One of my missions is to help customers saving money (Dirty Cache Cash). So considering the average enterprise application environment, I frequently ask them where they spend most of their IT budget on. Is it servers? Networks? Middleware? Applications?
Turns out that if you look at the operating cost of an Oracle database application, a very big portion of the TCO is in database licenses. Note that I focus on Oracle (that’s my job) but for other databases the cost ratio might be similar. Or not. But it makes sense to look at Oracle as that is the most common platform for mission-critical applications. So let’s look at a database environment and forget about the application for now.
Let’s say that 50% of the operating cost of a database server is spent on Oracle licensing and maintenance (and I guess that’s not that far off). Now if we can help saving 10% on licensing (for example, by providing fast and efficient infrastructure), would that justify more expensive, but faster and more efficient infrastructure? I guess so.