CIOs slam Microsoft and Oracle for milking the licence-fee cash cow

Paul Cheesbrough and David Jack, two CIOs who have pioneered cloud computing, have slammed traditional software suppliers for sticking with “cash cow” licensing models.

Paul Cheesbrough and David Jack – two CIOs who have pioneered cloud computing – have criticised traditional software suppliers for sticking with “cash cow” licensing.

Cheesbrough, CIO of News International, said: “Our view of Microsoft and Oracle is that all roads still lead to the MS Enterprise Agreement, and Oracle's Support contract. We also run SAP as our enterprise system and when the time is up for renewal, we will look at what is available.”

Cheesbrough pointed out that Microsoft has a business model that is still reaping the traditional license fee cash cow. “Ray Ozzie leaving Microsoft shows it still has major conflicts with the cloud.”

David Jack, CIO of thetrainline.com, said: “Our current licensing costs goes mainly to Oracle. I would gladly move to MySQL or Microsoft.” 

He said the database industry needs to migrate from a traditional pricing to a cloud model. This is why high transaction businesses like thetrainline.com still keeps its database in-house, rather than use a cloud provider, he said.

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 Zero Balance Accounting: can be thought of as somewhat of a hack.
Companies with large numbers of stores or locations can very often be
confused if all those stores are depositing into a single bank account.

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