I think this will take a while before Oracle and other vendors will wake up to adapt to the virtualization phenomena. They have failed to cash in on the opprtunity to adopt to it, now they better adapt. It has to happen, now or later, unless of course you want to lose your business to a competitor, who might be agile enough to take multi-core and virtualization developments well into account.
Controversial technology writer Nicholas Carr has called for a major overhaul of pricing models, describing Oracle's shift on multicore licensing as evidence "the traditional software pricing model is coming apart at the seams" as it tries to cope with the emergence of multicore chips, virtualisation and open-source software.
Roy Illsley of analyst Butler Group said that Oracle's current stance is und erstandable on the grounds that virtualisation of database apps is less advanced than in other areas, but he too predicted that all major software vendors would eventually have to develop new licensing models to account for the growing deployment of virtual machines in production environments.
"It is difficult [to develop virtualisation pricing], but vendors are not putting enough effort into it," Illsley said. "Eventually, if they don’t come up with something they will lose out… as virtualisation takes off it will create a licensing headache and customers will pressurise vendors to simplify it for them."