Oracle Cloud licensing – Compare Oracle, AWS, Azure, and GCP
- Oracle OCI: License included or BYOL, with support rewards.
- AWS: BYOL or limited license-included (RDS SE2).
- Azure: BYOL model only; OCI-Azure interoperability.
- GCP: BYOL, Oracle Cloud services available, vCPU licensing.
Oracle Cloud Licensing Overview
Oracle has authorized various public cloud providers, giving organizations expanded flexibility in deploying Oracle databases in the cloud.
Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), and Oracle Cloud Infrastructure (OCI) are all recognized by Oracle as authorized public cloud vendors.
Each platform allows organizations to license Oracle instances per virtual CPU (vCPU) and offers Oracle Database Cloud Services with a “license included” option.
In this article, we’ll compare the different Oracle licensing options available on these platforms, their unique features, and how they affect overall licensing and compliance considerations.
Oracle Cloud Infrastructure (OCI) – Flexible Licensing
Oracle Cloud Infrastructure (OCI) is Oracle’s native cloud platform that provides significant flexibility and cost-saving opportunities for running Oracle workloads. OCI provides multiple licensing models, making it one of the most versatile options for Oracle deployments.
- License Included: OCI provides a “license included” model, in which the cost of the Oracle software license is bundled with the cost of the cloud infrastructure. This model is ideal for organizations that do not have existing Oracle licenses and are looking for a simplified deployment option.
- Bring Your Own License (BYOL): OCI also offers a BYOL option, which allows organizations to transfer their existing on-premises licenses to the cloud. This model is particularly useful for companies investing in Oracle technology to optimize their cost structures by utilizing their existing licenses.
- Pay-as-You-Go and Pre-Payment Options: OCI offers pay-as-you-go (hourly billing) options for organizations needing on-demand scalability. Pre-payment options with discounted rates are also available for those who can commit to 12 months, providing cost advantages.
- Support Rewards Program: OCI includes the Support Rewards Program, where organizations can receive up to 33% back on their support bill by investing in Oracle Cloud services. For example, a $100,000 investment in Oracle Cloud can yield up to $33,000 back from the support cost, making OCI an attractive choice for companies already paying Oracle for support services.
AWS – Oracle Licensing Options
AWS is an authorized Oracle cloud provider that offers various Oracle licensing models, focusing mainly on BYOL and the license-included a model for certain Oracle products.
- AWS EC2 Instances (BYOL): AWS allows Oracle software to be licensed on Elastic Compute Cloud (EC2) instances using the BYOL model. Users can bring their existing Oracle licenses and licenses per vCPU, providing flexibility for organizations that have already made significant Oracle investments.
- Licensing Calculation: For AWS EC2, each of the two vCPUs with multi-threading enabled is counted as one Oracle Processor license. When multi-threading is disabled, each vCPU requires an Oracle Processor license.
- AWS RDS (License Included or BYOL): AWS Relational Database Service (RDS) includes options for Oracle Standard Edition 2 (SE2) under a license-included model, meaning the license cost is part of the RDS fee. For other editions, customers must bring their own licenses.
- Limitations: AWS doesn’t offer pay-per-hour licensing for all Oracle products, and enterprise and middleware software must be licensed through BYOL. AWS’s model resembles traditional outsourcing models with pre-negotiated vCPU licensing.
- Oracle Database Cloud Services: AWS also offers Oracle Database Cloud Services, enabling organizations to access Oracle capabilities without direct license management. These services can be paid for through AWS commitments.
Microsoft Azure – Oracle Licensing Insights
Similar to AWS, Microsoft Azure is a recognized Oracle cloud partner that provides licensing options primarily through BYOL and Oracle Cloud services.
- BYOL for Oracle Licensing: Azure’s licensing model is based on the BYOL concept. Customers must bring existing Oracle licenses to the Azure environment. Azure does not provide a license-included option, making BYOL the primary licensing approach.
- vCPU Licensing: Similar to AWS, two vCPUs are counted as one Oracle Processor license for Azure deployments.
- Oracle Database Cloud Service: Azure users can run Oracle Database Cloud Service via their Azure accounts. This cross-platform setup is possible through the partnership between Microsoft and Oracle, which allows interoperability between Azure and Oracle Cloud Infrastructure.
- Oracle Applications on Azure: The partnership also enables the deployment of Oracle enterprise applications, such as E-business Suite, JD Edwards, PeopleSoft, and others, in a BYOL format. Customers must use Oracle licenses purchased separately and apply them to Azure’s infrastructure.
- Integration with OCI: Users deploying Oracle applications on Azure can also use OCI-Azure interconnect for better performance and reduced latency, making hybrid environments more feasible.
- License Included: Make use of Oracle Database@Azure.
- BYOL Requirement: Licenses must be purchased from Oracle before being applied to Azure.
- Traditional Outsourcing Model: Azure’s approach resembles traditional outsourcing, with rights negotiated only for vCPU licensing.
Google Cloud Platform (GCP) – Oracle Licensing Options
Google Cloud Platform (GCP) has also been recognized by Oracle as an authorized public cloud vendor, providing additional flexibility for organizations that prefer GCP’s infrastructure.
- Google Cloud Virtual Instances: Oracle workloads are licensed on GCP virtual instances based on the number of vCPUs. GCP uses the same licensing model as other public cloud providers, where two vCPUs are equivalent to one Oracle Processor license when multithreading is enabled.
- Google Bare Metal Solutions (BYOL): GCP offers Bare Metal Solutions, which allows customers to run Oracle databases on dedicated physical hardware in a BYOL model. This approach is similar to running Oracle on-premises, but it offers more control and performance.
- Oracle Database Cloud Services: GCP also provides access to Oracle Database Cloud Services, where customers can use their Google Cloud Commitments to pay for Oracle services. This makes GCP an attractive option for cloud-native Oracle services without needing standalone license management.
Compare Oracle, AWS, Azure and GCP
| Feature | Oracle OCI | AWS | Microsoft Azure | Google Cloud Platform (GCP) |
|---|---|---|---|---|
| License Included | Yes | Limited (RDS SE2 only) | No | Yes |
| BYOL | Yes | Yes | Yes | Yes |
| Support Rewards | Yes | Yes | Yes | Yes |
| Cloud Commitment Payments | Yes | Yes | Yes | Yes |
| Oracle Database Cloud Services | Yes | Yes | Yes | Yes |
| Bare Metal Solution | Yes | No | No | Yes |
| Pay-as-You-Go | Yes | Limited | Limited | Yes |
Oracle Cloud licensing – Compare Oracle, AWS, Azure and GCP FAQ
What are the main licensing models for Oracle on AWS?
AWS provides two main licensing options for Oracle: Bring Your Own License (BYOL) and a limited license-included model, mainly available for Oracle Standard Edition 2 through AWS RDS.
Does Azure offer a license-included option for Oracle?
Azure relies solely on the Bring Your Own License (BYOL) model for Oracle software. Customers must have existing Oracle licenses to deploy Oracle products on Azure.
How does BYOL work with Google Cloud Platform (GCP)?
Customers must bring their own Oracle licenses (BYOL) to GCP. GCP also offers Oracle Bare Metal Solutions for more control and dedicated hardware deployments.
What is the Oracle Support Rewards Program?
The Oracle Support Rewards Program offers credits to Oracle customers using OCI. For every $1 spent on OCI, you can receive up to 33% back on your support bill, which helps reduce overall support costs.
Are Oracle Database Cloud Services available on all platforms?
Yes, Oracle Database Cloud Services are available on all major cloud platforms, including Oracle OCI, AWS, Azure, and GCP. Cloud commitments can include or cover licensing.
How are Oracle vCPUs licensed across AWS, Azure, and GCP?
In AWS, Azure, and GCP, two vCPUs are equivalent to one Oracle Processor license when multithreading is enabled. The licensing calculation remains consistent across these platforms.
Does Oracle offer a pay-as-you-go licensing model?
Oracle offers a pay-as-you-go model on OCI, allowing flexible hourly billing for Oracle services. AWS and Azure offer limited pay-as-you-go options, while GCP offers pay-as-you-go options for specific services.
What is the primary licensing difference between OCI and other clouds?
OCI offers both license-included and BYOL options, along with unique support rewards. Other cloud providers, such as AWS and Azure, mainly use BYOL, with limited license-included offerings.
Can Oracle applications run on Azure?
Oracle applications like E-business Suite, JD Edwards, and PeopleSoft can run on Azure using the BYOL model. The OCI-Azure interconnect enhances integration between Oracle and Azure environments.
Does GCP provide a license-included option for Oracle?
GCP provides Oracle Database Cloud Services with a license-included option, allowing organizations to use Oracle services without managing individual licenses.
Is Bare Metal Solutions available for Oracle on all cloud platforms?
Bare Metal Solutions is only available on Google Cloud Platform (GCP) and Oracle OCI. It offers a dedicated hardware environment for running Oracle workloads.
How does Oracle licensing differ between AWS RDS and EC2?
AWS RDS offers a limited license-included option for Oracle SE2, while EC2 instances require customers to bring their licenses (BYOL) for Oracle products, with licensing based on vCPU count.
What is the advantage of using OCI for Oracle workloads?
OCI offers various licensing models (BYOL and license-included) and unique benefits, such as the Support Rewards Program, which helps reduce support costs for Oracle customers.
Can Oracle licensing be transferred across different clouds?
Yes, Oracle licenses can be transferred to other cloud platforms under the BYOL model, provided compliance with Oracle’s cloud policies. Ensure eligibility for transferring licenses across AWS, Azure, or GCP.
What are the compliance risks of Oracle licensing in public cloud environments?
Compliance risks include improper sizing of instances, misunderstanding BYOL policies, and deploying in unauthorized regions. Regular license reviews and audits help mitigate non-compliance risks.
Read more about our Oracle License Management Services.
