Gartner Research

SAP Customers on Oracle Runtime DBMS Must Make Decisions Now, Amid Price Increase and Year-End Uncertainty

Published: 01 May 2017

ID: G00326321

Analyst(s): Bill Ryan , Rob Wilkes

Summary

Sourcing and vendor management leaders running SAP on the Oracle runtime DBMS have absorbed another price increase, this time to 25% of SAP Application Value. Meanwhile, the SAP/Oracle reseller agreement is set to expire at year-end, leaving little time to determine a go-forward SAP DBMS strategy.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • By 31 December 2017, SAP customers may no longer be able to purchase new Oracle runtime DBMS licenses from SAP, and by 31 December 2019, SAP may no longer provide support for Oracle runtime DBMS licenses, assuming the Oracle/SAP reseller agreement expires at year-end
    • Option 1: Do nothing, or wait and see
    • Option 2: Migrate to S/4HANA — or to Business Suite on Hana as an Interim Step
    • Option 3: Prebuy SAP licenses with Oracle runtime DBMSs embedded by 31 December 2017
    • Option 4: Buy DBMS licenses directly from Oracle, rather than through SAP
    • Option 5: Buy DBMS licenses directly from alternative DBMS providers
    • As a complementary option, consider third-party support for SAP and Oracle licenses
  • Expect Oracle, SAP and third-party support providers to target existing SAP Business Suite customers who are Oracle runtime DBMS customers with competing offers and incentives
    • Plan to engage with Oracle to explore alternative options, but carefully, to avoid a costly mistake
    • Deciding to buy licenses directly from Oracle must be evaluated for the long-term cost and license impacts, not short-term avoidance of increased licensing costs

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