How to Optimize Oracle Software and Cloud Costs on AWS:
- Review Oracle product usage and licenses.
- Identify over/under-usage of licenses.
- Transition non-production workloads to pay-per-use Oracle Cloud Services on AWS.
- Leverage Oracle Support Rewards to reduce support costs.
- Reallocate high-cost licenses to cloud subscriptions.
- Mix on-prem, cloud, and AWS commitments for cost efficiency.
How to Optimize Oracle Software and Cloud Costs on AWS
Optimizing Oracle software and cloud costs on AWS is essential for many organizations that rely on Oracle products for critical applications but are also looking to trim their IT budgets.
Managing Oracle licensing is complex, and cloud usage introduces even more variables. However, you can save significantly on costs with careful planning, a detailed understanding of licensing terms, and the strategic use of cloud services like AWS.
In this article, we’ll explore how to create a roadmap for optimizing Oracle software and cloud costs on AWS, from reviewing current usage to transitioning to a mix of on-premise and cloud agreements for maximum flexibility and cost savings.
The Oracle-AWS Partnership
First, let’s talk about the partnership between Oracle and AWS that has made optimizing Oracle costs on AWS even more attractive. Once limited to Microsoft Azure and Google Cloud, Oracle Database Cloud Services are now available on AWS. This partnership allows customers to:
- Leverage existing AWS commitments to purchase Oracle Database services.
- You can use existing Oracle licenses under programs like Bring Your Own License (BYOL) and benefit from Oracle’s discount programs, such as Oracle Support Rewards (OSR).
The result? Organizations now have a new avenue to optimize their Oracle spend by using AWS as their primary cloud platform while reducing their Oracle support costs. This marks a major shift, giving customers more flexibility in managing Oracle workloads across different cloud providers and environments.
Roadmap to Optimize Oracle Software and Cloud Costs on AWS
Organizations should follow a structured approach to fully leverage this new partnership and optimize Oracle costs.
Here’s a step-by-step roadmap:
1. Review Your Current Oracle Usage
The first step in optimizing costs is understanding which Oracle products your organization uses today. Conduct an in-depth audit of your Oracle environment.
This includes:
- Identifying all Oracle software in use: Look at production and non-production environments and list all Oracle products currently being deployed.
- Understanding licensing models: Oracle uses different licensing models for various products (such as CPU-based or user-based licenses). Ensure you understand how each product is licensed.
This review is critical to determine if you’re paying for software you no longer use or if there are opportunities to consolidate usage.
2. Identify Over-Usage and Under-Usage
Next, evaluate your organization’s current Oracle software usage to identify any over-usage or under-usage:
- Over-usage: Are there environments where you’re exceeding your Oracle license entitlements? Over-usage can lead to non-compliance and potential fines if discovered during an audit. Identifying over-usage early allows you to take corrective action.
- Under-usage: Conversely, you might be paying for more licenses than you need. If you’re under-utilizing licenses, you can reduce spending by decommissioning excess licenses or reallocating them to other environments.
3. Review Non-Production Usage
Cost optimization often overlooks non-production environments (such as development, testing, or staging). However, non-production Oracle workloads can significantly impact your cloud and license costs.
To optimize:
- Assess actual usage: Determine how much time these non-production environments are running. Many organizations have non-production environments running 24/7, even though they are only needed during business hours.
- Optimize uptime: Transition non-production environments to cloud-based Oracle Database Services on AWS, where you pay only for actual usage. This can help reduce unnecessary licensing and support costs.
By shifting these workloads to cloud-based services, you free up licenses and avoid paying for unused capacity.
4. Review Oracle Support Costs per Contract
One of the most significant components of your Oracle spend is support costs. Oracle charges annual support fees, typically a percentage of the original license cost.
To optimize these expenses:
- Analyze your support contracts: Review the support costs associated with your Oracle agreements. Focus on identifying which contracts represent high costs and which are more cost-efficient.
- Determine support per license: The less support you pay relative to the number of licenses, the better your contract. Identify high-cost agreements where support fees seem disproportionate to the number of licenses. These are prime candidates for optimization.
By thoroughly understanding where you’re paying the most in support costs, you can begin to make more informed decisions about transitioning to alternative solutions.
5. Allocate Licenses for Low-Cost Production Environments
Licenses with lower support costs are often better for production environments where uptime and reliability are crucial. Allocate these lower-cost licenses to your most important workloads, ensuring you’re not paying more than necessary for production support.
- Balance cost with performance: While low-cost licenses may be attractive, ensure they meet your performance needs for production environments.
You can reduce your overall support spend by strategically assigning licenses to different environments based on their support cost without sacrificing performance or reliability.
6. Prioritize High-Cost Licenses for Transition to Cloud
High-cost licenses should be the priority when reviewing whether they can be transitioned to Oracle Cloud Subscriptions. This is because Oracle Cloud Subscriptions often come with built-in support, which could help you avoid the separate, recurring support fees attached to perpetual licenses.
- Leverage the Oracle-AWS partnership: Use Oracle Database Cloud Services on AWS to shift high-cost licenses to cloud subscriptions. With the Oracle Support Rewards program, you can reduce your support fees by earning credits based on your cloud usage.
- BYOL benefits: If you’re using BYOL on AWS, you can reduce costs by combining your existing licenses with cloud resources, avoiding the need for new licensing altogether.
Focusing on transitioning high-cost licenses to Oracle Cloud on AWS will save you on support fees and allow you to take advantage of modern cloud infrastructure.
7. Build a Mix of On-Prem, Cloud, and AWS Commitments
Finally, organizations should build a mix of on-premise, cloud, and AWS commitments to achieve the best possible cost structure. This approach provides both flexibility and cost savings:
- On-premise: Maintain a streamlined Oracle environment for workloads requiring more control or where moving to the cloud isn’t viable.
- Cloud: Transition workloads that benefit from flexibility or scalability to Oracle Database Cloud Services on AWS.
- AWS commitments: Use AWS commitments to purchase Oracle services, maximizing the value of your cloud investment.
By balancing these different environments, organizations can optimize their Oracle spending while maintaining the flexibility to adapt as needs change.
FAQ: Oracle Database Cloud Services on AWS & Cost Optimization
1. What is Oracle Database Cloud Service on AWS?
Oracle Database Cloud Service on AWS allows you to run Oracle databases in a cloud environment, utilizing AWS infrastructure. It brings the flexibility of Oracle cloud services to AWS, enabling customers to use their existing Oracle licenses and AWS commitments while benefiting from cloud-based scalability and cost savings.
2. Can I use my existing Oracle licenses on AWS?
Yes, through the Bring Your Own License (BYOL) model, you can use your existing Oracle licenses to run Oracle Database Cloud Services on AWS. This allows you to avoid purchasing new licenses and further reduce your costs by using what you already have.
3. How does Oracle Support Rewards (OSR) work on AWS?
Oracle Support Rewards allow you to earn credits (25-33% of every dollar spent on Oracle Cloud infrastructure) to offset your support fees. Now that Oracle Database Cloud Services are available on AWS, customers can take advantage of OSR by running Oracle workloads on AWS and reduce the amount they pay for on-premise Oracle support.
4. What are the benefits of moving my Oracle workloads from EC2 to Oracle Database Cloud Services on AWS?
Moving from EC2 to Oracle Database Cloud Services on AWS allows you to pay only for what you use, potentially freeing up licenses for other purposes or eliminating unneeded support costs. You also gain access to OSR, which reduces your Oracle support costs by earning credits for your cloud spending.
5. How can I optimize non-production Oracle workloads on AWS?
Moving to Oracle Database Cloud Services on AWS allows you to scale down your infrastructure costs for non-production environments, such as development or testing. Non-production workloads often don’t need to run 24/7, and by shifting them to the cloud, you can pay only for the time you use, reducing your overall Oracle licensing and support costs.
6. How do I identify my organization’s Oracle software over-usage or under-usage?
To identify overuse, audit your Oracle environments to see if you’re using more resources or licenses than your agreements allow, which could result in non-compliance. For underuse, check for licenses that aren’t being fully utilized and consider reallocating or decommissioning unused ones to lower costs.
7. What steps should I take to review and reduce Oracle support costs?
Start by reviewing your Oracle support contracts to identify which ones have higher support fees than the licenses they cover. For contracts with disproportionately high support fees, consider transitioning those workloads to Oracle Cloud subscriptions on AWS, where built-in support is included and costs are often lower.
8. Can I mix on-premise Oracle workloads with cloud-based services on AWS?
Organizations can combine on-premise Oracle workloads with cloud-based services on AWS to build a flexible and cost-effective environment. This hybrid approach allows you to keep critical workloads on-prem while using AWS for scalable, cost-efficient Oracle cloud services for less critical or more elastic workloads.
9. How do I decide whether to use Oracle Database Cloud Services on AWS or stay on-prem?
This decision depends on your organization’s specific needs. If you require scalability, flexibility, or lower operational overhead, Oracle Database Cloud Services on AWS may be a better option. However, staying on-prem might make sense if you need full control over your infrastructure or have workloads highly sensitive to latency.
10. How can Redress Compliance help my organization with Oracle licensing and cost optimization?
Redress Compliance specializes in Oracle licensing, cloud, and cost optimization. We assist organizations in navigating Oracle’s complex licensing rules, identifying areas where costs can be reduced, and maximizing the benefits of Oracle’s partnerships with AWS and other cloud providers. Contact us to learn how we can help you optimize your Oracle spending.
Read more about our Oracle License Management Services.
