I have been thinking:

Maybe the licensing of Oracle VDI can be simplified:
Why not use the following structure to get more competitive in the Windows VDI market?

Firmware support on the Sun Ray = 4% of Sun Ray 3 hardware price.
This is then the same as the support on peripherals like keyboards and mice
Firmware support is then the same on all Sun Rays.

In order the connect to a Sun Ray server you need a CAL = RTU license per user or device.
The price could be set at $50 per RTU.

If you are running the servers on NON Oracle systems then:
Support on the RTU would be 8% of the price of the RTU.
This is the same as support on regular OS software.

If you are running the servers on Oracle systems with Oracle Linux or Solaris then: A premium support contract on those systems (12% of hardware costs) will entitle you to use these servers as VDI servers with no extra charge.
It is than part of the Solaris OS like containers, Ldoms, etc.

In the example below this will result in licensing cost over 6 years for:
Oracle systems = 6x $10 (firmware) + $50 (RTU) + 6x $60 (server support) = $ 470 /Sun Ray / 6 years Non Oracle systems = 6x $10 (firmware) + $50 (RTU) + 6x $24 (RTU support) = $ 254 /Sun Ray / 6 years

This is much more in line with the $351 difference between Microsoft VDA and SA licensing. This would make the Sun Ray much more competitive in the Windows VDI market considering the special features of the Sun Ray. All though the revenue per Sun Ray will be lower I believe the total Sun Ray revenue will be higher with this price structure.
Just because Oracle would scare away a lot less potential customers ;-)

Kind regards,

Ivar



Ivar Janmaat schreef:
Interesting!

One way to look at this is that the Oracle licenses to maintain a Sun Ray over a period of 6 years should not exceed AUD$882 - AUD$521 = AUD$361= USD$351 That way the Sun Ray can be as competitive in showing MS Windows as any MS Windows based Thin client. (from a MS license point of view) I think I would have a hard time explaining to customers that, Premium Support on 1.3 MB of Sun Ray firmware and 3 servers OSes with VDI software, would be more expensive than the Microsofts software assurance costs for all Windows 7 OSes on all clients. ;-)

I am not used to $AUD so I try to do some calculations of my own:

Basic Assumptions:
Microsoft SA on Windows 7 Pro = USD$858 / 6 years / Windows installation (=AUD$882 see below)
Microsoft VDA = USD$507 / 6 years / device (=AUD$ 521 see below)
Sun Ray 3i = USD$699
Sun Ray 3 = USD$249
Sun Ray RTU = USD$150


Calculations:
1. Sun Ray hardware support = (12% of Sun Ray hardware price. Needed to update the firmware)
Sun Ray 3i = USD$84 / per year
Sun Ray 3 = USD$30 / per year

2. Sun Ray software support
Premium support = 22% of RTU = USD$33 / year

3. Oracle Premium system support for the  Oracle VDI servers
3x servers for running a high available VDI implementation capable of supporting 100 Sun rays will need: 12% of hardware price / year / 100 = 12% of say USD$5000 /year / 100 = $600 / 100 = $60 per Sun Ray / year


Ok, now lets add this all up!
License cost for Sun Ray 3 = $150 + 6x $30 + 6x $33 + 6x $60 = $888 / Sun Ray per 6 years License cost for Sun Ray 3i = $150 + 6x $84 + 6x $33 + 6x $60 = $1,212 / Sun Ray per 6 years

Ooooops!!! What happend!!!!!
Did I make a mistake?
I am not even close to the $351 difference in the microsoft vda license.

Can someone at Oracle please explain the following to me?:
1. Why is the firmware support on the Sun ray 3i so much more expensive than on the Sun Ray 3? In my opinion it should all be the same. External / internal video what's the difference in code? 2. Why is the software support and licensing of the Sun Ray 3 and 3i more than 2,5 to 3.5 times it should be to be competitive in the Windows client market?

My conclusion is that someone at Oracle really needs to go through these percentages since there is not much room for lower hardware prices to counter this. (As Craig very accurately explained) As I mentioned above I don't think Oracle can justify these support prices for the Sun Ray / VDI software. It is just not that much code.....

Kind regards,

Ivar


David Bullock schreef:

On 26 October 2010 03:18, Brad Lackey <[email protected] <mailto:[email protected]>> wrote:


    On Oct 25, 2010, at 8:54 AM, David Bullock wrote:
    I can't talk much to the latest pricing of the DTU's and
    associated licensing, except to note that the recent 'product use
    rights' from Microsoft requires that virtualised desktop OS's
    only be accessed from a device which also has a Windows OS on it
    - or else one is up for 'VDA' license just a few dollars *more*
    than a full licence for Windows.  So Oracle can't entirely be
    blamed for the shift in viability of the solution as a whole.
     (The commonly-used Wyse/HP/et-al terminals generally have an OEM
    Windows CE on them and dodge this hit ... and actually suggests
    something that Oracle could do (license WinCE OEM without using
    it!) ... to increase the attractiveness of the solution pricing).

    When doing VDI or WTS/RDS from a thin client, Microsoft requires
    server side licenses. Period. There is no free lunch here, there
    is no avoiding paying MS for developing software that we use.
    There are certainly several routes and options for licensing data
    center MS products for consumption by a remote client so don't get
    confused.


For new deployments, VECD (Virtual Enterprise Centralised Desktop) is no longer one of those routes. Instead, many of the rights previously conferred by a VECD licence are now conferred by having Software Assurance on the device you are accessing the virtualised desktop *from*. If the device you use to access the virtualised desktop doesn't have a Software Assured version of Windows, then you can purchase and assign a VDA license to it to acquire the same rights. Looking at the appropriate commercial purchasing program for companies with 5 - 250 desktops (Open Value Standard) over the full 6-year term of that type of agreement, here are the RRP (in $AUD) of those respective options:

A. Windows 7 Pro with SA over 6 years (3 x Win Pro/SA pack, then 3 x SA only) is $882.

B. Windows Virtual Desktop Access over those same 6 years (36 x VDA/month) is $520.92

So over a 6 year period, Microsoft are getting their grubby mits on $521 of the savings derived from deploying thin clients.

These difficulties affect all thin-client systems equally, and isn't a dis-advantage of Sun Ray in particular (chill, Oracle dudes). But it does mean that the VDI case is more difficult to make. I did find it surprising that Oracle employees weren't aware of the change. If you Google for "microsoft vecd change", you'll get a bunch of industry discussion griping about VECD -> VDA change imposed in March of this year.

(My earlier statement about VDA costing *more* isn't currently true when comparing apples to apples over the 6-year term - although I seem to remember differently last time I did the math. Also, may earlier statement that using a WinCE OEM'ed 'thin' client gets around the need for VDA seems to be false as well - unless you can get SA (at $94/yr) for a WinCE device (versus VDA @ $173/yr), which isn't something I've seen discussed anywhere).

cheers,

David Bullock
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