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New Programs Aim to Simplify How Companies Buy and Consume Cloud Services

Paul Way
Senior Principle Marketing Director, Cloud Platform


Migrating to cloud has helped companies of all sizes lower costs and accelerate everything from app development to collaboration to, ultimately, innovation, but there’s still one aspect of moving to cloud that hasn’t kept up its end of the bargain.


Until now.

Despite the many advances cloud can deliver, the process of moving existing on-premises licenses to cloud, as well as the overall purchase process for cloud services, continues to prove cumbersome and frustrating. One of the key obstacles to moving to cloud for many organizations is the balancing act they must maintain between investing in new innovative technologies while at the same time protecting on-premises investments.

In addition, the process of purchasing cloud services involves complex contracts and often requires companies to detail up-front exactly how they plan to spend their money. In a rapidly shifting business environment, that’s not a simple thing to do. Many cloud providers require companies to notify them in advance regarding what specific cloud services they’ll need, how they’re going to run them, and where. This often stifles responsiveness and results in unpredictably higher operational costs. It also makes it challenging for companies to shift cloud spending to different platform and infrastructure services as their strategies change. This is all in addition to the many complex cloud payment models at most cloud providers that give organizations limited visibility into, and control over, cloud spending.  

Companies like Oracle, however, have recently debuted new pricing programs that directly address these challenges and make the overall process of purchasing and consuming cloud services dramatically simpler. In addition to the new programs, Oracle has also lowered its PaaS pricing and reduced IaaS list prices to match Amazon Web Services (AWS).

Firstly, Oracle announced the extension of its Bring Your Own License program (BYOL). Oracle’s existing BYOL program has allowed customers to bring on-premises licenses to Oracle IaaS. This allows customers to take an existing on-premises license for Oracle Database, for example, and replicate that functionality on Oracle IaaS Compute. With this new extended BYOL program, however, on-premises software such as Oracle Database and Oracle Middleware is now portable to corresponding Oracle PaaS, where customers get access to a host of very powerful cloud-specific features, particularly automation through artificial intelligence and machine learning. Customers also move those licenses to PaaS at the newly announced lower pricing.  

When customers run Oracle PaaS tools in the Oracle Cloud, the cost benefits go beyond the new PaaS pricing. For example, when running Oracle Database Cloud Services on Oracle IaaS (now priced as low as AWS), customers can also leverage the benefit of the tremendous power of Oracle Compute to run workloads much faster than on competing clouds—resulting in dramatically lower costs in a pay-as-you-go model. Even further cost reductions come as a result of the high levels of automation built into Oracle’s PaaS solutions. That’s because more automation means less human labor, which reduces costs yet again.

The BYOL program also applies to Oracle Cloud at Customer, which brings all the functionality of Oracle’s public cloud technology into customers’ data centers, behind their firewalls. Cloud at Customer has proven valuable for companies dealing with global regulatory and compliance issues.

And Oracle’s new Autonomous Database technology only adds to the opportunity. Autonomous Database is a totally new category of database that requires virtually no human labor and, as a result, no human error and dramatically reduced costs. The database automatically provisions, secures, monitors, backs up, recovers, troubleshoots, and tunes itself. It automatically upgrades and patches itself while running and elastically grows and shrinks compute or storage with virtually no downtime. Because you only pay for what you use, the cost comparisons to other databases are startling.

The second component of Oracle’s new pricing program is Oracle Universal Credits (UC), which dramatically simplifies the purchase and consumption of PaaS and IaaS cloud services, while at the same time adding tremendous flexibility. With Oracle UC, customers just have a single contract that doesn’t require notifying Oracle of changes. They simply pay up front and consume as they wish. Oracle calculates usage and bills against the credits. In addition, customers can use Universal Credits to purchase on-demand access to all current and future Oracle PaaS and IaaS services, such as database (including the new Autonomous Database), integration, analytics, security, compute, and storage with a pay-as-you-go model. Customers can pay even less using prepaid pricing for as long as they need.

Universal Credits are applied to anything customers want to use. Data can be moved, for example, from one data center to another without the need to notify Oracle. Similarly, services can be canceled and reapplied to another service. Discounts are determined by dollar volumes and whether you choose a monthly or annual commitment. Specific SLAs, limitations, and liabilities can still be negotiated.

Oracle BYOL and UC build upon Oracle’s commitment to delivering the world’s leading cloud solutions in the simplest, most efficient way possible for customers. For more information on Oracle BYOL and UC, visit our website.


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