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Oracle eyes new pricing model

Oracle is attempting to make it’s applications products more accessible by considering a new pricing model that is based on business metrics and not the number and size of CPU chips:

“The company has already done some deals where customers pay for software on a per-employee basis or per store in the retail industry. The pricing mechanisms will vary with different industries, he said.

"We'd love to get to a mode where we're looking at the number of employees served, the number of checks processed--you name it, some business metric--and take it out of the technology realm and tie our success to their success in terms of business," Phillips said.”

This strategy will easily fit into companies who purchase canned ERP packages, but it is unclear how Oracle’s proposed pricing model would affect costs for the Oracle database, especially for companies who choose to develop custom applications using Oracle tools such as JDeveloper, SQL*Forms and HTML-DB.


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