Thanks for the explanation of the term licenses, Tim. I have to admit, I didn't know that there was such a thing called term license for Oracle. I had a blurb of an idea about software leases, but always thought the support costs were based on lease, not on perpetual license.
Arup ----- Original Message ----- To: "Multiple recipients of list ORACLE-L" <[EMAIL PROTECTED]> Sent: Sunday, June 01, 2003 11:24 AM > This is my understanding of the situation for the US only; your mileage may > vary and I could be very much out of date. But I don't think things have > changed a lot... > > --- > > The perpetual licenses are supposed to be a one-time payment for the > software, after which you have rights to the software going forward into > "perpetuity". Yes, forever is a long time; we'll see... > > The 4-year and 2-year "term" licenses are merely leases on the software that > expire. After the term is over, you no longer have a license. The 4-year > term license usually costs 60% of the perpetual license and the 2-year term > license usually costs 35% of the perpetual license. The upsides of the term > licenses are obvious: less upfront cost. The downside should be equally > obvious: you have to make another decision and potentially another payment > in 2 or 4 years. Oracle sales folks hate going through the decision process > again, so they try not to mention the term pricing if they can. > > The rationale for term licensing is either startup companies or other > uncertain projects. Why pay for "perpetuity" when you are unsure that you > are still going to be around in several years? > > Of course, there is some game theory involved. Oracle changes its licensing > schemes every once in a while, and market conditions can always shift. If > you pay 35% now, you might have more favorable terms and conditions in two > year's time. On the other hand, those shifts in conditions can also work in > Oracle's favor and against you, so you may end up missing an opportunity to > lock in now. > > You rolls the dice, you takes your chances... > > If you think you're going to use the software for only 2- or 4-years total, > then obviously the term licensing is a good deal overall. However, let's > say you use the software for 6 years overall (after which you switch to > freeware PostGreSQL, which by now has features comparable to Oracle15z). If > you buy three successive 2-yr term licenses, you have paid 105% of a > perpetual license (i.e. 35% times three). And so on... > > --- > > Another thing to note: besides these license costs, you have to factor in > the on-going support fees, which are charged annually for the duration of > the license. They are still (I believe) 22% of a perpetual license. Note > that support fees are not discounted into terms the way licenses are. You > are always charged a percentage of the full (perpetual) license cost, not of > your discounted term license cost. > > Of that 22%, 15% goes toward allowing you free upgrades of the software and > 7% goes toward the use of Worldwide Support (i.e. MetaLink et al). So, when > you pay the initial license, you are licensing one version of the software. > In order to be able to upgrade your license, you have to pay the 15% annual > fee. In order to use MetaLink, you have to pay the 7% annual fee. > > Nice business to be in, no? > > Hope this helps... > > > > > on 6/1/03 1:14 AM, [EMAIL PROTECTED] at [EMAIL PROTECTED] wrote: > > > We are concerned on licensing especially as we are setting up a > > Disaster Recovery Site. During our Investigation it seems that > > TERM licensing can come out cheaper. Anyone have any idea on > > this or any disadvantages of leasing the software as opposed to > > owning it, > > > > thanks > > > > Sam > > -- > Please see the official ORACLE-L FAQ: http://www.orafaq.net > -- > Author: Tim Gorman > INET: [EMAIL PROTECTED] > > Fat City Network Services -- 858-538-5051 http://www.fatcity.com > San Diego, California -- Mailing list and web hosting services > --------------------------------------------------------------------- > To REMOVE yourself from this mailing list, send an E-Mail message > to: [EMAIL PROTECTED] (note EXACT spelling of 'ListGuru') and in > the message BODY, include a line containing: UNSUB ORACLE-L > (or the name of mailing list you want to be removed from). You may > also send the HELP command for other information (like subscribing). > > -- Please see the official ORACLE-L FAQ: http://www.orafaq.net -- Author: Arup Nanda INET: [EMAIL PROTECTED] Fat City Network Services -- 858-538-5051 http://www.fatcity.com San Diego, California -- Mailing list and web hosting services --------------------------------------------------------------------- To REMOVE yourself from this mailing list, send an E-Mail message to: [EMAIL PROTECTED] (note EXACT spelling of 'ListGuru') and in the message BODY, include a line containing: UNSUB ORACLE-L (or the name of mailing list you want to be removed from). You may also send the HELP command for other information (like subscribing).
