Oracle database deal in Azure comes with a health warning from licensing experts

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As nan particulate settles connected Microsoft's determination to location Oracle hardware successful its datacenters, experts keeping a adjacent oculus connected Big Red's commercials are informing customers to tread cautiously erstwhile choosing nan transition.

In September past year, nan 2 tech giants announced immoderate of Oracle's hardware would unrecorded successful Azure datacenters for a work called "Oracle Database@Azure." The scheme was, they said, to trim latency erstwhile users displacement information betwixt Oracle databases and Azure services and/or infrastructure.

Speaking astatine nan clip of nan news, Oracle laminitis and CTO Larry Ellison said: "We've made it 1 seamless thing: you spell to nan Azure portal, you tin proviso an Oracle Autonomous Database, our very latest exertion connected an Exadata server, our very fastest technology. You tin past wed that to OpenAI technology, [Microsoft collaboration platform] Teams. You tin wed that to this unthinkable room of Microsoft technology: it's each now 1 multi-cloud system."

But successful nan documentation [PDF] describing guidelines for licensing its products successful nan cloud, Oracle says it counts "two vCPUs arsenic balanced to 1 Oracle Processor licence if multithreading of processor cores is enabled."

The result is that, arsenic Oracle sees it, customers salary double to move their database licence to Azure. In nan main news, Oracle said customers could usage their Bring-Your-Own-License strategy aliases Unlimited License Agreements (ULA), to make nan purchases successful Azure.

Oracle licensing master Craig Guarente, Palisade Compliance laminitis and CEO, told The Register:

"They opportunity you request doubly arsenic galore licenses complete location [in Azure], but nary of this is contractual; it's conscionable worldly Oracle makes up. I deliberation it's going to beryllium an costly solution. You person to bargain immoderate worldly from Oracle, and you person to log into Microsoft marketplace and bargain immoderate worldly from Microsoft. It's not 1 vendor. Now you're dealing pinch two."

Guarente said customers considering nan move should look astatine their contracts pinch Oracle for nan position detailing different ways to licence successful unreality versus connected prem, specified arsenic processor definitions.

"It's nan aforesaid rumor pinch virtualization and VMware that has been going connected for years and years. It's not a negotiation. If you're moving on-prem and you want to move to Azure, nan past point I would do is spell to Oracle and say, 'Am I allowed to do this?'"

However, notwithstanding commercialized considerations, for immoderate users, nan Oracle-Microsoft tie-up could activity well, he said. "These are embedded Oracle users utilizing Exadata on-prem, and… [if] you're an Azure fan, past this could beryllium a really bully fresh for you."

The Register has asked Oracle for a statement.

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Eric Guyer, founding partner pinch package plus guidance advisory patient Remend, said liking from Oracle customers had been muted since nan announcement of Oracle Database@Azure. "[Nonetheless] I'm assured it comes astatine a premium. Larry Ellison said successful nan announcement that Exadata is nan model, and nan portion numbers affirm this. Our customers activity to commoditize database services and prevention money; Exadata runs nan other direction, nan astir costly deployment model, nary matter whose cloud," he said.

Another licensing master who said to The Register and asked not to beryllium named said he had seen galore cases wherever companies assistance and displacement their infrastructure to nan unreality to trim their IT costs aliases to usage caller method advantages presented by advancing unreality exertion – only to find that their migration now requires double nan magnitude of Oracle licenses antecedently required.

"The costs of endeavor package simply cannot beryllium ignored erstwhile making nan determination to move to nan cloud. My proposal to immoderate statement considering Oracle Database@Azure would beryllium to make judge that their Oracle licensing experts are sitting astatine nan array passim nan decision-making process," he said. ®