Oracle Licensing

How Does Oracle Licensing Work on Azure?

Oracle Licensing on Azure

  • vCPU-based licensing model: license based on vCPU counts.
  • Multi-threading enabled: two vCPUs count as one license.
  • Constrained vCPU instances reduce licensing requirements.
  • Azure is an authorized cloud platform for Oracle.
  • A flexible licensing model reduces the cost of cloud workloads.

How Does Oracle Licensing Work on Azure?

How Does Oracle Licensing Work on Azure

The licensing model for Oracle software on Azure is designed to provide a clear and manageable approach to deploying Oracle databases and applications in a public cloud environment.

Unlike traditional, on-premises licensing models, the Azure model introduces flexibility by allowing organizations to scale resources dynamically while paying for what they use.

Here’s an in-depth look at how Oracle licensing is managed on Azure:

Licensing Based on vCPU Counts

In traditional, on-premises environments, Oracle licensing is generally based on physical processor cores, using a Processor Core Factor Table to determine the number of licenses required. On Azure, however, licensing is determined based on the number of vCPUs (virtual CPUs) used by the machines running Oracle software.

This approach makes licensing more manageable in a cloud environment. By counting vCPUs, you get a more granular and flexible model, which allows for adjustments based on the specific requirements of each workload.

In a cloud-based virtualized environment like Azure, vCPUs essentially represent the computing power allocated to your workloads, giving you control over how many licenses you need based on your deployed infrastructure.

For example, if you’re deploying Oracle Database Enterprise Edition on Azure, you need to count the vCPUs in use and determine the required processor licenses. Each vCPU contributes to the total number of processor licenses needed.

Example Calculation:

  • If you have an eight-vCPU instance running Oracle Database Enterprise Edition and multi-threading is not enabled, you would need eight licenses because each vCPU counts as one processor license.
  • However, if multi-threading is enabled, each of the two vCPUs can be counted as a single processor license, which means an eight-vCPU instance would require four processor licenses.

Multi-Threading Impact on Licensing

A critical factor in the Oracle licensing model on Azure is multi-threading. Multi-threading allows a single physical core to execute multiple threads simultaneously, significantly improving performance for certain workloads.

Oracle’s licensing model considers multi-threading by allowing two vCPUs equivalent to one processor license, provided multi-threading is enabled. This feature provides a significant cost advantage, halving the licenses required in multi-threaded environments.

Example:

  • Suppose you run an Oracle Database on an eight vCPU instance with multi-threading enabled. Instead of licensing all eight vCPUs, Oracle’s policy allows you to count two vCPUs per license, meaning you only need four processor licenses. This can greatly reduce costs, especially for larger deployments with multiple virtual machines.

This model is particularly beneficial when workloads are heavy on memory or I/O throughput but do not require extensive CPU power. Multi-threading ensures maximum utilization of each physical core, and Azure’s flexibility in configuring virtual machines enables you to use fewer licenses for more performance.


Practical Examples of Oracle Licensing in Azure

Practical Examples of Oracle Licensing in Azure

Some practical examples showcase different scenarios to further illustrate how Oracle licensing works on Azure.

Example 1: Standard Deployment Without Multi-Threading

  • Scenario: You deploy an Oracle Database Enterprise Edition on an eight vCPU virtual machine, and multi-threading is not enabled.
  • Licensing Requirement: Each vCPU requires one license without multi-threading, so you will need eight processor licenses.

Example 2: Deployment With Multi-Threading Enabled

  • Scenario: You deploy the same eight vCPU virtual machine with multi-threading enabled.
  • Licensing Requirement: With multi-threading, each pair of vCPUs counts as a single processor license, so you will need four instead of 8, reducing your licensing costs by half.

Example 3: Using Constrained vCPU Instances

  • Scenario: You need an Oracle Database with high memory but minimal CPU usage. You select an eight-vCPU instance and constrain it to four vCPUs.
  • Licensing Requirement: In this scenario, you only need to license the four active vCPUs. However, if multi-threading is enabled, you will need two processor licenses.

These examples highlight how Azure’s flexibility in configuration and Oracle’s licensing model can combine to provide significant cost savings while adequately supporting workloads.


Key Considerations for Oracle Licensing on Azure

While Oracle licensing on Azure provides several advantages, it also requires careful planning to ensure compliance and cost-effectiveness.

Here are some considerations to keep in mind:

  • Understand Your Workload Needs: Before selecting an Azure instance type, assess the resource needs of your Oracle workloads. Identify whether constrained vCPU instances can help reduce licensing costs without impacting performance.
  • Accurate Documentation: It is crucial to maintain up-to-date records of all deployed Oracle instances, including the number of vCPUs, multi-threading status, and constrained configurations. This helps during audits and ensures compliance.
  • Licensing Reviews and Audits: Regularly compare your licensing requirements against actual deployments. This can help identify discrepancies early and avoid compliance issues during Oracle audits.
  • Leverage Oracle LMS Scripts: Utilize Oracle LMS or third-party experts to assess your current Oracle deployments and ensure you meet all licensing obligations.

Oracle Licensing on Azure FAQ

How is Oracle licensed on Azure? Oracle licensing on Azure is based on the number of vCPUs used. Each vCPU represents a portion of the physical CPU assigned to your instance. If multi-threading is enabled, two vCPUs count as one processor license.

What is the vCPU-based licensing model for Oracle on Azure? This model requires counting the virtual CPUs used by Oracle workloads in Azure. The number of vCPUs determines the number of Oracle licenses required.

How does multi-threading affect Oracle licensing? With multi-threading enabled, Oracle allows two vCPUs to be counted as one processor license. This significantly reduces the licensing requirement, making it more cost-effective for multi-threaded environments.

Does Azure support Oracle BYOL? Azure supports the Bring Your Own License (BYOL) model, allowing customers to use their existing Oracle licenses for deployments in the Azure cloud.

Does Oracle recognize Microsoft Azure as an authorized public cloud platform for cloud licensing? According to Oracle’s cloud licensing policies, Oracle licenses can be used in Azure.

How can I reduce Oracle licensing costs on Azure? To reduce costs, use constrained vCPU instances to limit vCPU counts, enable multi-threading, and only license the necessary processor licenses for your workloads. Accurate workload assessments help optimize license usage.

How do I determine the number of Oracle licenses required? Count the number of vCPUs used by your workloads in Azure. For multi-threaded environments, two vCPUs count as one processor license. Ensure proper documentation for all instances.

Can I use Oracle Standard Edition 2 on Azure? Yes, but it can only be licensed on an instance with a maximum of 8 vCPUs. For instances with more than 8 vCPUs, Oracle Enterprise Edition is required.

Can Oracle audit my Azure deployment? Yes, Oracle can audit your Azure deployments. To ensure compliance during an Oracle audit, it is important to maintain proper records of vCPU counts, configurations, and license allocations.

How does Oracle licensing differ in Azure vs. on-premise? On Azure, Oracle licensing is vCPU-based, while on-premises licensing often requires licensing all processor cores in a server. Azure provides flexibility and allows licensing based on resource usage.

Can Oracle licenses be used in hybrid cloud environments? The Azure-OCI Interconnect allows you to use Azure and Oracle Cloud Infrastructure together for more efficient workload management.

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Author
  • Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.

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