Oracle database licensing

How to Purchase Oracle Database License

How to Purchase Oracle Database License

  • Determine Your Needs: Assess business requirements and necessary features.
  • Choose Licensing Model: Evaluate Named User Plus vs. Processor Licensing.
  • Contact Oracle or Reseller: Discuss needs and get a quote.
  • Negotiate Terms: This is especially important for larger purchases.
  • Complete Purchase: Sign agreements and complete payment.

Oracle Database Licensing Models

Oracle Database Licensing Models

Overview of Licensing Options Oracle offers flexible licensing models to cater to different business needs. The primary options include Named User Plus (NUP) and Processor Licensing.

These models provide flexibility regarding how licenses are allocated and managed, allowing businesses to choose the option that best fits their operational requirements.

Flexibility and Suitability for Different Business Needs

  • Named User Plus (NUP) Licensing: Best suited for environments with a known number of users and controlled access scenarios.
  • Processor Licensing: Ideal for high-activity environments or when the number of users cannot be precisely determined.

Named User Plus Licensing

Explanation of Named User Plus Licensing Model Named User Plus (NUP) Licensing is based on the number of individual users accessing the Oracle database. Each user requires a license, and the minimum license requirements depend on the database edition and the type of server.

Ideal Scenarios for Named User Plus Licensing

  • Businesses with a Known User Count: This model is cost-effective for organizations where the number of users accessing the database can be identified and remains relatively stable.
  • Non-Production Environments: Suitable for development, testing, and staging environments where the user count is limited and known.

Processor Licensing

Explanation of Processor Licensing Model Processor Licensing is based on the number of processor cores used to run the Oracle database.

It uses the Oracle Processor Core Factor Table to determine the number of licenses required, accounting for the processing power of the cores.

This model does not limit the number of users, making it suitable for environments with high user activity or unpredictable user counts.

Ideal Scenarios for Processor Licensing

  • Businesses with a Large or Unknown User Count: This model is ideal for scenarios where it’s difficult to predict or count the number of users accessing the database, such as public-facing applications or large enterprise systems.
  • High User Activity Environments: Processor Licensing benefits environments with heavy user activity. It ensures the database can handle the load without worrying about individual user licenses.

By understanding these licensing models, businesses can select the most appropriate option, ensuring compliance and cost-efficiency in their Oracle database deployments.

Steps to Purchase Oracle Database License

Steps to Purchase Oracle Database License

Determine Your Needs

Identifying Business Requirements and Necessary Features

  • Assess the specific requirements of your business, such as the types of applications you will run, the volume of data, and the performance needs.
  • Identify the features and functionalities required from the Oracle Database, such as data security, scalability, and support for different data models (relational, JSON, XML).

Choosing the Appropriate Oracle Database Edition

  • Evaluate the different editions of Oracle Database (e.g., Standard Edition, Enterprise Edition) to determine which aligns best with your identified business needs and budget.
  • Consider factors such as the scale of deployment, advanced features required, and support for high availability and disaster recovery.

Choose the Right Licensing Model

Evaluating Named User Plus vs. Processor Licensing

  • Named User Plus (NUP) Licensing: Ideal if you can accurately count the number of users. Suitable for environments with a known and limited number of users.
  • Processor Licensing is best for scenarios with high user activity or when the number of users is unpredictable. It’s calculated based on the number of processor cores.

Factors to Consider in Making the Choice

  • Number of users vs. number of processors.
  • Predictability of user access.
  • Cost implications of each model.
  • Future scalability and potential changes in user numbers or server architecture.

Contact Oracle or a Reseller

Steps to Engage with Oracle or Authorized Resellers

  • Contact Oracle directly or an authorized reseller to discuss your specific needs.
  • Provide detailed information about your business requirements and the intended use of the Oracle Database.

Negotiation Tips for Better Pricing and Terms

  • Be prepared to negotiate for better pricing, especially for larger purchases. Resellers typically receive a 30% discount from Oracle, which can be a basis for negotiation.
  • Larger organizations or those needing specific terms should negotiate directly with Oracle for potentially greater discounts and more tailored agreements.

Specific Considerations for Larger Organizations

  • Larger purchases often qualify for better discounts and more favorable terms.
  • Ensure that any specific terms and conditions necessary for your organization are included in the agreement.

Complete the Purchase Process

Signing Necessary Agreements (Oracle Ordering Document, Oracle Master Agreement)

  • Review and sign the Oracle Ordering Document, which outlines the terms of the license purchase.
  • Ensure that an Oracle Master Agreement is in place. This agreement is required to finalize the purchase of Oracle products.

Tips for Purchasing an Oracle Database License

Consider Long-Term Business Needs

  • Think about your long-term requirements and how they might evolve. Choose a licensing model that can accommodate future growth and changes.

Assess Total Cost of Ownership

  • Calculate the total cost of ownership, including initial purchase costs, maintenance fees, and any additional costs for future scalability.

Evaluate the Flexibility of the Chosen Licensing Model

  • Ensure the licensing model offers the flexibility to adapt to changing business environments and technological advancements.

Importance of Negotiating Terms, Especially for Larger Purchases

  • Negotiation can lead to significant cost savings and more favorable terms for larger purchases.
  • Engage with Oracle or a reseller to explore all possible options and secure the best deal for your organization.
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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