Oracle has added the ability to handle billing for third-party software to its cloud marketplace and become member of the VMware Cloud Provider Program (VCPP).
Joining VCPP means that VMware’s Cloud Foundation will run on Oracle Cloud Infrastructure, making it possible to run a hybrid cloud that spans on-prem and Oracle-hosted VMware software. The deal spans a full stack software-defined data center (SDDC) including VMware vSphere, NSX, and vSAN.
The deal will also see Oracle “provide technical support for Oracle software running in VMware environments both in customer on-premise data centers and Oracle-certified cloud environments.”
That’s a big thaw between VMware and Oracle, as the latter has grudgingly allowed its products to be virtualised. But Oracle also has many very substantial clients to which VMware must remain relevant, even if some of its 4,000-plus VCPP partners will feel threatened by this new alliance.
Oracle’s cloud marketplace announcement is also a big shift. Like other clouds, Oracle has offered a marketplace allowing third-party software to be deployed onto its cloud. But customers transacted with their vendor or partner of choice for licences.
Now Oracle can handle that transaction directly.
“Enterprise customers have broad investments in third-party software. We are now giving them an easy way to consume these solutions, with a single bill across both Oracle Cloud Infrastructure and third-party applications,” said Vinay Kumar, vice president of product management, Oracle Cloud Infrastructure. “ISVs can now rely on Oracle Cloud’s exceptional performance to run their applications while also partnering with Oracle to extend their sales channel directly to Oracle customers.”
Oracle’s named the following ISVs as involved in the new billing scheme: A10 Networks, Aviatrix, Blue Prism, Center for Internet Security (CIS), Compellon, Couchbase, Fortinet, Kinetica, Palo Alto Networks, Pyramid Analytics, ScyllaDB, Sesame Software, ShieldIO, and Stromasys.
The arrangement lets customers “pay for these solutions by the hour with no long-term commitments by using Pay-As-You-Go or with Universal Monthly (UCM) Flex credits. In the end, customers receive just a single, consolidated bill. Also, customers can migrate to Oracle Cloud Infrastructure with their existing ISV licenses (BYOL) and not pay any additional transactional fees to Oracle.”
Those BYOL licences may be the saving grace for Oracle’s channel, and the channel of the abovenamed vendors, because they mean resellers are still in the loop. Oracle has also not said anything to suggest that handling billing itself is the only option it will entertain in its cloud.
But it’s still a new threat for the channel to digest! And with the cloud challenging traditional revenue sources, new threats are never welcome.