Oracle Cloud Licensing — Technical Guide

How to Licence Oracle Database Options on AWS
RAC, Multitenant, Partitioning, Advanced Security, Diagnostics & Tuning Packs — Processor Calculations, Compliance Rules, and Cost Optimisation

Running Oracle Database Enterprise Edition on AWS introduces complex licensing requirements for every database option and management pack. This guide provides definitive licensing rules for Real Application Clusters (RAC), Multitenant, Partitioning, Advanced Security, Advanced Compression, Active Data Guard, and the Diagnostics and Tuning Packs — including processor licence calculations for EC2 instances, RDS and RDS Custom deployment considerations, compliance monitoring with DBA_FEATURE_USAGE_STATISTICS, common audit traps, and a practical optimisation framework.

vCPU ÷ 2
Processor Licence Formula — Each Option Matches the EE Base Count
6+
Separately Licensed Options and Packs for Enterprise Edition
3 PDBs
Free Pluggable Databases per CDB — Beyond 3 Requires Multitenant Licence
100%
Identical Pricing — No Cloud Discount for Oracle Options on AWS
📚 Series Context: This guide is part of the Oracle Cloud Licensing content series. For the foundational AWS licensing rules — authorised cloud policies, vCPU-to-processor conversions, and BYOL mechanics — see the Oracle on AWS Licensing FAQs. For RAC-specific deep-dive, see Oracle RAC on AWS. This article focuses specifically on licensing every EE option and management pack on AWS.
01

The Core Licensing Principle for Oracle Options on AWS

Every Oracle Database option and management pack is licensed separately, per processor, matching the Enterprise Edition base licence count. There are no bundles, no cloud-specific discounts, and no included options in AWS deployments. If you run Oracle Database Enterprise Edition on an EC2 instance with 8 vCPUs (requiring 4 EE Processor licences), every additional option you enable — RAC, Multitenant, Partitioning, Advanced Security, Diagnostics Pack — requires an additional 4 Processor licences each.

This additive model means the total licensing cost for a fully featured Oracle EE deployment on AWS can be 3–5× the base database licence cost. Understanding which options are genuinely needed — and which have been inadvertently enabled — is the most important cost control lever for Oracle on AWS.

“AWS does not enforce Oracle option licensing — compliance responsibility is entirely yours. The gap between what is technically available and what is actually licensed is where audit exposure lives.”
02

Licensing Oracle Real Application Clusters (RAC) on AWS

RAC is Oracle’s high-availability clustering technology, available only with Enterprise Edition and licensed separately per processor on every node in the cluster. RAC is not supported on Amazon RDS — it requires manual deployment on EC2 instances or VMware Cloud on AWS (VMC), with third-party shared storage or clustering solutions.

🖥️

Per-Node Licensing

RAC must be licensed on every server node participating in the cluster. Each node requires RAC Processor licences equal to the EE Processor licence count for that node. A 2-node cluster doubles the RAC licence requirement compared to a single instance — and a 3-node cluster triples it. There is no “cluster licence” or “shared” RAC licence pool across nodes.

⚠️

No RDS Support

Amazon RDS does not support RAC. If you need RAC functionality, you must deploy on EC2 instances (with shared storage solutions like Amazon FSx for NetApp ONTAP or third-party clustered storage) or on VMware Cloud on AWS. This means RAC on AWS is always a BYOL deployment — you cannot use AWS’s “Licence Included” option for RAC.

💡

Consider Alternatives

Before committing to RAC on AWS, evaluate whether AWS-native high availability — Multi-AZ RDS, EC2 Auto Scaling with Data Guard, or Aurora (for non-Oracle workloads) — meets your requirements at lower cost. RAC licensing on a 2-node cluster with 8 vCPUs per node costs 8 additional RAC Processor licences. If the goal is HA rather than scale-out performance, Data Guard may achieve the same objective at a fraction of the RAC licensing cost.

RAC ScenarioNodesvCPUs Per NodeEE LicencesRAC LicencesTotal
Small HA cluster244 (2 per node)4 (2 per node)8
Standard production288 (4 per node)8 (4 per node)16
Large-scale cluster31624 (8 per node)24 (8 per node)48
Formula: Per node — vCPUs ÷ 2 = EE licences = RAC licences. Total = sum across all nodes.
03

Licensing Oracle Multitenant (Pluggable Databases) on AWS

Oracle’s Multitenant architecture — Container Databases (CDBs) and Pluggable Databases (PDBs) — is a separately licensed option for Enterprise Edition. However, Oracle provides a free allowance of up to 3 PDBs per CDB starting from Oracle Database 19c, which means many deployments may not require the Multitenant licence at all.

Free (≤ 3 PDBs)

No Multitenant Licence Required

Running 1, 2, or 3 Pluggable Databases within a single Container Database on Oracle 19c or later does not require a separate Multitenant licence. This is included with the base Enterprise Edition licence. For many AWS deployments — particularly where each EC2 instance hosts a small number of databases — this free allowance is sufficient. On standard Amazon RDS for Oracle, AWS restricts you to one user-created PDB per instance, so the Multitenant licence is typically unnecessary for RDS deployments.

Licensed (4+ PDBs)

Multitenant Licence Required

Running 4 or more PDBs in a single Container Database requires the Multitenant option licence — licensed per processor, matching the EE base count. On EC2 and RDS Custom, you have full flexibility to create many PDBs, but each additional PDB beyond 3 does not incur an incremental licence — the Multitenant licence is binary: either you have it (unlimited PDBs) or you do not (capped at 3). This means the cost decision is between staying within the 3-PDB free allowance versus licensing Multitenant for unlimited consolidation.

💡 Optimisation Strategy: Consolidate Within the Free Tier

Before licensing Multitenant, evaluate whether your database consolidation objectives can be achieved within the 3-PDB-per-CDB limit. If you have 9 databases to consolidate, deploying 3 CDBs with 3 PDBs each avoids the Multitenant licence entirely. On an 8-vCPU EC2 instance, the Multitenant licence costs the same as 4 additional Processor licences — at Oracle list pricing, this represents approximately $188,000 in licence fees plus ~$41,000 annual support. Consolidation architecture decisions should always consider the licensing cost threshold.

04

Licensing Partitioning, Advanced Security, and Other Options

Oracle’s remaining database options — Partitioning, OLAP, Advanced Security, Advanced Compression, Active Data Guard, and others — follow the identical per-processor licensing model. Each option requires Processor licences equal to the EE base count, licensed separately, with no bundles or cloud-specific pricing.

Oracle OptionLicence Metric8-vCPU EC2 ExampleCommon Audit Trigger
PartitioningProcessor (matches EE count)4 Processor licencesPartitioned tables or indexes detected in DBA_PART_TABLES
Advanced SecurityProcessor (matches EE count)4 Processor licencesTransparent Data Encryption (TDE) or Network Encryption enabled
Advanced CompressionProcessor (matches EE count)4 Processor licencesOLTP compression, SecureFiles deduplication, or HCC usage
Active Data GuardProcessor (matches EE count)4 Processor licences (standby server)Open standby database for read-only queries or reporting
OLAPProcessor (matches EE count)4 Processor licencesAnalytic workspaces or OLAP cube materialised views
In-MemoryProcessor (matches EE count)4 Processor licencesINMEMORY_SIZE parameter set to non-zero value
Cumulative impact: An 8-vCPU instance with EE + Partitioning + Advanced Security + Compression = 16 Processor licences (4 × 4 options)

Critical — Options You May Not Realise Are Licensed

Transparent Data Encryption (TDE): Frequently enabled by default in cloud deployments for data-at-rest encryption — triggers Advanced Security licence requirement.

Network Encryption (SQL*Net): Configuring SQLNET.ENCRYPTION_SERVER = REQUIRED triggers Advanced Security licensing, even if encryption is mandated by your security policy.

Automatic Segment Advisor: Can recommend partitioning — if you act on the recommendation and create partitions, a Partitioning licence is required.

SecureFiles Deduplication: Using LOB deduplication or compression within SecureFiles triggers Advanced Compression licensing.

Data Guard Broker with read-only standby: Opening a standby database for queries (even briefly for reporting) converts it from a free standby to an Active Data Guard deployment requiring additional licensing.

05

Licensing Oracle Management Packs on AWS

Oracle’s Diagnostics Pack and Tuning Pack are among the most commonly inadvertently used licensed features. DBAs frequently generate AWR reports, use Performance Hub, or run SQL Tuning Advisor without realising these actions trigger a licensing obligation.

📊

Diagnostics Pack

Required when using: Automatic Workload Repository (AWR), Active Session History (ASH), Performance Hub, ADDM (Automatic Database Diagnostic Monitor), or any feature that reads from AWR data. Licensed per processor, matching EE count. On an 8-vCPU EC2 instance: 4 Diagnostics Pack Processor licences. This is one of the most common audit findings — AWR reports are a standard DBA troubleshooting tool, and many teams generate them without awareness of the licensing implication.

🔧

Tuning Pack

Required when using: SQL Tuning Advisor, SQL Access Advisor, SQL Profile creation, or Automatic SQL Tuning. Licensed per processor, matching EE count. Often used alongside Diagnostics Pack — together, they add 8 Processor licences to an 8-vCPU instance. Oracle auditors specifically query DBA_FEATURE_USAGE_STATISTICS for “AWR Report” and “SQL Tuning Advisor” entries — these are among the first features checked during compliance reviews.

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Disable What You Do Not Licence

Oracle’s CONTROL_MANAGEMENT_PACK_ACCESS initialisation parameter controls access to the management packs. Set it to NONE to prevent any usage of Diagnostics or Tuning Pack features. Set it to DIAGNOSTIC to allow only Diagnostics Pack (if licensed). Set it to DIAGNOSTIC+TUNING only if both are licensed. This is a preventive compliance control — it stops DBAs from inadvertently triggering licensing obligations through routine troubleshooting. Implement this as a standard configuration across all Oracle instances on AWS.

06

Tracking and Ensuring Compliance on AWS

AWS does not enforce or monitor Oracle option licensing — compliance responsibility rests entirely with the customer. Oracle auditors will examine your AWS deployments with the same rigour as on-premises environments, querying feature usage statistics and comparing against your licence entitlements.

07

No Special Cloud Pricing for Oracle Options

Oracle database options receive no special or discounted pricing for cloud deployments. The per-processor licence fee and annual support cost for every option — RAC, Multitenant, Partitioning, Advanced Security, Diagnostics Pack, Tuning Pack — are identical whether deployed on-premises, on EC2, on VMware Cloud on AWS, or on any other authorised cloud platform.

Common Misconception

“AWS Provides Oracle Options in RDS Licence Included”

The RDS “Licence Included” model covers Standard Edition 2 (SE2) only. No Enterprise Edition options are included. RAC, Multitenant, Partitioning, Advanced Security, Diagnostics Pack, and Tuning Pack all require BYOL (Bring Your Own Licence) with separately purchased Oracle licences. If you are running EE features on RDS, you must have corresponding Oracle licences — AWS does not provide them.

Common Misconception

“Oracle Options Licensing Is Different on AWS”

Licensing and pricing rules are identical to on-premises. The only AWS-specific consideration is the vCPU-to-processor conversion (vCPUs ÷ 2 for hyper-threaded instances on EC2). The option licence counts, metrics, and fees are the same. Oracle’s cloud licensing policy applies the same rules across all authorised cloud environments — AWS, Azure, GCP — with no cloud-specific discounts or bundles for database options.

Common Misconception

“You Only Need to Licence Explicitly Installed Packs”

If a feature is used — even inadvertently — it requires a licence. The Diagnostics and Tuning Packs are installed by default with Enterprise Edition. Generating a single AWR report triggers the Diagnostics Pack requirement. Running SQL Tuning Advisor once triggers the Tuning Pack requirement. Oracle auditors check DBA_FEATURE_USAGE_STATISTICS for any recorded usage, regardless of whether the feature was intentionally or accidentally invoked.

08

Practical Licensing Summary — Complete Option Stack

The following table shows the cumulative licensing impact when multiple Oracle options are deployed on a single 8-vCPU EC2 instance:

ComponentProcessor Licences RequiredApproximate List Price (Licence)Approximate Annual Support (22%)
Enterprise Edition (base)4$188,000$41,360
+ Real Application Clusters4$92,000$20,240
+ Multitenant4$92,000$20,240
+ Partitioning4$46,000$10,120
+ Advanced Security4$60,000$13,200
+ Diagnostics Pack4$30,000$6,600
+ Tuning Pack4$20,000$4,400
Total (all options)28$528,000$116,160/year
“A single 8-vCPU EC2 instance with Enterprise Edition and a common set of options can carry over half a million dollars in Oracle licence fees and $116,000 in annual support — before AWS infrastructure costs. The most effective cost optimisation is disabling options you do not genuinely need.”
09

Optimisation Framework — Reducing Oracle Option Costs on AWS

  1. Audit Feature Usage Before Licensing. Run DBA_FEATURE_USAGE_STATISTICS across every Oracle instance on AWS. Identify which options are actually used versus merely available. Many enterprises discover that Partitioning, Advanced Compression, or Management Packs were enabled by a DBA during troubleshooting or by an application installer — not as a deliberate architectural decision. Disabling unused features eliminates the licensing obligation and can save hundreds of thousands of dollars.
  2. Right-Size EC2 Instances to Minimise Processor Counts. Every Oracle option is licensed per processor, and processor count is driven by vCPU count (vCPUs ÷ 2). Reducing an instance from 16 vCPUs to 8 vCPUs halves the licence requirement for every option. If you run EE + 3 options on a 16-vCPU instance (32 Processor licences), downsizing to 8 vCPUs reduces it to 16 — saving the licence fees for 16 processors across all options. Always right-size Oracle instances based on actual performance requirements, not capacity speculation.
  3. Evaluate Standard Edition 2 for Eligible Workloads. Oracle Standard Edition 2 (SE2) does not support any EE options — but it also does not require option licences. For workloads that do not genuinely need RAC, Partitioning, or Advanced Security, migrating to SE2 eliminates the entire option licensing burden. SE2 is available on RDS with “Licence Included” pricing, further simplifying the cost model. Many production workloads that were deployed on EE “because that’s what we always use” can run effectively on SE2.
  4. Consolidate with the Multitenant Free Tier. If database consolidation is a goal, design your architecture to stay within the 3-PDB-per-CDB free allowance rather than licensing Multitenant. Three CDBs with 3 PDBs each consolidate 9 databases without a single Multitenant licence. The architecture decision should be driven by the licensing cost threshold: is the consolidation benefit of unlimited PDBs worth 4 additional Processor licences per instance?
  5. Replace Oracle HA with AWS-Native Solutions. RAC on AWS is expensive (double the Processor licences for a 2-node cluster) and operationally complex. For high availability, evaluate Oracle Data Guard (included with EE at no additional licence cost for a standby that is not open for read), Multi-AZ RDS (automated failover without RAC licensing), or EC2 Auto Scaling with snapshot-based recovery. Each alternative provides HA without the RAC licence multiplier. Reserve RAC for workloads that genuinely require scale-out processing across multiple nodes.
  6. Negotiate Option-Specific Discounts. When renewing Oracle support or purchasing new licences, negotiate option-specific discounts separately from the base EE licence. Oracle’s discount structures allow for different discount levels per product. Request pricing for only the options you genuinely use, and negotiate the removal of shelfware options from support contracts. Many organisations pay annual support on options that were purchased years ago but are no longer deployed — terminating support on unused options delivers immediate savings.
10

Frequently Asked Questions

How do I calculate Oracle option licences for an EC2 instance?

The formula is consistent across all options: take the EC2 instance’s vCPU count (with hyper-threading enabled, which is the default), divide by 2, and the result is the Processor licence count for each option. An 8-vCPU instance requires 4 Processor licences for EE and 4 additional Processor licences for each separately licensed option. A 16-vCPU instance doubles these numbers. Every option is licensed independently — there are no bundles where multiple options share a licence pool. The vCPU ÷ 2 conversion applies to standard EC2 instance types; for bare metal or non-hyper-threaded instances, consult Oracle’s cloud licensing policy for the applicable core factor.

Do I need a Multitenant licence for Pluggable Databases on AWS?

Not necessarily. Starting from Oracle Database 19c, you can run up to 3 Pluggable Databases (PDBs) within a single Container Database (CDB) without a Multitenant licence — this is included with the base Enterprise Edition licence. Only when you exceed 3 PDBs in a single CDB do you need the Multitenant option. On standard Amazon RDS for Oracle, AWS restricts you to one user-created PDB per instance, so the Multitenant licence is typically unnecessary. On EC2 and RDS Custom, you have full flexibility but must licence Multitenant if deploying 4+ PDBs per CDB. The Multitenant licence is binary — once licensed, you can create unlimited PDBs.

Can I run Oracle RAC on Amazon RDS?

No. Amazon RDS does not support Oracle Real Application Clusters (RAC). If you need RAC, you must deploy it on EC2 instances with shared storage solutions (such as Amazon FSx for NetApp ONTAP or third-party clustered storage) or on VMware Cloud on AWS (VMC). RAC on AWS is always a BYOL deployment — you must bring your own Oracle licences for both the EE base and the RAC option. For high availability without RAC, consider Multi-AZ RDS (automated failover), Oracle Data Guard on EC2 (included with EE for non-read standby), or AWS-native HA architectures.

What triggers a Diagnostics Pack or Tuning Pack licence requirement?

Any usage of features that depend on the Automatic Workload Repository (AWR) triggers a Diagnostics Pack requirement — this includes generating AWR reports, using Performance Hub, viewing Active Session History (ASH), or running ADDM reports. For the Tuning Pack, using SQL Tuning Advisor, SQL Access Advisor, creating SQL Profiles, or using Automatic SQL Tuning triggers the requirement. These features are installed by default with Enterprise Edition and can be used inadvertently. Oracle auditors check DBA_FEATURE_USAGE_STATISTICS for any recorded usage. To prevent inadvertent use, set the CONTROL_MANAGEMENT_PACK_ACCESS parameter to NONE (or DIAGNOSTIC if only the Diagnostics Pack is licensed).

Does Oracle offer cloud-specific pricing or discounts for database options on AWS?

No. Oracle database options receive identical pricing and licensing terms whether deployed on-premises, on EC2, on VMware Cloud on AWS, or on any other authorised cloud platform. There are no cloud-specific discounts, bundles, or pricing adjustments for options. The only AWS-specific element is the vCPU-to-processor conversion (vCPUs ÷ 2 for hyper-threaded instances). Oracle’s position is that cloud licensing follows the same rules as traditional deployments — the deployment location does not change the licensing obligation or the price.

How can I check which Oracle options are being used on my AWS instances?

Oracle provides several built-in views for compliance monitoring. The primary view is DBA_FEATURE_USAGE_STATISTICS — query it across all Oracle instances to see every feature that has been used, including first and last usage dates. For Partitioning specifically, query DBA_PART_TABLES and DBA_PART_INDEXES. For TDE (Advanced Security), check V$ENCRYPTION_WALLET. For AWR usage (Diagnostics Pack), query DBA_HIST_SNAPSHOT for active snapshots. Run these queries quarterly and compare results against your licence entitlements. Any feature showing as “used” that you have not licensed represents compliance exposure that should be remediated — either by obtaining the licence or by disabling the feature.

What is the most common Oracle licensing audit finding on AWS?

The Diagnostics Pack is consistently the most common audit finding — DBAs generate AWR reports as a standard troubleshooting practice without awareness of the licensing implication. The second most common finding is Advanced Security triggered by TDE encryption, which is increasingly enabled by default in cloud environments for data-at-rest protection. The third is Partitioning, where application installers create partitioned tables during deployment. Together, these three inadvertently used options can generate audit exposure of $200,000–$500,000+ per instance (licence fees plus back-support). The most effective prevention is implementing CONTROL_MANAGEMENT_PACK_ACCESS, auditing TDE wallet status, and reviewing application DDL for partitioning before deployment.

Related Resources

FF

Fredrik Filipsson

Co-Founder, Redress Compliance

Fredrik Filipsson brings two decades of Oracle licensing expertise — including deep knowledge of database options licensing, cloud deployment compliance, and audit defence. As co-founder of Redress Compliance, he has helped hundreds of organisations optimise their Oracle database option estates on AWS, Azure, and on-premises, consistently identifying six- and seven-figure savings through feature usage analysis, edition right-sizing, and option-specific negotiation.

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