Oracle cloud

Mastering Oracle Cloud License Management – 2 Models

Introduction to Oracle Cloud License Management

Oracle Cloud License Management is integral for businesses operating within the Oracle Cloud ecosystem. This management primarily bifurcates into two areas: OCI cost control and management and Oracle SaaS licensing.

Oracle Cloud License Management is similar to Oracle license management as the SaaS licensing works very similarly to on-premise licensing.

Grasping these categories and their intricacies is pivotal for cost optimization and ensuring adherence to compliance standards.

1. OCI Cost Control and Management

Oracle Cloud Infrastructure (OCI) cost control and management is centered around understanding and managing the financial implications of utilizing Oracle’s cloud services.

This involves:

  • Recognizing the costs linked with the resources in use.
  • Setting appropriate budgets.
  • Monitoring and managing expenditures to prevent unforeseen costs.

2. Oracle SaaS Licensing

Oracle Software as a Service (SaaS) licensing operates on principles that might resonate with those acquainted with Oracle’s on-premise licensing. The licensing hinges on authorization, not actual usage. This implies that businesses are licensed for potential, not actual, consumption.

The primary license types for Oracle cloud services are:

  • Hosted Named User: These are specific individuals authorized to use the service. It’s crucial to note that these are not actual users but individuals who have been granted authorization.
  • Employee User: This enterprise-wide license model encompasses all employees within the organization, regardless of whether they use the service.

It’s of paramount importance for customers to conduct monthly reviews of their usage. This proactive stance ensures they aren’t inadvertently incurring costs for unused cloud modules.

Regular assessments can spotlight areas ripe for resource scaling, optimizing costs, and ensuring compliance. Oracle has no audit tool for SaaS licensing, as they rely on built-in audit capabilities.

How to Manage Oracle Cloud Licenses Effectively

Effective Oracle cloud license management can be achieved by following these steps:

  1. Control Your OCI Spend: Regularly review and understand what resources or services are consuming the most costs.
  2. Contract Selection: Ensure you have the proper contract, be it Pay-As-You-Go (PAYG) or annual-flex, to circumvent over-expenditure.
  3. Set Up Alerts: Implement alerts and notifications to streamline the monitoring of Oracle OCI costs.
  4. Educate on Oracle SaaS Licensing: The individual responsible for user addition should be well-informed about the potential pitfalls and best practices.
  5. Group Creation: Establish groups with specific cloud services. This structured approach simplifies cloud license management.
  6. User Management: Promptly end-date or delete users who either depart from the organization or no longer require access to the Oracle SaaS service.
  7. Monthly Reporting: Extract and review reports monthly to identify and rectify any emerging issues promptly.


When approached with a comprehensive understanding of its facets, Oracle Cloud License Management can lead to significant cost savings and efficient resource utilization.

By staying informed and proactive and implementing the abovementioned strategies, organizations can harness the Oracle Cloud’s capabilities to their fullest potential, ensuring both efficiency and compliance.

Contact us if you need expertise and help with Oracle Cloud License Management.


  • Fredrik Filipsson

    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, enhancing organizational efficiency.