Oracle database licensing

How Does Oracle OLAP Licensing Work?

Oracle OLAP Licensing

Oracle OLAP Licensing

Executive Summary: Oracle OLAP Licensing has long been a niche aspect of Oracle Database usage, historically requiring a separate license for its powerful analytic cube features.

In 2025, this landscape is changing โ€“ Oracleโ€™s OLAP option is being phased out and folded into the core database at no extra cost.

This advisory note provides an overview of Oracle OLAP licensing, recent changes (as of 2024-2025), cost considerations, compliance pitfalls, and guidance for IT asset managers at global enterprises on navigating the transition.

Oracle OLAP Licensing Overview

Oracle OLAP (Online Analytical Processing) is an optional component of Oracle Database Enterprise Edition that enables the creation of multidimensional data cubes and supports fast analytical queries.

From a licensing perspective, Oracle OLAP has traditionally been an extra-cost option โ€“ it is not included by default with Oracle Database Enterprise Edition (EE) on-premises.

Organizations had to purchase Oracle OLAP licenses in addition to their EE database licenses if they used OLAP features (such as analytic workspaces or cube materialized views).

Notably, Oracle OLAP is not available at all in Standard Edition or Express Edition; itโ€™s strictly an Enterprise Edition add-on.

In practice, usage of Oracle OLAP has been quite limited across enterprises (industry reports estimate itโ€™s actively used in <1% of Oracle databases globally), since many organizations rely on other business intelligence tools or Oracleโ€™s alternative analytics solutions.

Itโ€™s essential to recognize that Oracle OLAP, when utilized, is a server-embedded OLAP engine โ€“ meaning it operates within the Oracle Database itself.

This made deployment convenient for those requiring in-database analytics, but it also meant that simply installing Oracle Database EE did not automatically entitle the use of OLAP capabilities. Licensing is only required if you activate and use the OLAP option. Many Oracle EE customers have the OLAP component available but never enable it, avoiding the license cost.

However, enterprises that leveraged OLAPโ€™s cube building and fast query features needed to ensure proper licensing, as Oracleโ€™s license audits would flag usage of any OLAP-specific functionality (such as creating analytic workspaces or cubes) as a requirement for the OLAP option license.

Itโ€™s also worth noting that Oracle OLAP was included at no extra cost in certain special Oracle offerings, such as Oracle Database Personal Edition and some Oracle Cloud database services.

For example, Oracle Database Cloud Service Enterprise Edition High Performance and Extreme Performance tiers, as well as Oracle Exadata Cloud Service, offer bundled OLAP and other options as part of those service packages.

However, for a typical on-premises Enterprise Edition deployment or a standard Oracle Cloud EE service, OLAP usage has historically required separate licensing.

Oracle OLAP Licensing Models and Costs

Oracle OLAP licensing followed the same metrics as Oracle Database Enterprise Edition itself, ensuring consistency. An enterprise deploying OLAP had two primary licensing models to choose from:

  • Processor-Based Licensing: Ideal for large or high-throughput environments, this model counts the processors (CPU cores, adjusted by Oracleโ€™s core factor) running the Oracle Database. You must license every processor on the database server where OLAP is used. The OLAP optionโ€™s list price was approximately $23,000 per processor, mirroring Oracleโ€™s standard price list for database options. For example, if an Oracle EE database with OLAP runs on an 8-processor server, the OLAP licenses would cost 8 ร— $23,000 = $184,000 (plus annual support fees). This processor metric is typically chosen when user counts are very large or indeterminate (e.g. a data warehouse serving many external users).
  • Named User Plus (NUP) Licensing: Suitable for controlled user environments, NUP licensing requires a license for each named individual (or distinct device) accessing the OLAP-enabled database. Oracleโ€™s policy requires a minimum of 25 Named User Plus licenses per processor for Enterprise Edition (and its options). The list price for Oracle OLAP was about $460 per Named User Plus. For instance, if 200 named users access an OLAP cube, the cost would be 200 ร— $460 = $92,000 (plus support costs). If the processor minimum applies (e.g., on an 8-core server, a minimum of 8 ร— 25 = 200 NUP licenses), you must meet that floor, even if the actual number of users is fewer.

These costs were in addition to the base Oracle Database EE licenses. Moreover, the OLAP option license had to match the same licensing metric and quantity as the database on which it runs.

This means if your database EE is licensed per processor, you must license OLAP per processor on all those processors (you couldnโ€™t mix metrics or license OLAP on only some subset of the CPUs in a server).

The table below summarizes the licensing metrics and list prices for Oracle OLAP:

License MetricOracle OLAP License Cost (List Price)Notes
Processor License$23,000 per processorMust license all processors of the DB server; ideal for large user counts.
Named User Plus (NUP)$460 per named user25 NUP minimum per processor; suitable for known user populations.

Table: Oracle OLAP licensing metrics and costs (historical list prices). Support fees (typically ~22% of license cost annually) apply on top of these prices.

Understanding these models is crucial for IT asset management: if an enterprise activates Oracle OLAP without proper licensing, it could face substantial back-licensing costs during an audit.

Conversely, some organizations may have over-licensed OLAP (buying licenses โ€œjust in caseโ€ that were never used).

The key has been to align your OLAP licensing with actual usage and the right metric for your scenario, to control costs.

Changes in 2024/2025: OLAP Option Phased Out

In mid-2024, Oracle made a significant change to its OLAP licensing policy: Oracle OLAP was removed from the official Oracle Technology Price List, effective June 1, 2024. This effectively means Oracle is no longer selling the OLAP option as a separately priced product.

In practical terms, the OLAP capability is now considered a core feature of the Oracle Database (for those database versions that include it).

Customers no longer need to pay license fees for Oracle OLAP in the future. Oracle essentially made OLAP โ€œfreeโ€ โ€“ a dramatic shift from its earlier status as a costly add-on.

However, this change comes with important context. Oracle had already announced the deprecation of Oracle OLAP in the database. Oracle Database 21c (an innovation release) marked OLAP as deprecated. With the release of Oracle Database 23c (the next long-term support release), Oracle has stated that 23c will be the final release to include Oracle OLAP.

Support for the OLAP option will end when Oracle 23cโ€™s Premier Support period ends.

In other words, OLAP is not just free โ€“ it is also nearing the end of its life cycle. Oracle is investing in alternative analytical technologies and has ceased further development of the OLAP option.

For ITAM professionals, the 2024 policy change has two major implications:

  • No New OLAP Licenses Needed: If your organization upgrades to Oracle Database versions that include OLAP by default (and no longer require separate licensing), you will not incur additional licensing costs for using OLAP features. If you are running Oracle Database 19c or earlier and find you need to enable OLAP, Oracleโ€™s removal of the option from the price list means you cannot even purchase an OLAP license now. Effectively, Oracle has made it a granted feature. This is a relief for cost management, as the once-hefty $ 23,000 per CPU fee is gone.
  • Existing Contracts and Support Fees: Organizations that previously purchased OLAP licenses may still be paying annual support fees for those licenses. Oracleโ€™s general policy is that if a product was paid and is now free, customers may still be obligated to pay support fees to continue receiving support, unless they negotiate a change. (For example, Oracle did something similar in the past when making certain options like Spatial and Graph free โ€“ customers had to proactively drop those licenses from support to stop fees.) If your OLAP licenses are on a separate support contract line (with their own CSI), you might have the option to terminate that support and save costs. If OLAP is bundled in a larger contract, it may be more challenging. Enterprise customers should engage Oracle to clarify support arrangements: Oracle will generally allow support renewal for OLAP for those who still use it, through the end-of-life timeline, but you donโ€™t want to be paying for licenses you no longer need.

In summary, as of 2025, Oracle OLAP licensing is no longer a budgetary cost item for new use. Yet this โ€œfreeโ€ status coincides with its deprecation โ€“ signaling that Oracle expects customers to transition off OLAP shortly.

Compliance and Usage Considerations

Despite OLAP now effectively being free, compliance oversight remains important, especially for historical usage. Prior to 2024, if an enterprise used OLAP without the proper license, it was out of compliance and at risk in an Oracle audit.

Oracle License Management Services (LMS) could detect usage of OLAP by scanning for the existence of OLAP-specific objects or metadata (for example, the presence of analytic workspaces, cubes, or use of OLAP APIs in the database).

Typically, OLAP usage is not โ€œaccidentalโ€ โ€“ a DBA or developer would intentionally create a cube or analytic workspace using Oracleโ€™s OLAP tools (such as Analytic Workspace Manager or OLAP DML scripts).

If your organization never did that, you likely never triggered the need for an OLAP license.

That said, an IT asset manager should ensure that no unlicensed historical usage of OLAP occurred in the environment prior to its release.

Itโ€™s wise to run a check on your Oracle databases (especially any Enterprise Edition data warehouse instances) to see if any OLAP OPTION is installed and being used.

Oracle provides scripts and views (such as checking the DBA_CUBES or DBA_AW_* tables) to identify analytic workspaces or cubes. If any are found on older versions, you should document that usage and ensure itโ€™s covered by a license (or was started after OLAP became free).

Looking forward, since new versions include OLAP at no cost, compliance risk shifts toward ensuring support and version alignment. If you continue to use OLAP in Oracle 19c or 21c, you technically donโ€™t pay for the license now; however, you must be on a supported configuration.

Remember that OLAP wonโ€™t exist in post-23c versions โ€“ running an OLAP-dependent application on an unsupported database version after 23cโ€™s support ends would pose operational and compliance risks (unsupported software in production).

Thus, compliance now is less about licensing fees and more about lifecycle management: making sure you have a path off OLAP before it becomes completely unsupported.

Another consideration is cloud and virtualization environments. If you run Oracle databases in the cloud or on virtual platforms, be mindful that Oracleโ€™s partitioning policies historically required you to license options like OLAP for all underlying processors if the deployment isnโ€™t fully isolated.

With OLAP free, this is less of a financial concern; however, if audited, youโ€™d still need to demonstrate that you only used it where allowed.

In Oracleโ€™s cloud (OCI), the High Performance and Extreme Performance database services include OLAP capabilities, making compliance straightforward.

On AWS or Azure, using a bring-your-own-license, you would previously have needed OLAP licenses; now, you only need to track usage for support considerations.

In short, ensure OLAP usage is intentional and documented.

If you donโ€™t need OLAP, keep it disabled to avoid any complexity. If you do use it, track which systems and users utilize it, so you have a clear understanding of your exposure as the feature approaches retirement.

Contract and Support Implications

For enterprises with existing Oracle agreements, Oracle OLAPโ€™s licensing changes require a review of your contracts.

  • Support Renewals: As mentioned, if you have active OLAP licenses, you are likely paying annual support (typically ~22% of license cost per year). Now that OLAP is free, you have the option to attempt to remove those licenses from support to cut costs. Oracle will not do this automatically โ€“ itโ€™s up to you to raise it during your support renewal cycle. Check how your OLAP licenses are listed in your support contract. If they are on a separate line item (with a distinct CSI), you can non-renew that line item. Be cautious: If you are actively using OLAP and drop support, you will not receive patches or assistance for that feature. If OLAP is crucial for you over the next couple of years, you may want to consider maintaining support until you migrate off. If OLAP was not used or is easily replaceable, dropping support can yield savings.
  • Oracle ULA or Contract Negotiations: If your organization is in an Unlimited License Agreement (ULA) or negotiating a new Oracle contract, ensure OLAP is not being inappropriately counted or charged. In a ULA signed before 2024, OLAP might have been one of the products you had unlimited use of. In that case, the change doesnโ€™t negatively affect you, but as ULAs come up for renewal or certification, confirm that OLAP usage doesnโ€™t need any certification (since itโ€™s now free). When negotiating any new purchasing, double-check that Oracle isnโ€™t quoting OLAP licenses โ€“ they shouldnโ€™t, but due diligence is key.
  • Legacy Deployments: Some enterprises might have older Oracle Database versions (11g, 12c, etc.) with OLAP options licensed. Oracleโ€™s change effectively grants those rights for free now, but it doesnโ€™t automatically alter your paperwork. You wonโ€™t receive a credit for previously bought licenses. What you can do is, at your next true-up or audit defense discussion, note that Oracleโ€™s own price list shows OLAP at no cost, which supports your case that no license fees are owed for any current usage.
  • Continuing Support vs. Desupport: Oracle has stated they will support OLAP option through the life of Oracle 23c. If you plan to stay on an older version like 19c with OLAP for a while, be aware that Premier Support for 19c now ends in April 2026 (after an extension was granted). Running OLAP on a fully out-of-support database is not advisable for a mission-critical environment. Consider this when developing your IT roadmaps and negotiating contracts. You may need to upgrade to 23c to remain supported, and then have a plan to retire OLAP after that. Engage Oracle support and account reps to clarify any extended support policies if you truly need to keep OLAP-based systems running beyond the standard support window.
  • License Documentation: As a best practice, document the status of Oracle OLAP in your environment in internal records. If auditors or stakeholders question your licensing position, you can clearly state: โ€œOracle OLAP Option, formerly licensed separately, is as of 2024 included with Oracle Database EE at no additional cost. We have X licenses on record from before, which we have/ havenโ€™t renewed support for, and we are compliant with current Oracle policy.โ€ This pre-empts confusion and shows that your team is on top of the change.

Future Outlook: Replacing Oracle OLAP

With Oracle OLAP reaching its end of life, enterprises should plan for alternative solutions to meet their analytical workloads.

Oracle has provided clear direction on what to use going forward:

  • Oracle Analytic Views: Starting in Oracle 12c and above, Analytic Views have been available as a built-in feature (included in the base database license) that offers a multidimensional semantic layer on top of relational tables. Oracle explicitly recommends Analytic Views as a replacement for most Oracle OLAP use cases. Analytic Views enable you to define hierarchies, measures, and calculations on your data and query them using simplified SQL for analytic results. Critically, they are included with the Enterprise Edition โ€“ no additional license is needed โ€“ and Oracle has continually improved them. They also work nicely with Oracleโ€™s in-memory and query optimization features to deliver performance comparable to OLAP cubes. Suppose your application requires an in-database dimensional model (for example, a star schema warehouse that needs a cube-like query interface). In that case, Analytic Views should be considered the primary path forward. They require some redesign of how you define cubes (the definitions differ from OLAP analytic workspace definitions), but Oracle provides documentation and tools for migration.
  • Oracle Essbase: For more complex or advanced analytics beyond what Analytic Views can do in-database, Oracle suggests Essbase. Essbase is a standalone multidimensional database engine (originating from Hyperion, which Oracle acquired). Itโ€™s well-suited for advanced what-if analysis, forecasting models, and scenarios that benefit from a dedicated OLAP server. Essbase, however, is a separate product with its own licensing (Essbase is typically licensed by the number of users or server size, depending on the deployment). Enterprises that have been heavy users of Oracle OLAP cubes for tasks such as complex forecasting may find Essbase a more powerful platform, albeit with a migration effort and new licensing considerations. Oracle offers cloud and on-prem versions of Essbase.
  • Other BI/Analytics Tools: Some organizations may decide that this is a good juncture to re-evaluate their overall analytics strategy. If Oracle OLAP was used sparingly, it might be easier to migrate those few analytical cubes to a third-party BI tool or cloud analytics service that the company standardizes on. Many modern analytics platforms (Tableau, Power BI, etc.) can handle the slice-and-dice of data without an Oracle OLAP layer, often by querying a well-designed data warehouse. The key is to ensure performance is maintained. Oracleโ€™s database, with features such as materialized views, partitioning, and Analytic Views, can often achieve similar results to OLAP cubes in a purely relational form.
  • Timeline for Transition: Donโ€™t Procrastinate on Migration Planning. Given that Oracle Database 23c is the last version with OLAP, and its Premier Support will run only for a limited window (likely into the late 2020s), enterprises have at most a few years to fully replace any OLAP-dependent systems. Start the assessment now: Identify which applications or reports utilize OLAP, and schedule development time to re-engineer them. Oracleโ€™s tools or partners might offer migration assistance (for example, converting an analytic workspace into an Analytic View definition). The sooner you start, the smoother the transition before OLAP becomes entirely unsupported.

Crucially, do not start any new projects using Oracle OLAP. Even though it is free now, itโ€™s a dead-end technology. Embrace the newer alternatives to ensure longevity and supportability.

Recommendations (Expert Tips)

  • Assess Current Usage: Conduct a thorough audit of your Oracle environments for any OLAP usage. Identify databases where the OLAP option was installed or cubes/analytic workspaces exist. This inventory will guide your next steps (whether to keep, migrate, or retire those instances).
  • Verify License Records: Review your Oracle license entitlements and contracts to ensure compliance. Ensure you have documentation of any Oracle OLAP Option licenses you purchased in the past. This will be useful when discussing support renewals or proving past compliance.
  • Engage Oracle Reps: Speak with your Oracle account manager about OLAPโ€™s status. Please clarify how the removal from the price list specifically affects your organization. If you have support contracts for OLAP, inquire about options to terminate or receive a credit in light of the change. Always get confirmation in writing.
  • Optimize Support Costs: If youโ€™re paying support for OLAP licenses you no longer need, create a plan to drop those costs. This may mean not renewing certain support lines at next renewal. However, coordinate this with your technical team โ€“ donโ€™t drop support if you still rely on OLAP for critical systems without a migration plan.
  • Educate Stakeholders: Inform your DBA teams and solution architects that Oracle OLAP is now deprecated and free. Ensure they understand that, although it doesnโ€™t require a license fee now, itโ€™s not a viable long-term solution. This will prevent well-meaning staff from building new solutions on OLAP out of ignorance of its sunset status.
  • Plan and Migrate: Define a migration strategy for any applications using OLAP cubes. Evaluate Oracle Analytic Views as the primary replacement. Set timelines for transitioning each OLAP use case to the new approach. Engage experts if needed โ€“ this is a strategic project, not just a license cleanup.
  • Leverage Analytics Improvements: Utilize Oracle Database enhancements that may reduce the need for OLAP. For instance, ensure youโ€™re using features like Materialized Views, Query Rewrite, Partitioning, and Analytical SQL functions. These can often achieve high-performance reporting without the need for a cube. By tuning your data warehouse with these features (many of which are included or come with EE options you might already have), you may eliminate the need for a separate OLAP layer.
  • Monitor Oracleโ€™s Support Notices: Stay informed about Oracleโ€™s communications related to OLAP. There may be further guidance, tools, or patches during the wind-down period. Being well-informed will help you manage risk (for example, Oracle might release a final patch set for OLAP in 23c โ€“ youโ€™d want to apply that if you continue to use OLAP up to its retirement).
  • Consider Third-Party Advice: Consult with independent Oracle licensing experts or SAM consultancies if your Oracle environment is complex and requires specialized guidance. A third-party review can assure that youโ€™re not missing any hidden OLAP usage and that youโ€™re handling the contract changes optimally.
  • Document Decisions: Keep a written record of decisions and actions taken regarding OLAP licensing. This includes internal meeting notes regarding the decision to drop support, technical evaluations of alternatives, and any correspondence with Oracle related to OLAP. This documentation can be invaluable for future audits or staff transitions.

Checklist: 5 Actions to Take

  1. Identify OLAP Usage: Scan all Oracle Database instances for signs of OLAP option usage (e.g., installed OLAP components, analytic workspaces, cubes). Create a list of systems that utilize Oracle OLAP.
  2. Assess Impact: For each identified system, determine the criticality of the OLAP-dependent functionality. Can it be replaced by standard SQL or Analytic Views? Is it mission-critical or minor? This triage will prioritize your migration efforts.
  3. Review Licenses & Contracts: Pull out your Oracle license agreements and support contracts. Note any Oracle OLAP Option line items. Confirm the support status (are you paying annual support on them?). This step sets the stage for renegotiating those terms.
  4. Engage and Plan: If OLAP is in use, meet with both Oracle (for contract adjustments) and your internal technical team (for migration planning). Develop a project plan to migrate off OLAP, including timelines, responsible teams, and target solutions (such as Analytic Views and Essbase). Simultaneously, plan a conversation with Oracle or your reseller to adjust the support contract as needed (e.g., schedule to discontinue OLAP support once the migration is complete).
  5. Implement & Educate: Execute the migration plan, retire OLAP components as new solutions come online, and test thoroughly. Update your internal documentation (architecture diagrams, runbooks) to remove references to OLAP. Finally, educate end-users (if any directly use OLAP features, such as a spreadsheet add-in or a reporting tool connected to OLAP) about the changes. Ensure ongoing governance to prevent new OLAP usage from creeping in.

FAQ

Q1: Is Oracle OLAP now truly free, and does that mean we can use it without any restrictions?
A1: Yes. As of 2024, Oracle has integrated the OLAP option into the core database, eliminating the need for a separate license purchase. You can enable and use Oracle OLAP features in supported versions (Oracle 19c, 21c, 23c) without incurring new license fees. However, โ€œfreeโ€ doesnโ€™t mean โ€œforeverโ€ โ€“ OLAP is deprecated and will not exist in future releases beyond 23c. Additionally, if you already own OLAP licenses, you should verify how support fees will be handled going forward.

Q2: Do we need to maintain our existing Oracle OLAP licenses or can we drop them?
A2: You cannot buy new OLAP licenses anymore, and you technically donโ€™t โ€œneedโ€ the old licenses to use OLAP now. The primary consideration is support: if you have an existing OLAP license with an active support contract, Oracle will continue to provide support (including bug fixes and assistance) for OLAP throughout the life of 23c, as long as you maintain support payments. You can choose to drop the support (to save cost) if you determine you no longer need Oracleโ€™s support for OLAP. This should be done in consultation with Oracle or your licensing advisor, to ensure it doesnโ€™t affect your support for other products.

Q3: How can we detect if our Oracle databases are using the OLAP option?
A3: Typically, Oracle OLAP usage can be detected by looking for the presence of OLAP structures or activity. Your database administrators can check for analytic workspaces or cubes in the database (for example, querying Oracleโ€™s data dictionary views like DBA_CUBES or V$OPTION which indicates whether the โ€œOLAPโ€ option is installed and returns TRUE/FALSE for usage. Additionally, if any application in your environment uses Oracleโ€™s OLAP API, OLAP Worksheet, or Analytic Workspace Manager to create cubes, thatโ€™s a clear sign. If none of your teams intentionally implemented such features, likely, you are not using OLAP.

Q4: What are the alternatives to Oracle OLAP for analytical querying?
A4: Oracle recommends using Analytic Views for in-database analytics in the future. Analytic Views enable you to define dimensional models on top of relational tables and are included in Oracle Database without requiring an additional license. They offer similar query capabilities and performance when properly implemented. For more advanced or multi-dimensional planning use cases, Oracle Essbase is the go-to solution (although it is a separately licensed product). Aside from Oracleโ€™s offerings, you can also consider external BI tools with pre-aggregated tables or data marts to achieve similar outcomes. The right choice depends on your requirements for complexity, performance, and integration with Oracle Database.

Q5: We have an Unlimited License Agreement (ULA) with Oracle that includes the OLAP option. How does the change in OLAP licensing affect us?
A5: If you are currently in a ULA, the OLAP option being free doesnโ€™t negatively impact your ULA usage โ€“ you can continue to use it as you have been. When it comes time to certify or renew your ULA, Oracleโ€™s price list change means OLAP may be treated as included (no additional licensing needed). It would be wise to get clarity during the ULA certification process: confirm that any OLAP usage doesnโ€™t need to be separately accounted for, since itโ€™s no longer a licensable item. In a renewal or renegotiation, you likely wonโ€™t need to include OLAP in the scope at all (unless Oracle provides some replacement analytics product to cover, but analytic views are free so nothing additional there). Always document Oracleโ€™s stance in writing to avoid ambiguity later.

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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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