Oracle database licensing

How Multi-Core Processors and Oracle’s Core Factor Table Impact Database Licensing

How Multi-Core Processors and Oracle’s Core Factor Table Impact Database Licensing

How Multi-Core Processors and Oracle’s Core Factor Table Impact Database Licensing

Oracle Database licensing depends heavily on the number of processor cores on your server, but not every core counts equally. To manage licensing costs and account for differences in CPU performance, Oracle introduced the Core Factor table.

This table assigns a factor to processor cores based on their architecture, directly influencing the required licenses.

This article covers:

  • What the Oracle Core Factor table is and why it matters
  • How multi-core processors affect licensing
  • Practical examples of license calculations
  • Differences between on-premises and cloud licensing scenarios
  • Common pitfalls and best practices

Read more Oracle Database Licensing FAQs.


What is Oracle’s Core Factor Table?

Oracle’s Core Factor Table assigns a specific multiplier (the core factor) to processor cores based on their CPU architecture. This reflects differences in CPU performance:

  • More powerful processors generally have higher core factors.
  • Less powerful or common processors have lower core factors, reducing the licenses needed.

The table helps ensure organizations don’t overspend on licenses by applying a fair adjustment based on processor performance.

Common CPU architectures and their typical core factors include:

CPU ArchitectureCore Factor
Intel/AMD x860.5
IBM POWER1.0 (varies slightly by model)
Oracle SPARC0.5 or 0.75 depending on specific model
ARM-based CPUsTypically 1.0

Oracle regularly publishes the latest Core Factor table on its official licensing page.


How Multi-Core Processors Influence Licensing Costs

Multi-core processors have become standard, providing significant performance gains. However, Oracle licensing rules mean adding more cores can increase licensing costs—but the Core Factor table moderates this.

How it works:

  • Calculate the number of processor licenses required using this formula:

Total Licenses=Number of Cores×Core Factor\text{Total Licenses} = \text{Number of Cores} \times \text{Core Factor}Total Licenses=Number of Cores×Core Factor

  • If the calculation results in a fractional number, round up to the nearest whole number.
  • Not all cores count equally: for instance, Intel’s popular x86 architecture, widely used in enterprise servers, has a core factor of 0.5, meaning licensing costs are effectively halved compared to counting cores directly.

Practical Examples of Core Factor Calculations

Below are clear scenarios illustrating license calculations based on common processor types.

Example 1: Intel x86 Processors (Core Factor 0.5)

  • Server configuration: 16-core Intel Xeon processor.
  • Calculation:
    16 cores × 0.5 core factor = 8 Processor licenses required.
  • Without the core factor table, licensing would double to 16 licenses.

Example 2: IBM POWER Processors (Core Factor 1.0)

  • Server configuration: IBM POWER8 processor with 8 cores.
  • Calculation:
    8 cores × 1.0 core factor = 8 Processor licenses required.
  • Licensing fully reflects each core due to the high performance of POWER CPUs.

Example 3: Oracle SPARC Processors (Core Factor 0.75)

  • Server configuration: Oracle SPARC processor with 16 cores.
  • Calculation:
    16 cores × 0.75 core factor = 12 Processor licenses required.
  • The licensing is moderately reduced compared to full-core counting.

These examples demonstrate clearly how choosing CPU architecture affects Oracle Database licensing costs.


On-Premises vs. Cloud Licensing Differences

The Oracle Core Factor table specifically applies to on-premises licensing scenarios. When deploying Oracle software in public clouds, licensing rules differ significantly:

  • Public Cloud (AWS, Azure, Google Cloud):
    Oracle does not use the Core Factor table. Instead, Oracle applies simplified rules:
    • With hyper-threading enabled (typical), two vCPUs = 1 Processor license.
    • Without hyper-threading, one vCPU = 1 Processor license.
  • Cloud licensing doesn’t benefit from the core factor reductions used on-premises, potentially increasing licensing costs compared to similar on-prem hardware.

For example, running Oracle Database on an 8-core Intel server on-premises (factor 0.5) requires four licenses. A comparable 16 vCPU AWS instance (8 physical cores with hyper-threading) would also need eight processor licenses (16 vCPUs / 2 = 8 licenses)—twice the number required on-premises.

Oracle’s rationale for cloud licensing is tied to simplified management and the perceived flexibility of cloud environments. Still, it often leads to higher licensing costs than similarly equipped on-premises hardware.

Read Oracle Licensing: Named User Plus vs. Processor – Which to Choose?.


Common Pitfalls in Applying Oracle’s Core Factor Table

When using Oracle’s core factor table, organizations frequently encounter issues due to misunderstandings or miscalculations:

Pitfall 1: Incorrect CPU Identification

  • Mistaking CPU models can lead to wrong core factors. Ensure you match the CPU exactly from Oracle’s published table.
  • Always check official Oracle documentation rather than relying on assumptions or generic vendor specifications.

Pitfall 2: Miscalculating Multi-Socket Servers

  • In servers with multiple CPUs, carefully count the total cores and apply the correct core factor to the combined core count.
  • Example: A two-socket server with two 8-core Intel CPUs has 16 total cores × 0.5 factor = 8 processor licenses (not 4).

Pitfall 3: Assuming Cloud Licensing Uses Core Factors

  • Applying the core factor table to public cloud deployments is incorrect. Cloud licensing strictly uses vCPU counting rules.
  • Misapplication can cause significant compliance issues or budgeting errors.

Best Practices for Accurate Oracle Licensing Calculations

To avoid costly licensing mistakes:

  • Identify your CPU architecture:
    Use Oracle’s official Core Factor table, carefully matching CPU type and model.
  • Verify the total core count carefully:
    Include all cores from all CPUs in multi-socket systems before applying the core factor.
  • Apply correct licensing rules for the environment:
    • Use the Core Factor table strictly for on-premises licensing.
    • Apply simplified vCPU counting methods for cloud environments.
  • Document clearly:
    Maintain detailed records of all calculations and assumptions, facilitating easier audits or license verifications.

Licensing Checklist for Oracle’s Core Factor Table

Identify the exact CPU architecture
✅ Confirm core counts from official hardware specifications
✅ Consult Oracle’s Core Factor Table for accurate licensing factor
✅ Multiply total cores by the core factor
✅ Round up fractional results to the nearest license
Use vCPU licensing rules (no core factor) in cloud deployments

Read Oracle Licensing: Minimum Named User Plus Requirements.


Conclusion: Managing Oracle Licensing with Multi-Core CPUs

Oracle’s Core Factor table significantly affects how organizations license Oracle databases, helping control costs by accounting for CPU performance differences. Multi-core processors can substantially influence licensing expenses, making careful calculation essential.

By accurately applying Oracle’s published core factor rules and understanding differences between on-premises and cloud licensing models, businesses can optimize Oracle licensing, ensure compliance, and avoid unnecessary overspending.

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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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