Navy strikes enterprise licensing deal with Oracle

The Department of the Navy has reached a deal with Oracle Corporation to consolidate all of the Navy and Marine Corps’ purchases of the Redwood City, Calif.-based software giant’s database products under a single licensing agreement, officials said Tuesday.

The award, to Oracle vendor DLT Solutions, was formally signed last week and is the second of up to 15 such enterprise licensing deals the Navy is pursuing in an effort to wring savings from its software purchases. Last July, the department awarded $700 million to a Microsoft reseller to consolidate all of its licensing agreements for products such as Office and Windows.

The Oracle agreement will serve as an all-you-can-eat plan for several of the company’s most-used database products, including Oracle Database Enterprise Edition, five database options and the company’s WebLogic Suite.

Use of the enterprise arrangement is now mandatory across the Navy and Marine Corps for the covered products. The services expect the deal to reduce their spending on Oracle licenses by $60 million over the next five years, officials said.

Last month, Terry Halvorsen, the Navy’s chief information officer, said besides Oracle, his office expects to sign another large Navy-wide enterprise agreement before the end of 2013. Also, the Navy is working with DoD to create the first- ever Defense-wide software licensing agreement.

“You will see under the lead of [the Defense Information Systems Agency], we’re going to go after a very big DoD-wide license. We’ve all worked the requirements, and I want you to think about that. I don’t know that you could get that many Fortune 500 companies to sign up together and say, ‘Yep, these requirements are right,’ and go after it,” he told attendees at AFCEA NoVa’s annual Navy IT Day. “It will give us an incredible amount of leverage in that space, and you’re going to see that.”


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