Oracle Database Licensing on Oracle Cloud Infrastructure (OCI)
Oracle Cloud Infrastructure (OCI) provides two distinct licensing models for Oracle Database: License Included (LI) and Bring Your License (BYOL).
Understanding these models is crucial for accurate cost management and compliance when deploying Oracle Database services in OCI.
This article covers:
- The differences between the License Included and BYOL models on OCI
- Counting licenses using OCI’s OCPU model
- Applying Named User Plus licenses on OCI
- Practical examples for clarity and compliance
Read more Oracle Database Licensing FAQs.
Licensing Models on Oracle Cloud Infrastructure
1. License Included (LI) Model
With the License Included model, the Oracle Database license is included in the cost of the cloud service itself. You do not need separate Oracle licenses because the fee is bundled into the hourly or monthly rate you pay for OCI database services.
Key Points for License Included (LI):
- No existing Oracle licenses are required—Oracle Database usage is fully covered by OCI pricing.
- Suitable for organizations without existing Oracle license investments or those preferring simplified billing.
- Available for various OCI Database services, including:
- Virtual Machine DB Systems
- Bare Metal DB Systems
- Exadata Database Service
- Autonomous Database (ADB)
Example (License Included):
- Using the Included License, you deploy a 4 OCPU Autonomous Database (ADB).
- Your OCI monthly bill includes compute/storage costs and the Oracle Database licenses.
- No separate Oracle license purchase or tracking is required.
2. Bring Your Own License (BYOL) Model
With BYOL, you use Oracle licenses you already own (and have active support) when deploying Oracle Database services on OCI. This model reduces your OCI service fees since you don’t pay Oracle again for the license.
Key Points for BYOL:
- You must already have valid Oracle Database licenses (with active Oracle support).
- You certify ownership of these licenses with Oracle before deployment.
- OCI charges a significantly reduced rate since licensing is already covered.
- This model is ideal if existing licenses can be reused in OCI.
Example (BYOL):
- You have 8 Processor licenses of Oracle Database Enterprise Edition (EE) with active support.
- You deploy an OCI Bare Metal DB system using exactly 8 OCPUs.
- OCI charges you a reduced rate, covering only compute and infrastructure costs (no license fees).
- You do not pay Oracle again for database licenses since you’re already covered.
Understanding OCI’s OCPU Model for Licensing
Oracle Cloud Infrastructure measures compute power in Oracle CPUs (OCPUs).
- One OCPU typically equals one physical CPU core (Intel/AMD-based) with hyperthreading enabled, showing as two virtual CPUs (vCPUs) to the operating system.
- Oracle explicitly defines 1 OCPU as equivalent to 1 Processor license of Oracle Database Enterprise Edition for licensing purposes.
Licensing Equivalents:
| OCI Metric | Equivalent Oracle Processor License |
|---|---|
| 1 OCPU | 1 Processor License |
| 2 OCPUs | 2 Processor Licenses |
| 4 OCPUs | 4 Processor Licenses |
| 8 OCPUs | 8 Processor Licenses |
Practical Example (OCPU Counting):
- You bring your licenses (BYOL) to OCI. You have 4 Processor licenses.
- You can deploy OCI database systems totaling up to 4 OCPUs under BYOL rates.
- For example, one 4 OCPU database system or two 2 OCPU database systems.
Applying Named User Plus (NUP) Licenses in OCI
In certain situations, you may want to use Named User Plus (NUP) licenses instead of processor licenses. While less common, this model can also be applied on OCI:
Key Points for Using NUP Licensing on OCI:
- Each individual (or device) accessing the OCI-deployed database must have a Named User Plus license.
- The minimum NUP licenses required per processor still apply:
- Enterprise Edition (EE): 25 Named Users per Processor license (1 Processor = 1 OCPU).
- Ensure your total named users meet or exceed these minimums.
- Typically used when the user count is small, fixed, and well-known.
Read Oracle Database Licensing: “License Included” vs. BYOL.
Example (NUP Licensing):
- You deploy a small Oracle Database on a 2 OCPU OCI VM.
- This equates to 2 Processor licenses.
- The minimum users required for EE is 25 users per processor, so a minimum of 50 Named User Plus licenses are required.
- If your actual user count is higher (e.g., 60 users), license 60 NUPs. If you have fewer (e.g., 10 users), you must still license 50 NUPs due to Oracle’s minimum requirement.
Choosing Between License Included and BYOL on OCI
| Scenario | Recommended OCI License Model | Rationale |
|---|---|---|
| No existing Oracle DB licenses | License Included | Simple, pay-as-you-go model. |
| Large existing Oracle license investments | BYOL | Reuse licenses, significantly reduced OCI cost. |
| Temporary or short-term deployments | License Included | Avoid purchasing permanent licenses for temporary workloads. |
| Stable, long-term deployments | BYOL | Leverage existing investments, lower total cost over time. |
Common Misunderstandings about OCI Licensing
- Misconception: OCI always includes Oracle licenses.
- Reality: OCI offers license-included (bundled licenses and BYOL (using existing licenses).
- Misconception: OCPU counting is identical to AWS/Azure vCPU counting.
- Reality: OCI uses its own OCPU metric (1 physical core = 1 OCPU). Due to hyperthreading, AWS/Azure typically count 2 vCPUs = 1 processor license.
- Misconception: You cannot use Named User Plus licenses on OCI.
- Reality: You can apply NUP licenses on OC,I provided you meet Oracle’s minimum user licensing rules.
Best Practices for Oracle Licensing on OCI
- Evaluate existing licenses carefully before choosing License Included vs. BYOL.
- Accurately document your BYOL entitlements—Oracle may verify license counts.
- Regularly review deployments and OCI resource allocation to ensure compliance.
- Match OCPU usage carefully to your licensed processor count under BYOL.
- Consider NUP licensing if your deployment is small and stable and users are fixed.
Read Oracle Database Licensing for High Availability and Failover Scenarios.
Licensing Summary and Recommendations
- OCI provides clear licensing flexibility: either pay OCI for bundled licenses (License Included) or reuse existing licenses (BYOL).
- OCPUs align directly with Oracle’s Processor licenses (1 OCPU = 1 Oracle Processor license).
- Named User Plus licensing can be applied if minimum requirements are met.
- Select your licensing model based on existing investments, deployment size, duration, and budget constraints.
Following these guidelines ensures optimal cost-efficiency and Oracle compliance when deploying the Oracle Database on Oracle Cloud Infrastructure.
