Purchasing a new Oracle license in the Public Sector? How to beat the price rise!
March 21, 2011 Leave a comment
It’s that time of the year again when the Public Sector is setting up budgets and planning ahead for the next twelve months. But just how aware are central government departments and local authorities of every element which could affect their IT budget calculations? A key consideration should be the impact that Oracle’s 32% price rise will have on next year’s increasingly tight budgets.
What’s the price you pay?
The new Oracle pricing, which will affect new licenses, will come into effect on the 1st of April, placing immense pressure on the Public Sector to place orders before or on the 25th of March to beat the price increase. But as Oracle technology underpins all major Government databases and virtually all public sector organisations, the risk of under-budgeting doesn’t just apply to projects currently in play. It can also have drastic consequences for projects in the IT pipeline.
This may sound obvious, but we can’t emphasise enough how important beating this Oracle price hike could be for the Public Sector right now. At a conservative estimate, we’re looking at approximately 20% of Public Sector IT budgets dedicated solely to Oracle. When you add in a projected 32% price rise, this grows to nearly 27% of total new spend of your IT budget.
To put this in perspective the license cost currently for a single processor of enterprise edition Database with Tuning, Diagnostics and Partitioning options including the 35% discount for Public Sector is £22,775 +VAT and the annual Support and maintenance is £5,010 +VAT. With the price increase it will cost £30,063 +VAT and £6,613 +VAT respectively which means over the next 5 years you will spend a whopping £15,303 +VAT extra by buying in 3 week’s time rather than now.
It is significant price differences such as these that cause shortfalls in other areas if you don’t plan ahead properly.
The trick to avoiding the pitfalls of under-budgeting is to make sure you’re spending the remainder of this year’s IT budget wisely and receive the best price at the optimum level. Before anything, assess where you can spend on Oracle investments, make informed predictions as to where you will need new licenses soon and make the purchase now. You will literally get more for your money.
Of course, even for the most organised department, this is a mammoth task to complete before the 25th March. If you need a helping hand, there’s always the option to call in the experts in Oracle optimisation.