Rent vs. Buy? Examining the Total Cost of Ownership of Oracle Cloud-based Software Subscription Services
A just-released Forrester Consulting Total Economic Impact Study highlights the potential cost savings of operating Oracle software in the Verizon Cloud.
Based on in-depth interviews with three Verizon customers using Oracle Database and Oracle WebLogic Server subscription-based services, Forrester Consulting created a framework and theoretical composite organization to evaluate the total cost of ownership for temporary, six-month cloud workload.
- Purchase Oracle Licenses: $114,660 annual cost.
- Pay-as-You-Go Oracle Licenses: $30,282 annual cost.
- Total Cost of Ownership: $84,378 annual savings.
The Verizon-commissioned study shows the potential for significant savings for Oracle database on Verizon’s cloud, resulting primarily from a reduction in hardware and labor costs.
(See Jan. 2014 article titled “Verizon Introduces per Hour Billing for Oracle Database and Oracle Fusion Middleware on Verizon Cloud” for background on the Oracle-Verizon collaboration to launch pay-as-you-go subscription-based database services.)
Beyond the cost savings, the report calls out several significant business and operational benefits of the cloud subscription license model.
- Decreased time-to-market.
- Increased speed and flexibility.
- Improved visibility into technology costs.
- Enhanced internal resource allocation.
- Lower costs and capital expenditures.
- Shortened procurement cycles.
- Reduced technology over-provisioning.
It’s clear that for certain use cases—say standing up a temporary testing and development environment or a website for a seasonal marketing initiative—the cloud subscription model delivers a wide array of benefits that extend beyond cost.
For more information and the full report, visit “Total Cost of Ownership of Verizon and Oracle Database and Oracle WebLogic Server Subscription Services”.
