Counting Oracle Processor Licenses on AWS EC2
Correctly counting Oracle processor licenses on AWS EC2 instances is essential to maintaining compliance and avoiding costly audit penalties. Oracle applies specific cloud-based licensing rules to AWS environments.
This guide outlines Oracle’s official counting methodology, provides practical examples, clarifies common misunderstandings, and offers clear guidance for licensing counting on AWS EC2.
Read Oracle on AWS Licensing FAQs 1 of 4
How Oracle Processor Licensing Works on AWS EC2
Oracle’s Cloud Policy Explained:
Unlike on-premises hardware, Oracle licensing on AWS does not use Oracle’s Core Factor Table. Instead, Oracle clearly defines processor counting for AWS (an “Authorized Cloud Environment”) based solely on vCPUs:
- With hyper-threading enabled (standard for most AWS instances):
- 2 AWS vCPUs = 1 Oracle Processor license
- Without hyper-threading (rare scenarios):
- 1 AWS vCPU = 1 Oracle Processor license
Practical Examples: Counting Oracle Licenses on AWS EC2
Scenario A: Typical AWS Instance (Hyper-Threading Enabled)
AWS Hyper-threading Default:
- Most modern AWS EC2 instances have hyper-threading enabled by default.
Counting Example:
- AWS EC2 instance type: m5.2xlarge (8 vCPUs, hyper-threading enabled):
- Calculation: 8 vCPUs ÷ 2 = 4 Oracle Processor licenses required.
Scenario B: Non-Hyper-Threaded Instances (Rare Scenario)
Counting Example:
- An AWS EC2 instance type without hyper-threading or explicitly disabled:
- AWS EC2 instance: 8 vCPUs (no hyper-threading, 1 vCPU = 1 core):
- Calculation: 8 vCPUs = 8 Oracle Processor licenses required.
Note: This scenario is rare. Historically, Azure was an example where vCPUs were full cores, but AWS now generally follows the two vCPUs = 1 processor license rule due to hyper-threading.
Read Why Hyper-Threading Matters for Oracle Licensing on AWS.
Key Points for Oracle Processor Licensing on AWS EC2
1. Oracle Core Factor Table Not Applicable to AWS
- On-premises licensing often uses Oracle’s Core Factor Table (e.g., Intel CPUs: core factor = 0.5).
- Oracle explicitly waives this Core Factor for AWS (and other cloud environments).
- AWS licensing uses only the simple vCPU-based formula above.
Practical Implication:
- Ignore Core Factor multipliers for AWS deployments—only count vCPUs.
2. Licensing Is Per EC2 Instance (Not Per Database or VM)
- Oracle licensing applies to each EC2 instance’s total vCPUs running Oracle software.
- Multiple Oracle databases on one EC2 instance:
- The total vCPUs of that single instance (not per database).
- Single Oracle database across multiple EC2 instances:
- License each instance separately (count each instance’s vCPUs).
Practical Example:
| Deployment Scenario | Licensing Example |
|---|---|
| Clearly, 4 licenses total (8 ÷ 2 = 4) | There are eight licenses total (4 per instance × 2 instances) |
| Single DB spanning two EC2 instances (8 vCPUs each) | 4 licenses total (8 ÷ 2 = 4) |
Practical Summary: Counting Oracle Licenses on AWS EC2
| Licensing Factor | AWS EC2 Instance Scenario | Oracle Processor License Requirement |
|---|---|---|
| Hyper-threading Enabled (standard AWS) | Typical (e.g., m5.2xlarge – 8 vCPUs) | 2 vCPUs = 1 processor license (8 vCPUs ÷ 2 = 4 licenses) |
| Hyper-threading Disabled (rare) | Non-typical (older or explicitly disabled) | 1 vCPU = 1 processor license (8 vCPUs = 8 licenses) |
Oracle Licensing Compliance Checklist on AWS EC2
✅ Clearly confirm the hyper-threading status of your EC2 instances (standard is enabled).
✅ Clearly apply Oracle’s official cloud policy: 2 vCPUs = 1 processor license (hyper-threaded).
✅ Disregard Oracle’s on-premises Core Factor Table for AWS deployments.
✅ Clearly license by total instance vCPUs—per EC2 instance, not per DB or VM.
Read the Oracle “License Included” Model on AWS.
Common Misunderstandings Corrected
- Misconception: “Oracle’s Core Factor applies on AWS instances.”
- Reality: This does not apply—Oracle explicitly waives Core Factor in cloud environments.
- Misconception: “Oracle licensing counts per database instance, not EC2 instance.”
- Reality: Licensing applies per EC2 instance, regardless of the number of DBs.
- Misconception: “All AWS vCPUs count as one Oracle processor license.”
- Reality: With hyper-threading (standard), 2 AWS vCPUs = 1 Oracle processor license.
Conclusion: Clearly Understanding Oracle Processor Licensing on AWS EC2
Correctly applying Oracle’s licensing rules on AWS EC2 ensures compliance, avoids audit risks, and optimizes Oracle licensing investments.
- Follow the two vCPUs = one processor license rule on hyper-threaded AWS instances.
- Document license allocations per EC2 instance to simplify audit preparedness.
- Disregard Core Factor multipliers in AWS environments.
Adhering to these straightforward guidelines ensures licensing accuracy, cost-effectiveness, and peace of mind when deploying Oracle workloads on AWS EC2.
