Feeds

BEA gives up on dual-core pricing confusion

Simplicity restored

HP ProLiant Gen8: Integrated lifecycle automation

BEA has given up on charging a premium for software running on dual-core processors and decided instead to follow the per-socket models embraced by the likes of Microsoft and VMware. The software maker's move puts it in prime fighting position against Oracle and IBM, which have been slow to adjust their pricing models for new chips from AMD, Intel and others.

BEA will eradicate the 25 per cent premium it had been charging for dual-core chips from its entire price list. At the moment, the move most directly effects customers buying servers running on RISC chips or AMD's Opteron processor. Intel will soon have dual-core Xeon and Itanium chips that will fall under the new pricing program as well. Customers will now pay on a per-socket model or basically see no change from their single core CPU licensing schemes.

"The elimination of premium pricing for dual core systems underlies our commitment to providing a competitive pricing advantage against other higher priced solutions in the market," said Bill Roth, a vice president at BEA. "In addition, our new restructured pricing emphasizes our support for the Intel roadmap and clearly articulates our leadership position regarding the issue of dual core pricing, making it easier for customers to focus on innovation versus budget and integration issues."

Saying BEA enjoyed a "leadership position" on the multicore pricing front is a bit of a stretch. Sun Microsystems shied away from per processor pricing long ago and was followed by much more significant software makers such as Microsoft, Red Hat and Novell. IBM has agreed to use a per-socket model with x86 servers based on AMD and Intel chips but has maintained a per core model with its own, more lucrative Power-based systems. BEA had been playing somewhere in between these schemes with its confusing 25 per cent premium.

In the end, simplicity seems to have won out, which is good news for customers already flummoxed by myriad software pricing systems.

Roth's charge that BEA has put pressure on "higher priced" solutions is more accurate. As stated, IBM has tried to enjoy the best of both worlds, while Oracle has become somewhat of a multicore pricing laughingstock. Oracle requires customers to multiply the number of cores by .75 and then round up to the next highest whole number. It's an ugly system that seems doomed to failure as chips with even more cores arrive shortly from Sun and as Unix vendors and x86 ISVs push operating system and application virtualization. But why mess with a lucrative thing?

Rather comically, BEA announced the new licensing plan at Intel's developer conference. It went so far as to say it would support Intel's Pentium processor Extreme Edition desktop chip - currently the only dual-core part in Intel's line. BEA made no mention of AMD's dual-core Opteron chip in a press release, even though it currently supports that product and even though customers actually run BEA software on the server chip. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
NO MORE ALL CAPS and other pleasures of Visual Studio 14
Unpicking a packed preview that breaks down ASP.NET
Captain Kirk sets phaser to SLAUGHTER after trying new Facebook app
William Shatner less-than-impressed by Zuck's celebrity-only app
Do YOU work at Microsoft? Um. Are you SURE about that?
Nokia and marketing types first to get the bullet, says report
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
EU dons gloves, pokes Google's deals with Android mobe makers
El Reg cops a squint at investigatory letters
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.