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Oracle reduces license prices for multi core servers

Oracle has just announced that they are reducing license fees across-the-board for multi-CPU servers in order to become more competitive:

Following months of anticipation and some high-profile criticism, Oracle has changed the licensing model for its databases and middleware on multicore servers, bringing it a step closer in line with competitors.

The price change only effects the "multi core" processors, and the article discusses the formulas used:
Multicore processors pack more than one processing unit, or core, on a piece of silicon. The technique boosts performance of a machine, while keeping the heat generation down, although two cores do not double the performance.
In Oracle's new licensing plan, customers need to take the number of cores used in a server processor and multiply that by 0.75 and then round up to a whole number. For example, a multicore chip with 11 cores will be counted as 9 processors. (11 times 0.75 equals 8.25, which is rounded up to 9.)
We also see that this article shows he complex 6th-grade math required to determine license fees:

"For example, a 4-way, dual core processor server which previously had a list license fee of $320,000 (4*2 [cores] *$40,000) would now have a list license fee of $240,000 (0.75 * 8 [cores] *$40,000)."

And it gets even more complicated! A sharp Register reader forwards this advisory from Oracle's finer print:

"A multicore chip with 11 cores would require a 9 processor license (11 multiplied by a factor of .75 equals 8.25 which is then rounded up to the next whole number which is 9)."

The price change are only for "dual core" processors and they do not yet address "hyperthreaded" CPU's (The Intel Itanium2 and AMD 64-bit processors).


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