Oracle Monitors Its Customers

Discussion in 'NZ Computing' started by Lawrence D'Oliveiro, Feb 25, 2010.

  1. Oracle seems to have a pretty good idea whether its customers are conforming
    to their licence restrictions or not. And so far it’s been highly successful
    in squeezing them for more and more maintenance revenue, even as other
    income from other sources, such as sales to new customers, is drying up.

    <http://blogs.zdnet.com/Howlett/?p=1805>
    Lawrence D'Oliveiro, Feb 25, 2010
    #1
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  2. Lawrence D'Oliveiro

    peterwn Guest

    On Feb 25, 3:02 pm, Lawrence D'Oliveiro <l...@geek-
    central.gen.new_zealand> wrote:
    > Oracle seems to have a pretty good idea whether its customers are conforming
    > to their licence restrictions or not. And so far it’s been highly successful
    > in squeezing them for more and more maintenance revenue, even as other
    > income from other sources, such as sales to new customers, is drying up.
    >
    > <http://blogs.zdnet.com/Howlett/?p=1805>


    Oracle has obviously pitched its marketing in the right way. Producers
    have for decades and longer learned to pitch its products with a low
    'entry' cost but plan to make the profits on recurring items such as
    maintenance, spare parts, etc. With careful planning it is possible to
    make it more attractive for a client to accept a vendor maintenance
    contract than go for third party maintenance (pro-comprtition laws
    notwithstanding).

    It is also relatively easy to assess the maintenance charge formula on
    client parameters that are in the public domain or that are readily
    available internally and relatively easy to audit. For example the
    customer numbers and total product sold are known for power and other
    utilities (these being 'natural' customers for large scale databases
    handling 100,000 to 10,000,000 customers or so).

    It would be a brave customer who would turn its back on SAP or Oracle
    and attempt to employ some other database solution. This is as there
    have been a significant number of failures of information systems
    projects in NZ and overseas including the police INCIS and various
    energy utility projects. You can easily go out to tender for having a
    building erected or buying 10,000 widgets. It is quite different
    going to tender for a 300 seat airliner or an information system.
    peterwn, Feb 26, 2010
    #2
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