Oracle thinks we’re all stupid
There’s a never ending stream of hypocrisy all around us. We’ve recently seen this with AMD’s CEO’s open letter, as I mentioned in one of my previous posts.
And now Oracle joins the rest with their new multicore CPU licensing model. What’s absolutely unbelievable is that they actually think they are fooling everyone with their justification of the new licensing model. From here:
Oracle Corp.’s vice president of pricing and licensing defended the math behind the company’s new and comparatively stingy 25 percent rebate on multicore processors, saying that customers are now getting charged for what they in fact get: a 1.5 to 1.75 times performance boost from a dual-core chip.
“We have done quite a bit of research on this,” said Jacqueline Woods, in a conference call on Friday with press and analysts. “There is incremental value to the dual-core processor, in terms of performance. It’s not a one-to-one relationship. Look at our [pricing per core] in the past ? if you had two cores, you had to pay for two processors. Our research has determined that, essentially, the performance you get on the dual-core processor [averages between] 1.5 and 1.75 times [that of a single-core processor], so performance is aligned with value received by the customer.”
So wait, let me get this straight. Because I get 1.5 to 1.75 times more performance on a dual-core processor, I have to pay 1.5 to 1.75 times more for the software license, apart from already having paid 1.5 to 1.75 times more for the dual-core CPU itself? So what Oracle wants to do, in their never ending quest of squeezing more money out of their customers, is tax everyone a second time for the performance gain. That you have actually already paid for the performance gain by buying more expensive hardware is not enough.
And what’s a clear hole in their justification about having to pay extra for the performance increase, is that with such reasoning, nothing stops them from charging their customers even more money when newer and faster CPUs become available. After all, shouldn’t you pay a lot more money when you run Oracle database on an Intel Xeon processor, instead of an Intel Pentium processor? Hasn’t their research indicated a clear difference in performance between an Intel Xeon CPU and a Pentium CPU? Because apparently there has never been a need before to align the performance difference on those CPUs with a difference in the value received by the customer. Otherwise you would have paid a lot more for a database license depending on if you would, for example, run it on an Intel Xeon 2.8Ghz CPU or a Xeon 3.4Ghz CPU.
My suggestion to Oracle is that they stop fooling themselves and their customers.
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