Organizations using Oracle products face strategic decisions in shifting to the cloud and addressing digital transformation. The shift to the cloud presents significant opportunities and concerns for your long term on-premises software strategy. View these slides to learn more.

1. Crafting Your Oracle License, Contract and Vendor
Management Strategy
R “Ray” Wang (@rwang0)
Principal Analyst & Chairman, Constellation Research

2. © 2010-2017 Constellation Research, Inc. All rights reserved.
Speakers and Agenda
Agenda:
• Navigating the Oracle Audit Process
• Implementing Mature SAM Processes
• Crafting Win-Win Scenarios
• Setting Your Own Strategy For Cloud
Migration
2@rwang0 #DisruptingDigital
R “Ray” Wang
Principal Analyst & Chairman
Constellation Research
John Emmitt
Enterprise Marketing Manager
Flexera Software
jemmitt@flexerasoftware.com
>>Click here to Watch this Webinar On Demand Now<<

3. © 2010-2017 Constellation Research, Inc. All rights reserved. 3@rwang0 #CloudBillofRights
Normal disclaimers
Constellation Research is not a legal adviser nor claims any legal expertise
Constellation Research provides third party advisement and recommends that
all decisions be approved by appropriate legal counsel
Constellation Research is neither your vendor procurement expert nor claims
knowledge of your entity’s polices and procedures.
Constellation Research provides third party advisement and recommends that
all decisions be approved by your procurement team and follow appropriate
protocols.

4. © 2010-2017 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Win-win scenarios for Oracle
customers takes a smart
strategy and some good tech
(2015)

5. © 2010-2017 Constellation Research, Inc. All rights reserved.
Navigating the Oracle Audit Process
5@rwang0 #OracleStrategy

6. © 2017 Flexera Software LLC. All rights reserved. | Company Confidential
FlexNet Manager for Oracle
Oracle LMS Verified Solution for
Databases, Options and
Management Packs

7. © 2010-2017 Constellation Research, Inc. All rights reserved.
Implementing Mature SAM Processes
7@rwang0 #OracleStrategy

8. © 2010-2017 Constellation Research, Inc. All rights reserved.
Understand
your
environment
Standardize
your
ontologies
Calculate
compliance
and usage
Optimize
contracts
Renew as
needed
Inside the basics of software licensing
optimization
8@rwang0 #DisruptingDigital
>>Click here to Watch this Webinar On Demand Now<<

9. © 2017 Flexera Software LLC. All rights reserved. | Company Confidential
Mature Oracle License Management

10. © 2017 Flexera Software LLC. All rights reserved. | Company Confidential
Setting the Scope – Gross Value Method
Vendor Software Title License Entitlement Cost Product
Family
Oracle Database 11G 500 Named User
Plus
$XYZ Technology &
Middleware
Database 11G 250 Processor
Licenses
$XYZ Technology &
Middleware
E-Business
Suite
Application User
License
$XYZ Applications
WebLogic 750 Processor
Licenses
$XYZ Technology &
Middleware
Hyperion Business Metric $xyz Applications

11. © 2017 Flexera Software LLC. All rights reserved. | Company Confidential
Contracts & Entitlements
• Gather and process a complete set of entitlements and contracts,
within scope
• Summarize this data into an entitlement position
• Load the entitlements into the AMDB
Asset Management
Database
Entitlements

12. © 2017 Flexera Software LLC. All rights reserved. | Company Confidential
Oracle Discovery & Inventory
Inventory Data Layers:
Database Editions, Options & Management Packs
Virtualization Information
Other Application Attributes: Application Users,
Revenue, Other Business Metrics
Hardware and Software Inventory

13. © 2017 Flexera Software LLC. All rights reserved. | Company Confidential
Oracle License Reconciliation
Generate an Oracle License Position
Inventory
(& Core Factors,
etc.
Entitlements
>>Click here to Watch this Webinar On Demand Now<<

14. © 2017 Flexera Software LLC. All rights reserved. | Company Confidential
Reporting & Optimization
• Cost Optimization Strategies
– Maintenance Cost Reductions
– Optimizing in Virtual
Environments
– Processor vs NUP Licensing
– Rationalization of the Portfolio

15. © 2010-2017 Constellation Research, Inc. All rights reserved.
Crafting Win-Win Scenarios
15@rwang0 #OracleStrategy

16. © 2010-2017 Constellation Research, Inc. All rights reserved. 16@rwang0 #OracleStrategy
Four personas of the CIO emerge amidst disruption
Chief
Integration
Officer
Chief
Innovation
Officer
Chief
Infrastructure
Officer
Chief
Intelligence
Officer
The New
C “I” O
External Focused
Internal Focused
TechnologySavvy
BusinessSavvy

17. © 2010-2017 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Most CIO’s would rather focus on innovation and
intelligence
© 2011-2017 R Wang & Insider Associates, LLC. All rights reserved. From the Next Generation CIO Survey Q1 2015 n= 109; Q1 2016 n= 117, Q1 2017 n=116

18. © 2010-2017 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
However, 38% of CIOs focus on cost reduction
© 2011-2017 R Wang & Insider Associates, LLC. All rights reserved. From the Next Generation CIO Survey Q1 2015 n= 109; Q1 2016 n= 117, Q1 2017 n=116

19. © 2010-2017 Constellation Research, Inc. All rights reserved. 19@rwang0 #OracleStrategy
Cloud contracts have dramatically increased in
complexity
From
- Month to month
- User based
- All inclusive
- Single application
- Simple contracts
- Swipe and buy
- Minimal integration
To
- Long term (3 to 7 years)
- User and usage based
- Module and add-on based
- Suites and platforms
- Master agreements
- Procurement involved
- Highly complex integration
SimpledaysofSaaS
Increasingcomplexityincloud

20. © 2010-2017 Constellation Research, Inc. All rights reserved.
Ownership
experience
Selection
process
Implementation
Usage
Maintenance
Retirement/
renewal
20@rwang0 #OracleStrategy
Begin with the continuum of software usage
1
2
3
4
5
6

21. © 2010-2017 Constellation Research, Inc. All rights reserved.
Setting Your Own Strategy For Cloud Migration
21@rwang0 #OracleStrategy

22. © 2010-2017 Constellation Research, Inc. All rights reserved. 22@rwang0 #DisruptingDigital
Oracle is Driving Cloud Revenue
Cloud
Revenues
Maintenance
cut in
exchange for
cloud
revenue
Upgrades to
cloud
products
Conversion of
shelfware to
cloud
products
Head on
competition
with best of
breed cloud
solutions
Third party
maintenance
Smart ULA
agreements
for entire Red
Stack

23. © 2010-2017 Constellation Research, Inc. All rights reserved. 23@rwang0 #DisruptingDigital
Cloud flips the pyramid and enables digital
Move to
shiny new
apps
Pure Digital
Approach
Stay with
status quo
Hybrid
Digital
Strategy
New Applications
Existing Applications
On-Premises
CloudFirst

24. © 2010-2017 Constellation Research, Inc. All rights reserved. 24@rwang0 #OracleStrategy
Five entry points to the cloud by maturity
Migrate
workloads
Migrate
enterprise
Access
SaaS apps
Manage
hybrid
cloud
Innovate
with the
cloud

25. © 2017 Flexera Software LLC. All rights reserved. | Company Confidential
Oracle Cloud Considerations
• Costs due to elimination of Core Factors
in Authorized Cloud Environments
• AWS and Hyper-threading
• AWS vCPUs, Microsoft Azure CPU
Cores and Processor License Counts
Oracle
>>Click here to Watch this Webinar On Demand Now<<

26. © 2010-2017 Constellation Research, Inc. All rights reserved. 26@rwang0 #DisruptingDigital
Multi-modal not bi-modal for success
Concept to commercialization
Transformational
innovation
Incremental
innovation
Culture
Governance
Sustaining
operations

27. © 2010-2017 Constellation Research, Inc. All rights reserved. 27@rwang0 #DisruptingDigital
Large enterprise buying trends reflect legacy
Inevitable shift to the cloud due to replacement cycle
Migration to cloud hindered by customizations, integrations, and fear
Deep industry capabilities sorely missing in cloud offerings
Real analytics rare in the market
Options segmented by market size and geo
Best of breed trumps cloud suites for now
Vendors chasing cloud revenue ahead of functionality

28. © 2010-2017 Constellation Research, Inc. All rights reserved.
R “Ray” Wang
+1.650.918.6619
R@ConstellationR.com
@rwang0
www.raywang.org
www.ConstellationR.com
Thank you.
Any questions?

29. © 2010-2017 Constellation Research, Inc. All rights reserved.
Join me and other innovators at
Join me and other innovators at
Constellation’s
Connected Enterprise
The Ritz Carlton, Half Moon Bay, CA | October 25-27, 2017 | www.constellationevents.com
29

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www.constellationR.com
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31. Thanks for Attending!
For More Information Visit:
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