Oracle Licensing

Calculating Oracle Licenses for AWS EC2 Instances: Step-by-Step Guide with Examples

Calculating Oracle Licenses for AWS EC2 Instances step by step

Calculating Oracle Licenses for AWS EC2 Instances

Determining Oracle licensing requirements on AWS EC2 is straightforward if you follow Oracle’s published licensing rules.

Below is a practical step-by-step guide to accurately calculate the number of Oracle licenses needed for specific AWS EC2 instances, illustrated through clear examples.

Read Oracle on AWS Licensing FAQs 3 of 4.


Step-by-Step: Calculating Oracle Licenses for AWS EC2

Step 1: Identify EC2 Instance Type and vCPUs

AWS specifies the number of virtual CPUs (vCPUs) for each EC2 instance type. For example:

  • m5.2xlarge: has eight vCPUs (4 physical cores, hyper-threaded).

Step 2: Apply Oracle Licensing Rules Clearly

Oracle’s standard cloud licensing rule clearly states:

  • If hyper-threading is enabled (default on AWS):
    • 2 vCPUs = 1 Oracle Processor license
  • If hyper-threading is disabled:
    • 1 vCPU = 1 Oracle Processor license

AWS typically uses hyper-threading, so usually, you’ll divide vCPUs by 2.

Step 3: Calculate Required Licenses

  • For an EC2 instance with eight vCPUs (hyper-threaded):
    • 8 vCPUs ÷ 2 equals 4 Oracle Processor licenses required.

This calculation applies to Oracle Database Enterprise Edition (EE).


Practical Example Clearly Explained

AWS EC2 Example: m5.2xlarge (8 vCPUs)

  • Instance type: m5.2xlarge
  • vCPUs: 8 vCPUs (4 cores hyper-threaded)
Licensing MetricCalculationLicenses Needed (Clearly Explained)
Processor Metric8 vCPUs ÷ 24 Processor licenses
Named User Plus4 processors × 25 usersMinimum 100 Named User licenses

Clearly explained decision:

  • The processor metric is typically cost-effective for larger AWS instances because Named User minimums increase rapidly with vCPU counts.

Oracle Database Options (Partitioning, Diagnostics, etc.)

Oracle options (like Partitioning, Diagnostics Pack, Tuning Pack) require licensing based on the underlying processor license count:

  • If your base database requires four processor licenses, any additional Oracle options require the same number (4 licenses each).

Example:

  • Base Oracle Database EE: 4 processor licenses
  • Using the Partitioning option: An additional 4 Partitioning licenses are required.

Total licenses clearly explained:

  • 4 Database EE licenses + 4 Partitioning licenses required.

Standard Edition 2 (SE2) Licensing Example

Oracle Standard Edition 2 (SE2) differs from EE licensing rules:

  • Licensed by socket, not by processor or vCPU directly.
  • AWS cloud rule for SE2 clearly states:
    • Up to 8 vCPUs = 2 sockets clearly required
    • Each SE2 license clearly covers one socket.

Clear SE2 Example: (8 vCPUs)

MetricCalculationLicenses Needed (Clearly Explained)
SE2 (Sockets)8 vCPUs → 2 sockets2 SE2 socket licenses
Named UserMinimum 10 per license20 Named Users (if using NUP)

Usually, the socket metric for SE2 is used since Named User licensing minimums quickly become inefficient.

Read Oracle Support on AWS.


Multi-Instance or Clustered Environment Example

If you have multiple EC2 instances:

  • Calculate licenses individually per instance.
  • Active/passive setups have clearly defined exceptions.

Clear Multi-Instance Example:

  • Two EC2 instances, each with clearly eight vCPUs running Oracle Database EE:
    • Each instance requires four processor licenses.
    • Total licenses: 4 licenses per instance × 2 instances = 8 processor licenses.
  • Active/passive DR is clearly defined by Oracle (passive DR may not require licenses if idle for <10 days/year).

Recap: Clear Licensing Formulas

Enterprise Edition (EE) on AWS:

Hyper-threading EnabledLicenses Required (Clearly)
Yes (AWS default)vCPUs ÷ 2 = Processor licenses
NovCPUs = Processor licenses

Example Clearly Illustrated:

  • 16 vCPUs (HT): 8 Processor licenses
  • 16 vCPUs (No HT): 16 Processor licenses

Standard Edition 2 (SE2) on AWS:

vCPUs CountSockets Required (Clearly)
1-8 vCPUs2 sockets
9-16 vCPUs4 sockets (maximum limit)

Practical Licensing Scenarios Explained

EC2 InstancevCPUs (HT)EE Licenses (Clearly)SE2 Licenses (Clearly)
m5.large21 processor2 sockets (minimum)
m5.xlarge42 processors2 sockets (minimum)
m5.2xlarge84 processors2 sockets
m5.4xlarge168 processors4 sockets (max allowed)
  • SE2 is limited to a maximum of 16 vCPUs on AWS (4 sockets).
  • EE scales without vCPU limits, licensing strictly by vCPU count.

Read Oracle WebLogic Server Licensing on AWS.


Licensing Checklist for AWS EC2

Confirm EC2 Instance vCPU Count Clearly
Verify Hyper-threading Status (Typically Enabled)
Calculate Processor Licenses (vCPUs ÷ 2 Clearly Explained)
Match Options to Base Licenses (1:1)
✅ Choose Processor Metric for Larger Instances
Apply SE2 Socket Metric Rules if Using SE2


Common Misunderstandings Clarified

  • Misconception: “One EC2 instance always equals one Oracle license.”
    • Clarification: It depends on vCPU count and hyper-threading.
  • Misconception: “Named User Plus licensing is cheaper for larger AWS instances.”
    • Clarification: The processor metric is more cost-effective for larger vCPU instances due to Named User minimums.
  • Misconception: “AWS RDS Oracle follows the same licensing as EC2.”
    • Clarification: AWS RDS provides license-included SE2 or BYOL licensing options that differ from EC2.

Conclusion: Calculating Oracle Licenses on AWS EC2

Calculating Oracle licenses for AWS EC2 instances is straightforward once you apply Oracle’s published cloud licensing rules. Remember:

  • Enterprise Edition: divide vCPUs by 2 (with HT enabled).
  • Standard Edition 2: count by sockets (2 per 8 vCPUs clearly).

By following these practical guidelines, you can ensure accurate Oracle license calculations, avoid compliance issues, and optimize your Oracle costs effectively.

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Author
  • Fredrik Filipsson has 20 years of experience in Oracle license management, including nine years working at Oracle and 11 years as a consultant, assisting major global clients with complex Oracle licensing issues. Before his work in Oracle licensing, he gained valuable expertise in IBM, SAP, and Salesforce licensing through his time at IBM. In addition, Fredrik has played a leading role in AI initiatives and is a successful entrepreneur, co-founding Redress Compliance and several other companies.

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