Moving or Reusing Oracle Database Licenses: Guidelines and Best Practices

Moving or Reusing Oracle Database Licenses

Organizations frequently ask if they can move or reuse Oracle Database licenses when deploying new hardware or migrating to cloud platforms. Fortunately, Oracle licenses are typically perpetual, granting flexibility to reassign licenses within your infrastructure or across authorized cloud environments under the Bring Your License (BYOL) model.

This article outlines:

• How Oracle licenses can be reassigned or moved.
• Key rules for reusing Oracle licenses.
• Practical scenarios for license portability.
• Important compliance considerations when moving licenses.

Read more Oracle Database Licensing FAQs.

How Oracle Database Licenses Work for Reassignment

Oracle database licenses (Processor or Named User Plus) are generally not permanently tied to a specific piece of hardware or cloud instance.

Instead, Oracle licenses are:

• Perpetual: They do not expire if you maintain active support.
• Portable within your organization: They can be reassigned to new servers, virtual machines, or cloud platforms.
• Flexible: You can redeploy licenses to accommodate changing infrastructure needs.

However, Oracle expects you to maintain accurate records of which environments and infrastructure use these licenses at any moment.

Reusing Oracle Licenses on New Servers

If your organization is upgrading hardware, retiring old servers, or simply consolidating database workloads, you can reuse existing Oracle licenses on your new infrastructure.

Here’s how:

• Decommission Old Hardware:
  If you retire older servers and replace them with new hardware, you can move Oracle Database licenses to the new servers. After the transfer, ensure Oracle Database is no longer running on the old hardware (unless you own enough licenses for both).
• Ensure License Compliance:
  Confirm that your new hardware configuration does not exceed your existing licenses when moving licenses. Oracle licenses are counted based on:
  • Processor licenses: Number of cores × applicable core factor.
  • Named User Plus licenses: Number of authorized users, with processor minimums considered.

Example Scenario:
You own 4 Processor licenses used on a legacy server (Server A) with eight cores (core factor of 0.5, thus covering all eight cores). If you replace this server with a new server (Server B) also with eight cores (same core factor):

• You can simply reassign the existing 4 Processor licenses to Server B.
• No additional licenses are needed, provided Oracle Database is fully removed from Server A.

Read Are Oracle Database Management Packs Included in Your Database License.

Moving Oracle Licenses to Cloud Platforms (BYOL)

Oracle licenses are fully portable to cloud platforms under the BYOL model. Oracle explicitly permits running your database licenses on authorized cloud platforms (like AWS, Azure, Google Cloud Platform, and Oracle Cloud Infrastructure).

Key points for cloud migrations:

• Document License Usage Clearly:
  Document which licenses cover each cloud instance to ensure compliance during audits.
• Follow Cloud Licensing Rules:
  Each cloud provider has defined rules (e.g., AWS and Azure typically use a 2 vCPUs = 1 Oracle processor license rule, assuming hyper-threading is enabled). Verify your cloud provider’s rules and adjust licenses accordingly.

Example Scenario:
You have 6 Processor licenses currently covering an on-premises server (Server C) with 12 cores (Intel, core factor 0.5). You decide to move these licenses to AWS:

• On AWS (hyper-threading enabled), two vCPUs = 1 Processor license.
• Your 6 Processor licenses cover 12 vCPUs on AWS. You can allocate these licenses to AWS EC2 instances that use up to 12 vCPUs.
• After allocating licenses to AWS, you must decommission the Oracle Database from the on-prem server or reduce on-prem usage accordingly.

Rules for License Reassignment: One Deployment at a Time

Oracle licensing policy clearly states that licenses cannot be duplicated across multiple simultaneous deployments. Specifically:

• Licenses cover only one environment at a time:
  You cannot use the same licenses concurrently in two places (for example, on-prem and cloud simultaneously) unless you have sufficient licenses for both.
• License splitting:
  If you have multiple licenses (e.g., 10 Processor licenses), you can split licenses among environments (5 licenses on-prem and five licenses in AWS, for example). However, you must ensure that each license is allocated to only one server or cloud instance at any time.

Notification or Approval from Oracle

In most cases, moving licenses within your organization (same legal entity) does not require notification or explicit approval from Oracle, provided:

• You maintain active Oracle support contracts.
• You adhere strictly to Oracle’s licensing policies and documentation.
• You accurately document all license deployments and changes.

However, Oracle audits frequently occur, and Oracle will request documentation verifying your license allocations. Proper documentation is critical for compliance.

Moving Licenses from the Cloud to On-Premises or Between Clouds

Oracle licenses are portable not only from on-premises to the cloud but also in reverse or between cloud environments:

• Cloud to On-Prem:
  If you initially allocated licenses to cloud deployments but later decide to move the workload back on-premises, you may freely move your licenses back. Ensure you remove Oracle Database from cloud resources before reassigning licenses on-premises.
• Cloud-to-Cloud Transfers:
  Suppose you initially deploy Oracle Database licenses on AWS but later migrate workloads to Oracle Cloud or Azure. In that case, you may reuse your licenses accordingly, adhering to the new cloud provider’s counting policies.

Practical Recommendations for Compliance

To ensure seamless license reuse or portability, adopt these best practices:

• Maintain License Inventories:
  Keep up-to-date records specifying:
  • License quantities and types owned.
  • Current server or cloud platform deployments.
  • Historical records of changes or transfers.
• Use Tagging or Automation:
  Leverage cloud tagging or asset management tools to mark environments with license allocations. This is particularly beneficial during audits or internal compliance reviews.
• Conduct Regular Reviews:
  Periodically review your license allocations and reconcile them with your current infrastructure to promptly identify any potential compliance issues.
• Engage Oracle Licensing Experts if Needed:
  Consulting with Oracle licensing specialists can ensure accuracy and compliance if your environment is complex (multi-cloud, hybrid environments, frequent changes).

Read Oracle Licensing for Development, Testing, and QA Environments.

Quick Reference: License Portability and Compliance

Final Takeaways on Oracle License Reuse and Portability

Oracle licensing allows you to adapt your database deployments across different infrastructure environments. You can reuse existing licenses on new servers or cloud platforms under BYOL, provided you:

• Use licenses in only one environment at a time.
• Ensure your total usage never exceeds the licenses you own.
• Maintain clear documentation of license allocations and changes.

Following these best practices ensures ongoing compliance, cost optimization, and flexibility to adapt your Oracle Database deployments to evolving business requirements.

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