Oracle updates multi-core pricing policy

Redwood Shores (CA) - Oracle today said that that it is revamped its software license pricing to reflect "advancements in multi-core chip technology." While owners of AMD- or Intel based dual-core systems now only have to purchase one software license per processor, Oracle left the door open to charge for multiple licenses per processor down the road.

The firm’s new pricing strategy is based on a "processor factor" that allocates a multiplier to the number of cores that are integrated into a processor. Depending on the manufacturer, the multiplier varies and determines the amount of licenses required.

For AMD and Intel systems, the multiplier is 0.5. In the case of the current dual-core processors it means that 1 license needs to be purchased (2 x 0.5). Two licenses already are required for Sun T1 systems. Oracle applies a factor of 0.25 to the eight cores of the UltraSparc T1 chip.

Oracle’s headquarter in Redwood Shores

Any "other" - such as IBM-based - multi-core systems will be allocated a 0.75 multiplier ; single-core servers still count as one license per processor, the company said. The varying multiplier will help "improve parity among hardware vendors," according to Oracle.

While Oracle’s most recent, fourth edition license policy was generally viewed as improvement over the old policy and especially Sun should send a nice thank to the Redwood Shores, Calif.-based database company, it is everything else than easy to deploy. Some companies may be glad to hear that Oracle still offers licensing models that are based on users and per employee.

With the number of cores per processor to quickly increase into the double-digit range within this decade, it is almost certain that Oracle will have to adjust its software pricing policy from time to time.