Oracle database licensing

Maximizing Value from Oracle Advanced Compression: Benefits vs Licensing Costs

Maximizing Value from Oracle Advanced Compression

Maximizing Value from Oracle Advanced Compression

This article analyzes Oracle Advanced Compression from a value perspective, weighing its substantial benefits in data storage savings and performance improvements against its licensing costs.

Aimed at enterprise IT leaders (CIOs/CTOs) and database managers, it explores how Advanced Compression can reduce storage footprints, improve backup and network efficiency, and defer hardware costs.

It also discusses scenarios where investing in the Advanced Compression option makes sense (and where it might not), including real-world examples.

By the end, readers will have a framework to determine if Advanced Compressionโ€™s ROI justifies its price tag for their organization and how to maximize the benefits if they license it.

What Does Oracle Advanced Compression Offer? (Features and Benefits Recap)

Oracle Advanced Compression isnโ€™t just one feature โ€“ itโ€™s a bundle of advanced data compression and optimization capabilities.

Key components include:

  • Advanced Row Compression (OLTP Compression): Compresses data within tables on the fly, significantly reducing disk space for transactional data. Unlike basic compression (which only works for bulk loads or read-only data), OLTP compression works during regular DML operations, yielding continuous space savings. Benefit: Storage for large OLTP databases can often be cut by 2- 4x, and smaller data means less I/O, potentially improving read performance (at the cost of some CPU for compression/decompression).
  • Advanced LOB Compression and Deduplication: Compresses large objects (CLOBs, BLOBs) and eliminates duplicate LOB content. Benefit: Ideal for apps that store lots of documents, images, or XML in the database โ€“ you save storage and buffer cache by compressing and storing identical LOB data. This can be a huge space saver if, for example, the same document is stored multiple times for different records.
  • Data Pump Export Compression: This allows compressing the dataย andย metadata during Data Pump exports (beyond the basic metadata-only compression thatโ€™s free).ย Benefit:ย It greatly shrinks dump file sizes when moving data between environments, saving time on transfers and disk space for storing backups/exports. It is particularly useful for large database migrations or refreshes where network and storage are bottlenecks.
  • RMAN Backup High Compression: Oracleโ€™s backup tool (RMAN) has some compression for backups in the base Database, but the Advanced Compression option unlocks higher compression levels and algorithms. Benefit: Smaller backup files mean lower storage costs and faster backup completion times (less data written to disk or tape). In some cases, backup size reduction is similar to table compression ratios, meaning multi-terabyte backups can be cut in half or more.
  • Network Data Guard Compression: Compresses redo data sent over the network in Data Guard asynchronous replication. Benefit: Reduces bandwidth usage and speeds up log transport to standby databases. If you have limited network bandwidth between primary/standby (especially across data centers), this can solve throughput issues or save on network costs.
  • Heat Map and Automatic Data Optimization (ADO): These features work together: Heat Map tracks usage โ€œheatโ€ of data (how actively rows are queried/updated), and ADO uses that info to automatically compress or move data based on policies. For example, you could have a policy: โ€œIf a table partition hasnโ€™t been modified in 90 days, compress it.โ€ Benefit: Automation of information lifecycle management โ€“ the database will tier your data to colder, more compressed storage formats over time. This maximizes space savings with minimal manual effort and ensures you always get the compression benefit on older data.
  • Advanced Index Compression: Further compresses indexes (beyond the basic prefix compression available in EE) and Hybrid Columnar Compression (HCC) row-level locking support: The Advanced Compression option formally covers some capabilities to use HCC-like compression on certain storage and to have finer locking. Benefit: Indexes can sometimes be as large as the table data; compressing them yields space and potentially memory benefits. While HCC is usually an Exadata feature, the option ensures that any use of hybrid compression tech outside Exadata is licensed.
  • Others: There are additional perks like Flashback Data Archive optimization (storing history in compressed format), Data Pump Compression (for import/export data), and even Exadata flash cache compression (which requires both Exadata hardware and the Advanced Compression license to compress data in flash cache on Exadata). Each of these contributes to either space reduction or performance in specific scenarios.

In summary, Advanced Compressionโ€™s value proposition is straightforward: store the same data in a much smaller footprint (on disk, in backups, and in transit) and gain potential performance boosts in I/O and networkโ€”all at the expense of some extra CPU overhead to compress/decompress.

The net effect, in many cases, is positive: modern CPUs are quite capable, and IO or storage is often the bigger cost bottleneck.

Cost of Advanced Compression: One-Time and Ongoing

Before diving into ROI, recall the costs weโ€™re weighing against benefits:

  • One-Time License Fee: ~$11,500 per processor (list price). Depending on your Oracle discount and environment size, this could be tens or hundreds of thousands of dollars. Itโ€™s a capital expense (or one-time budget hit).
  • Annual Support Fee: 22% of the license cost, adding up every year. Over 5 years, support will roughly equal the license cost. This is an important factor โ€“ the benefit of Advanced Compression must be ongoing enough to justify not just the initial cost but the support renewals.
  • Hardware/CPU Impact: While there is no direct fee, remember that compression uses CPU. If your servers are already CPU-constrained, you might end up needing to provision more processors or cores (which for Oracle means more licenses for the database itself!). Thatโ€™s an indirect cost. Many shops find the CPU overhead modest (single-digit percentage increase in CPU usage for substantial IO reduction). Still, it varies if you upgrade hardware to handle compression; factor that in.

Think of it this way: implementing Advanced Compression is like a projectโ€”thereโ€™s an initial investment (licenses + possibly hardware tuning) and an ongoing cost (support and maintenance of the feature).

Now, what returns do we get?

Where Advanced Compression Delivers ROI (Use Cases)

Not every environment will benefit equally. Here are scenarios where the value often outweighs the cost:

  • Large OLTP Databases with Steady Growth: Consider a customer database or an ERP system thatโ€™s 5TB and growing 20% a year. Storage isnโ€™t cheap โ€“ enterprise SAN storage could be $1000/TB or more when you factor in replication, backups, data center costs, etc. Advanced Compression could potentially reduce that 5TB to ~2.5 TB. Thatโ€™s 2.5TB saved, which could be several thousand dollars of storage hardware deferred. Over a few years of growth, you might avoid adding 5-10TB of storage, which could justify the license cost. Additionally, smaller data size can mean better cache utilization and faster queries (if IO is a limiter). The license cost for an 8-processor DB might be high, but if it delays a $200k storage upgrade or improves user transaction speed, thereโ€™s real ROI.
  • Data Warehouses and Archival Data: Data warehouses often keep historical data for analysis. Much of that data is infrequently accessed (cold). With ADO policies, you can automatically compress older partitions to a high degree. Oracleโ€™s hybrid columnar compression (if on Exadata) or regular advanced compression can shrink older data dramatically (up to 10x for HCC on archival mode). If youโ€™re not on Exadata, Advanced Compression is your next best tool to compress that warehouse data. The ROI here comes from storage savings and retaining more history without expanding your storage footprint. This is especially relevant if youโ€™re in an industry with retention requirements โ€“ you can keep 7 years of data online in the same space that 3 years might have occupied.
  • Backup Storage and DR Bandwidth Savings: Compression pays off if your backup strategy involves keeping many full backups or shipping backups offsite. An Advanced Compression license on the production DB allows RMAN to create smaller backup sets. This reduces the space needed on backup media and speeds up recovery (fewer bits to read). Similarly, compressing the redo logs saves network bandwidth if you replicate backups or use Data Guard. For a global enterprise, shipping lots of data to a DR site or cloud object storage can reduce bandwidth costs and transfer times. Quicker backups and restores also mean shorter maintenance windows โ€“ an operational benefit thatโ€™s hard to quantify but very valuable.
  • Consolidation and Cloud Migration: Smaller databases are cheaper to move and run if you plan to consolidate databases or move to the cloud. On cloud, you pay for storage and sometimes I/O operations: cutting your database size with compression can shrink your cloud storage bill and improve performance on cloud VMs (which often have IOPS limits). Some Oracle Cloud services include compression, but if you BYOL to a cloud VM, doing compression on-premises first can make the migration easier (less data to push over the WAN). In a consolidation scenario (multiple schemas or databases on one server), compression might allow you to fit more on the same hardware without expanding storage significantly. This could let you decommission older servers sooner or avoid buying new ones.
  • LOB-Heavy Applications: Applications that store files in the DB (document management systems, etc.) see huge benefits from Advanced Compressionโ€™s securefiles compression and dedup. For example, one insurance company using Oracle to store scanned documents found that with compression/dedup, the storage for their documents went from 10TB to 3TB โ€“ a massive savings given high-end storage costs. In such cases, the license cost was justified in a year from hardware savings and reduced data center footprint (power, cooling for those storage arrays). If your databases have a lot of LOB data, this feature can sometimes rationalize the Advanced Compression purchase.

When Might Advanced Compression NOT Be Worth It?

To make a balanced decision, consider scenarios where the cost might outweigh the benefit:

  • Small Databases or Short-Lived Data: If your Oracle databases are modest (under 500GB) and not growing rapidly, the storage savings might be minimal. Spending a six-figure sum on licenses to save maybe tens of gigabytes isnโ€™t economical. Similarly, if data is transient (e.g., mostly recent data that gets archived/deleted quickly), you wonโ€™t gain much by compressing.
  • CPU-Bound Workloads: In some applications, CPU is the critical resource (e.g., heavy computations in the database). If those systems are already near CPU capacity, introducing compression could slow them down or force an expensive hardware upgrade (which also means more Oracle core licenses). If you canโ€™t spare the CPU cycles, the performance hit might overshadow the benefits of I/O reduction. Always benchmark โ€“ Oracle provides an โ€œalter table … compress for OLTPโ€ on test tables to estimate gains and measure overhead. You can test compression on a sample of data to see the size savings and any impact on transaction throughput.
  • Environments with Cheaper Alternatives: Perhaps your storage is already compressed/deduplicated at the array level. Modern storage appliances sometimes compress data transparently. If youโ€™re getting 2x compression from your storage array, adding Oracle Advanced Compression on top may yield diminishing returns (you might save some, but less). Or if you primarily need to compress backups, maybe you could use an external backup solution that compresses backup files outside of Oracle. If thereโ€™s a way to achieve the goal with existing infrastructure or cheaper software, consider that first.
  • Licensing Constraints: If youโ€™re in a situation where buying Advanced Compression licenses would trigger a broader license issue (for example, youโ€™re out of compliance on something else and opening that discussion invites bigger costs), you might hold off. When nearing end-of-life for a system or considering a move to a different platform, some companies choose not to invest in new licenses for an option but rather manage data growth in other ways until the switch. If you plan to move off Oracle in a couple of years, the ROI horizon for Advanced Compression might not be reached in time.

Strategies to Maximize Benefits if You License Advanced Compression

Suppose you decide the benefits justify it, and you will license Advanced Compression. How do you ensure you realize the value?

Simply buying the option doesnโ€™t magically compress your data; a plan is needed:

  • Identify Target Tables/Indexes: Analyze which tables, partitions, or LOB columns will benefit most. Focus on large tables and those with idle or historical data. Use Oracleโ€™s Advisor (the DBMS_COMPRESSION package has a procedure to estimate compression ratios for a table). This helps prioritize where to apply compression for maximum impact.
  • Phased Implementation: Donโ€™t compress everything simultaneously and hope for the best. Start with non-critical tables or in a staging environment to gauge performance changes. Monitor the CPU overhead, query performance, and storage savings. Then proceed in batches. For instance, compress older partitions of a partitioned table first; leave recent partitions uncompressed if those get heavy writes. This phased approach ensures you donโ€™t overwhelm the system or surprise end-users with any slowdowns.
  • Leverage ADO Policies: Automatic Data Optimization is one of the best ways to continuously maximize compression. Once youโ€™ve licensed Advanced Compression, set up policies that automatically compress data as it ages. For example, โ€œafter 30 days of no modifications, compress a segment to compress level OLTP (advanced row compression)โ€ or even tier it further: โ€œafter 1 year of no access, compress to archive high (if on Exadata HCC or similar) or move to a tablespace with higher compression.โ€ This way, your database self-optimizes over time, and you donโ€™t need to manually hunt for compression opportunities.
  • Use All Features Available: Ensure you utilize the full suite of features you paid for. If you have Advanced Compression, mainly for table compression, donโ€™t overlook backup or network compression for Data Guard. Enable those too since theyโ€™re now effectively free to use (youโ€™ve paid the license). The more aspects you use, the greater the return on investment. It might require coordination (the DBA team enables compression in RMAN scripts, the network team is aware that Data Guard bandwidth will drop, etc.), but itโ€™s worth extracting every bit of value.
  • Monitor and Tune After Compression: Keep an eye on performance metrics after implementing. Suppose certain queries slow down (perhaps due to increased CPU or an execution plan change because of compression). In that case, you might mitigate it with indexes or by tweaking Oracleโ€™s compression settings (for example, you can compress for query or archive depending on the balance of read/write on older data). Ensure that the reduced IO yields improved or at least equal overall performance. Often, you might find that batch report queries speed up (less IO to scan compressed data) while heavy insert/update transactions use a bit more CPU โ€“ finding the right balance is key.
  • Quantify the Savings: It’s good practice to measure and report the benefits to stakeholders. Show how much storage was freed, how much backup size was reduced, etc. This not only justifies the purchase after the fact (good for CIOs to report ROI) but also helps inform future decisionsโ€”e.g., maybe you can adjust your storage procurement plans knowing youโ€™ll need less. It also boosts confidence in using Advanced Compression in other projects or databases.
  • Stay Current with Versions: Oracle continuously improves compression algorithms. New database releases sometimes bring better compression or performance optimizations. Keeping your database version up (within your support allowance) can yield better results. For example, Oracle 12c introduced online move partition with compression and improved ADO; 19c might have refinements in how compression impacts performance. Use what youโ€™re entitled to โ€“ since you pay support, take advantage of upgrades that maximize your compression benefits.

Recommendations (for CIOs/CTOs Evaluating Advanced Compression ROI)

  • Assess Data Growth vs. Storage Costs: Calculate how much data growth will cost you in storage/hardware over the next 3-5 years. If Advanced Compression can cut that in half, compare the cost of licenses to that of storage. This creates a concrete ROI estimate.
  • Run a Pilot or POC: Before fully committing, do a pilot on a sample of your data. Compress a representative schema or dataset using Advanced Compression in a test environment. Measure the space saved and performance impact. Use this data to make an informed decision and build a business case.
  • Target the Pain Points: If your databases are causing operational pain (backups taking too long, nightly batch windows exceeding limits, replication lag, etc.), see if compression alleviates it. Solving a critical performance or backup window issueย can oftenย justify the cost because the alternative might be expensive hardware or architectural changes.
  • Consider Oracleโ€™s All-Inclusive Cloud Services: If the cost of on-prem licensing is hard to justify, remember that moving the workload to an Oracle Autonomous Database or similar could give you the compression benefits bundled in. Compare cloud subscription vs on-prem costs. This might be a way to benefit from the technology on an OPEX model without large upfront license fees.
  • Balance CPU and IO Resources: If you plan to compress, make sure you have sufficient CPU headroom. It might be worth upgrading to newer CPUs (which often means more coresโ€”note that could mean more DB licenses, though). Ensure your infrastructure is balanced so the compression doesnโ€™t simply shift one bottleneck to another.
  • Plan License Scope Strategically: You donโ€™t necessarily need to license every Oracle environment for Advanced Compression. License where the ROI is clear (biggest systems, most benefit). For other systems, you might continue using free/basic methods. Itโ€™s not uncommon to selectively apply options to certain critical databases.
  • Negotiate ROI-Aligned Deals: If you determine Advanced Compression will save you $X in infrastructure costs, use that in negotiations: e.g., โ€œWe project $200k savings, but list price is $300kโ€”we need better pricing for this to make sense.โ€ Oracle reps respond to business cases; if you show them itโ€™s enabling a project or saving money elsewhere, they may agree to a reasonable discount that aligns the cost closer to the benefit.
  • Monitor Post-Implementation: Donโ€™t set and forget. Keep tracking the benefits annually. Are your databases indeed smaller? Did your storage procurement slow down? If youโ€™re not seeing the expected benefits, find out why โ€“ maybe not all tables were compressed, or new data types arenโ€™t compressing well. Continual tuning might be needed to sustain the ROI.
  • Combine with Data Management Policies: Compression is one tool in the toolbox. Also, data archiving policies should be considered, as well as purging old data or tiering data to cheaper storage outside the DB for cold data. These can complement Advanced Compression for maximum efficiency. For example, compress whatโ€™s reasonably recent, but after 5 years, perhaps export and archive data elsewhere. This layered approach can stretch your storage and reduce how much you need to rely on compression alone.
  • Document the Value Delivered: After a year or two, document the outcomes (e.g., โ€œWe avoided purchasing 20TB of storage = $xxx, xxx saved, backup times reduced by 30%, etc.โ€). This will help in future budget discussions when renewing support or considering other Oracle options โ€“ youโ€™ll have a success story of tech investment yielding concrete returns.

Read Oracle Advanced Compression Compliance Best Practices and Audit Preparation.

FAQ (Value and ROI of Advanced Compression)

Q1: How much storage savings can we expect with Oracle Advanced Compression?
A1: It varies by data type and usage, but many organizations see 50-70% storage savings for compressible data (typical for text-heavy or numeric data with repetition). For instance, a 1TB transactional database might go down to 500GB or even less. Some customers report 3x or 4x reduction, especially on older, less active data. LOB data (files, text) could compress 2x-3x and eliminate duplicates. Itโ€™s wise to run Oracleโ€™s Compression Advisor on a sample of your data to get a tailored estimate. Remember that some data (like already encrypted or random binary data) wonโ€™t compress much.

Q2: Does compression slow down the database?
A2: There is a CPU overhead to compress and decompress data. However, for many workloads, this is offset by reduced IO (disk operations), which are typically slower than CPU. The net effect can be neutral or positive for read-heavy workloads (since reading less data off disk is a big win). For write-heavy workloads, thereโ€™s more CPU work during inserts/updates to compress the data. If CPU usage was low, you might not notice; if CPU usage was high, you could see some slowdown. In most cases, Oracleโ€™s Advanced Compression is designed to be efficient โ€“ it compresses in batches and tries to minimize impact. Many customers find a single-digit percentage impact on CPU for a double-digit percentage gain in IO throughput.

Q3: We use a storage array that does deduplication/compression at the hardware level. Do we still benefit from Oracleโ€™s compression?
A3:ย Hardware storage compression can overlap with Oracle compression, but it operates differently. Oracle compresses data before writing to storage, which means less data travels through the IO subsystem and into memory. Storage array compression works below the database, compressing blocks on disk. If your array is already giving you 2:1 compression, Oracle might not yield another 2:1 on top of that for the same data โ€“ some of the โ€œlow-hanging fruitโ€ is already compressed. However, Oracle compression could still add value by reducing logical IO and memory usage inside the database, and it might achieve better compression for structured data than a general-purpose storage algorithm. If your storage savings are already robust, the main reason to use Oracle might be for performance (less IO, faster scans). Itโ€™s a case-by-case call; sometimes, database-level and storage compressions achieve very high ratios, but diminishing returns apply.

Q4: Is Hybrid Columnar Compression (HCC) a replacement for Advanced Compression?
A4: HCC is a feature that achieves very high compression ratios (by storing data in a columnar compressed format). Itโ€™s available on Oracleโ€™s engineered systems (Exadata, ZFS Appliance, etc.) without requiring the Advanced Compression option license. HCC is fantastic for read-only or archival data, with compression ratios often 10x or more. However, HCC has limitations โ€“ itโ€™s unsuitable for frequently updated data (as itโ€™s more efficient for bulk loads and reads) and requires specific Oracle storage. Advanced Compression, on the other hand, works on any storage and is geared for both read and write scenarios (OLTP). Many Exadata users employ HCC for archival partitions and use Advanced Compression for the more active data. If you have Exadata and only need compression for warehousing, you might leverage HCC without buying Advanced Compression. However, Advanced Compression is the go-to solution for general environments since HCC isnโ€™t an option for normal hardware.

Q5: If we compress our database, do we save on Oracle Database license costs (since the database size shrinks)?
A5: Unfortunately, Oracle licensing is notย based on processors or users, but on data volume. Compressing data can reduce storage costs and improve efficiency, but it doesnโ€™t reduce the number of database licenses you need (you still need the same DB licenses for the CPUs used). Indirectly, however, compression could allow you to handle more data on the same hardware, which might mean you can delay scaling up to more processors (and thereby delay needing more DB licenses). But thereโ€™s no direct license reduction from compressing data.

Q6: Are there any additional costs or prerequisites to use Advanced Compression (hardware, training, etc.)?
A6: No special hardware is needed โ€“ it runs on your existing servers. But there are a few considerations: youโ€™ll want to be on a relatively recent version of Oracle Database that supports all the features (Oracle 11g introduced it; 12c and above have improved it). Ensure your DBAs are familiar with implementing compression โ€“ there may be a learning curve to set up ADO policies or understand how compression affects maintenance tasks. Some organizations invest in training or consulting for best practices in implementing Advanced Compression to fully benefit. Additionally, as mentioned, watch your CPU and memory usage โ€“ you might invest in a bit more RAM or CPU if you anticipate the need (which is a cost, but often marginal compared to the license). For most, itโ€™s just the Oracle license and support that are the primary costs.

Q7: How does Advanced Compression impact backup and recovery times?
A7: Positive impact in general. Backups taken with RMAN can be smaller with Advanced Compression (if you use the compression algorithms provided by the option). Smaller backups mean faster backup writes and faster reads during restore. Many users see backup windows shrink when using Advanced Compression for backups. For recovery, the database restore from a compressed backup might take a bit longer in the decompression phase. However, since the backup file is smaller, the overall I/O is less; it often balances out or is still quicker. Also, having a smaller database means less data to restore in total. One thing to plan: if you compress data in the live database, some operations like index rebuilds or importing data might be slower due to compression overhead, but those are usually maintenance tasks. By and large, backup/recovery is helped by compression.

Q8: If we decide not to license Advanced Compression, what are some alternative approaches to manage data growth?
A8: There are several strategies:

  • Basic Compression: Use the free compression Oracle provides (compress for direct path, etc.) on historical partitions or tables. Itโ€™s not as effective as Advanced Compression for active data, but itโ€™s something.
  • Data Archiving/Purging: Implement a policy to archive old data from the main database. For instance, move data older than X years to a cheaper data store (it could be another database, a data warehouse, or even flat files) where it can be compressed by other means or not kept online. Purge data that is no longer needed (if allowed by compliance).
  • Partitioning: While Partitioning is a licensed option, many enterprises already have it. Partitioning can improve the manageability of archiving (drop old partitions) and allow for data segmentation so that you can compress some partitions (even with basic compression) while keeping others uncompressed. If you donโ€™t have partitioning, you might range partition tables anyway (if you’re on EE, youโ€™d need the license for that too โ€“ Oracle likes to charge for these things!). If not, logical partitioning via multiple tables could help.
  • Storage Solutions: Rely on your storage array for compression and deduplication if itโ€™s effective. Some backup appliances also deduplicate Oracle backups globally (like Data Domain). These can mitigate some of the pain of not having Oracleโ€™s compression.
  • Application-Level Compression: In some cases, compress data before storing it in Oracle (for instance, compress large objects in the application code). This is less ideal and adds complexity, but some do it for specific data like XML or JSON strings. Oracle now has features like Transparent Data Compression for certain data types (not to be confused with TDE encryption).
    Without Advanced Compression, youโ€™d manage data growth through these external or manual methods. They can work, but often at the expense of more admin effort or some limitations in how you access data.

Q9: We have Advanced Compression licensed on one system. Can we copy a compressed table from that system into another Oracle DB that isnโ€™t licensed?
A9: Technically, you could export a compressed table and import it into another database โ€“ it will stay compressed. However, Oracle’s rules do not allow compressed data in an unlicensed database. They consider using the feature. So if you moved a compressed tablespace or table into an environment without Advanced Compression licenses, youโ€™d be out of compliance in that target environment. In terms of value, the unlicensed DB would still get the storage benefit (it doesnโ€™t magically bloat), but itโ€™s not legal without a license. Oracleโ€™s audits would flag the presence of compressed objects as needing a license on that instance. So you shouldnโ€™t plan on โ€œcheatingโ€ licensing by compressing elsewhere and moving it โ€“ it doesnโ€™t hold up under scrutiny.

Q10: Whatโ€™s the typical payback period for investing in Advanced Compression?
A10: It depends on the scale of benefits. Many businesses see a payback in 2-3 years from deferred storage and infrastructure costs. For example, if you avoided buying $200k of storage by spending $100k on licenses, thatโ€™s immediate ROI within a year. Suppose the savings are more operational (faster processing, etc.). In that case, putting a dollar value is harder, but you might see soft benefits quickly regarding user satisfaction or IT productivity (less time managing storage issues). Itโ€™s fair to say that if the math shows it would take more than 5 years to recoup the costs, the investment might not be compelling (since in 5 years the tech landscape can change). Most successful cases have some near-term gain (like avoiding an imminent hardware purchase or cloud cost) that makes the license fee worthwhile. Itโ€™s important to project both tangible and intangible returns. In some cases, the decision is less about strict ROI and more about capability โ€“ for instance, if you cannot meet a service level (backup window, performance) without compression, that alone can justify it because the business impact of not meeting SLAs is huge. So the payback can sometimes be measured in risk mitigation rather than pure dollars saved.

Read more about our Oracle License Management Service.

Do you want to know more about our Oracle License Management Services?

Please enable JavaScript in your browser to complete this form.
Name
Author
  • Fredrik Filipsson

    Fredrik Filipsson is the co-founder of Redress Compliance, a leading independent advisory firm specializing in Oracle, Microsoft, SAP, IBM, and Salesforce licensing. With over 20 years of experience in software licensing and contract negotiations, Fredrik has helped hundreds of organizationsโ€”including numerous Fortune 500 companiesโ€”optimize costs, avoid compliance risks, and secure favorable terms with major software vendors. Fredrik built his expertise over two decades working directly for IBM, SAP, and Oracle, where he gained in-depth knowledge of their licensing programs and sales practices. For the past 11 years, he has worked as a consultant, advising global enterprises on complex licensing challenges and large-scale contract negotiations.

    View all posts

Redress Compliance