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Jun 17 2008   5:13PM GMT

Big price hikes from Oracle



Posted by: badarrow
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Barbara Darrow
Enterprise applications
News
Oracle

The Cadillac of databases has become the Mercedes. Ok, that might not be the right analogy, so let’s just say that Oracle has hiked prices across its software portfolio. Significantly.

An example: Per CPU pricing on the big Oracle 11g Enterprise Edition database is now $47,500 vs. $40,000 before. Per user pricing on the same SKU is now $950 vs. $800.

Per CPU pricing on the Standard Edition database is now $17,500 vs. $15,000. And the entry level Oracle Standard Edition One is now $5,800 vs. $4,995. Per user pricing on SE One is now $180 vs. $149. Oracle’s price list was updated June 16 although the company remains in a quiet period pending its fourth quarter, and year-end earnings announcement call on June 25.

One Oracle partner is nonplussed by the changes which he sees as counterintuitive in a tough sales environment.

“This is a 15 to 20% boost pretty much across the board at a time where license prices in general are falling,” he noted.

Another partner who has examined the new list is not concerned. “Oracle’s in a great position, by virtue of the acquisitions and the market share they’ve brought, by virtue that they’ve performed well across the board, and by virtue that they haven’t raised prices in a while,” said Scott Jenkins, CEO of The EBS Group, an Oracle partner in Lenexa, Kansas.

Prices on products from Oracle’s latest acquisition, BEA Systems, have also been raised but more on that later.

Cynics might say the increases don’t mean squat since most deals boil down to one-off negotiations between Oracle and the customer. But even so, list price remains important when it comes to figuring out discounts, this partner said. “A 50% discount on $47.5K is a lot different than a 50% discount on $40k,” said another Oracle partner.

Barbara Darrow can be reached at bdarrow@techtarget.com.

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