Oracle moves to simplify pricing schemes

22.12.2006
Oracle Corp. is creating a unified set of pricing schemes for its myriad applications that users hope can simplify what has become a complex maze.

The updated schedule, announced this week, streamlines the many licensing options that came with several major Oracle acquisitions in recent years, including PeopleSoft Inc. in January 2005, and Siebel Systems Inc. a year later. The new list consolidates the pricing plans into four programs that cover all of Oracle's product lines.

"I am all in favor of simplicity," said John Matelski, chief security officer and deputy CIO for the city of Orlando, which runs the J.D. Edwards ERP software that Oracle gained in the PeopleSoft acquisition. "Having said that, I need more information as to how this new pricing scheme will be executed in practice."

For example, he asked, "If I am an applications customer and also use database and middleware [products], does that mean I have to choose multiple licensing options?

"All in all, I believe this is a move in the right direction," Matelski said. "However, the challenge will be to apply [the new model] consistently and, from a customer perspective, favorably to ensure that costs are minimized and contained."

Matelski is also a former president of the Quest International Users Group, an applications user group that represents PeopleSoft and J.D. Edwards customers.