Oracle Cloud at Customer
- Hybrid Cloud Solution: Combines Oracle’s cloud capabilities with on-premises infrastructure.
- Data Sovereignty: Keeps data within customer-controlled data centers.
- Subscription Pricing: Uses consumption-based pricing for cost control.
- High Performance: Optimized for running data-intensive workloads.
Introduction to Oracle Cloud at Customer
Oracle Cloud@Customer is a portfolio of cloud services that Oracle delivers directly into customersโ data centers. It essentially brings Oracleโs public cloud technology on-premises, behind your firewall.
Organizations choose Cloud@Customer to benefit from the cloud’s advantages (such as scalability, automation, and subscription economics) while meeting strict data residency, security, or latency requirements that prevent them from using public cloud resources.
For example, businesses with sensitive data or regulatory constraints can keep data on-site and under their control, yet still consume Oracle cloud services on a pay-as-you-go model.
Another key driver is performance and integration โ Oracle Cloud@Customer can be placed adjacent to existing systems, minimizing latency and facilitating a smooth migration to cloud services over time.
Oracleโs Cloud@Customer offering is not a single product but a family of options tailored to different needs.
The main variants are: Exadata Cloud@Customer, Compute Cloud@Customer, and OCI Dedicated Region (formerly Dedicated Region Cloud@Customer).
Each provides a different scope of cloud services, from a single-purpose database system to a complete Oracle Cloud region in your data center.
Below, we introduce each option and compare its characteristics before diving into how software licensing works in these environments.
Read Oracle Cloud at Customer Cost Optimization: Reducing Support Costs and Maximizing Value.
Oracle Cloud@Customer Offerings
- Exadata Cloud@Customer: Focused on Oracle Database workloads, this option delivers an Oracle Exadata system as a managed cloud service in your data center. It combines the high performance of Exadata hardware with the flexibility of cloud consumptionโ. Exadata Cloud@Customer is essentially Oracleโs Database Cloud Service or Autonomous Database running on Exadata infrastructure on-premises. Oracle owns and manages the Exadata hardware and system software, while you consume database services on it. Itโs fully compatible with on-premise Exadata and Oracleโs public cloud database services, making it a straightforward path to move existing Oracle databases to a cloud modelโ. Organizations often choose Exadata Cloud@Customer to meet data residency or low-latency requirements for mission-critical databases, or to consolidate multiple databases onto a single cloud-managed platform.
- Compute Cloud@Customer: This extends Oracleโs general-purpose cloud infrastructure (OCI Compute) into your data center. Oracle delivers a rack of managed servers and networking that provides core cloud infrastructure services, including virtual machines, bare metal servers, storage, and networking โ essentially, an OCI regionโs compute layer on-premises. Itโs fully managed by Oracle and kept in sync with Oracleโs public cloud featuresโ. With Compute Cloud@Customer, you can run applications and middleware on the same OCI compute platform as in Oracleโs public cloud, but physically located in your facilities. This helps address data sovereignty and latency issues by keeping compute and data localโ. It also enables cloud-native development on-premises using the same APIs and tools as OCI. Note that database services are not included in Compute Cloud@Customer. Oracle databases are typically used with an Exadata system or by installing database software on the provided VMs (subject to licensing, discussed later).
- OCI Dedicated Region: This is the most comprehensive (and heavyweight) option โ Oracle installs an entire private cloud region on your premises. An OCI Dedicated Region includes all or most of Oracleโs cloud services (compute, storage, networking, databases, middleware, analytics, and even Oracle SaaS applications) delivered in a dedicated on-site environmentโ. It offers the same functionality and experience as Oracleโs public cloud regions, but isolated to your data center. Customers can access over 100 OCI services and run Oracle Fusion Cloud Applications (such as ERP and HCM). This option is designed for large enterprises or governments that require the full range of cloud services on-premises for sovereignty or ultra-low latency, and are willing to commit to significant usage over multiple years. Oracle handles the deployment and operation of the region (which initially requires multiple racks of equipment) and updates it in parallel with public cloud regions. In short, OCI Dedicated Region provides aย comprehensive cloud environmentย within the customerโs infrastructure.
Read How to Negotiate an Oracle Dedicated Region Contract.
Comparison of Exadata Cloud@Customer, Compute Cloud@Customer, and Dedicated Region
The table below compares key characteristics of these three Cloud@Customer offerings:
Characteristic | Exadata Cloud@Customer | Compute Cloud@Customer | OCI Dedicated Region |
---|---|---|---|
Primary Purpose | Managed Oracle Database services on Exadata | Managed general-purpose OCI compute infrastructure | Full Oracle Cloud region (IaaS, PaaS, and optional SaaS) |
Workloads Supported | Oracle databases (Exadata Database Service and Autonomous Database)โ | Application VMs, containers, and middleware (customer-managed apps) | Virtually all Oracle Cloud services (DB, compute, storage, middleware, analytics, etc.)โ |
Deployment Footprint | 1 rack Exadata system (base config); expandable with additional racks for more capacity | 1 rack of OCI compute/storage; can scale with additional racks if needed | Minimum ~3 racks to start (full region); scales by adding racks as usage grows |
Connectivity Requirement | Requires connection to Oracle Cloud for control plane; database services remain accessible locally even if temporarily disconnectedโ. | Requires connection to Oracle Cloud for management (limited functionality if offline)โ. | No continuous external connection needed โ uses local control plane; operates as an independent region on-siteโ. |
Services Available | Oracle Database services (Autonomous and Exadata DB Service); specialized for data management | Core OCI infrastructure services (Compute, Block/Object/File Storage, Networking, etc.)โ | 100+ OCI services (covering compute, storage, database, network, middleware, AI, etc., matching public cloud)โ |
Management | Oracle manages hardware and Exadata system software (and DB for Autonomous), customer manages database instances/config if using Database Service. | Oracle manages hardware and cloud software; customer manages their VMs, applications, and any software they install. | Oracle fully manages the regionโs hardware and services (shared responsibility for facility aspects). Customer uses it like a public cloud region. |
Minimum Subscription Term | 4-year minimum term commitmentโ | 4-year minimum term commitmentโ | 5-year commitment (consumption-based over term)โ |
Billing Model | Combination of a fixed monthly infrastructure fee plus metered usage of database OCPUs/services. Supports universal credits for consumption. | Combination of fixed monthly fee for the base system plus metered usage of cloud resources (VMs, storage, etc.) at OCI ratesโ. | Pay-as-you-go pricing identical to public OCI for all servicesโ, tied to a contracted minimum spend over the term. |
Oracle License Options | Oracle Database software can be included in the service subscription or used in a BYOL model. Also supports Autonomous Database BYOL. | Supports both License-Included (for certain services) and BYOL for software running on the compute (e.g., you can deploy Oracle software on VMs using your licenses)โ. | Same as public cloud: services can be used on a license-included basis or BYOL, following OCIโs standard policies. All usage is metered via cloud credits. |
Notes: In all cases, Oracle retains ownership of the infrastructure and handles hardware support, patching, and updates.
The customer is responsible for providing data center space, power, cooling, physical security, and network connectivity to Oracleโs cloud network as required.
Each option addresses specific use cases: Exadata Cloud@Customer for database consolidation, Compute Cloud@Customer for on-premises cloud-native app deployment, and Dedicated Region for a comprehensive cloud solution.
Read Oracle Cloud at Customer vs. Dedicated Region.
Licensing Models in Cloud@Customer (BYOL vs. Subscription)
One of the most important considerations with Oracle Cloud@Customer is how software licensing is handled.
Oracle offers two primary models for licensing its software in these environments:
- License Included (Subscription): In this model, the cloud service fee includes the right to use Oracle software. You don’t need to own a separate on-premises license for Oracle products running in Cloud@Customer. Instead, you pay Oracle as part of your subscription to use the software. For example, if you deploy an Oracle Database on Exadata Cloud@Customer with the license-included option, your hourly OCPU rate for that database covers the Oracle Database license and support costs. A license-included option is straightforward โ essentially, you โrentโ the software as part of the cloud service. However, it tends to be more expensive than an hourly BYOL, as Oracle charges for the license. This model may be preferable if you don’t already own the required Oracle licenses or want Oracle to assume the support obligations within the subscription.
- Bring Your Own License (BYOL): In this model, you provide your own Oracle software licenses to cover the usage in Cloud@Customer. You must possess the appropriate Oracle licenses (with active support contracts) and certify that you are using those to cover the cloud service usage. Oracle then charges you a lower rate for the infrastructure or service since you supply the licensing piece. BYOL is popular with customers who already have investments in Oracle licenses โ it allows you to leverage those existing costs in a cloud environment, thereby avoiding the need to pay for licenses twice. Oracle Cloud@Customer fully supports Bring Your Own License (BYOL) across its services. For instance, you can bring your Oracle Database Enterprise Edition licenses to cover databases on Exadata Cloud@Customer or WebLogic licenses for middleware you deploy on Compute Cloud@Customer.
Both models use Oracleโs Universal Credit system for billing on Cloud@Customer, meaning you consume cloud credits either way, but the rates differ if you choose BYOL or included licensingโ.
Itโs essential to decide which model to use for each Oracle product on the platform upfront, as this affects cost and compliance.
In some cases, you might mix models: e.g., use BYOL for databases with spare licenses, but use license-included for services like Autonomous Database if you donโt have the necessary licenses.
Read How Oracle BYOL Licensing Works on Oracle Cloud@Customer.
Choosing BYOL vs Subscription:
BYOL generally offers cost savings if you own licenses, as the cloud service costs (per OCPU hour, etc.) are significantly lower. However, BYOL requires that you maintain those on-prem licenses with an active support contract and adhere to Oracleโs cloud license usage rules.
A license-included option is simpler from a compliance standpoint (Oracle essentially leases the license as part of the service), but you pay a premium for that convenience. Many organizations conduct a cost analysis to compare BYOL (Bring Your Own License) vs. license-included pricing over their expected usage period.
A hybrid approach can also be used โ for example, bring your Database licenses for steady-state workloads, but use license-included licenses for occasional extra capacity or Oracle options/features you didnโt purchase on-premises.
Read Which Oracle Software Can You Run on Oracle Cloud at Customer?
License Metrics: Processors, OCPUs, and vCPUs
Traditional on-premises Oracle software licensing is often based on processors (physical CPU cores, with a per-core licensing factor) or Named User Plus counts.
In Oracle Cloud@Customer (and OCI in general), computing resources are measured in OCPUs (Oracle Compute Units) and vCPUs.
Understanding how these map to licenses is crucial for remaining compliant and accurately estimating usage.
- OCPU vs vCPU: Oracle defines 1 OCPU as equivalent to one physical CPU core of an Intel or AMD processor with hyper-threading corresponding to 2 hardware execution threads (vCPUs). In other words, on x86 systems, 1 OCPU = 2 vCPUs (since each core runs two threads). Oracle uses OCPUs as the unit of compute capacity in its cloud services. For comparison, other cloud providers, such as AWS or Azure, typically quote virtual CPUs (vCPUs). Oracle often shows both: for example, an Oracle Cloud service might list a price per OCPU and an equivalent price per vCPU for clarityโ. However, when it comes to provisioning and billing in Cloud@Customer, Oracle uses OCPUs (or sometimes a variant, such as ECPUs for Exadata) as the unit of measurement. The key pointย is thatย if a VM has 2 OCPUs, four vCPUs (threads) areย allocated on an x86 host. This 2-for-1 ratio is important because Oracleโs licensing rules account for hyper-threading similarly.
- Oracle Processor License vs OCPU: For BYOL purposes, Oracle provides a conversion rule to determine how many on-prem processor licenses you need to cover a given number of OCPUs. Oracleโs policy (stated in the Processor Core Factor Table notes) is that for x86-based environments, one Oracle Processor license covers two OCPUs in Oracle Cloudโ. This effectively mirrors the one license per 2 vCPU rule that Oracle uses for authorized cloud environments. For example, if you have an Oracle Database Enterprise Edition deployed on Exadata Cloud@Customer using 4 OCPUs, you would need two processor licenses to cover it under BYOL (because 4 OCPUs / 2 OCPUs per license = 2 licenses). This 2:1 ratio applies to most Oracle products on x86 cloud infrastructure. (The ratio is different for Oracleโs ARM-based Ampere instances โ 1 license per 4 OCPUs โ due to the absence of hyper-threading, but currently Cloud@Customer offerings are primarily x86.) Named User Plus (NUP) licenses can also be used under BYOL. However, you must meet the same minimum user counts per processor as on-prem, typically 25 Named Users per processor (which would cover 2 OCPUs) for Enterprise Edition databasesโ.
- Standard Edition Database Licensing: Oracle Database Standard Edition (SE, SE2) has its own licensing rules, which do not use core factors on-premises (it is licensed per socket, up to certain limits). In the cloud, Oracle treats a Standard Edition processor license as covering 4 OCPUs of usageโ. This means if you BYOL an Oracle DB Standard Edition 2 license, one license allows up to 4 OCPUs of database deployed on Cloud@Customer. However, the Standard Edition has additional limitations โ for example, SE2 in the cloud still cannot exceed 16 total OCPUs per cluster (mirroring the 2-socket, 8-core per socket maximum on-premises). If using NUP licensing for SE2, Oracle requires at least 10 Named Users per 8 OCPUs. The translation of SE licensing to the cloud can be tricky, so checking Oracleโs cloud licensing policy documents for the exact formula when planning an SE deployment on Cloud@Customer is important.
- License Included Metric: If you opt for license-included, you donโt explicitly count your licenses against OCPUs. Instead, Oracle charges you per OCPU (or per instance) at a rate that takes into account the software license. For instance, Oracle might charge $X per OCPU-hour for the Database Enterprise Edition, which is included. You still need to understand OCPU consumption because it drives the cost. However, from a compliance perspective, Oracle ensures that OCPU usage is properly licensed (since youโre paying for it as a service). One nuance: license-included services may sometimes use different terminology, such as Oracleโs Autonomous Database on Exadata Cloud@Customer, which usesย ECPUsย (essentially OCPUs for the Exadata platform) for billingโpurposes. The concept is the same, just with a different label.
Read How Much Does Oracle Cloud at Customer Cost.
Practical ExampleโBYOL vs. Included: Suppose you have an existing Oracle Database Enterprise Edition license (with options) for four on-premises processors and are deploying an application on Oracle Cloud@Customer.
You could either: (a) use BYOL and allocate up to 8 OCPUs of database capacity (since your four processor licenses cover 8 OCPUs) without paying Oracle for database licenses in the cloud (just pay for the Exadata infrastructure usage), or (b) not use your licenses and instead run the database license-included, paying Oracleโs hourly rate which includes the license fee.
Option (a) might cost, say, a few hundred dollars per OCPU per month for the infrastructure, whereas option (b) might cost double that per OCPU, but you donโt need to keep your on-prem license active.
Over a 4-year term, BYOL could save millions if you have many cores, provided you have sufficient licenses and are careful to stay compliant. Option (b) might be chosen if you plan to let your old licenses lapse or repurpose them elsewhere, or if you want Oracle to handle all licensing responsibility as part of the service contract.
Read Oracle Exadata Cloud at Customer Optimization.
Compliance Risks and Common Pitfalls
Using Oracle Cloud@Customer does not eliminate software licensing challenges; it can introduce new complexities. Both BYOL and License-Included approaches have potential pitfalls.
Below, we outline some common licensing risks and โtrapsโ to be aware of:
- Miscounting Cores vs. Licenses:ย A common mistake is misinterpreting the OCPU counts. For example, a customer might see โ8 OCPUsโ allocated to a VM and assume that means 8 Oracle processor licenses are needed, when in reality, on x86, that corresponds to 4 licenses (due to the 2 OCPUs per license rule). Conversely, if you forget the conversion and assume 1 OCPU equals one license, you could under-license and face compliance issues. Always apply Oracleโs official conversion ratios for Cloud@Customer (2 OCPUs = one license for most products on x86, 4 OCPUs = one license for Standard Edition, etc.) when calculating license needs in a BYOL scenario.
- Dual Deployment During Migration: Oracle allows aย 100-day dual-use periodย when migrating licenses to the cloud. You can simultaneously use your on-premises license and cloud deployment for up to 100 days during the migration. After that, you must decommission the on-prem usage or have licenses to cover both environments. A common trap that some fall into is leaving on-premises systems running longer than 100 days โjust in case,โ inadvertently using the same licenses beyond the grace period. This could be flagged in an audit. Plan migrations carefully and notify Oracle (or at least document the information internally) when you start a 100-day transition window. After 100 days, ensure that either the on-prem instance is retired or additional licenses are allocated.
- Unlimited License Agreements (ULAs): If your organization is operating under an Oracle ULA and you deploy software in Cloud@Customer using BYOL, beware of how this counts (or rather, doesnโt count) toward your ULA certification. Oracleโs rules state that ULA deployments in authorized cloud environments cannot be counted to expand your entitlement at ULAโs endโ. In other words, you cannot use Cloud@Customer to artificially inflate your usage before certifying out of a ULA. Any cloud usage will be considered outside the scope of on-premises ULA. This is a common gotcha โ companies assume that spinning up many cloud instances under a ULA will result in a higher license count at certification, only to find that those instances donโt count and they are out of compliance. Treat cloud deployments under a ULA with care, and consult your contract or Oracle representatives to clarify how ULA terms apply in Cloud@Customer scenarios.
- BYOL Support and License Validity: Remember that BYOL is only valid if your licenses are current on support and properly licensed in the first place. Lapsed support or expired licenses cannot be moved to Cloud@Customer. Oracle may require you to provide proof of license ownership and support status for any Bring Your License (BYOL) usage. A pitfall here is assuming that an older license with no active support can be repurposed in the cloud โ it cannot, unless you reinstate support, which can be costly due to back fees. Always maintain support on any licenses you plan to use for BYOLโ. Additionally, ensure that the specific product and version you are running in Cloud@Customer are covered by your license (e.g., if you only own the Standard Edition, you cannot BYOL it to use Enterprise Edition features in the cloud).
- Hybrid Environments and License Tracking: Cloud@Customer blurs the line between on-prem and cloud. Itโs essentially an on-premises deployment of cloud services, which may lead some to be complacent with tracking usage (โitโs in our data center, so we assume itโs covered, like on-premisesโ). Because Cloud@Customer is a subscription service, Oracle has visibility into the resources you consume (especially for license-included services) and can report usage. For BYOL, Oracle expects you to self-police your license usage. A common risk is the inadequate management of internal licenses to monitor OCPU usage over time. For instance, a team might spin up an extra database instance on Exadata Cloud@Customer for a project, consuming more OCPUs than the license pool allows. Unlike a pure on-premises install, which might go unnoticed until an audit is performed, in Cloud@Customer, Oracle can detect over-provisioning since it manages the infrastructure. Oracle may address non-compliant usage through true-up fees or requiring the purchase of additional licenses or subscriptions. Mitigation: Treat Cloud@Customer resources as if they were constantly audited. Implement internal monitoring of OCPU allocations versus your BYOL entitlements, and utilize Oracleโs tools, such as OCI usage reports, to track usage.
- Assuming License-Included Covers Everything: When using license-included services, a common pitfall is assuming you have carte blanche for any product usage. The license only covers that specific cloud service for the specified capacity. You may need additional licenses if you deploy additional options or complementary products. For example, a license-included Oracle Database on Exadata Cloud@Customer will include typical database options (when using Autonomous Database, many options are included). But suppose you decide to install a separate Oracle software (say Oracle GoldenGate or a third-party app) on a Compute Cloud@Customer VM. In that case, thatโs outside the database cloud service โ youโd need to license GoldenGate separately or use its cloud service equivalent. Similarly, running Oracle middleware on Compute Cloud@Customer requires BYOL or another arrangement, as the Compute service itself does not include WebLogic licenses by default. The takeaway: A license-included cover only covers the core service, not every related component. Be sure to clarify which Oracle products are included in your Cloud@Customer subscriptions and which are not.
- Changes in Usage and Scaling: One attractive feature of Cloud@Customer is the ability to scale usage on demand (e.g., adding more OCPUs to a database or more VMs). However, scaling up a service in BYOL mode means you must have licenses ready to cover the expanded usage. A risk is scaling first and sorting out licensing later. For example, you double the OCPUs on a database during a peak period to maintain performance. If this exceeds your license count, even for a short time, you are technically out of compliance. Oracleโs contractual terms usually donโt allow โburstingโ beyond your license entitlement unless you have some written exception. To avoid this, you might consider Oracleโs on-premises license mobility rules โ Oracle allows the immediate reassignment of licenses to cloud instances (with no 30-day delay, unlike some vendors). Still, you need to remove them from wherever they were previously used. Some companies maintain a pool of spare licenses for such contingencies, or they utilize Oracleโs cloud subscription with auto-scaling, which allows for temporary license-included fees to cover extra usage. The pitfall is not having a clear internal policy: before scaling any BYOL deployment, confirm your license headroom or a plan to adjust licensing. On the other hand, if you scale down usage, ensure you can reassign the freed licenses elsewhere or consider reducing support counts later. Otherwise, you might be overpaying for idle licenses.
- Oracleโs Perpetual Audit Rights: Although Cloud@Customer is a cloud subscription, Oracleโs standard license audit rights still apply for any BYOL usage. Oracle knows what you are running to an extent (since they operate the hardware), and they can request proof that you have sufficient licenses for BYOL deployments. A common trap is thinking, โsince Oracle manages the box, they wonโt audit us.โ While Oracle may not need a traditional audit to find shortfalls (they could simply observe usage), you should assume that any discrepancy will eventually come to light. Treat this environment with the same diligence as your on-premises estate regarding audit readiness โ maintain documentation of which licenses cover which OCPUs, and keep evidence (such as license certificates and support renewals) organized in case Oracle inquires.
In summary, Cloud@Customer doesnโt remove the need for license compliance โ it changes the game by introducing cloud metrics (OCPUs) and direct Oracle monitoring. Compliance risks can be mitigated by thoroughly understanding Oracleโs cloud licensing policies and proactive internal license management.
Many enterprises engage their Software Asset Management (SAM) teams early in a Cloud@Customer project to establish monitoring processes from day one. Itโs also wise to get any special terms in writing (for example, if Oracle grants an exception or special migration terms, document them).
The independent nature of Cloud@Customer (running in your data center) might lull some into treating it like a traditional hardware purchase, but always remember it is a subscription service tightly bound to Oracleโs cloud contracts and rules.
Read Licensing Oracle Cloud at Customer vs Oracle OCI.
Recommendations
For IT leaders and licensing professionals considering or managing Oracle Cloud@Customer, here are some actionable best-practice recommendations:
- 1. Inventory and Plan Your Licenses: Before deploying Oracle workloads on Cloud@Customer, inventory your existing Oracle licenses. Determine which ones can be allocated to BYOL and which products you might need to rely on Oracleโs license-included model. Map out on paper how many OCPUs each of your licenses can cover (e.g., each Database EE license โ 2 OCPUs) and ensure the total expected usage is within your entitlement. This planning prevents costly surprises later. If you find a gap (i.e., insufficient licenses for planned usage), decide whether to purchase additional licenses or migrate those workloads to a subscription that includes licenses.
- 2. Leverage Oracleโs Tools and Guidance: Use Oracleโs official guidelines and tools for license management. For example, refer to Oracleโs Processor Core Factor Table and Cloud Licensing policy for the exact conversion rulesโ. Oracle also provides cloud consumption and license management tools, such as OCI usage reports, budgets, and the Oracle License Manager (for tracking specific licenses in OCI). Use these tools to keep track of your Cloud@Customer usage. These tools can help correlate cloud resource usage with license requirements. Regularly review the Oracle Cloud consumption reports for your Cloud@Customer tenancy; they can be an early warning if OCPU usage is trending above your license allowances.
- 3. Establish Internal Governance: Treat Cloud@Customer environments as a formally governed part of your IT landscape from a licensing perspective. Set up processes so that the provisioning of new services on Cloud@Customer (e.g., creating a new database instance or spinning up a new virtual machine with Oracle software) triggers a license impact assessment. Integrate this with change management. For instance, the requestor will be required to identify whether the deployment will be BYOL or license-included, and if BYOL, which license pool will be used. This governance will enforce discipline and awareness among technical teams, avoiding the โoops, we forgot to license thatโ scenarios.
- 4. Educate and Communicate: Ensure that the technical cloud administrators and the SAM/licensing team are aligned on how Oracle licensing works in Cloud@Customer. Holding a workshop or training session on topics such as OCPUs vs. processors, BYOL rules, and the 100-day dual-use allowance is worthwhile. When everyone, from DBAs to VM administrators, understands the implications of adding an OCPU or enabling a new Oracle feature, they are less likely to inadvertently create a compliance issue. Make quick-reference materials (cheat sheets) available with conversion metrics and contact points for license-related questions.
- 5. Optimize Costs Actively: Just as you would optimize workloads in a public cloud to control costs, do the same for Cloud@Customer, with the added dimension of licenses. For example, if a certain database is rarely used, consider shutting down its OCPUs when not needed, which will reduce consumption. Oracle allows scaling down to a minimum in Exadata Cloud@Customer. If you have extra licensed capacity, consolidate workloads to fully utilize the OCPUs your licenses cover, rather than leaving them underutilized and paying support for idle capacity. Conversely, avoid keeping unnecessary services running in license-included mode, as this can increase subscription costs. Regularly review usage and right-size the environment to optimize performance. Oracle Cloud@Customerโs consumption-based model means you can save by turning off or reducing resources, just like in any cloud.
- 6. Watch for Contract and Policy Changes: Oracleโs cloud and licensing policies constantly evolve. For instance, Oracle has adjusted minimum terms (e.g., reducing the Dedicated Region minimum requirements over time) and could update BYOL conversion ratios or add new services. Keep an eye on Oracle announcements, updated policy documents, and licensing blog posts by reputable advisory firms. Staying informed will help you adjust your strategy. Itโs also recommended to review any specific agreements (like an Oracle cloud contract addendum for BYOL or a custom ULA clause) by licensing experts or legal counsel to ensure you understand the implications. Donโt assume the rules from last year remain the same โ double-check annually.
- 7. Engage Independent Expertise: Consider consulting independent Oracle license experts or SAM advisors, especially before a compliance audit or a major expansion of Cloud@Customer usage. An independent review can identify any areas where you might be exposed. These experts can also assist with communication with Oracle if any compliance questions arise. The goal is to remain in control of the narrative, demonstrating to Oracle that you are on top of your license management, rather than reacting after an Oracle audit team identifies an issue. Given the substantial financial stakes of Oracle licenses, a proactive audit defense approach is advisable.
- 8. Negotiate with a Cloud Mindset: When entering a Cloud@Customer agreement, negotiate the terms with licensing in mind. For example, clarify how inactive OCPUs are treated (is there a minimum billable usage?), get written confirmation of the 100-day dual use period if you plan to utilize it, and explore whether Oracle Support Rewards or other programs can offset costs (Oracle offers support fee credits for cloud usage in some cases, though note that Support Rewards currently donโt apply to Dedicated Regionโ). If you have a ULA, discuss how Cloud@Customer fits in โ perhaps negotiate an amendment that allows some cloud usage without penalty. The contract stage lets you obtain concessions or clarity to prevent disputes later.
Read Negotiating Oracle Cloud at Customer Contracts: Strategies for CIOs and Procurement.
In conclusion, Oracle Cloud@Customer can deliver the best of both worlds โ cloud convenience on-premises โ but it comes with complex licensing considerations that must not be overlooked.
You can avoid compliance pitfalls and maximize your investment by understanding the offerings, carefully managing BYOL vs. subscription choices, and vigilantly tracking usage against entitlements.
Always approach Cloud@Customer licensing with the same rigor as any Oracle deployment and foster close collaboration between technical teams and license management stakeholders. With due diligence, the flexibility of Cloud@Customer can be harnessed without unwelcome compliance surprises.
Read Oracle Dedicated Region Cost Optimization.
Frequently Asked Questions about Oracle Cloud at Customer
What is Oracle Cloud at Customer?
Oracle Cloud at Customer is a hybrid cloud service that brings Oracle’s cloud infrastructure directly into a customer’s data center. This service enables organizations to leverage the scalability of the public cloud while maintaining full control over their data and applications.
How does Oracle Cloud at Customer address data residency concerns?
Oracle Cloud at Customer enables enterprises to store data on-premises, ensuring compliance with stringent regulatory data residency requirements, which is crucial for industries such as finance, healthcare, and government.
Can Oracle Cloud at Customer integrate with other cloud services?
Yes, Oracle Cloud at Customer can integrate seamlessly with other Oracle public cloud services and traditional on-premises systems, enabling a hybrid cloud environment with smooth data flow.
What pricing model does Oracle Cloud at Customer use?
The service operates on a subscription-based pricing model, where users pay according to their usage. This consumption-based pricing model helps control costs efficiently without overcommitting.
What are the key security features of Oracle Cloud for Customers?
Key security features include end-to-end encryption, multi-layered security at physical and application levels, and Oracle Operator Access Control, which restricts access to sensitive data.
How does Oracle Cloud at Customer handle scalability?
The service supports dynamic scaling through autoscaling, which allocates resources based on workload demand. This ensures optimal performance without manual intervention.
Is Oracle Cloud at Customer suitable for highly regulated industries?
Oracle Cloud at Customer is ideal for industries with strict regulatory requirements, such as healthcare, finance, and government. It offers on-premises deployment while providing cloud capabilities.
What types of workloads are ideal for Oracle Cloud at Customer?
Data-intensive and performance-critical workloads are ideal for Oracle Cloud at Customer, especially when data control is essential. It is also beneficial for applications requiring low latency and strict compliance standards.
How does Oracle assist with Oracle Cloud during customer deployment?
Oracle provides end-to-end support for setting up, configuring, and integrating infrastructure with existing systems. This includes custom configurations and security best practices to ensure smooth deployment.
What benefits does Oracle Cloud at Customer offer over traditional cloud services?
Oracle Cloud at Customer offers the benefits of cloud scalability, cost-effectiveness, and advanced features, while ensuring that data stays within the customer’s premises. This makes it more compliant with regulatory and data sovereignty requirements.
What tools can be used to optimize the cost of Oracle Cloud for customers?
Organizations can use Oracle-native tools and third-party platforms to manage costs effectively, track usage, analyze cost drivers, and implement optimization strategies.
Can Oracle Cloud at Customer be integrated with non-Oracle systems?
Yes, Oracle Cloud at Customer is designed to integrate with existing non-Oracle systems and supports a wide range of configurations for hybrid IT environments.
What is the role of Oracle Operator Access Control in Oracle Cloud at Customer?
Oracle Operator Access Control supervises and controls Oracle’s access to customer environments, ensuring access is secure and limited to necessary operations.
How does Oracle Cloud at Customer ensure high availability?
Oracle Cloud at Customer features high availability, including redundant servers, proactive fault management with AI-driven detection, and Oracle Maximum Availability Architecture, ensuring uninterrupted services.
What should organizations consider before adopting Oracle Cloud at Customer?
Organizations should evaluate their current workloads, understand their regulatory requirements, assess their existing Oracle license estate, and create a strategic plan to leverage Oracle Cloud at Customer for data control and scalability.
Does Oracle Cloud at Customer support disaster recovery?
It supports robust disaster recovery solutions through Oracle Active Data Guard and Maximum Availability Architecture, ensuring data protection and business continuity even in adverse situations.
Read Oracle Cloud at Customer Licensing Best Practices: Compliance and Cost Optimization.
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