Oracle Cloud Licensing

Bring Your Own License (BYOL) for Oracle on AWS

Bring Your Own License (BYOL) for Oracle on AWS

Bring Your Own License (BYOL) for Oracle on AWS

Bring Your Own License (BYOL) allows you to use Oracle software licenses you already own on AWS infrastructure. In this scenario, AWS is another data center environment where you deploy Oracle products under your existing licensing agreements.

This article outlines key points, provides practical examples, and helps you understand licensing obligations and compliance requirements when choosing the BYOL model for Oracle on AWS.

Read Oracle on AWS Licensing FAQs 1 of 4


What is BYOL for Oracle on AWS?

Definition:

  • BYOL refers to deploying Oracle software on AWS using licenses you have previously purchased from Oracle or acquired through enterprise agreements.
  • AWS provides the infrastructure (EC2, RDS), but the license entitlements remain your responsibility.

Key Points for Oracle BYOL on AWS

1. Licensing Based on vCPU Counting Rules

To determine how many licenses you need on AWS, Oracle applies a specific cloud-based licensing formula:

  • 2 AWS vCPUs = 1 Oracle Processor license (when hyper-threading is enabled, as is typical).

Practical Example:

  • Deploying Oracle Database Enterprise Edition on an EC2 instance with 8 vCPUs:
    • Calculation: 8 vCPUs รท 2 = 4 Oracle Processor licenses required.

Why It Matters:

  • You must account for vCPU-based licensing to maintain compliance.
  • Miscounting can lead to significant licensing shortfalls and audit risks.

2. BYOL is Applicable to All Oracle Software

BYOL is the standard licensing model for most Oracle products on AWS, including:

  • Oracle Database Enterprise Edition (EE)
  • Oracle Middleware (WebLogic Server, SOA Suite, etc.)
  • Oracle Applications (E-Business Suite, PeopleSoft, Siebel, JD Edwards, etc.)

Important Note:

  • AWS does not provide bundled licenses for Oracle Enterprise Edition or Oracle Middleware productsโ€”BYOL is required.
  • The License-Included model (provided by AWS) is limited to specific services, such as Oracle Standard Edition 2 on Amazon RDS.

Practical Example:

  • Deploying Oracle WebLogic Server on AWS EC2:
    • Requires BYOLโ€”you must own licenses before deployment.

3. Oracle Support Requirements for BYOL Licenses

When using Oracle software via BYOL on AWS:

  • You must maintain active Oracle Support contracts for your licenses.
  • Oracle explicitly requires active support agreements for licenses deployed in cloud environments (for updates, patches, and compliance).

Practical Example:

  • You deploy Oracle Database EE on AWS:
    • You must maintain Oracle support contracts for these licenses.
    • No special โ€œcloud-specificโ€ license is required beyond standard licensing agreements with Oracle.

Read the Oracle โ€œLicense Includedโ€ Model on AWS.


4. No Separate Oracle โ€œLicense Mobilityโ€ Program Required

Unlike some vendors (such as Microsoft), Oracle does not require special “license mobility” programs to move licenses to AWS:

  • Your existing valid Oracle license agreements already grant rights to deploy on AWS (treated as an “Authorized Cloud Environment”).
  • However, documenting this deployment internally is strongly recommended to avoid any ambiguity during audits.

Important Consideration:

  • Check older Oracle contracts carefully for “outsourcing” or “third-party data center” clausesโ€”older agreements might have limitations requiring Oracle’s consent.
  • Most recent Oracle agreements explicitly recognize AWS as an authorized deployment environment.

Best Practice:

  • Maintain internal documentation indicating license allocations to AWS instances.
  • If uncertain, proactively inform Oracle or obtain written confirmation for older contract clauses.

Read Oracle Licensing Models on AWS.


Practical Summary: Oracle BYOL on AWSโ€”Key Points

Aspect of BYOL LicensingKey PointRecommended Action
vCPU-Based Licensing2 AWS vCPUs = 1 Oracle Processor licenseVerify product and use BYOL
Applicable ProductsAll Oracle products (EE, Middleware, Apps)Verify product and clearly use BYOL
Oracle Support ContractsActive support requiredMaintain active Oracle Support
License MobilityNo special mobility program requiredDocument AWS license allocation clearly

Oracle BYOL Compliance Checklist on AWS

โœ… Verify you own sufficient Oracle licenses for AWS deployments based on vCPU counts.
โœ… Ensure Oracle Support contracts are active for all licenses deployed on AWS.
โœ… document license allocations internally, linking licenses to specific AWS instances.
โœ… Review older Oracle contracts for third-party data center clauses and proactively address if necessary.


Common Misunderstandings Corrected

  • Misconception: “AWS provides bundled Oracle licenses for Enterprise Edition or Middleware.”
    • Reality: BYOL is required for Oracle EE and Middleware; AWS offers bundled licenses only for specific cases (Oracle SE2 on RDS).
  • Misconception: “Oracle requires a special license mobility program to deploy on AWS.”
    • Reality: Oracle licenses inherently allow AWS deployments; no special mobility program is needed.
  • Misconception: “No support contracts needed for Oracle BYOL licenses on AWS.”
    • Reality: Active Oracle Support contracts remain required for all BYOL deployments.

Conclusion: Understanding Oracle BYOL Licensing on AWS

Grasping Oracleโ€™s BYOL licensing model on AWS ensures you leverage existing Oracle investments effectively and maintain compliance. BYOL offers flexibility, cost efficiency, and ease of transition to AWS if it is carefully managed through proper license counting, documentation, and support maintenance.

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  • Fredrik Filipsson

    Fredrik Filipsson is the co-founder of Redress Compliance, a leading independent advisory firm specializing in Oracle, Microsoft, SAP, IBM, and Salesforce licensing. With over 20 years of experience in software licensing and contract negotiations, Fredrik has helped hundreds of organizationsโ€”including numerous Fortune 500 companiesโ€”optimize costs, avoid compliance risks, and secure favorable terms with major software vendors. Fredrik built his expertise over two decades working directly for IBM, SAP, and Oracle, where he gained in-depth knowledge of their licensing programs and sales practices. For the past 11 years, he has worked as a consultant, advising global enterprises on complex licensing challenges and large-scale contract negotiations.

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