Oracle's SE2 update will cost ISVs, TmaxSoft says

Independent Software Vendors (ISV) don’t seem all that excited about Oracle’s latest automatic product update, as it increases the cost and complexity of the service.

This is according to enterprise software company TmaxSoft.

Oracle unveiled the Standard Edition 2 (SE) in September 2015, announcing that it will replace SE and SE1 in August this year. TmaxSoft says users are expected to pay almost three times the current cost-per-socket for Oracle usage. Their only alternative is the Enterprise Edition, which still costs more than SE or SE1.

UK managing director for TmaxSoft, Carl Davies, said this could be catastrophic for customers’ competitive ability: “In some markets, ISV competitors can run on ‘free’ databases that provide them with additional sales margin. While Oracle users may previously have been able to trade on the credibility of being built on top of the market leading database software, justifying the extra costs of SE2 will be far from simple,” he said.

“In some instances ISVs will have only one choice; swallow the cost and reduce their margins. This could at best threaten their position in the market, or at worst condemn their entire existence.”

Davies goes on saying Oracle is acting arrogant, believing that it’s economically impossible for users to move to a different database.

“They (Oracle) seem to feel that they can do what they want because SE and SE1 users have no real alternative choices. While this is clearly untrue, it also demonstrates Oracle’s consistent lack of respect for their customers.”

SE2 has some benefits, Davies says, including new technical functionalities, but the changes will lead to higher licence costs.

“While Oracle seems to be touting this as a ‘free’ upgrade, it seems that the reality of SE2 is far from cost-effective,” he says.

Carl concluded: “Despite what Oracle would have you believe, you do have many choices for moving away from Oracle’s services. While migrating to a NoSQL database would likely involve massive engineering costs, choosing a traditional RDBMS may be a more attractive option. Tools like our own Tibero are 100 per cent drop-in Oracle compatible, and thus the migration would be no riskier than a standard Oracle upgrade.”