Critical software licensing pitfalls to avoid when moving to the cloud | TechRepublic

Cloud competition

Traditional enterprise IT vendors have long taken notice of Amazon Web Services’ (AWS) success. It seems every major enterprise application vendor has, or had, a public cloud offering. Cisco, HPE, and VMware represent companies that attempted and abandoned direct public cloud offerings. SAP, Oracle, and Microsoft, however, continue to hold AWS at bay.

Software licensing is one of the tools available to traditional IT vendors in their cloud strategy. Oracle is an example of a vendor that leverages their software pricing strategy. Oracle effectively doubled the cost of running Oracle software on AWS EC2 instances, to discourage the use of another cloud platform. Customers wanting to run Oracle software in a multi-tenant cloud are encouraged to run the software on Oracle’s cloud platform. Customers who select Oracle’s cloud platform receive appealing pricing options compared to AWS and Azure.

Running an Oracle DB in Oracle’s cloud creates a halo effect. Oracle databases normally represent enterprise applications, which are a center of gravity for data and system integration. Additional workloads are likely to be placed in the same cloud service to provide low latency network access. As such, Oracle may pull in additional workloads because of the pricing advantage.

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Critical software licensing pitfalls to avoid when moving to the cloud – TechRepublic.