Oracle Corp is slashing the price of its recently launched entry-level database product amid a series of changes to help 10g succeed in the competitive mid-market.
The 10g edition of Oracle Standard Edition One, launched last October, is being cut by $1,000 to $4,995 per CPU, with a minimum requirement of two CPUs.
10g Standard Edition One’s named-user price is also coming down by $46 to $149 with a minimum of five users.
The price of Oracle Standard Edition remains $15,000 per CPU and $300 per named user with a minimum of four CPUs, but the 10g edition will include Oracle’s Real Application Clusters (RAC) for performance and failover.
Set-up, installation and management of 10g have, meanwhile, been simplified for organizations like smaller companies and departments who lack a full-time DBA. Oracle claimed installation is now possible from a single CD in as little as 10 minutes for a server.
Oracle’s 10g is being positioned for the mid-market following Oracle’s loss of share in that sector, according to analyst IDC in its most recent market survey covering 2002.
The mid-market is traditionally dominated by Microsoft Corp’s SQL Server and is being increasingly targeted by IBM Corp, which last year launched DB2 Express priced at $624 per server and $124 per user with maintenance.
According to IDC, Microsoft grew its mid-market share for database management systems by 15% in 2002 and IBM by 9% while Oracle shrank 5%. The grid-enabled version of Oracle’s core database product represents a major product initiative, so the company cannot afford to see its database fail.
Company vice president of global pricing and licensing Jacqueline Woods claimed yesterday that the time was now right to cut the price of Standard Edition One. Bob Shimp, vice president of technology marketing, said automated management such as self tuning, meant 10g could compete in the mid-market on ease-of-use.
However, Microsoft dismissed Oracle’s claims and price cuts. SQL Server is priced $4,999 per CPU, or $600 per server and $120 per Client Access License (CAL). Director of product marketing Tom Rizzo said SQL Server’s inclusion of Business Intelligence tools meant Microsoft’s database beat Oracle on cost of ownership.
He called Oracle’s pricing a PR stunt designed to pull the wool over customers’ eyes.
This article is based on material originally published by ComputerWire