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Reference deployment Database consolidation

One hundred and forty databases, far fewer licensed cores

An insurance company runs about 140 Oracle databases on 60 servers, accumulated one project at a time over fifteen years. Licence support is the largest line in the database budget, and most of those cores are idle most of the day. This design consolidates the databases that must stay on Oracle onto a small, dedicated estate, moves the ones that can to PostgreSQL, and gives everything proper HA, DR and backup on the way.

SectorInsurance
Estate~140 Oracle DBs, 60 servers
Programme12 months, 5 waves
ModelPrivate DB platform: Oracle + PostgreSQL
The situation

Licensed for peak on every server, busy on almost none

The insurer writes life and health policies through agents, bancassurance partners and its own portal. Policy administration and claims run on packaged software certified only on Oracle. Around them sit dozens of in-house applications, portals, reporting systems and integrations, each of which got its own Oracle database, and often its own server, when it was built.

Today there are about 140 databases on 60 servers, on Oracle versions from 11g to 19c. Licences are counted on roughly 960 physical cores. Average CPU use across those servers is about 22%. Some servers are past hardware support, backups are run differently on almost every one, and only the policy and claims databases have a tested standby.

The CFO’s question was direct: how much of the Oracle bill pays for capacity that nobody uses, and how much could be avoided without putting policy servicing or claims at risk? The CIO added a second one: can the result be something the DBA team can actually run, with one way of doing backup, HA and DR?

What could not be compromised

  • Policy administration and claims stay on Oracle. The vendor certifies nothing else.
  • No change can put the licence position at risk. Every step is checked against the contracts actually held.
  • IRDAI requirements on record keeping and information security, and the DPDP Act for policyholder data, apply throughout. Data stays in India.
  • Policy servicing runs from 7 am to 11 pm. Cut-overs happen at night or on weekends, inside agreed windows.
  • A DBA team of eight, strong on Oracle, with little PostgreSQL experience today.
Options weighed

Four ways to reduce the database bill

Each option was modelled over five years using the licence baseline, measured database load and an application-by-application review of what could change.

OptionWhat worksWhat does notVerdict
Renew as is, refresh hardwareNo change risk.Licence and support costs stay where they are, on cores that are mostly idle.Rejected
Consolidate everything onto OracleOne platform, one skill set. Large cut in licensed cores.In-house databases with no need for Oracle keep paying for it.Rejected
Move everything to PostgreSQLNo database licence cost.Packaged policy and claims software is not certified on it. Rewriting heavy PL/SQL is slow and risky.Rejected
Consolidated Oracle for what must stay, PostgreSQL where the application allowsLargest saving that the applications can support. Each database goes where it fits.Two platforms to run, and conversion work for about 50 databases.Chosen
Target architecture

A small Oracle estate for what must stay, PostgreSQL for the rest

Oracle runs on four dedicated physical servers at the primary site and three at the DR site, sized from measured load. PostgreSQL runs as three highly available clusters grouped by tier. Applications reach both through an access layer of service names and connection pooling, so a database can move without changing application settings.

Scroll sideways to see the whole diagram →
APPLICATIONSCURRENT ESTATEPRIVATE DATABASE PLATFORM, PRIMARY DCDR SITEPolicy admin and claimspackaged, Oracle-certifiedPortals and agent appsin-house, Java and .NETFinance and reportingGL, actuarial, MISLicence baselinecores, options, contractsOracle estate today140 DBs on 60 serversMOVINGLocal backupstape and disk, per serverLEGACYRetire or merge18 unused or duplicate DBsRETIREDatabase access layerservice names, connection pooling, one DNS name per applicationConsolidated Oracle4 servers, 192 licensed coresPostgreSQL platform3 Patroni clusters, 9 nodesBackup serviceRMAN and pgBackRestConversion and CDCschema conversion, change syncEncryption and keysTDE, central key vaultMonitoring and auditperformance, access, licence useOracle standbyData Guard, asyncPG replicasstreaming, asyncDR runbookstested twice a yearBackup copyimmutable, 35 daysSQL52 DBs2CDC1345User or API trafficData / replicationScheduled copy
Numbered flows: (1) about 70 databases move onto the consolidated Oracle estate, (2) about 52 are converted to PostgreSQL and kept in sync by change data capture until cut-over, (3) Oracle replicates to a standby at the DR site, (4) PostgreSQL streams to replicas at the DR site, (5) backups are copied to immutable storage at the DR site.
Building blockWhy it is there
1 Licence baselineBefore anything moves, every server, core count, edition, option and management pack in use is listed and reconciled with the contracts held. This becomes the reference for every later decision.
2 Consolidated Oracle estateSeventy databases on four dedicated physical servers. Container databases are used where the licence allows; the number of pluggable databases allowed without the extra-cost option is limited, so this is checked against the licence held, and separate instances are used otherwise.
3 PostgreSQL platformThree clusters of three nodes, managed with Patroni for automatic failover inside the site. Databases are grouped by tier, so a busy reporting database never shares a cluster with a customer portal.
4 Conversion and change data captureSchema conversion tooling handles most tables, views and simple procedures. Heavier PL/SQL is rewritten by hand or moved into the application. Changes stream from Oracle to PostgreSQL until cut-over, so the switch takes minutes.
5 Database access layerApplications connect through service names and connection pooling, not server addresses. Moving a database or failing over changes the target behind the name, not the application.
6 HA and DRTier 1 Oracle databases have a standby on a second server in the same site and another at DR. PostgreSQL clusters keep a synchronous replica in the site and stream to replicas at DR.
7 Backup, encryption and auditOne backup service for both platforms, with immutable copies at DR. Data is encrypted at rest with keys in a central vault. Access and licence-relevant usage are monitored continuously.
Sizing, worked out

Sized from measured load, then checked against the licence

AWR reports and 90 days of server metrics were used for every Oracle database. Newer processors do roughly 1.6 times the work per core of the oldest servers in the estate, which matters when licences are counted per core.

ItemTodayDesignBasis
Databases~140~70 Oracle, ~52 PostgreSQL, ~18 retiredApplication-by-application review with owners
Oracle load at p95~210 busy cores across 60 servers~150 cores for the databases that stayMeasured; the 52 moving databases account for the rest
Oracle primary960 licensed cores, all servers4 servers x 48 cores = 192 cores150 / 1.6 = ~95 cores on new CPUs, +40% growth = ~133, carried by 3 servers
Oracle DRStandby for 2 systems only3 servers x 48 cores = 144 coresCarries the full Tier 1 and Tier 2 load in a disaster
Licensed Oracle cores~960~336, about 65% fewer192 primary + 144 DR, standby cores counted as licensed
PostgreSQL-9 nodes x 16 cores, 3 at DR~45 busy cores today, ~30 on new CPUs, one primary per cluster with room to grow
Storage~48 TB of data on local and SAN disks~70 TB usable all-flash per site~44 TB after retirement, +50% growth, separate from backup

The licence figures are design targets. The final position depends on the contracts, options and support terms in place, and is confirmed with the company’s licensing team and a licensing specialist before any server is decommissioned.

How it is delivered

Licence first, then the platform, then the databases

Nothing moves until the licence baseline is agreed. Databases then move in waves grouped by application, with policy and claims last.

1

Licence baseline and assessment

Weeks 1 to 8

Every database, server, edition, option and pack catalogued and reconciled with contracts. Each database assessed: stay on Oracle, convert, or retire.

Gate: Baseline signed off by finance, procurement and IT. Every database has a target and an owner.

2

Build the platform

Weeks 9 to 18

Oracle and PostgreSQL platforms at both sites, access layer, backup, encryption and monitoring. DBA team trained on PostgreSQL alongside the build.

Gate: Failover and restore tests passed on both platforms, with times measured.

3

Retire and pilot

Weeks 19 to 24

Eighteen unused databases archived and switched off. First ten in-house databases converted to PostgreSQL with their applications.

Gate: Pilot applications run a full month-end on PostgreSQL with no data issues.

4

Migration waves

Weeks 25 to 46

Remaining PostgreSQL conversions and Oracle consolidation in four waves, grouped by application. Policy admin and claims move last, using a standby at the new estate and a switchover.

Gate: Each wave stable through one month-end before the next starts.

5

Decommission and true-up

Weeks 47 to 52

Old servers wiped and removed. Licence position recalculated and support terms renegotiated.

Gate: Licence position documented and agreed. DR test passed for every tier.

Way back: For Oracle moves, the old database stays available as a standby until sign-off, so a switchback takes minutes. For PostgreSQL conversions, change capture runs in reverse after cut-over for two weeks, so the application can return to Oracle with current data.
Risks, handled up front

Where database consolidation goes wrong

RiskWhat could happenHow the design handles it
Licence exposureA consolidation step increases the licence requirement instead of cutting itOracle runs only on dedicated physical servers, because the vendor’s partitioning policy does not accept most general-purpose virtualisation for limiting licensed cores. Every design change is checked against the baseline.
Support repricingDropping unused licences from support raises the price of those that remainThe savings case is modelled with and without repricing, and negotiated before any notice is given.
Conversion surprisesPL/SQL or Oracle-specific features make a conversion far larger than estimatedEvery database is scanned for features before it is assigned. Anything heavy stays on Oracle rather than delaying the programme.
Noisy neighboursA heavy batch job slows policy servicing on a shared serverDatabases grouped by tier, with resource limits per database and batch scheduled outside servicing hours.
SkillsThe DBA team cannot support PostgreSQL in productionTraining during the build, runbooks written with the team, and pilot databases run by them before the first production wave.
What was optimised

Where the savings come from

~65%

Fewer licensed Oracle cores

From about 960 to about 336, including DR, by sizing from measured load on newer processors.

~52

Databases with no licence cost

In-house databases that do not need Oracle move to PostgreSQL.

18

Databases retired

Unused and duplicate databases are archived and switched off, not migrated.

60 to 16

Fewer database servers

Sixty servers become 7 Oracle and 9 PostgreSQL servers across two sites.

1

Way to back up and recover

One backup service and one set of runbooks for both platforms.

Continuous

Licence visibility

Options and packs in use are monitored, so the licence position never drifts.

Outcomes

What the design is built to deliver

MeasureBeforeDesign target
Licensed Oracle cores~960~336, subject to contract review
Annual Oracle support costLargest database budget line40 to 55% lower, depending on support renegotiation
Database servers6016 across primary and DR
Databases with tested DR2 systemsAll production databases, by tier
Recovery for policy and claimsRPO about 15 minutes, RTO about 8 hoursRPO under 1 minute in site, under 5 minutes to DR; RTO 1 hour
Backup methodsDifferent on almost every serverOne service, immutable copies, restore tested monthly

Licence and cost figures are design targets, not a licensing opinion. They depend on the contracts, discounts and support terms in place, and are confirmed with your licensing team and the vendor before any change is made.

Skills this draws on

What a team needs to deliver this

Oracle licence assessment

Building a licence baseline from servers, editions, options and contracts, and modelling consolidation against it.

Oracle consolidation

Dedicated estates, container databases, Data Guard and resource management for shared servers.

PostgreSQL platforms

Patroni HA, connection pooling, backup with pgBackRest and running PostgreSQL at production scale.

Database migration

Schema conversion, PL/SQL rewrites and change data capture for low-downtime cut-overs.

HA and DR design

Recovery tiers, standby databases and failover tests that the business signs off.

Regulated data platforms

Encryption, key management and audit for insurance and financial data.

About this page. This is a reference deployment: a worked design built from requirements we see repeatedly in this kind of organisation. It is not a description of a specific client. Figures are design targets and planning estimates; real numbers depend on your workloads and are confirmed during assessment. We are glad to walk through how it would apply to your environment.

Paying for database cores that sit idle most of the day?

Send us a list of your Oracle servers and databases and what each one runs. We will come back with a plain first view of what could consolidate, what could move to PostgreSQL and roughly how the licence position would change.