Hosted by: Jason Keogh – Founder and CTO, iQuate Will Monin – Alliances Director, VMware Virtualizing server environments carelessly can lead to significant, unexpected costs in relation to software licenses from vendors such as Oracle, Microsoft and IBM. However, done correctly, Virtualization can actually significantly reduce software license costs while improving performance, scalability and reliability of enterprise applications. Unfortunately, many customers are prevented from realizing these benefits because of widespread confusion and uncertainty around the implications of licensing Oracle in VMware environments. This webinar will be jointly hosted by iQuate and VMware and is focused on Oracle database licensing. It will provide insights as to how best structure virtual environments to reduce costs while ensuring compliance and providing maximum ROI. Intended Audience: Professionals working in: Software Asset Management IT Asset Management Procurement IT Management IT Operations Anyone who needs practical guidance on maximizing ROI from implementing Oracle in virtual environments.

1. OPTIMIZING ORACLE LICENSING IN
VMWARE ENVIRONMENTS
Will Monin, Director of Strategic Alliances, VMware
Jason Keogh, CTO & Founder, iQuate

2. Agenda
• Introduction
• Oracle licensing 101
– Why Inventory is difficult for Oracle
• The iQuate Approach
• iQSonar – Delivering Detail on Oracle
• IQSonar – Optimizing your VMware Oracle environment
• Questions and Answers

3. Introduction
Vendors
iQuate
(DIME)
Tech
Advisors
Partners

4. Introduction: DIME
• Discovery
Defining the scope of possible “universe” – what may be there.
Example activity: Checking a network range for active IP Addresses or
identifying details for database connectivity strings.
• Inventory
Definitive translation of Discovery data into definitive, unique, identifiable
hardware & software assets, specifically servers, installed software,
processes, services, hard disks, etc.
Example activity: Logging into a Unix server, issuing and parsing
commands

5. Introduction: DIME
• Measurement
Gathering details beyond a simple count. Understanding configuration of
applications, clusters and relationships between applications to establish
full data required for license metric identification.
Example Activity: Querying Oracle database to identify options and
packs installed and in-use.
• Extensibility
Supporting the ability to extend the data queried to enable iQSonar to
gather site specific details and to export iQSonar data to site specific
“down-stream” repositories.
Example Activity: Adding a new query for MS SQL to identify use of an
internally written application.

6. Oracle licensing 101
What data is required?

7. Oracle Licensing: Complexity
• To license Oracle you need to understand the
platform underpinning the technology
• 2 primary license options:
– “Processor”
– Named User Plus

8. Oracle license costs

9. Servers: Moore’s Law and the Data explosion
1 Core 2 Core 4 Core 6
$47,500 Core 8 12
Core
Core
CPU history
<2006: 1 Core (single) $285,000
2006 – 2007: 2 Core (dual)
2007 - 2009: 4 Core (quad)
2009 - 2011: 6, 8, 10 Core
2012 - 2013: 12 Cores
2014 onwards: 24, 48, 64, 128 Cores ??

10. The effect of Moore’s law on licensing
• As servers became multi-processor in the late 1990’s,
IBM, Oracle and others introduces “Processor”
licensing
• As processors became hyper-threaded and multi-core,
IBM introduced PVU licenses and Oracle introduced
Core Factors

11. Not all cores are created equal
Sun, Fujitsu UltraSPARC T1 (1.0 or 1.2GHz)
SPARC T3
Core Factor 0.25
Sun, Fujitsu UltraSPARC T1 (1.4 GHz)
Intel Xeon Series 56xx, 65xx, 75xx
Core Factor 0.5
Effective price per core
Sun UltraSPARC T2
HP PA-RISC 47,500*0.25
47,500*1
47,500*0.75
47,500*0.5
Core Factor 0.75 = $11,850
$47,500
$35,625
$23,750
All Single Core Chips
IBM P6, P7
Core Factor 1
Source: http://www.oracle.com/us/corporate/contracts/processor-core-factor-table-070634.pdf

12. Oracle Licensing: Complexity
• Processor License
– Core factor
› CPU Type: x86/x64 (Intel and AMD), Power, RISC, Itanium, etc.
› Purchase date!
• NUP License
– Processor Minimums

13. Oracle in a Virtual world
• Virtualization & Partitioning
– Hard v Soft partitioning
– Hard partitioning isolates a “Server” to specific hardware
– VMware is always considered Soft partitioning
• When running on a server which is “soft partitioned”
Oracle generally requires that ALL underlying
processors which the server may run on be licensed

14. Virtualization
VMware cluster, 4 ESX servers each with 4x 6 core Xeon processors = 96 cores (4 x 24 cores)
1 VM with 1 core assigned.
VM VM VM VM
VM VM VM VM VM If customer intends VMotion to be freely enabled
on the cluster – all 96 cores must be licensed.
VM VM VM VM
If VMotion is NOT enabled on the cluster, the 24
cores in the physical server must be licensed
VM VM VM VM
VM VM VM VM
VM VM VM VM

15. The VMware customer’s perspective
•Customers love virtualization and VMware
• 960 Fortune 1000 corporations run VMware products
• VMware’s growth is very fast
• $3.77 billion revenue in 2011, up 32%
• $1.06 billion revenue in Q4 2011, up 27%
•VMware customers are moving toward cloud models
• Better workload consolidation ratios
• More dynamic workload placement
• Highly accurate cost accounting and compliance management
• Negotiating with vendors for practical licensing models

16. vSphere is a better platform for any workload
SLAs
Improve App  Better performance with dynamic resources and scalability
Quality of Service  Enhanced availability and automated DR for all apps
Cost Reduction
Improve App  Lower hardware and software costs with 5X - 10X consolidation
Efficiency
 Reduced Opex with intelligent policy management
Agility
Accelerate App  Provisioning times reduced from weeks to minutes
Time-to-Market  Optimized test/dev environments
16 Confidential

17. The Trend Is Clear
% of Workload Instances Virtualized by VMware Customers
67%
53% 47%
42% 43%
34% 28% 28%
38% 25%
Apr
25%
2011
18% Jan
MS MS MS Oracle Oracle
2010
SAP
Exchange SharePoint SQL Middleware DB
Source: VMware customer survey, Jan 2010 and April 2011 interim results,
Data: Total number of instances of that workload deployed in your organization and the percentage of those instances that are virtualized
17 Confidential

18. Why is Oracle growth slower?
• Fear of unexpected licensing liabilities on high-cost products
• Highly mobile virtual workloads don’t fit “old school” EULAs
• IT infrastructure teams haven’t focused on licensing before

19. Why is VMware here today?
• Customers that have the facts make smart decisions
• Virtualizing (or not) based on real costs and benefits
• Choosing VMware (or not) based on real value
• Evolving their infrastructure toward their strategic needs, not
compromising based on unquantified risks
• Customers that optimize licensing in their virtualization plan get better
ROI and fewer surprises
• Licensing based on physical hardware is an inventory problem
• Customers with the tools to manage their plans focus on achieving
operational benefits, instead of avoiding licensing liabilities

20. Why is VMware here today?
• VMware customers are virtualizing Oracle:
• Optimizing licensing costs
• Significantly improving their operational capabilities
• Re-deploying licenses to automated DR functions
• Increasing uptime
• Increasing IT manpower efficiency
• Developing the skills to manage highly dynamic infrastructures
that will evolve to hybrid cloud architectures
20

21. VMware’s Perspective: Solve fear, solve the problem

22. iQSonar
Visibility provides clarity

23. iQSonar – Dashboard View

24. iQSonar: Oracle, virtual and physical
7 Virtual
1 Physical Per Instance Data

25. iQSonar

26. iQSonar

27. Virtualization
VMware cluster, 4 servers with 4x 6 core Xeon processors = 4 x 24 cores
1 VM with 1 core assigned.
VM VM VM VM
VM VM VM VM VM How many Processor licenses of EE are required?
a) 1
VM VM VM VM b) 12
c) 48
d) Not enough information to tell.
VM VM VM VM
VM VM VM VM Correct answer:
d) Not enough information to tell.
VM VM VM VM
VMware cluster details relating to
VMotion required to know.

28. iQSonar: Virtual Server listing
1 Cluster
6 Physical 258 Virtual servers 176 cores

29. iQSonar: VMware server configuration detail

30. Maximizing value

31. Maximizing value
• Visibility provides control
• When under control, using VMware as a platform to underpin
Oracle deployments provides operational benefits while
reducing TCO

32. Virtualization
VMware cluster, 96 cores $47,500 per processor
VM VM VM VM 48 processors = $2,280,000
VM VM VM VM VM
VM VM VM VM
VMware server, 24 cores
VM VM VM VM VM VM VM
VM VM VM VM VM
VM VM VM VM VM

33. Virtualization
8x physical servers with 2 single core processors each, 16 processor licenses.
P P P P P P P P
VMware cluster, with VMotion, 2x Quad core Xeons in each server
8x virtual servers with 2 cores each.
• Newer cores out perform older CPU’s
VM VM VM VM
• Environment now has failover
VM VM VM VM • Cost to license Oracle is halved

34. Accurate and complete
How complete is your inventory?

35. Where VMware customers are going:
• Any software license terms agreed to must be honored
•Some customers negotiate better terms for themselves to
make deployment with virtualization easier
• Awareness that deploying Oracle workloads carelessly can
create an expensive license liability
• Motivated to optimize Oracle workload deployment
• Achieving the benefits of virtualization on key workloads
• Using tools to enforce policies and control the environment
• Increasing ROI by active management of licensing costs

36. Questions?