Oracle puts limits on new software pricing

Oracle presented its new flat-fee business pricing scheme to Australian users last week promising big savings, but companies have to "qualify" first.

To qualify there is a minimum $US250,000 purchasing requirement and companies will also have to buy software licences for at least 20 per cent of their workers.

Oracle said the new pricing is an attempt to reduce costs and licensing complexities for large companies that are standardising on its 11i e-business suite.

In an overview released by the vendor, Oracle claims companies that qualify could cut prices by up to 75 per cent per user, with 11i licences at $US4000 for fully-fledged users and $400 for users who only need to access e-procurement or employee self-service applications.

Local Oracle users who spoke to Computerworld said they are having trouble getting price quotes from the vendor; the Oracle Applications User Group (OAUG) said in a statement it is seeking comparisons to clarify the new pricing.

OAUG said the pricing model favours users who buy the full 11i suite, but Oracle is still maintaining its current component pricing for those who do not qualify for the flat-fee model.

The new pricing is already in effect and Giga Information Group analyst Erin Kinikin described the $4000 fee for full application access as a bargain.

As reported previously in Computerworld (January 28, 2002 P1), Oracle pricing has always been a source of contention for Australia's Oracle Application User Group (OAUG).

The group said, "Oracle has justifiably sought to fix a pricing model which more accurately reflects how business actually works these days." -- Marc Songini contributed to this article

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