Oracle Database Licensing: “License Included” vs. BYOL
When using cloud services for Oracle Database—such as Oracle Cloud Infrastructure (OCI) or Amazon RDS—there are two primary licensing models:
- License Included
- Bring Your Own License (BYOL)
The choice between these two models directly impacts your costs, compliance responsibilities, and operational flexibility.
In this article, you’ll learn:
- The fundamental differences between License Included and BYOL
- Pros and cons of each model
- How to choose the right licensing approach based on your scenario
- Practical examples illustrating cost differences
Read more Oracle Database Licensing FAQs.
License Included Model
The License Included model means the cloud provider (such as Oracle Cloud Infrastructure or AWS) includes Oracle Database licensing costs in the hourly or monthly service fee.
How License Included Works:
- All-in-one pricing: You pay one price that covers infrastructure, software license, and updates.
- No existing licenses required: You do not need any previously owned Oracle licenses to deploy your database.
- Simplified billing: You receive a single consolidated bill from your cloud provider.
Pros of License Included:
- Simplicity and convenience: Eliminates license tracking and separate Oracle support contracts.
- No upfront license costs: This allows you to deploy Oracle Database quickly without investing in perpetual licenses.
- Flexibility for temporary use: This feature is ideal for development/testing, short-term projects, or intermittent workloads where permanent licenses aren’t cost-effective.
Cons of License Included:
- Higher costs long-term: Renting the license monthly can cost more than owning the license outright, especially for consistent, long-term workloads.
- Limited portability: You cannot use Oracle Database licenses included in the purchase outside the specific cloud environment where they were purchased.
Practical Example (License Included):
- Oracle Autonomous Database (ADB) – License Included:
The service is approximately $2.50/hour for two OCPUs (illustrative pricing). This price covers Oracle Database licensing plus infrastructure. You do not need to own any Oracle licenses separately.
Bring Your Own License (BYOL) Model
The BYOL model means using Oracle Database licenses you already own, combined with cloud infrastructure from your provider. Because you provide your licenses, the cloud provider charges a significantly lower rate, primarily covering infrastructure costs only.
How BYOL Works:
- You reuse existing Oracle licenses purchased through Oracle, typically with active support.
- You certify with your cloud provider (such as Oracle OCI or AWS) that you possess enough Oracle licenses to cover your cloud usage.
- The cloud provider charges you a discounted hourly or monthly rate, excluding the license cost.
Pros of BYOL:
- Cost-effective long-term: Leveraging existing licenses often yields substantial savings over continuous monthly rental.
- Investment protection: This maximizes your existing Oracle license investments.
- Flexibility across environments: Since you own licenses, they can be used across the cloud and on-premises (subject to Oracle licensing rules).
Cons of BYOL:
- License compliance responsibility: You track license counts, maintain active Oracle support, and ensure compliance.
- Less convenient for temporary or short-term workloads: If you don’t already own licenses, purchasing them specifically for short-term cloud deployments can be expensive.
- Limited flexibility for variable workloads: Rapidly scaling workloads could require acquiring more licenses or adjusting deployments to avoid compliance issues.
Practical Example (BYOL):
- Oracle Autonomous Database – BYOL:
Assume the same two-OCPU Autonomous Database costs $1.20/hour with BYOL (illustrative). This lower rate assumes you have your Oracle Database licenses.- If you own Oracle Database licenses and have active support, BYOL pricing significantly reduces the monthly bill.
- If you don’t own sufficient licenses, you must buy them separately or switch to License Included.
Read Oracle Database Licensing on Oracle Cloud Infrastructure (OCI).
Cost Comparison (Example Scenario)
| Deployment Option | Hourly Cost (illustrative) | Monthly Cost (720 hours/month) |
|---|---|---|
| Autonomous DB – License Included | $2.50/hour | $1,800/month |
| Autonomous DB – BYOL | $1.20/hour | $864/month (plus license ownership cost) |
In the above example:
- License Included: Higher monthly cost, but no upfront license fees or compliance management required.
- BYOL: This has a Lower monthly cost, but you must own Oracle licenses, manage compliance, and have active support contracts.
Read Free and Trial Options for Oracle Database.
Choosing Between License Included and BYOL
| Scenario | Recommended Licensing Model | Why It Makes Sense |
|---|---|---|
| No existing Oracle licenses | License Included | Easy deployment without purchasing expensive perpetual licenses |
| Short-term or temporary projects | License Included | Avoid upfront investment, pay only for what you use |
| Long-term stable workloads | BYOL | Leverage existing license investments and lower monthly costs |
| Existing significant Oracle investments | BYOL | Maximize the value of licenses you already own |
Common Misunderstandings Corrected
- Misconception: License Included saves money because you don’t buy licenses upfront.
- Reality: BYOL usually provides significant savings by using existing licenses for long-term, stable workloads.
- Misconception: BYOL licenses can freely be moved anywhere without restrictions.
- Reality: While BYOL provides flexibility, you must still comply with Oracle’s licensing rules (such as counting cores correctly, following user minimums, and maintaining active Oracle support).
- Misconception: License Included can be converted to BYOL later.
- Reality: Usually requires redeployment or migration to a new BYOL instance. There’s no direct in-place conversion.
Read Oracle Database Licensing: “License Included” vs. BYOL.
Best Practices for Oracle Licensing in Cloud Services
- Assess workload duration and consistency to choose the best licensing model.
- Carefully track Oracle license usage and maintain compliance when using BYOL.
- Use License Included for development/test environments or temporary workloads to avoid unnecessary perpetual license purchases.
- Regularly reassess your Oracle database deployment as workloads change, adjusting your licensing strategy accordingly.
Licensing Summary and Final Recommendations
Choosing between License Included and BYOL comes down to your organization’s situation and strategy:
- License Included is best for:
- Short-term or variable workloads
- Organizations without existing Oracle Database licenses
- Situations needing simplified, all-inclusive billing
- BYOL is optimal for:
- Organizations with existing Oracle license investments
- Stable, long-term database workloads
- Maximizing license investment and significantly reducing ongoing costs
By understanding the differences between these licensing models and matching them to your specific use cases, you can effectively control Oracle Database licensing costs while staying compliant and maximizing value from your Oracle investments.
