Oracle is apparently issuing “breach notices”, where their sales representatives inform customers that they are over-using their service and have 30 days to either negotiate or stop using Oracle software. This puts pressure on organisations who think that they can’t move away because historically it has taken a long time to do so – this is now not the case – transition can be done in weeks.
This tactic is a relatively new development from Oracle and could well be driven by some very poor showings in earnings. The disappointing performance in the cloud arena may well be driving the agenda. No organisation should ever consider putting sales above service. This will drive a wedge between themselves and their customers.
The problem is, as Oracle has long dominated the enterprise software market, customers have had little room for manoeuvre on licensing. Clear licensing structures are really important for organisations as it prevents them from paying for redundant services – it’s something that Oracle needs to change. Whether it will, I don’t know; Oracle’s Licence Management Service (the department that helps with license auditing) has a direct relationship with sales. CIOs normally end up over licensing themselves to avoid an under licensed situation in a software audit – something which can cost millions of pounds.
Our leading product TIBERO, developed to be a cheaper, viable alternative to other relational databases such as Oracle, is resonating with not only UK distributor and systems integrators but ISVs looking for greater margin. As it’s based on complete compatibility with Oracle, the time to change existing applications is kept to an absolute minimum, and existing database personal can be reused in a new TIBERO environment. This message in particular is driving interest and our market footprint.
It’s clear that recent research by IDC and Flexera Software, showing that 43% of businesses don’t find Oracle’s products to be reasonable priced, continues to be pertinent. They would do well to look for more transparent vendors, who eschew the sales rhetoric and complicated licensing models that Oracle is becoming known for.