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Mike Chapple
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A few weeks ago, we discussed several recent surveys that indicated Oracle Corporation was facing stiffer competition from the databases produced by Microsoft and IBM. In a surprise announcement this week, Oracle announced that they were introducing a dramatically different pricing structure for their latest Oracle 9i release, posing a direct challenge to their competitors by allowing direct comparisons on pricing and feature set.
According to a recent ComputerWorld survey, database administrators consistently chose Oracle over its competitors when judging features, performance and scalability. However, Oracle ranked dead last on the two cost questions (cost to license and cost to maintain). The "power unit" pricing model utilized by Oracle until this recent announcement made true cost comparisons difficult. Moving to the per-processor licensing scheme allows users to directly compare Oracle with Microsoft's SQL Server and IBM's DB2 products.
You'll still find that Oracle's 9i database comes in with a higher price tag than its competitors (about $15,000 per processor for the standard edition and $40,000 for the enterprise edition). However, Oracle chief Larry Ellison vigorously disputes this. He was recently quoted as saying "Oracle 9i database gives users greater cost performance and more features and applications...It is not more expensive." This sentiment may have a ring of truth. I've often chatted with database planners who admit that they would prefer to operate on an Oracle platform, but the product just couldn't compete when it came to price.
In fact, Oracle incorporated a large number of technological enhancements in 9i. The product includes upgraded security features, performance and scalability. However, the feature most touted by Oracle execs is the Real Application Clusters capability that allow you to run a single database on several servers grouped in a cluster. "Oracle9i Database clearly is an inflection point in the evolution of clustered database systems," said Peter Christy, principal with NetsEdge Research. "By creating a product that makes the use of clustered systems essentially invisible, and by working with hardware and systems vendors to ensure fully integrated and tested offerings at initial release, clearly, Oracle is serious about making clustered database systems a very viable solution for essentially all database uses."
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