The Next Phase: An ESSP’s Strategic Shift to Oracle on Azure for Cost Efficiency

LicenseFortress and ESSP's collaboration led to significant cost savings with Azure, enhancing disaster recovery and operational efficiency.

ESSP history with LicenseFortress

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The initial engagement between LicenseFortress and the Enterprise Software Solution Provider (ESSP) revolved around a significant Oracle licensing compliance issue. The ESSP, a long-term Oracle customer, faced a $200,000 penalty for inadvertently enabling unlicensed database features. To prevent future violations, they purchased two Oracle Database Appliances (ODAs), one for production usage and one for disaster recovery. However, during an IT infrastructure overhaul, a Managed Service Provider’s oversight led to a massive $3 million compliance fee due to unlicensed usage of Oracle software on the new hardware.

Read their first case study in full: Third-Party MSP Triggered $3M in Oracle Compliance Fees for this Enterprise Software Solution Provider

Navigating Licensing Complexities

The client was initially operating on Oracle Database Appliances, a situation compounded by the complexities and confusion surrounding Oracle licensing. This led to them being inadvertently locked into using specific hardware, resulting in substantial overpayment for Oracle licensing and products.

To address this issue, a thorough reevaluation of their business requirements was conducted. This assessment revealed that the features of the Oracle Database Enterprise Edition, which they were using, were not necessary for their operations.

Our sister company, VLSS LLC, played a crucial role in this transition. They provided testing and validation support, confirming that a switch from their current setup was both feasible and beneficial.

Migration to Cost-Effective Solutions

Subsequently, the client migrated away from the Oracle Database Appliances and the Database Enterprise Edition. They transitioned to the Oracle Database Standard Edition 2, utilizing a combination of VMware virtualization and Dell hardware. This strategic move not only aligned better with their actual needs but also led to 90% cost savings in their Oracle software expenditure.

Leveraging Azure for Disaster Recovery

The client’s transition to a more appropriate Oracle edition streamlined their Oracle environment, reducing both complexity and costs, and facilitating easier management and migration. This strategic shift was further enhanced by overhauling their disaster recovery strategy. They moved from maintaining two data centers to utilizing Azure, coupled with Veeam, which markedly improved their operational efficiency and cost structure.

Azure’s robust and scalable cloud platform, capable of supporting a diverse array of workloads including Oracle databases, played a key role in this transition. The migration to Azure enabled the client to take advantage of Azure’s inherent elasticity and agility.  During normal operations, the client can run on a small footprint in Azure, maintaining records of transactions done on the production environments.  In the event of a disaster, the client can quickly and easily scale up their Azure instances providing sufficient resources for production workloads.

Impact on Disaster Recovery and Workload Alignment

In today’s rapidly evolving digital landscape, the alignment of disaster recovery strategies with overall business objectives has become increasingly crucial. A robust disaster recovery plan is essential not only for ensuring business continuity in the face of unforeseen events but also for maintaining operational efficiency and data integrity. The integration of disaster recovery processes with workload management, particularly in cloud environments, plays a pivotal role in minimizing downtime and data loss while optimizing resource utilization. This alignment is especially significant when managing diverse workloads, including those on platforms like Oracle and Azure, where the seamless orchestration of recovery efforts can significantly enhance both resilience and efficiency.

1. Cost-Effective Disaster Recovery: By leveraging Azure and Veeam for disaster recovery, the company reduced its disaster recovery costs dramatically, from approximately $40,000 to just $5,000 annually. This represents a significant saving of $35,000 per year.

2. Alignment of Oracle and Non-Oracle Workloads: Migrating to Azure allowed for the integration of Oracle workloads with non-Oracle workloads. Azure’s flexible and adaptive infrastructure supports a wide range of applications and data workloads, facilitating a unified management approach. This integration simplifies IT operations, making them more efficient and less complex.

3. Standardization of Business Operations: The move to Azure streamlined various business operations. The Azure platform’s ability to run both Oracle and non-Oracle workloads under a single cloud environment helped in standardizing processes and reducing operational complexity.

4. Innovative and Integrated Solutions: With Azure, the company could innovate and integrate solutions more effectively. Azure’s support for Oracle workloads further streamlined the migration and modernization of these workloads in the cloud environment.

Conclusion

The ongoing partnership with LicenseFortress played a crucial role in significantly reducing ESSP’s software costs and streamlining their disaster recovery strategy. The integration of Azure was key in achieving these cost savings and operational efficiencies.

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