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Press Release -- August 21st, 2014
Source: Verizon

7 Benefits of Switching to a Pay-As-You-Go Database Subscription Model

Enterprises looking to quickly ramp up development of custom mobile applications are turning to subscription-based database services to expedite time to market and reduce costs.

by George L. Koroneos
(Guest Contributor)

Enterprises can see a significant reduction in total cost of ownership by licensing Oracle’s Database on Verizon Cloud via a pay-as-you-go subscription model using Verizon Cloud, according to a commissioned Total Economic Impact Study, conducted by Forrester Consulting on behalf of Verizon, and published in August 2014. This subscription service gives businesses the ability to scale up application environments for rapid prototyping with far less time devoted to procuring licenses and deploying IT infrastructure.

The study examines how three different enterprise companies use Oracle Database on Verizon Cloud, the challenges they faced with traditional licensing services, and the value the pay-as-you-go services combined with Verizon’s support model had on the companies.

Surprisingly, financial savings, while a strong incentive for transitioning to a database subscription service, wasn’t the primary driver for shifting licensing tactics. Respondents told Forrester Consulting that the total value of the services was far more multifaceted than extra dollars on the balance sheet and goes beyond just renting access to Oracle capacity. Here are seven benefits realized by enterprises that implemented a monthly Oracle database subscription model.

  • Decreased time-to-market: By cutting down the time it takes to set up databases on the front end, companies can stay on schedule for application development.
  • Increased speed and flexibility: Using a monthly subscription for Oracle licenses, application development teams can get up and running in days, eschewing weeks of procurement and infrastructure testing.
  • Improved visibility into technology costs: By using a pay-as-you-go subscription model rather than investing in a long-term license, companies can associate financial costs to a particular initiative rather than depreciate costs across a number of projects. This leads to better and more transparent accounting practices.
  • Enhanced internal resource allocation: By outsourcing nonstrategic work to a strategic partner and moving capital expenditure to operating expenditure, enterprises can free up internal resources for more value-added work.
  • Lower upfront costs and capital expenditures: The pay-as-you-go model mean that companies do not have to invest in capital equipment for their databases, and have lower upfront costs.
  • Shortened procurement cycles: Through the Verizon subscription services, enterprises do not have to go through the traditional procurement process, which can take up to eight weeks, to set up a new Oracle database.
  • Reduced technology over-provisioning: Companies no longer need to maintain excess capacities to compensate for unexpected or excessive growth.

For more information and the full Forrester Total Economic Impact study, visit “Total Cost of Ownership of Verizon and Oracle Database and Oracle WebLogic Server Subscription Services.”

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