Licensing / Oracle cloud / Oracle licensing

Oracle Cloud licensing – Compare Oracle, AWS, Azure and GCP

Oracle Cloud Licensing works as follows:

  • AWS: Rent standard edition 2 licenses; purchase other licenses from Oracle.
  • Azure: Only use Oracle Database Cloud Service; manage via Azure tools.
  • Oracle OCI: Pay-as-you-go or pre-payment options; license included or Bring-Your-Own-License (BYOL).
  • Google Cloud Platform (GCP): BYOL only; not recognized as a public cloud for Oracle licensing.
  • General: Options vary by platform and involve existing licenses or purchasing new ones. Oracle Cloud offers flexibility and cost-saving opportunities.

Oracle Cloud Licensing

Oracle Cloud Licensing

Oracle Cloud Licensing offers varied options tailored to different cloud platforms. Each platform has its own considerations, allowing for flexibility and strategic decision-making in license management.

AWS:

  • Standard Edition 2 License: Available for rent in AWS.
  • Other Oracle Software: Requires direct purchase from Oracle.

Azure:

  • Exclusive Use: Oracle Database Cloud Service is the only option.
  • Management: Operated within Oracle Cloud, managed via Azure tools.

Oracle Cloud – OCI:

Oracle BYOL costs
  • Pay-as-you-go (Hourly Billing):
    • License Included: Covers platform services.
    • Bring-Your-Own-License (BYOL): Charges only for computing services.
  • Pre-payment (12 Months with Discounted Rates):
    • License Included: Same as pay-as-you-go, but with upfront payment for cost efficiency.
    • BYOL: Similar to hourly BYOL, but with the advantage of prepaid services.

Key Advantages:

  • Flexibility: Oracle Cloud’s diverse licensing options cater to various needs, including all Oracle software licenses or a BYOL model.
  • Cost Savings with BYOL: Bringing your own licenses can lead to significant discounts and optimize overall cloud expenditure.
  • Support Rewards: Unique to Oracle, this program allows you to receive a 33% return on your support bill for unused on-premises licenses when you spend on Oracle Cloud. For instance, a $100,000 investment in Oracle Cloud can yield up to $33,000 back from your support costs.

Conclusion: Navigating Oracle Cloud Licensing requires understanding the nuances of each platform.

Whether leveraging existing licenses or acquiring new ones, each option presents distinct advantages.

Oracle Cloud Infrastructure (OCI) stands out with its flexibility and potential for cost savings, making it a strategic choice for efficient cloud licensing.

AWS – Oracle licensing

oracle licensing on aws

As an authorized cloud provider, AWS offers unique Oracle licensing options based on virtual CPUs (vCPUs). This approach includes the following specifics:

AWS EC2:

  • BYOL: Users bring their own Oracle licenses, licensing per vCPU.
  • Oracle Processor Licenses: Multi-threading considerations; two vCPUs equate to one Oracle processor license.

AWS RDS:

  • On-Demand DB Instance (License Included): Available only for Standard Edition 1 and DB SE2.
  • On-Demand DB Instance (BYOL): Users bring their own Oracle licenses.

Key Insights:

oracle licensing on aws
  • Standard Edition Licensing: AWS RDS includes licenses only for standard editions.
  • BYOL Necessity: BYOL is required for most Oracle software, unlike Oracle Cloud, which offers discounts.
  • Licensing Model: AWS’s model is similar to traditional outsourcers, with the unique aspect of pre-negotiated vCPU licensing rights.
  • Limitations: AWS doesn’t provide pay-per-hour options for most Oracle products or offer specific usage rights, such as hosting or SaaS, for Enterprise edition or middleware products.

Oracle Licensing on Azure

Azure, similar to AWS, is an authorized cloud provider where Oracle licensing is based on virtual CPUs (vCPUs). Here’s a closer look:

  • vCPU Licensing: Two vCPUs are equivalent to one Oracle processor license, with multi-threading considerations.
  • BYOL Model: Azure requires customers to bring their own Oracle licenses, with no “license included” option.

Oracle Database Cloud Service on Azure:

  • Cross-Platform Operation: Users can run Oracle Database Cloud Service from their Azure account but must have accounts in both OCI and Azure.

Oracle Applications on Azure (BYOL):

  • Microsoft-Oracle Partnership: Enables deployment of Oracle applications, leveraging OCI-Azure integration.
  • License Requirements: No need for Universal Cloud Credits for OCI; BYOL for Oracle applications is mandatory.

Oracle applications you can deploy on Azure are:

oracle licensing on azure
  • 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 – Oracle on GCP

Oracle Licensing on the Google Cloud Platform (GCP) is quite straightforward but limited:

  • BYOL Only: GCP requires customers to bring their own Oracle licenses, with no “license included” option.
  • Non-Authorized Cloud Environment: Oracle does not recognize GCP as an “authorized cloud environment,” meaning it does not offer licensing per vCPU.
  • Bare Metal Solutions: GCP’s primary option for Oracle is through its bare metal solutions, which allow licensing per core, similar to on-premises environments.
  • Traditional Hosting Model: GCP aligns more with traditional hosting or outsourcing providers, offering no specific licensing advantages.

FAQ on Oracle Cloud Licensing

Can we bring Oracle ULA licenses to the public cloud?

Many times, not. You need to pay attention to your Oracle Unlimited License Agreement, read the certification clause, and understand what it says about public cloud deployments.

How does it work with Java in the Public cloud?

Oracle has recognized AWS and Azure as authorized public cloud providers, meaning you calculate the number of vCPUs. Java is licensed the same way as Oracle technology software.

How can I be non-compliant when moving to the Public cloud?

Unfortunately, the same issues are on-premise. For GCP, you license Oracle as you do for on-prem licensing, with no exceptions on vCPU. For AWS and Azure, we often come across customers who have wrongly sized their Oracle instances by starting to large instances or been using nonlicensed software.

Can we bring Oracle Applications to Public Cloud?

You can run Oracle EBS, Oracle Siebel, Oracle PeopleSoft, Oracle JD Edwards, and other applications. The only factor you need to pay attention to is the technology platform.

How we can help your organization move your Oracle deployments to Public Cloud

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Author

  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, enhancing organizational efficiency.