SAP, Oracle Price Hikes Open Door for License Optimization

By Chris Kanaracus

Mon, July 28, 2008 — IDG News Service —

Oracle and SAP's recent announcements around higher license and support costs may have made one group happy: Third-party companies and consultants who sell wares and services that, in theory, help customers ease the pain of increased software prices.

Acresso Software, one of a number of companies that sell software for cataloging licenses and analyzing usage patterns, recently announced a product tuned for SAP Business Suite.

It can help customers figure out whether they have too many licenses or if their workers are properly classified, said Roger Bottum, senior vice president of marketing at the company, which competes with the likes of Sassafras Software. "That has ultimately a very big impact on the cost of licenses and then the cost of maintenance."

But this capability requires a significant investment. Pricing for Acresso's software is generally US$200,000 and up, according to Bottum.

Ray Wang, an analyst with Forrester Research, said there are definitely a few benefits to tracking software assets in an organized way. There are the obvious benefits of eliminating shelfware and ensuring compliance with the terms of licensing deals. But companies can also gain a stronger hand at the negotiating table with vendors if they know what they've got and where, he said.

"In a large company with federated decision-making, one division may have bought 100 copies of [Microsoft] SQL Server and another bought 200 without the knowledge of the other one," he said.

Since vendors often set discounts based on the total value of a contract, it's better for a company to strike deals as a unit, rather than one division making its own purchases, Wang noted.

The six-figure cost of software like Acresso's should be viewed in a certain context, according to Wang. For example, companies could track their licenses on an Excel spreadsheet, although that might effectively require a couple of full-time workers, he said.

But a license management consultant whose company focuses on Oracle said software alone can't get the job done.

"We have yet to find any single product that can add a significant amount of value," said Eliot Colon, president of Miro Consulting in Fords, New Jersey. "We have seen some that add marginal amounts of value. But the issue is that the Oracle licensing rules are highly complex, with hundreds of unique products that have their own rules. There are very few tools that are flexible and adaptable enough."

Companies interested in buying a license management tool should first conduct an initial audit, either by a third party or internally, to discover what they have, Colon said.


Loading...
Applications MarketSpace
Practical Approaches for Securing Web Applications
Enterprises understand the importance of securing web applications to protect critical corporate and customer data. What many don't understand, is how to implement a robust process for integrating security and risk management throughout the web application software development lifecycle. Learn more »
An Executive's Guide to Web Application Security
Since so many Web sites contain vulnerabilities, hackers can leverage a relatively simple exploit to gain access to a wealth of sensitive information, such as credit card data, social security numbers and health records. It's more important than ever to examine your Web application security, assess your vulnerability and take action to protect your business. Learn more »
Web Application Vulnerabilities
Security managers may work for midsize or large organizations; they may operate from anywhere on the globe. But inevitably, they share a common goal: to better manage the risks associated with their business infrastructure. Increasingly, Web application security plays a significant role in achieving that goal. Learn more »
Using ERP To Gain Competitive Advantage in a Tough Economy
For midsize enterprises, now is the perfect time to invest in a significant IT expansion - despite the economic climate. Learn more »
Why BI is Ripe For Businesses of Any Size
Oracle's range of offerings to mid-size and emerging companies reflects its vision that BI and EPM solutions can be embraced by companies of all sizes. Learn more »
Oracle Accelerate
Ovum has been following Oracle's Accelerate program over the last couple of years because they thought it is a smart strategy for penetrating the upper mid-market. Learn more »
The New Age of ERP
Not only can small and mid-sized companies reap the renowned ERP benefits of greater agility, increased business visibility and measurable ROI. Learn more »
 
SPONSORED LINKS
 

CRM Built for IT: The Executive Guide to Selecting CRM that Meets IT Needs

ROI of Application Delivery Controllers

White Paper: 4 Customer Service Myths

White Paper: Improve Agility with Operational Responsiveness

Removing the Barriers to IT Governance: How On-Demand Software Changes the Game

Cloud Computing--Latest Buzzword or a Glimpse of the Future?

A Balanced Approach to an Application Development Platform

Adobe® LiveCycle®solutions for intuitive user experience

10 Ways Excel Drives More Value from Your SAP Investment

What's New in SOA Suite 11g?

Unleash the Power of Java with Oracle JRockit Real Time

SOA Best Practices and Design Patterns

Application Grid: Ideal Platform for IT Consolidation

Ready to virtualize tier one applications? Check your virtualization maturity.

Learn how to provide complete Business Service Management.

Increase ROI of Your Application Portfolio

Return on Information: Google Enterprise Search pays you back. Get the facts.

VMware. The source for Business Infrastructure Virtualization.

ShoreTel tells businesses to untangle from competitors' complexity and turn to its brilliantly simple UC solution

See how AT&T can help protect your network.

Streamline IT Costs. Boost Performance with WAN Optimization.

Build your 1st app FREE with Force.com

TDWI checklist helps define data readiness for analytics. Download report.

eZine: A Roadmap to Reducing IT Complexity

Reduce risk, gain agility. See how Progress can help your business.

What's Next for Enterprise Resource Planning?

Gartner Magic Quadrant, Application Delivery Controllers 2009

White Paper: Managed Security for a Not-So-Secure World

SharePoint - Unchecked growth of content is unsustainable.

Focus Under Pressure: Why IT Governance Becomes Mission-Critical in a Down Economy

Should Your Email Live In The Cloud? A Comparative Cost Analysis

Adobe® LiveCycle® solutions for business process automation

Architecting Business Intelligence Applications for Change: The Open Solution

Increase UPS efficiency without sacrificing protection.

Unlocking the Mainframe: Modernizing Legacy System to SOA

State of the Data Integration Market

Enhance Customer Loyalty through Higher Responsiveness

Achieving Business Agility with Application Grid

Seven Ways ITIL Can Help You in an Economic Downturn

Four steps to populate your CMDB.

"Enterprise-Proven" is the Prerequisite for Enterprise SaaS Portal Solutions

AT&T Synaptic Storage as a Service. Expand on demand

Trend Micro ranked #1 against real-world malware. Read more.

Webinar: Jump-start your in-house e-discovery with Ringtail QuickCull from FTI Technology

Top Five CIO Challenges

Read the RSA report: Security for Business Innovation

64-page prescriptive guide to security, compliance, and IT operations.

A Clear View Toward Virtualization

Virtualization Technology as a Business Solution

The rules of infrastructure management just changed.

 
 
RESOURCE CENTER