Ellison champions flat fee for software

The practice of pricing enterprise software on a per-processor basis should be replaced with a flat annual fee that lets businesses use as much software as they want, according to Oracle CEO, Larry Ellison.

Ellison made the pronouncement at his company's OracleWorld customer conference, where attendees not only heard talk of pricing models but also of acquisition strategies, a call for new standards in grid computing ... and instructions to evacuate the building for a bomb scare that proved harmless.

"Where I think we'll go is toward enterprise licensing," Ellison said. "You pay an annual recurring fee and use as much software as you want, and I think that's a much more sensible model to use."

Ellison also reaffirmed his company's commitment to acquiring PeopleSoft.

It also was revealed at the show that Oracle is trying to establish a new consortium to hammer out technology standards for grid computing in commercial environments. That effort appears likely to butt heads with a grid standards effort already underway.

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