How does Oracle count licenses on AWS and Azure?

Both clouds are authorized cloud environments, so the cloud policy vCPU rule applies. With hyperthreading on, two vCPUs equal one Enterprise Edition processor license; with it off, one vCPU equals one. The count is identical on AWS and Azure, and the core factor does not apply.

Why does Standard Edition Two cost more on Azure than AWS?

SE2 is capped at four vCPUs per database on Azure and Google Cloud, because they map one vCPU to a core, but eight vCPUs on AWS. A workload that fits SE2 on AWS can breach the edition on Azure at the same size and be forced onto Enterprise Edition.

Does the Oracle core factor apply in the cloud?

No. The on premises core factor that halves x86 counts does not apply on authorized cloud environments. Counting vCPUs and applying the factor as well under licenses by half and is a common audit finding.

Are options cheaper in the cloud?

No. Options and management packs still license on the full processor count of the cloud database. Because the core factor is gone, a lift and shift can double the base and every option on the same hardware.

Should I choose BYOL or license included?

A paid up perpetual estate usually favours bring your own license on a virtual machine, which adds only compute. Volatile or license poor estates often favour license included. On RDS, license included is available for SE2 while Enterprise Edition is BYOL. Model both over five years.

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White Paper · Oracle

Oracle on Azure & AWS: The BYOL Field Guide

On a public cloud the counting rule decides the Oracle bill, not the compute rate. The vCPU math, the SE2 cloud caps, options stacking, and BYOL versus license included, with worked numbers on both clouds.

Format PDF + HTML

Read Time 18 Minutes

Last Updated July 14, 2026

What you will take away

The vCPU counting rule that is identical on AWS and Azure, and where the core factor stops applying
The SE2 cloud trap: four vCPUs on Azure and GCP, eight on AWS, and the forced Enterprise Edition move
Why options do not get cheaper in the cloud, and how lift and shift can double the bill
The BYOL versus license included comparison across EC2, RDS, Azure VM, and Database@Azure
The five audit traps and the sequence to size an Oracle cloud estate defensibly

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Oracle on Azure & AWS: The BYOL Field Guide

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