SAP Customers on Oracle Runtime DBMS: Accelerate Your Licensing Decisions as Prices Continue to Rise

Archived Published: 16 August 2017 ID: G00337452

Analyst(s): | |

Not a Gartner Client?

Want more research like this?
Learn the benefits of becoming a Gartner client.

contact us online


SAP and Oracle have extended their reseller agreement through 2025. But, sourcing and vendor management leaders running SAP on the Oracle runtime DBMS have had to absorb another price hike, increasing the urgency for SAP customers to determine their optimal DBMS strategy.

Table of Contents

  • Analysis
    • Oracle Runtime DBMS License Costs for SAP Customers Continue to Increase as Competition Between the Two Providers Intensifies
    • SAP and Oracle Extended Their Reseller Agreement From Year-End 2017 to Year-End 2025
  • Impacts and Recommendations
    • Oracle runtime DBMS license pricing has increased to 25% of SAV, more than double what it was three years ago, forcing SAP customers on the Oracle runtime DBMS to develop proactive strategies to deal with ongoing cost uncertainty
      • Option 1: Do nothing and risk paying significantly higher prices on new Oracle runtime DBMS purchases
      • Option 2: Migrate to S/4HANA or to BSoH as an interim step
      • Option 3: Prebuy SAP licenses with embedded Oracle runtime DBMSs before SAP announces further price increases
      • Option 4: Buy DBMS licenses directly from Oracle, rather than through SAP
      • Option 5: Migrate to alternative DBMS providers (including SAP)
      • Complementary Option 6: Consider third-party support for SAP and Oracle licenses
    • SAP customers now have more time to determine their DBMS strategy, but Oracle will be targeting them with incentives, persuading them to consider alternative licensing scenarios
      • Plan to engage with Oracle to explore alternative options, but carefully, to avoid a costly mistake
      • The decision to buy licenses directly from Oracle must be evaluated in the context of its long-term cost and impact on licensing, not any short-term avoidance of increased licensing costs
  • Gartner Recommended Reading
© 2017 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartners research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

Free Research

Discover what 12,000 CIOs and Senior IT leaders already know.

Free Access

Why Gartner

Gartner delivers the technology-related insight you need to make the right decisions, every day.

Find out more

Call +1 855-515-4486 or contact us

to become a Gartner client.