July 17th, 2009
Oracle cranks up some prices 40%
I have this imaginary letter in my head from Oracle to customers that goes something like this:
Dear Customer
You don’t need me to tell you we’re in the teeth of the worst recession in living memory but as you know, we at Oracle are committed to providing you with the best value possible. Recently we rolled out Fusion Middleware and as I’m sure you all know, this will be the centerpiece around which the long awaited Fusion Apps will integrate. We believe that when taken together, these will provide you with an application landscape that delivers outstanding value and potential return on investment.
While putting this strategy together, we’ve discovered that some components were not appropriately priced and it is for that reason we are introducing new prices for the diagnostic and tuning packs, as well as the database configuration management pack.
Some might be surprised at the extent of the price rises but at Oracle, we believe in sharing in what I’m sure you’ll see as your long term good fortune.
Yours sincerely
Larry
The more serious side to this is that TechWorld is reporting that some components have been price hiked by 40%:
Processor licences for the company’s diagnostic and tuning packs, as well as a database configuration management pack, are now US$5,000(£3,040), up from $3,500(£2,130) listed on a 2008 price list.
The first two products are meant to help database administrators target and resolve performance problems. The latter tool is used for a range of tasks, such as tracking database configuration changes and ensuring policy compliance.
Meanwhile, a processor licence for the enterprise edition of Oracle’s database remains priced at $47,500, following a roughly 20 percent increase last year.
These may be small potatoes in the scheme of things but provide an excellent example of the kind of nickel and diming that customers regularly grumble over. However, as the Techworld article says, these are price negotiation starting points with nothing to stop Oracle offering extra discounts at no penalty and so making buyers look good. That would not be difficult in the current economy. I am hearing reports that customers are demanding and getting up to 90% discount in some deals.
Even so, price is a bit of a distraction. In the current economy, the name of the game must surely be about eeking as much as you can from existing, eliminating shelfware and optimizing apps usage without triggering yet more charges from your supplier.
All the same, I give Oracle credit for producing a price list that we can pick over. Others don’t.
Dennis Howlett has been providing comment and analysis on enterprise software since 1991. See his full profile and disclosure of his industry affiliations.
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