanhavecostlyimplications.BecausetheIaaSofferingrequirestheenduserorganizationtoinstallandmaintainthesoftware,italsocreatesaneedfornotjustadministrativepersonnelbutspecializedpersonnelwithOracleexperience.PaaSofferingsavoidmuchofthecostofadministrativepersonnel,buttypicallychargemoreforcomputeresourcesandarerelativelyinflexibleintermsofallowingtheend-usertocustomizetheplatformconfigurationtomeettheneedsofspecificapplications.

FororganizationslookingtomigrateexistingOracleworkloadstothecloud,thereisavastdifferencebetweenIaaSandPaaSservicesthatshouldbefactoredintomigrationplans.IaaSservicestendtobeveryfamiliartoorganizationsaccustomedtoon-premisesOracleworkloads,andofferaverystraightforwardmigrationpath.PaaSservices,ontheotherhand,canrequirealotofcostlyrefactoringofexistingworkloadsinordertoadaptthemtotheplatform.Whilenosimpleformulaexists,HouseofBrickhasobservedsituationswheretheestimatedrefactoringeffortsaddedmorethan50%tothecostofacloudmigrationproject.

ThispaperexploresbothPaaSandIaaScostsforOracleCloud,andIaaScostsforVMwareCloudonAWS,butitisimportanttokeepinmindthatIaaSandPaaSareverydifferentservices.

Resource Provisioning TheVMwareCloudonAWSofferingsarerelativelylimited,whichpreventsconfusion,butalsomakesitmorechallengingtoconsumetheexactresourcesneeded.InVMwareCloudonAWS,theonlyvariableforresourceallocationisthenumberofnodesinaSDDCcluster.AllotherresourcessuchasCPU,RAM,anddiskareallocatedatafixedratepernodeandonlyonetypeofnodeisavailable.ThoseresourcescanthenbesplitamongvirtualmachinesresidingintheSDDCinanycombinationdesiredbyanadministrator.

TheOracleCloudIaaSandPaaSofferingsincludebothvirtualmachinesanddedicatedserveroptions.BothareavailableinavarietyofconfigurationsthatOraclereferstoasshapes.Differentshapeshavedifferent


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combinationsofvirtualCPUsandRAMresourcesavailable.FileorblockstorageisavailabletobeallocatedtodifferentvirtualmachinesatamonthlypriceperGB,sostorageprovisioningisextremelyflexible.

UltimatelytheOracleCloudhasmoreprovisioningflexibility.VMwareCloudonAWScustomersareoftenrequiredtooverprovisionseveralresourcesinordertoreachthenecessarylevelsforoneconstrainedresource.WhileindividualVMsinsidetheVMwareCloudonAWSarefarmoreflexibleintermsofvCPU/RAMprovisioningversusthepresetmenuofshapesinOracleCloud,overallresourceprovisioningatanaccountleveliscurrentlymoreflexibleintheOracleCloud.

Hybrid Cloud Tools Bothcloudofferingsprovidetoolsformanaginghybridcloudenvironmentswithsomeworkloadsresidinginon-premisesdatacentersandsomeworkloadsresidinginpubliccloudenvironments.VMwareCloudonAWSoffersHybridLinkedModeforitsvCentertool,atoolalreadywidelyusedtomanageon-premisesVMwarefootprints.WithHybridLinkedMode,itispossibletousevCentertoseamlesslymanagebothon-premisesandVMwareCloudonAWSresources.TheOracleCloudhasasimilarofferingwithOracleEnterpriseManager(OEM),whichallowstheusertomanagebothon-premisesandcloudresources.

Atasuperficiallevel,bothtoolsappeartoberoughlycomparableinscopeandfunctionalityformanaginghybridcloudofferings,butOracleishandicappedbythefactthattherehasbeenverylittleadoptionofOEMformanagingon-premisesworkloadsoutsideofOracleengineeredsystems.ManyorganizationsutilizeOEMtomonitorandmanageOracledatabasesorapplications,butveryfewutilizeitforsystemsmanagement.Thus,usingOEMtomanageahybridcloudenvironmentwouldrequireanorganizationtofirstretrofittheiron-premisesoperationstobemanagedbyOEM.vCenter,ontheotherhand,isalreadyubiquitousformanagingon-premisesdatacenters.

Inaddition,featuresofVMwareCloudonAWS,suchasHybridLinkedMode,HybridCloudExtension(HCX),orSiteRecoveryManagerallowforzerodowntime,massmigrationofvirtualmachineworkloadsintotheVMwareCloudonAWS.AsOracleCloudhasnozerodowntimemigrationtoolsforgeneralworkloads,thisisastarkadvantageforVMwareCloudonAWScomparedtotheOracleCloud.

TheHybridCloudtoolscategoryheavilyfavorsVMware,asOracle’sofferingsarenotubiquitous,andcannotprovidethekeyfeaturesneededtomigratetoahybridcloudsolutionortomanageahybridcloudsolutioneffectively.

Cloud Licensing Concepts for Oracle

Processor, Named User Plus, and Unlimited LicensingProcessor-basedlicensingisthemostfamiliarandtraditionalmodelforlicensingOracledatabaseandmiddlewaresoftwareproducts.WhenlicensingOraclesoftwareproductsbytheprocessormetric,thetotalprocessorcoresavailableinaserveraresummedandthenmultipliedbytheappropriatefactorfromOracle’sProcessorCoreFactorTable.Forx86architectureservers,Oraclerequiresoneprocessorlicensepertwox86


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CPUcores.Thisgrantsarighttousethelicensedsoftwareproductonthatserverregardlessofinstanceorusercounts,transactionvolumes,orRAM/diskfootprint.

NamedUserPlus(NUP)licensingisanalternativemeansoflicensingOraclesoftwareoftenusedintest,development,orothernon-productionenvironmentswhereactualusercountsarerelativelylow.NUPlicensinghastheadvantagethatforlowusercountenvironments,itissignificantlylessexpensivethanprocessorbasedlicensing.Forhighusercountenvironmentshowever,NUPlicensesaremoreexpensiveandprocessorbasedlicensingisthemorefavorableoption.Itisworthwhiletonotethatattentionmustbepaidtocorecounts,evenwhenusingNUPlicenses,becausethereisaminimumnumberofuserlicensesrequiredbasedonthenumberofcores.Iftheactualusercountislowerthantheminimumrequired,thenthelicensingmustbebasedontheminimumusercountpercore.

OraclealsoofferswhatisknownasanUnlimitedLicenseAmendmentorAgreement(ULA).TheULAallowsOraclecustomersatime-limitedrighttouseanunlimitedquantityofOraclesoftwareproductsthatarespecifiedintheULA.Thetypicaltermisthreeyears,afterwhichtheunlimitedrightconvertsintoaspecificnumberofprocessorlicensesbasedonaprocessoftotalingupquantitiesinuseattheendoftheterm.Thistotalingprocessisreferredtoasa“certificationoftheULA.”

OracleCloudPolicyandTraditionalLicensingTraditionallicensingsimplyreferstolicensingOracleproductsinacloudenvironmentjustasonewouldwithon-premisesservers.NamedUserPlusorprocessorbasedlicensesarethenappliedtoentireserversbasedontheactivecorecountoftheserver.

CloudpolicylicensingisashorthandtermforlicensingOracleinAzure,andAWSEC2(whichincludestheVMwareCloudonAWS)accordingtoOracle’spublishedcloudlicensingguidelines.Oraclefirstintroducedcloudlicensingin2008andshortlythereafterformalizeditinthedocumentLicensingOracleSoftwareintheCloudComputingEnvironment6.Thisnon-contractualdocumentestablishesapolicywhereinOraclegrantscustomersarighttolicenseOraclesoftwareproductsinAuthorizedCloudEnvironmentsbycalculatingOraclelicensingusingeithertheProcessorbasedorNUPmetric,onavCPUbasisinsteadofonaphysicalcorebasis.Aconceptthatisimpliedinthisdocument(butnotstated),isthatthelicensemoveswiththeVMunderallconditions.Thisoffersapotentiallysubstantiallicensingadvantageovernon-authorizedcloudenvironments,whetherprivateorpublic.ThepolicyhasbeenamendedbyOracleonseveraloccasionssince,mostrecentlyinJanuary2018.

AlthoughthecloudpolicydocumentisnotreferencedinOraclecontractagreementsthatHouseofBrickhasreviewed,andassuchistechnicallynon-bindinginthecustomer’slicenseagreement,itisHouseofBrick’sunderstandingthatOracleislikelyobligatedtotheextra-contractualprivilegesthepolicygrants.PamFulmer,apartneratFulmerWareLLPstatedthefollowinginanarticlepublishedwithHouseofBrickintheNorthernCaliforniaOracleUsersGroupJournal7:

…totheextentthatOracleisknowinglypublishingextra-contractualdocumentsonwhichitscustomersrelybymakinglargeinvestments,anargumentcanbemadethatOracleshouldbeestoppedor

6http://www.oracle.com/us/corporate/pricing/cloud-licensing-070579.pdf7http://nocoug.org/Journal/NoCOUG_Journal_201708.pdf#page=4


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preventedfromchangingcoursedowntheroad,especiallyifsuchachangewouldcauseinjurytoOraclecustomers.Whetheracourtwouldacceptthisargument,orfindthatthecustomerproceededattheirownrisk,isanopenquestion.”

WhilehistoricallyOraclehasbeenobservedbyHouseofBricktoconsistentlyhonorthepolicy’sextra-contractualprivileges,HouseofBrickencouragesanyoneconsideringtheapplicabilityofthispolicytoreviewitwiththeirlegaladvisors.

AmazonhaspublishedthefollowingstatementaffirmingthattheVMwareCloudonAWSutilizesAmazonEC2infrastructure:

VMwareCloudonAWSisanintegratedcloudofferingjointlydevelopedbyAWSandVMwaredeliveringahighlyscalable,secureandinnovativeservicethatallowsorganizationstoseamlesslymigrateandextendtheiron-premisesVMwarevSphere-basedenvironmentstotheAWSCloudrunningonnext-generationAmazonElasticComputeCloud(AmazonEC2)baremetalinfrastructure.8

Accordingly,HouseofBrickisadvisingcustomerstoconsiderthepolicyasanoptionwhendeployingOraclesoftwareproductsintheVMwareCloudonAWS.

GrandfatheringonPriorCloudLicensingPolicyTermsOverall,revisionstoOracle’scloudlicensingpolicyhavegottenmorerestrictivewiththepassingoftime.OrganizationsthathaveimplementedOraclesoftwaredeploymentinAuthorizedCloudEnvironmentsbasedonearliercloudlicensingpolicyversionsmaywanttoconferwithlegaladvisorsastowhethertheyhaveagrandfatheredprivilegeonthepolicydocumenttermsineffectatthetimeoftheirimplementation.Forexample,itmightbereasonablethatalicenseewhohadallocated200ProcessorlicensesinAWSEC2usingthecloudlicensingpolicyineffectpriortoJanuary23,2017wouldcontinuetoenjoythemoregeneroustermsofpreviousversionsofthepolicyforthose200Processorlicenses.

Tofacilitateconsiderationsaboutwhichcloudlicensingtermsmightapply,thetablebelowdisplaysthedetailsofthepolicy’schangesovertime9.Greenhighlightingindicatesfavorablechangesforlicensees,whereasyellowrepresentschangesunfavorableforlicensees.

8https://aws.amazon.com/vmware/9Additional9/21/08sourcedocument-https://visionpdf.com/oracle-in-the-cloud-aws.html


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Table1:OracleCloudPolicy–HistoryofChanges

9/21/08 9/20/10 5/31/16 1/23/17 1/23/2018

LicensemoveswithVM Y Y Y Y YEC2 Y Y Y Y YRDS NA NA NA Y YProcessorCoreFactorTablevCPU:Processorratio 0.5 0.5 0.5 NA(1.0) NA(1.0)Hyperthreadingenabled?vCPU:Processorratio NA NA NA

Y=0.5,N=1.0 Y=0.5,N=1.0

StandardEditionvCPU/Processor(socket) <=4 <=4 <=4 <=4 <=4StandardEditionvCPUlimit 16 16 16 16 16StandardEditionOnevCPUlimit 8 8 8 8 8StandardEdition2 NA NA 8 8 8StandardEdition2NamedUserPlusminimum NA NA NA NA 10per8vCPUsIncludeinULACertificationinventory ? N N N N

Authorizedproducts/featureslist

DB,Middle-

ware,GridControl,Applica-tion

Express(not

stated)(not

stated)

ListintroducedRACnot

authorizedRACnot

authorized

RACisunsupported.Reason:

EC2didn'tsupportclusters

(notstated)

(notstated)

(notstated) (notstated)

Thepolicy’sJanuary23,2017revisioninparticularintroducedtermsthatmadeadoptingthecloudpolicysubstantiallymoreexpensive.Thesechangesincluded:

• TheProcessorCoreFactorTablewaseliminatedfromAWSlicensing.Withthat,Oracleeffectivelydoubledtheprice,givingitselfa100%raiseonnon-SElicensinginAWS.

• HyperthreadingwasintroducedforthefirsttimetoOraclecoretechnologylicensing.AddedtotheeliminationoftheProcessorCoreFactorTablefromthelicensingcalculation,andOracle’spriceincreasesinAuthorizedCloudEnvironmentsexceeded100%.

OracleintroducedalistofapprovedOracleproductsintothepolicy’s2017revision,thusforthefirsttimecompletelyexcludingsomeproductsfromthepossibilityofbeinglicensedincloudenvironmentsaccordingtothepolicy.


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LicensingintheOracleCloudLicensingOraclesoftwareinOracle’sowncloudenvironmentrepresentsaspecialcaseinthatitdoesnotusetraditionallicensing,nordoesitutilizeOracle’sCloudPolicy.InsteadthereisaseparateBring-Your-Own-License(BYOL)policyfortheOracleCloudthatisoutlinedinOracle’sdocumentOraclePaaSandIaaSUniversalCreditsServiceDescriptions10.Inageneralsense,thisallowstreatingnon-hyperthreadedvirtualCPUsintheOracleCloud,calledOCPUsbyOracle,exactlylikex86physicalcoresforthepurposesoflicensingOraclesoftwareproducts.ThusoneprocessorlicenseforanOraclesoftwareproductissufficienttolicensetwoOCPUs.ThisisastarkcontrasttothealreadydiscussedcloudlicensingpolicyforAWSandAzure,whichrequiresoneprocessorlicensepernon-hyperthreadedvirtualCPU.InessenceOracleisallowingforthelicensingofOraclesoftwareproductsintheirowncloudathalfthecostoflicensingsimilarvirtualmachinesinthecloudpolicyAuthorizedCloudEnvironmentsofAWS(includingVMwareCloudonAWS),andAzure.

ForcustomersofOracleCloudnotwantingtomanagetheirownOracleinfrastructure,therearePaaSalternativestotheIaaSofferingformanyOraclesoftwareproducts.ThesePaaSofferingsareavailablewithBYOLpricingaswellaswhatOraclereferstoasUniversalCredits(UC)pricing,whichincludesallthelicensesrequiredfortheproductbundledinwiththecomputecostsforonePaaSmonthlyrate.ThisrateisbasedonthenumberofallocatedOCPUs.

Cloud Cost Components Becausebothcloudsunderconsiderationhavedifferentpricingmodelsandtiersfornetworking,compute,storage,andotheradd-onfeatures,itcanbecomplextoanalyzethevariouscostsastheymightapplytoahypotheticalworkload.Luckily,manyofthosecostsaretoosmalltobematerial,oralreadyroughlycomparablebetweenOracleCloudandVMwareCloudonAWS.Tominimizecomplexity,thisanalysisfocusesprimarilyontwofinancialfactors–Oraclesoftwarelicensingcostsandcomputecosts.InHouseofBrick’sexperience,thecostsofthesetwoitemswilldwarfmostothercostsinthelongtermandarethusmostcriticalindeterminingthesuitabilityandcost-effectivenessofaparticularcloudofferingforanOracle-centricworkload.

Compute Costs Computecostsarerelativelyeasytocalculateforhypotheticalworkloads,thoughadditionalcomplexitycanbeaddedwhenconsideringthedifferencebetweenpre-arrangedorreservedpricingplansversuson-demandpricingplans.OracleCloudandVMwareCloudonAWS,likemostpublicclouds,offerdiscountsforlongertermresourceconsumptioncommitments.Tomaintainconsistencyinthisanalysis,bothVMwareCloudonAWSandOracleCloudcomputecostswereconsideredonthebasisofannualreservedpricing.InthecaseofVMwareCloudonAWS,thispricingmodelisknownas1-yearreservedpricing.ForOracleCloud,theannualreservedpricingmodelisknownasMonthlyFlex.

NotethattruecomputecostswereimpossibletofullyisolateinthecaseofVMwareCloudonAWSastheper-nodecostofSDDCclustersalsoincludesthestorage.

10http://www.oracle.com/us/corporate/contracts/paas-iaas-universal-credits-3940775.pdf


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Oracle Licensing Costs AsdescribedintheprecedingsectiononOraclelicensingconcepts,thereisacomplexmixofmetricsandlicensingmodelsavailablewhenlicensingOraclesoftwareinapubliccloudenvironment.Forthepurposesofthisanalysis,onlyProcessorLicensingwasconsidered.NamedUserPlusandUnlimitedLicenseAmendmentlicensingwerenotconsidered,theformerbecauseittendstocorrelatestronglytoProcessorlicensinganyway,andthelatterbecausethereisnostandardizedpublishedpricingforULAagreementsbyOracle.

Whencomparinglicensingcosts,allcostswerecalculatedonathree-yearannualizedbasistoavoidunevencomparisonsbetweenservicessuchasOracleCloudBYOLorVMwareCloudonAWS,wherecustomersareexpectedtofurnishtheirownOraclelicensesup-front,andOracleCloudPaaSservices,whichincludethelicenseandcomputecostsinoneannualrate.AppendixAcontainsafullbreakdownofhowOraclelicensecostswerecalculated.

Example Oracle Workloads InordertomodelandanalyzethecostsofavarietyofOracleworkloads,threeexampleworkloadswereused.Theseworkloadsweredevisedtorepresentareasonablespectrumofpossibleusecasesfromasmallworkloadforasingleapplication,toenterpriseworkloadscomprisingcomplex,multipletierapplications.

AllofthemodelworkloadsassumethesamemixofOracledatabasesoftwareproducts.Specifically,eachdatabasevirtualmachineisassumedtoberunningOracleDatabaseEnterpriseEditionwithacommonoptionsetincludingPartitioning,DiagnosticPack,andTuningPack.EachmiddletiervirtualmachineisassumedtoberunningOracleWebLogicEnterpriseEdition.ThisproductmixwaschosenasasimpleandrepresentativesampleofcommonlyusedOracleproducts.Suchahomogeneousproductmixmaynotaccuratelyreflectworkloaddiversityforrealorganizationswithcomplexconfigurations,butdoesserveasanadequatemixofproductstouseasthebasisformodelingandcomparingcostsinvariouscloudconfigurations.

Eachworkloadalsohasasimplisticarchitecture,withanassumedone-to-oneratioofvCPUresourcesatthedatabasetierandapplicationtier.RealworldratiosofapplicationCPUtodatabaseCPUareheavilyinfluencedbythenatureoftheworkload(OLTPvsWarehouse),thepresenceofcachingservers,andapplicationloadpatterns.Thispaperassumedtheone-to-oneratioasrepresentativeofamedianworkload.

ComparingvCPUsacrossdifferentvirtualizationplatformsandcloudproviderscanbeconfusing,assomeplatformsmapprocessorcorelevelhyperthreadsasfullvCPUs,whereasothersmapvCPUstophysicalprocessorcorestodeterminecapacity.ItisalsoimportanttonotethatallthevCPUsdefinedintheseexampleworkloadsareassumedtobevCPUscorrespondingtoaprocessorhyperthread,orlogicalprocessorsinESXiterminology.ThishasadirectbearingonlicensingastheaforementionedOraclecloudlicensingpolicytreatshyperthreadedvCPUsdifferentlythannon-hyperthreadedvCPUs.

Workload Components Eachhypotheticalworkloadwasassignedamixofvirtualmachinesreflectinganticipatedworkloads.Thevirtualmachineswereclassifiedinasimplet-shirtsizefashionasshownintheworkloadcomponentstablebelow.


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Table2:WorkloadComponents

VirtualMachine vCPUSize

TinyOracleDB 2

SmallOracleDB 4

MediumOracleDB 8

LargeOracleDB 16

TinyWebLogic 2

SmallWebLogic 4

MediumWebLogic 8

LargeWebLogic 16

Tiny Oracle WorkloadThisworkloadrepresentsafairlytypicalusecaseofasmallormediumbusinessthatdoesnotuseseveralOracletechnologies,butisencumberedwithonelegacyorCommercialofftheShelf(COTS)OracleapplicationthatrequiresafewOracleDatabaseandWebLogicvirtualmachines.ThefourdatabasesandfourWebLogicVMsinthisworkloadrepresenttheentiretyoftheOracleworkloadforbothproductionandnon-productionpurposes.

Small Oracle WorkloadThisrepresentsacustomerwhoeitherbuildstheirownapplicationsonOracletechnologies,orhasalargeCOTSapplicationbuiltonOracletechnologies.TheninedatabaseandWebLogicVMsinthisworkloadrepresentanassumptionofalargerproductionenvironmentbackedbysmallernon-productionenvironmentssuchasdevelopment,test,stage,integration,etc.Thisworkloadtotalsto34vCPUsrequiringOracledatabaselicensingand34vCPUsrequiringOracleWebLogicLicensing.

Medium Oracle WorkloadThisrepresentstheworkloadofacustomerwithheavyinvolvementwithabusinesscriticalapplicationbasedonOracletechnologies.ThishypotheticalcustomerperhapsusesanenterpriseOracleapplicationsuchasE-BusinessSuiteorPeoplesoft,ordevelopshomegrownenterpriseapplicationsusingOracletechnologies.Forthislevelofcustomer,thereareassumedtobemultiple,verylargeproductiondatabasesandWebLogicVMsbackedbyamyriadofnon-productionenvironmentscoveringmultipledevelopment,test,andstagingenvironments.

Large Oracle Workload ThisworkloadisrepresentativeofanenterpriseusingmultipleOracleapplicationstorunmanyaspectsoftheirbusiness.ThishypotheticalcustomerhasmultiplelargeapplicationssuchasE-BusinessSuiteorPeoplesoftinconjunctionwithhomegrownOraclebasedapplicationsleadingtoaheavyfootprintofbothdatabasesandmiddletierapplicationservers.Acustomeratthislevelisassumedtohavemultipleproductiondatabases


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supportingseveralapplicationsaswellasmanynon-productionenvironmentstocovermultipledevelopment,test,staging,andintegrationtestenvironments.

Table3:ExampleOracleEnvironments(bySizeofWorkload)

Workload Product VMs vCPUs

Tiny

OracleDatabase 2Small,2Tiny 12

OracleWebLogic 2Small,2Tiny 12

Small

OracleDatabase 1Medium,5Small,3Tiny 34

OracleWebLogic 1Medium,5Small,3Tiny 34

Medium

OracleDatabase 2Large,7Small,3Tiny 66

OracleWebLogic 2Large,7Small3Tiny 66

Large

OracleDatabase 4Large,16Small,8Tiny 144

OracleWebLogic 4Large,16Small,8Tiny 144

Example Configurations ForthepurposesofthisanalysisavarietyofconfigurationsforbothVMwareCloudonAWSandOracleCloudwereanalyzedtofullyexploretheoptionsthatacustomermayusetoobtainthemostcosteffectivemixofcloudresourcestoservicevariousworkloads.AvarietyofSDDCconfigurationswereanalyzedforVMwareCloudonAWS,andbothIaaSandPaaSconfigurationswereconsideredforOracleCloud.

Configurations for VMware Cloud on AWSSDDCClusterSizesBecauseofthehighcostoflicensingOraclesoftwareproducts,HouseofBricktypicallyrecommendsthatcustomersarchitectingon-premisessolutionsforvirtualizedOracleworkloadsisolatethemtothegreatestdegreepracticalontheminimumrequiredphysicalhardwareinordertominimizethefootprintofserversrequiringlicensing.InordertoexploresimilarconceptsintheVMwareCloudonAWS,thispaperlooksatavarietyofpossibleclusterconfigurations.

ThefirstandmostobviousclusterconfigurationconsideredisthecurrentdefaultminimumSDDCclustersizeintheVMwareCloudonAWS,athree-nodecluster.Thereisalsoaone-nodeSDDCconfigurationavailableintheVMwareCloudonAWS,butVMwarerepresentsthatoptionasfortestingandevaulationpurposesonlysothatconfigurationwasnotincludedinthisanalysis.Thispaperalsoconsideredtwo-nodeconfigurationsthatwere


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notcurrentlyavailableatthetimeofthiswriting.PleaserefertoVMwareforthetimingofgeneralavailability.However,HouseofBrickbelievesthatatwo-nodeVMwareCloudonAWSconfigurationistechnicallyfeasible,andthereforewillbeintroducedbyVMwareinthefuture.ToviewtheavailabilityoffeaturesforVMwareCloudonAWS,visit:https://cloud.vmware.com/vmc-aws/roadmap.

CustomCPUCoreCountsWhenoptimizinglicensingforOracleworkloadsinon-premisesvSphereenvironments,HouseofBrickoftenrecommendsminimizingcostsbydisablingextraorunecessaryphysialCPUcoresinserversataBIOS/UEFIfirmwarelevel.ThisisaveryusefultacticforminimizingexpensiveOraclesoftwarelicensestoonlytheneededprocessorresources.OracleDatabaseworkloadsinparticulararetypicallyconstrainedmorebyavailableI/Oresourcesthanprocessorresourcesonmodernhardware,socoredisablementisasensiblewaytooptimizethelicensingcostofanOracleDatabasewithoutcompromisingonperformance.

VMwarehasaddressedthisneedwithafeaturecalled,aptlyenough,CustomCPUCoreCounts.Thisallowslaunchingaclusterwithnodesdisabledtospecificlevelsofcores.TodemostratetheadvantagesthelowercorecountsbringinlicensingOracleworkloads,thispaperincludedthreenodeSDDCclustersandtwonodeSDDCclusterswith50%ofcoresdisabled.Inaddition,thereisahypotheticalminimalcoreconfigurationwith75%ofcoresdisabled,bothinthree-nodeandtwo-nodeconfigurations.

TheuseofCustomerCPUCoreCountsisnotassumedtogenerateanyinfrastructurecostsavings,butrathertosimplydisableunecessarycorestolimitcoresthatrequireOraclelicensing.

WorkloadPinningTheVMwareCloudonAWSSDDCofferingdoesnotcurrentlyofferanymeansofhard-pinningvirtualmachineworkloadstospecifichosts.On-premisesVMwarevCentersolutionshavetraditionallyofferedthisviaDRShostaffinityrules,buttheVMwareCloudonAWSofferingdoesnotsupportthis.TheVMwareCloudonAWSdoesofferaHost-VMAffinityfeature,butitisnottechnicallyaguaranteedworkloadpinningfeatureperHouseofBrick’sunderstanding,andisthereforenotsuitablefordesigningarchitecturestolimitOraclesoftwarelicensingliability.Theimplicationofthisisthatwhendoingtraditionallicensingcalculations,itisnecessarytoallocatealicenseforeveryOracleSoftwareproducttoeveryphysicalcoreintheSDDCcluster,asworkloadscannotberestrictedtospecifichosts.

AlimitedformofworkloadpinningisavailableintheVMwareCloudonAWSonlyforworkloadsofsufficientscale.IfacustomerworkloadhasenoughVMsrunningthesameOraclesoftwareproduct,thenitmaymakesensetoallocateaseparateSDDCclusterjusttohostthatOraclesoftwareproduct.Byisolatingallinstancesofthatproducttothelicensedcluster,theneedtolicenseanyotherSDDCclustersbeingusedfornon-Oracleworkloadscanbeavoided.ThisapproachcanalsobeusedforlargeenoughOraclesoftwarefootprintstoseparateoutSDDCclustersfordifferentproducts.Forexample,oneSDDCclustercouldbeallocatedjusttohandleOracleDatabaseVMsandanothertohandleapplicationserverproductssuchasOracleWebLogic.Someofthelargerworkloadsinthisanalysisaremodelledusingthisformofworkloadpinningtominimizelicensingcosts.


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SDDCPricingAllexampleconfigurationsinthisanalysisassumeone-yearreservedpricingforVMwareCloudonAWSresources,asshownintheSDDCcosttablebelow.FullinformationonpricingcanbefoundontheVMwareCloudonAWSpricingwebsite.11

Table4:SDDCCosts

6NodeSDDC 4NodeSDDC 3NodeSDDC 2NodeSDDC

AnnualCostPerNode(1YearReservedPricing)

$51,987.00

$51,987.00

$51,987.00

$51,987.00

SDDCNodes 6 4 3 2

ClusterCost/Year $311,922.00 $207,948.00 $155,961.00 $103,974.00

Configurations for Oracle Cloud Whenlookingatpossibleconfigurationstohosttheexampleworkloads,therearemultiplepossibilitiesintheOracleCloud.Thispaperfocusesontwoalternativesthatrepresentthebestbasisforcostcomparisonpurposes.

ThefirstalternativeistosimplyusetheOracleCloudIaaSservicewiththeBYOLoption.Thisallowsprovisioningvirtualmachinestomeettheneedsoftheworkloads.ThisisaverysimplemethodofprovisioningOracleworkloadsinamannerthatdoesn’trequireanylicensingbeyondthespecificvirtualmachinesrunningOraclesoftwareproducts.

ThesecondalternativeexaminedisusingOraclePaaSofferingsforDatabaseandJava.TheseareequivalenttoOracleDatabaseEnterpriseEditionandOracleWebLogic,respectively.UsingtheseservicesleadstoprovisioningthesamenumberofvirtualmachinesastheIaaSoption,butdoesnotrequireseparatelyacquiringlicensessincethepricetousetheOraclesoftwareisbundledintotothepriceofthePaaSofferingusingUniversalCredits(UC).ForthisOraclePaaS/UCanalysis,thepricingwasbasedspecificallyontheHigh-PerformancetieroftheOracleDatabaseserviceasthatwastherequiredtiertogetthedatabaseoptionsneededforthesampleworkloads.TheOracleJavaservicewaspricedontheEnterpriseEditionpricingtier.

InordertomaketheOracleCloudIaaS/BYOLandPaaS/UCconfigurationascomparabletoVMwareCloudonAWSaspossible,allworkloadswerespecifiedwithVM–DenseIOshapes.AstheDenseIOVMsintheOracleCloudIaaS/BYOLofferinghaveaminimumoffourOCPU/eightvCPUs,thisdidmeanthatsomeworkloadsintheOracleCloudwereprovisionedwithmorevCPUsthantheminimumstheworkloadrequired.Inparticularalltiny,small,andmediumVMsfromthesampleworkloadweremappedtoVM.DenseIO1.4shapes.LargeVMsfromtheexampleworkloadsweremappedtoVM.DenseIO2.8shapes.

11https://cloud.vmware.com/vmc-aws/pricing


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Cost Analysis

Cost Comparison for Oracle Workloads in VMware Cloud on AWS TinyOracleWorkloadCostComparisoninVMwareCloudonAWSForatinyworkload,thecostdifferencesonVMwareCloudonAWSbetweentraditionallicensingpricingandcloudpolicylicensingareverystark.Licensinganentirethree-nodeSDDCjusttorunatinyworkloadismassiveoverkillforlicensing,duetothelackofaworkloadpinningfeature.UsingthevCPU-basedcloudpolicylicensingbringsthecostsdowntoamorereasonablelevel.

Table5:TinyWorkloadCostComparison

VMwareCloudonAWSOptions

Cost/YearTraditionalLicensing

Cost/YearCloudPolicyLicensing

3NodeSDDC(108cores) $2,344,578.17 $399,140.69

2NodeSDDC(72cores) $1,563,052.11 $347,153.69

2NodeSDDC(18cores,75%coresdisabled) $428,213.58 $347,153.69

SmallOracleWorkloadCostComparisoninVMwareCloudonAWSThishypotheticalcustomerworkloadwouldfitonaone-nodeVMwareCloudonAWSSDDCclusterbyvCPUcount,butwouldlikelyrequireatwo-nodeVMwareCloudonAWSclustertogetaccesstoadequateRAM/diskresources,HA,andpossiblytofitadditionalnon-Oracleworkloads.Lookingintopotentialcoredisablementshowsthatevenacore-disabledtwonodeSDDCwouldfit,andstillprovideadequateRAM/diskandHA,aslongasatleast36coresremainenabledacrosstheclustertoservicetheworkload.Withasmall(andacceptable)amountofresourceoverscubscription,evenaclusterwithonly27corescouldhosttheworkload.

Table6:SmallWorkloadCostComparison




3NodeSDDC(108cores) $2,344,578.17 $844,970.11


2NodeSDDC(72cores) $1,563,052.11 $792,983.11


MediumOracleWorkloadCostComparisoninVMwareCloudonAWSThishypotheticalworkloadmayfitonatwo-nodeVMwareCloudonAWSSDDCclusterbylogicalvCPUcount,butwouldneedatleastathree-nodeclustertogetaccesstoadequateRAM/diskresourcesandinordertoensureadequatehighavailabilityduringhostreplacementandmaintenanceevents.Thispaperdoesnoteven


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considertwo-nodeSDDCpricingforthisworkload,assuchasolutionwouldmeetneithercapacitynoravailabilityrequirements.

Table7:MediumWorkloadCostComparison




3NodeSDDC(108cores) $2,344,578.17 $1,493,449.27

3NodeSDDC(54cores,50%coresdisabled) $1,290,799.53 $1,493,449.27

Dual3NodeSDDC(54cores,75%coresdisabled)

$861,281.30 $1,649,410.27

Dual2NodeSDDC(144cores) $1,667,026.11 $1,545,436.27

Forthisworkload,thesizefinallybecomeslargeenoughthatseveralinterestingthingsaremanifest.

First,theadvantagesoftraditionalcorebasedlicensingovercloudpolicylicensingforVMwareCloudonAWSbecomeapparent.WhilevCPUlicensingisstilladvantageousforathree-nodeSDDCscenario,astheworkloadisonlylargeenoughtosaturatetwoofthethreeSDDCnodes,someofthehypotheticalsmallerSDDCoptionsstarttodemonstratethepriceadvantagetocorebasedlicensingwhentheunderlyinghardwareiswellsizedtotheworkload.Thethree-nodeSDDCwith50%coredisablementischeapertolicenseforthisOracleworkloadusingtraditionalcore-basedlicensingratherthanOracle’scloudlicensingpolicy.

Second,thisisthefirstworkloadlargeenoughtojustifysplittingthedatabasetierandapplicationtierintoseparate,smallSDDCclusters.Whilethisdoesn’tgiveperfectworkloadpinning,itstillgeneratesadramaticsavingsinlicensing.Usingdualthree-nodeSDDCclusterswith75%coredisablement,onefordatabaseworkloadsandoneforWebLogicworkloads,allowsforallocatingsixnodestotheworkloadforalowertotaltraditional-licensingbasedcoststhanonestandardthree-nodeSDDCthatmustbelicensedforbothproducts.Thisistrueregardlessofwhetherthesinglethree-nodeSDDCwaslicensedbytraditionalcore-basedlicensingorusingthecloudlicensingpolicy.Thedualthree-nodeSDDCoffersagreatdealmoreofeveryotherresourceaswell.

LargeOracleWorkloadCostComparisoninVMwareCloudonAWSThishypotheticalworkloadwouldneedatleastafour-nodeVMwareCloudonAWSSDDCclusterbylogicalvCPUcount.UsingmultiplesmallerSDDCclustersasaroughformofworkloadpinningisanoptionforthisworkload.However,nosmallerclustersorcoredisablementwouldbeinscopeforthisworkload.


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Table8:LargeWorkloadCostComparison




4NodeSDDC(144cores) $3,126,104.22 $3,126,104.22

Dual2NodeSDDC(144cores) $1,667,026.11 $3,126,104.22

Here,theadvantagesofworkloadpinningbecomereadilyapparent.Licensingone4nodeSDDCclusterresultsinrelativelyhigherlicensingcostswhereasseparatingtheapplicationserveranddatabasetiersintoseparatesmallerclusterscreatesalicensingadvantage.

VMware Cloud on AWS vs. Oracle IaaS Cost Comparison TinyOracleWorkloadCostsForthetinyworkload,VMwareCloudonAWSiscomparabletoOracleIaaS/BYOLwhendoingcloudpolicylicensing.However,OracleIaaS/BYOLgetstheadvantageonlicensingwhendoingcore-basedlicensingduetoOraclerequiringfewerprocessorlicensespervCPUinitsownCloudenvironment,aswellasOracleprovidingcertaindatabasefeaturesforfreetoitscloudcustomers.

Table9:TinyWorkloadCostComparison



VMwareCloudonAWS $428,213.58 $347,153.69

OracleIaaS/BYOL $317,980.46 N/A

SmallOracleWorkloadCostsInterestingly,thisworkloadstartstodemonstratecore-based,traditionallicensinginVMwareCloudonAWSbecomingcostcompetitivewithvCPUlicensingandOracleCloudIaaS/BYOL.ThisOracleworkloadsgetlargeenoughthatthevolumeefficienciesoftraditionallylicensingtheentireclusterversususingcloudpolicylicensingfortheindividualVMvCPUstarttobecomeapparent.

Table10:SmallWorkloadCostComparison



VMwareCloudonAWS $642,320.37 $844,970.11

OracleIaaS/BYOL $715,456.04 N/A


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MediumOracleWorkloadCostsThedual3nodeVMwareCloudonAWSwith75%coredisablementisamuchcheapersolutionthanusingOracleIaaS/BYOLofferingstohostthisworkload.

Table11:MediumWorkloadCostComparison



VMwareCloudonAWS $861,281.30 $1,649,410.27

OracleIaaS/BYOL $1,112,931.62 N/A

LargeOracleWorkloadCostsVMwareCloudonAWSishasasignificantlycheapersolutiontorunlargeOracleworkloadsthanOracleIaaS/BYOL.ThelargeworkloadisanexactfitforfourVMwareCloudonAWSnodes,itrepresentsanidealcaseforVMwareCloudonAWSwithnoresourceoversubscription.

Table12:LargeWorkloadCostComparison

Cost/Year

TraditionalLicensingCost/Year

CloudPolicyLicensing

VMwareCloudonAWS $1,667,026.11 $3,126,104.22

OracleIaaS/BYOL $2,543,843.71 N/A

SummaryofVMwareCloudonAWStoOracleIaaS/BYOLCostComparisonBasedonthelowestpricedoptionsweidentifiedforeachworkloadtypeinVMwareCloudonAWSandtheBYOLpricingoptiononOracleIaaS,thechartbelowprovidesavisualcomparisonofthecostbetweenthetwoplatforms.Fromthechart,weseethatcustomershavelowerTCObyrunningOracleworkloadsonVMwareCloudonAWSinallsmall,medium,andlargeworkloadstypes,andthetrendisclearthatthebiggerOracleworkloadsthatcustomersarerunning,themoretheywilllikelysavebyusingVMwareCloudonAWS.


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VMware Cloud on AWS vs. Oracle PaaS/UC VMwareCloudonAWSandOraclePaaS/UCareverydifferentservices.VMwareCloudonAWSoffersaseamlessmigrationpathforcustomerstomoveOracleworkloadsfromon-premisestopubliccloudwithoutworkloadrefactoringoreveninterruption;whileOraclePaaS/UCisamanagedserviceanditrequirescostlyrefactoringofanddisruptiontoexistingworkloads.HouseofBrickestimatesthatrefactoringeffortscanaddmorethan50%tothecostofacloudmigration

ThetablebelowshowsthecostcomparisonbetweenVMwareCloudonAWSandOraclePaaS/UC.ItisamyththatOraclePaaS/UChasthelowestcostinthemarketbecausetheworkloadrefactoringcostcannotbeignored.Withourconservative50%refactoringcostincluded,OraclePaaShashigherTCOthanVMwareCloudonAWSinallsmall,medium,andlargeworkloadtypes.

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

TinyOracleWorkloads

SmallOracleWorkloads

MediumOracleWorkloads

LargeOracleWorkloads

OracleCostComparisonVMwareCloudonAWSvs.OracleIaaS/BYOL

VMwareCloudonAWS OracleIaaS/BYOL


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Table13:VMwareCloudonAWSandOraclePaaS/UCCostComparison

TinyOracleWorkloads

SmallOracleWorkloads

MediumOracleWorkloads

LargeOracleWorkloads

VMwareCloudonAWS(Lowestcostlicensingoption)

$347,153.69 $642,320.37 $861,281.30 $1,667,026.11

OraclePaaS/UC(Withoutrefactoringcost)

$209,679.36 $471,778.56 $733,877.76 $1,677,434.88

OraclePaaS/UC(Withrefactoringcost)

$314,519.04 $707,667.84 $1,100,816.64 $2,516,152.32

Conclusions ThisanalysisdemonstratessomethingthatHouseofBrickhaslongbeenawareof,thatOraclelicensecostsfaroutweighinfrastructurecostsincloudstrategyconsiderations.Designingacost-effectivearchitecturetohostOracleworkloadswhileminimizingtotalcostsshouldfocus,firstandforemost,onminimizinganorganization’sOraclelicensingliabilities.Thisistrueregardlessofwhetheraworkloadishostedon-premisesorinapubliccloudenvironment.

Foranyorganizationconsideringmigrationtoapublicorhybridcloudarchitecture,itisimportanttounderstandallofthecostsassociatedwithOracleworkloads,andinparticulartheoptionsavailabletoarchitectasolutiontominimizethosecosts.Oracle’sCloudofferingshavelowcostoptionsforverysmallworkloads,butlargelylackthefeaturesandinteroperabilityofferedbyothercloudproviders,includingtheVMwareCloudonAWS.Whiletheremaybesomeadditionalcomplexityaroundlicensemanagement,VMwareCloudonAWSwilllikelybeamoreattractivewhole-solutionfororganizationslookingforasimplepathtothecloudwithouttheneedtore-architectapplicationsorconvertworkloadstoadifferentformatinordertoimportthemintoapublicorhybridcloud.

ComparingVMwareCloudonAWSandOracleClouddirectlyacrossallexampleworkloadsrevealsamodelwheretinyOracleworkloadsaredifficulttolicenseasinexpensivelyinVMwareCloudonAWSastheyarewithOracle’sIaaSorPaaSofferings.Therequirementtolicenseentirehostswhenusingtraditionallicensing,orlicensingvCPUsattwicethecostversusOracle’sowndiscountedratemeansthatOracleCloudIaaS/BYOLwilltendtobelessexpensivefortinyworkloads.Asanorganization’sOraclesoftwareworkloadsgrow,itbecomesincreasinglyeasiertocrossthebreak-evenpointswheretraditionalcore-basedlicensingforaclusterbecomeslessexpensivethanvCPUlicensing.Oncethebreak-evenpointiscrossed,additionalworkloadseffectivelyhavenomarginalincreaseinlicensingcostastheentireclusterisalreadylicensed.OnceworkloadscansaturateentireSDDCclusters,theapplicationoftraditionalcore-basedlicensingmakesVMwareCloudonAWSthemostcost-effectiveoptionforrunningOracleworkloadsinapubliccloud.

TheVMwareCloudonAWScurrentlysuffersfromalackoftoolstohelppinworkloadstoasubsetofanSDDCcluster,whichwouldmakeiteasiertolowerthebarforhittingthosebreak-evenpointswheretraditionalcore-basedlicensingbecomesadvantageous.Ifafewsimplefeaturessuchashardhostaffinityruleswereaddedto


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VMwareCloudonAWS,itwouldbecomeeveneasiertopinworkloadstolicensedclusternodesandreduceassociatedlicenseliabilities.

Withtheadditionofsomeworkloadpinningtools,orworkloadslargeenoughtosaturateentireclusters,theVMwareCloudonAWSoffersanunbeatablesolutionforhostingOraclesoftware-basedworkloadsinacost-effectivemanner.

TheoverallrecommendationfromHouseofBrickisthattheVMwareCloudonAWSrepresentsabetterwholecloudsolutionforOraclecustomers,especiallythosealreadyrunningtheirOracleworkloadsinaVMwarevirtualizedenvironment.Theoperationalandarchitecturalbenefits,aswellasthecostadvantagesforlargerworkloadsintheVMwareCloudonAWSoutweighanybenefitsthattheOraclecloudmayoffer.


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Appendix A Oracle Software License Cost Calculations AllestimationsofOraclesoftwarelicensingcostsweremadeonthebasisofOracle’smostrecentpublishedglobalpricelist12.Inallcases,calculationsweremadeontheassumptionthata25%discountcouldbenegotiatedfromstandardlistprices.

Pricingwasannualizedonathree-yearbasisbycalculatingtheinitialpriceandaddingthreeyearsofSoftwareUpdateLicenseandSupport(SULS)fees,thendividingthetotalbythree.Thepricingwasthenfurtherdividedbytwotorepresentper-corepricingasthestandardpricingisperProcessorLicense,whichonx86platformstranslatestotwocoresperOracle’sProcessorCoreFactortable13.Trackingpricingonaper-corebasisisusefulwhencomparingdissimilarenvironmentssuchasphysicalon-premisesenvironmentsversuscloudenvironments.

TableA1:OracleDatabaseLicenseCalculations

ProcessorLicensing(DatabaseEnterpriseEdition+Partitioning+TuningPack+DiagnosticsPack)

NUPLicensing(x25)(DatabaseEnterpriseEdition+Partitioning+TuningPack+DiagnosticsPack)

OracleDatabaseEnterpriseEdition

$47,500.00 $23,750.00

PartitioningOption $11,500.00 $5,750.00

DiagnosticsPack $7,500.00 $3,750.00

TuningPack $5,000.00 $2,500.00

TotalListPrice–Database+Options

$71,500.00 $35,750.00

TotalPrice(after25%assumeddiscount)

$53,625.00 $26,812.50

1stYearSULS $11,797.50 $5,898.75

2ndYearSULS(3%uplift) $12,151.43 $6,075.71

3rdYearSULS(3%uplift) $12,515.97 $6,257.98

TOTALPURCHASE+SULS $90,089.89 $45,044.95

3YearannualizedperprocessorLicense

$30,029.96 $15,014.98

3Yearannualizedpercore $15,014.98 $7,507.49

12http://www.oracle.com/us/corporate/pricing/technology-price-list-070617.pdf13https://www.oracle.com/assets/processor-core-factor-table-070634.pdf


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TableA2:OracleDatabaseLicenseCalculations

ProcessorLicensing(DatabaseEnterpriseEdition+Partitioning)

NUPLicensing(x25)(DatabaseEnterpriseEdition+Partitioning)

OracleDatabaseEnterpriseEdition $47,500.00 $23,750.00

PartitioningOption $11,500.00 $5,750.00

DiagnosticsPack NA NA

TuningPack NA NA

TotalListPrice–Database+Options NA NA

TotalPriceafter25%assumeddiscount $59,000.00 $29,500.00

1stYearSULS $44,250.00 $22,125.00

2ndYearSULS(3%uplift) $9,735.00 $4,867.50

3rdYearSULS(3%uplift) $10,027.05 $5,013.53


3YRannualizedperprocessorLicense $74,339.91 $37,169.96

3YRannualizedpercore $24,779.97 $12,389.99

TableA3:OracleWebLogicLicenseCalculations

ProcessorLicensing-WebLogicEnterprise

NUPLicensing(x10)-WebLogicEnterprise

OracleWebLogicEnterpriseEdition $25,000.00 $5,000.00

TotalPrice(after25%assumeddiscount) $18,750.00 $3.750.00

1stYearSULS $4,125.00 $825.00

2ndYearSULS(3%uplift) $4,248.75 $849.75

3rdYearSULS(3%uplift) $4,376.21 $875.24


3YearannualizedperprocessorLicense $10,499.99 $2,100.00

3Yearannualizedpercore $5,249.99 $1,050.00


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Appendix B Oracle Cloud IaaS Costs Allpricingwasdoneusingpublishedpricingfromhttps://cloud.oracle.com/en_US/iaas/pricing.

TableB1:OracleCloudIaaSCalculations

Workload Product VMs vCPUSize

OCPU OCPUHourlyCost

InfrastructureCostAnnual

LicensingCostAnnual

TotalAnnualCost

Tiny $35,740.80 $282,239.66 $317,980.46

OracleDatabase

2Small,2Tiny

12 16 0.1275 $17,870.40 $198,239.76

OracleWebLogic

2Small,4Tiny

12 16 0.1275 $17,870.40 $83,999.90

Small $80,416.80 $635,039.24 $715,456.04

OracleDatabase

1Medium,5Small,3

Tiny

34 36 0.1275 $40,208.40 $446,039.47

OracleWebLogic

4Medium,8Tiny

34 36 0.1275 $40,208.40 $188,999.78

Medium $125,092.80 $987,838.82 $1,112,931.62

OracleDatabase

2Large,7Small,3Tiny

66 56 0.1275 $62,546.40 $693,839.17

OracleWebLogic

2Large,7Small,3Tiny

66 56 0.1275 $62,546.40 $293,999.65

Large $285,926.40 $2,257,917.31 $2,543,843.71

OracleDatabase

4Large,16small,8tiny

144 128 0.1275 $142,963.20 $1,585,918.11

OracleWebLogic

4Large,16small,8tiny

144 128 0.1275 $142,963.20 $671,999.20


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Appendix C Oracle PaaS Costs Allpricingwasdoneusingpublicpricingfromhttps://cloud.oracle.com/en_US/database/enterprise/pricingandhttps://cloud.oracle.com/en_US/java/pricing.

TableC1:OracleCloudPaaSCalculations

Workload Product VMs OCPU OCPUHourly(LicenseIncluded)

AnnualCost

Tiny $209,679.36

OracleDatabase 2Small,2Tiny 16 1.1089 $155,423.42

OracleWebLogic 2Small,2Tiny 16 0.3871 $54,255.94

Small $471,778.56

OracleDatabase 1Medium,5Small,3Tiny

36 1.1089 $349,702.70

OracleWebLogic 1Medium,5Small,3Tiny

36 0.3871 $122,075.86

Medium $733,877.76

OracleDatabase 2Large,7Small,3Tiny

56 1.1089 $543,981.98

OracleWebLogic 2Large,7Small,3Tiny

56 0.3871 $189,895.78

Large $1,677,434.88

OracleDatabase 4Large,16small,8tiny

128 1.1089 $1,243,387.39

OracleWebLogic 4Large,16small,8tiny

128 0.3871 $434,047.49


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Appendix D Workload Cloud Costs Thesetablesrepresentthefullcostmodelingforallworkloadscenarios.Includedcostsforeachscenarioincludeinfrastructurecosts,licensingcostsbytraditionalcore-basedlicensing,andlicensingcostsbycloudpolicyvCPUlicensing.

TableD1:TinyWorkloadCloudCosts

CloudConfiguration

NetCoreBasedLicensing

(Infrastrucutre+Licensing)

NetCloudPolicyLicensing

(Infrastructure+Licensing)

TraditionalCoreBasedLicensing

Cost

CloudPolicyvCPULicensing

CostInfrastructure

Cost

4NodeVMCSDDC–144core $3,126,104.22 $451,127.69 $2,918,156.22 $243,179.69 $207,948.00



3NodeVMCSDDC–54core

(50%CoreDisabled) $1,290,799.53 $399,140.69 $1,134,838.53 $243,179.69 $155,961.00

2NodeSDDC-36core(50%Core

Disabled) $833,513.06 $347,153.69 $729,539.06 $243,179.69 $103,974.00

3NodeSDDC–27core(75%CoreDisabled) $642,320.37 $399,140.69 $486,359.37 $243,179.69 $155,961.00


Dual2NodeSDDC–144core N/A N/A N/A N/A N/A

Dual2NodeSDDC–72core(50%Disabled) N/A N/A N/A N/A N/A

OraclePaaS $209,679.36 N/A N/A N/A $209,679.36

OracleIaaS $317,980.46 N/A N/A $282,239.66 $35,740.80


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TableD2:SmallWorkloadCloudCosts

CloudConfiguration






Cost


CostInfrastructure

Cost





(50%CoreDisabled) $1,290,799.53 $844,970.11 $1,134,838.53 $689,009.11 $155,961.00


Disabled) $833,513.06 $792,983.11 $729,539.06 $689,009.11 $103,974.00


2NodeSDDC–18core(75%CoreDisabled) N/A $792,983.11 $324,239.58 $689,009.11 $103,974.00

Dual2NodeSDDC–144core N/A N/A N/A N/A N/A

Dual2NodeSDDC–72core(50%Disabled) N/A N/A N/A N/A N/A


OracleIaaS $715,456.04 N/A N/A $635,039.24 $80,416.80


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TableD3:MediumWorkloadCloudCosts

CloudConfiguration






Cost


CostInfrastructure

Cost

4NodeVMCSDDC–144core $3,126,104.22 $1,545,436.27 $2,918,156.22 $1,337,488.27 $207,948.00


2NodeVMCSDDC–72core N/A N/A N/A $1,337,488.27 $103,974.00


(50%CoreDisabled) $1,290,799.53 $1,493,449.27 $1,134,838.53 $1,337,488.27 $155,961.00


Disabled) N/A N/A N/A $1,337,488.27 $103,974.00

3NodeSDDC–27core(75%CoreDisabled) N/A N/A N/A $1,337,488.27 $155,961.00


Dual2NodeSDDC–144core $1,667,026.11 $1,545,436.27 $1,459,078.11 $1,337,488.27 $207,948.00

Dual2NodeSDDC–72core(50%Disabled) $937,487.06 $1,545,436.27 $729,539.06 $1,337,488.27 $207,948.00

Dual3NodeSDDC–108core(50%Disabled) $861,281.30 $1,649,410.27 $549,359.30 $1,337,488.27 $311,922.00


OracleIaaS $1,112,931.62 N/A N/A $987,838.82 $125,092.80


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TableD4:LargeWorkloadCloudCosts

CloudConfiguration






Cost


CostInfrastructure

Cost





(50%CoreDisabled) N/A N/A N/A $2,918,156.22 $155,961.00


Disabled) N/A N/A N/A $2,918,156.22 $103,974.00



Dual2NodeSDDC–144core $1,667,026.11 $3,126,104.22 $1,459,078.11 $2,918,156.22 $207,948.00

Dual2NodeSDDC–72core(50%Disabled) N/A N/A N/A $2,918,156.22 $207,948.00

Dual3NodeSDDC–108core(50%Disabled) N/A N/A N/A $2,918,156.22 $311,922.00

OraclePaaS $1,677,434.88 N/A N/A N/A $1,677,434.88

OracleIaaS $2,543,843.71 N/A N/A $987,838.82 $125,092.80

Documents

OPTIMIZING ORACLE COSTS IN THE CLOUD...Cloud on AWS. For larger workloads, we demonstrate how the VMware Cloud has a lower total cost of ownership (TCO), even with Oracle’s attempt