Oracle cloud

Oracle BYOL – License Management Guide for 2025

Oracle BYOL

  • Bring Your Own License: Use existing Oracle licenses in the cloud.
  • Supported Cloud Platforms: AWS, Azure, GCP, Oracle Cloud.
  • Active Support: Requires active support agreements for eligibility.
  • Cost Savings: Reduces cloud licensing costs by leveraging existing licenses.
  • 100-Day Transition: Dual on-premises and cloud use allowed for 100 day

Introduction to Oracle BYOL

Introduction to Oracle BYOL

Oracle’s Bring Your Own License (BYOL) program allows organizations to leverage their existing licenses on cloud platforms like AWS, Microsoft Azure, Google Cloud Platform (GCP), or Oracle Cloud. This model allows companies to maximize their investment in their existing Oracle licenses while gaining the benefits of cloud flexibility.

This guide will explain Oracle BYOL, the different license types available, how to get started, and potential compliance concerns. We will also compare the benefits of using Oracle’s cloud to those of other major public cloud providers.

Key Points of Oracle BYOL

  1. License Types Eligible for BYOL: Several license types are eligible for Oracle BYOL:
    • Full-Use Licenses: The most common type of Oracle license, typically allowing full product usage.
    • Application-Specific Full-Use (ASFU) Licenses: These licenses are purchased with a specific application and can only be used for that purpose.
    • Proprietary Application Hosting Licenses: These are used for Oracle-hosted applications and require special approval through an ISV amendment.
  2. Active Support Agreement: Any license used for BYOL must have an active Support Agreement. Under the BYOL model, unsupported licenses cannot be transferred to the cloud.
  3. Transition Period: Oracle allows organizations to run their licenses on-premises and in the cloud simultaneously for 100 days during the transition to BYOL. After this period, the same license cannot be used in both locations.

Types of Oracle BYOL License Models Available

Types of Oracle BYOL License Models Available

1. Full-Use Licenses

Full-use licenses are the most common Oracle licenses used under BYOL. For example, each processor license used for Oracle Enterprise Edition typically allows the organization to activate 2 Oracle Compute Units (OCPUs) in Oracle’s cloud. However, any limitations in the original license must also be adhered to in the cloud environment.

2. Application-Specific Full-Use (ASFU) Licenses

These are licenses that Oracle partners sell alongside their specific applications. If you are moving an application to Oracle Cloud, the ASFU license can only be used for that specific application—it cannot be used for other Oracle workloads.

3. Proprietary Application Hosting Licenses

These licenses require special approval, known as an ISV amendment, and are only applicable to proprietary Oracle applications hosted by specific partners.

Note: Oracle Embedded Software Licenses (ESL) are not eligible for BYOL, meaning they cannot be brought to any public cloud or Oracle Cloud as part of the BYOL program.

Transition Period: Dual Use Allowed for 100 Days

When migrating to the cloud using Oracle BYOL, organizations can use the same licenses on-premises and in the cloud for up to 100 days. This helps to ensure a smooth transition without disrupting existing operations. After this transition period, however, customers must decide whether to continue using the license on-premises or exclusively in the cloud.

How Oracle Licenses Map to Cloud Compute Units

When using Oracle BYOL, understanding how your licenses map to cloud infrastructure is crucial. Each license type translates differently into Oracle Cloud Compute Units (OCPUs):

License TypeCloud Mapping
Enterprise Edition Processor1 Processor License = 2 OCPUs
Standard Edition1 License = 4 OCPUs
Named User Plus1 OCPU per 25 Named Users

This conversion is essential for estimating the licenses required when transitioning from on-premises to Oracle Cloud.

Oracle Java Cloud Service BYOL

Oracle’s Java Cloud Service can also be used under the BYOL model. Here are the different options available based on the edition of the WebLogic Server that is chosen:

  1. Java Cloud Service Standard: Requires Oracle WebLogic Server Standard Edition licenses.
  2. Java Cloud Service Enterprise: Requires WebLogic Server Enterprise Edition licenses.
  3. Java Cloud Service High Performance: Requires either Oracle WebLogic Suite or WebLogic Suite for Oracle Applications. You can aggregate licenses to meet the required conversion ratio.

Each option allows customers to utilize their existing investments while leveraging Oracle’s Java capabilities in a cloud setting.

Advantages of Using Oracle Cloud for BYOL Over AWS or Azure

Advantages of Using Oracle Cloud for BYOL Over AWS or Azure

When opting for Oracle BYOL on Oracle Cloud Infrastructure (OCI), there are several advantages compared to using AWS or Azure:

  • Additional Features without Extra Cost: By bringing your Oracle Database Enterprise Edition to Oracle’s cloud, you gain the rights to use advanced features such as diagnostics, tuning, data masking, and Real Application Clusters (RAC) without additional licensing costs.
  • Simplified Cost Structure: Oracle BYOL customers do not need Universal Cloud Credits (UC) to purchase platform services. This can simplify the cost model compared to other cloud providers.
  • Platform-Specific Integration: BYOL licenses can only be mapped to Oracle platform services, not to general compute services, ensuring optimized integration and performance.

License Compliance Risks with Oracle BYOL

While Oracle BYOL offers great flexibility, it is important to be mindful of compliance risks:

  • Managing On-Premises and Cloud Deployments: Customers must ensure they have enough licenses to cover both on-premises and cloud usage, especially during the 100-day transition period.
  • Oracle Unlimited License Agreement (ULA): If you use an Oracle ULA for BYOL, note that any BYOL deployments cannot be counted towards the license certification when the ULA ends. Using a ULA for BYOL purposes can lead to non-compliance if not properly managed.
  • Usage Limitations: Review any limitations or restrictions in your original Oracle licensing agreement. These restrictions still apply when the licenses are used in the cloud.

Getting Started with Oracle BYOL

If you’re considering moving your Oracle licenses to the cloud using BYOL, here are the steps you need to follow:

  1. Obtain an Oracle Cloud Account: Create an Oracle Cloud Infrastructure (OCI) account.
  2. Have Oracle Universal Cloud Credits: Use Universal Cloud Credits to purchase Oracle services in the cloud, either by pay-as-you-go or signing up for an Oracle Annual Commitment to receive better pricing.
    • Pay as You Go: You are invoiced monthly.
    • Annual Commitment: This involves upfront payments but provides cost benefits for consistent usage.
  3. Check Active Support Agreements: Ensure that your Oracle licenses have an active support agreement, as unsupported licenses are not eligible for BYOL.

Recommendations for Customers Considering Oracle BYOL

  • Evaluate All Cloud Providers: Before deciding where to store your Oracle licenses, evaluate multiple public cloud platforms. Compare costs, ease of use, and additional services.
  • Review the Costs of Universal Cloud Credits vs. BYOL: Customers considering Oracle Cloud should assess whether purchasing new Universal Cloud Credits or using BYOL would be more cost-effective for their specific use case.
  • Use Oracle’s License Manager: Oracle provides a License Manager tool for BYOL, which helps manage licenses. However, it covers only a limited set of Oracle licenses. This tool can help you maintain compliance during your BYOL journey.

Common Scenarios for Oracle BYOL

Common Scenarios for Oracle BYOL

To better understand Oracle BYOL, here are some common scenarios where customers can benefit from the BYOL model:

1. Migrating On-Premises Databases to the Cloud

An organization with an existing on-premises Oracle Database Enterprise Edition can transition to Oracle Cloud using BYOL. During the 100-day transition period, they can keep their existing on-premises deployment active while migrating workloads to Oracle Cloud. This ensures minimal disruption and allows for testing and validation.

2. Utilizing Advanced Features Without Extra Cost

A company using Oracle Database on-premises wants to use advanced options like data masking and diagnostics without additional costs. By moving to Oracle Cloud with BYOL, they gain access to these features as part of the standard Oracle platform services without purchasing new licenses.

3. Expanding Temporary Cloud Resources

A retailer expects high seasonal traffic and wants to temporarily scale their Oracle Database resources. They bring their existing licenses to Oracle Cloud under the BYOL model, allowing them to expand their capacity during peak periods without buying new long-term licenses.

Oracle BYOL FAQ

What is Oracle BYOL?

Oracle BYOL allows you to use your existing Oracle software licenses on cloud platforms like AWS, Azure, GCP, or Oracle Cloud Infrastructure, reducing costs and maximizing license utilization.

Which licenses are eligible for Oracle BYOL?

Full-Use Licenses, Application-Specific Full-Use (ASFU) Licenses, and Proprietary Application Hosting Licenses are eligible for BYOL, provided they have an active support agreement.

Is there a transition period for Oracle BYOL?

Yes, Oracle allows a 100-day transition period during which you can use your licenses both on-premises and in the cloud. After this period, you must choose one deployment.

What are the advantages of using Oracle BYOL on Oracle Cloud?

Using Oracle BYOL on Oracle Cloud gives you access to advanced features such as diagnostics, tuning, and data masking without incurring additional licensing costs.

Can Oracle BYOL be used with AWS or Azure?

Yes, Oracle BYOL can be used with major public cloud providers, including AWS, Azure, Google Cloud Platform, and Oracle’s cloud.

Do I need an active support agreement for Oracle BYOL?

An active support agreement is mandatory for using Oracle licenses under the BYOL model. Unsupported licenses are not eligible for BYOL.

What is an ASFU License, and can it be used for BYOL?

An ASFU (Application-Specific Full-Use) License is sold with a specific application and can be used under BYOL only for that specific application on Oracle Cloud.

How does Oracle BYOL impact compliance?

Oracle BYOL requires organizations to manage compliance for both on-premises and cloud deployments. During audits, you must ensure you have enough licenses for each deployment.

Can Oracle BYOL be used for Java Cloud Services?

Yes, Oracle BYOL can be used for Java Cloud Services, but the requirements depend on the edition of the WebLogic Server, such as Standard, Enterprise, or High-Performance.

What are the license conversion ratios for Oracle BYOL?

Typically, one Oracle Enterprise Edition Processor License maps to 2 OCPUs in Oracle Cloud, whereas a Standard Edition License maps to 4 OCPUs. Named User Plus licenses are mapped to 1 OCPU per 25 Named Users.

Can I use Oracle BYOL for compute services?

No, Oracle BYOL is generally used for platform services like databases and Java, not general-purpose compute services.

How do I start using Oracle BYOL?

You need an Oracle Cloud Account and Oracle Universal Cloud Credits, and you must either opt for Pay-as-You-Go or an Annual Commitment for better pricing.

What are the compliance risks associated with Oracle BYOL?

Non-compliance risks include inadequate license coverage for on-premises and cloud deployments and misunderstanding contractual limitations that still apply in the cloud.

Is Oracle BYOL suitable for hybrid environments?

Yes, Oracle BYOL can be used for hybrid deployments. This allows organizations to transition their licenses between on-premises and cloud environments, ensuring flexibility.

Can I use my Oracle ULA for BYOL purposes?

Yes, Oracle Unlimited License Agreements (ULAs) can be used for BYOL, but when the ULA ends, these deployments cannot count towards the certification, leading to non-compliance.

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Author
  • Fredrik Filipsson has 20 years of experience in Oracle license management, including nine years working at Oracle and 11 years as a consultant, assisting major global clients with complex Oracle licensing issues. Before his work in Oracle licensing, he gained valuable expertise in IBM, SAP, and Salesforce licensing through his time at IBM. In addition, Fredrik has played a leading role in AI initiatives and is a successful entrepreneur, co-founding Redress Compliance and several other companies.

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