Oracle Bringing Its Support Fee Philosophy To Sun - InformationWeek
IoT
IoT
IT Leadership // CIO Insights & Innovation
Commentary
1/27/2010
05:22 PM
Chris Murphy
Chris Murphy
Commentary
Connect Directly
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%
RELATED EVENTS
Faster, More Effective Response With Threat Intelligence & Orchestration Playboo
Aug 31, 2017
Finding ways to increase speed, accuracy, and efficiency when responding to threats should be the ...Read More>>

Oracle Bringing Its Support Fee Philosophy To Sun

There's been a lot of debate about business software maintenance and support fees, with SAP this year offering a two-tiered support fee. Oracle at its Oracle-Sun integration presentation made it clear that it very much likes having one fee level, and that it'll move Sun that direction as well.

There's been a lot of debate about business software maintenance and support fees, with SAP this year offering a two-tiered support fee. Oracle at its Oracle-Sun integration presentation made it clear that it very much likes having one fee level, and that it'll move Sun that direction as well.Juergen Rottler, Oracle executive VP of customer services, noted that Oracle's philosophy is that every customer should have the same level of service--"one, best level of service." Said Rottler: "You should expect something very similar for the Sun customer base." Rottler described Sun's support system as overly complicated, with many levels of support and different support offerings for each product, hardware and software. Rottler summed it up as part of how Oracle will "simplify how you purchase" support. Having one level of support also means that customers can't opt to pay less and get less service, the way a tiered approach would; for Oracle enterprise software, the typical fee is 22% the license fee each year.

Rottler made the case that, with software and hardware support under one company, Oracle will be able to offer better service, and that it will be able to leverage remote monitoring and support more, and offer more pro-active support offerings using information about a customer's complete configurations. "If you give us the information, we'll match it against a tremendous amount of best practices and knowledge we have in our environment," he said.

Oracle sees a growth opportunity in pumping up Sun's support sales. "We think support needs to be a compelling part of each system sell," Rottler said. For those companies buying Sun support from third-party suppliers, Rottler said his job is to get them to "come back home," and to get their products "back onto the roadmap." For third-party providers who support Sun along with that of other hardware providers, Rottler said, "We're coming."

Rottler called a customer on stage, SAIC CIO Charles Beard, who noted that this idea of a preventive support model would be a big change, which he's interested in exploring: "That's a very different dynamic than we have with Oracle today."

Oracle's software business is driven by the maintenance fee model. Some CIOs want tiered support, but Oracle has showed no interest, even as SAP gave some ground on that this year. Can Oracle not only hold the line on its one-price software fee, but expand that model to Sun's products?

Comment  | 
Print  | 
More Insights
Comments
Oldest First  |  Newest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll