Oracle database licensing

Oracle Database Processor Licensing: Definition and Calculation

Oracle Database Processor Licensing

Oracle Database Processor Licensing

An Oracle Database Processor license allows unlimited users to access the Oracle Database running on a given server. The licensing cost is based on the number of CPU cores on the server and an Oracle-defined Core Factor specific to the CPU type.

This guide clearly explains:

  • What a Processor license is
  • Oracleโ€™s Core Factor and how it affects licensing
  • Practical examples clearly showing how to calculate Processor licenses

Read our Oracle Database Licensing FAQs.


What is an Oracle Processor License?

A Processor License means:

  • You license Oracle Database based on CPU cores (not users).
  • Allows an unlimited number of users or devices to connect to the database.
  • Ideal for scenarios involving:
    • High user counts
    • Public-facing databases
    • Environments impossible or impractical to track named users

How to Calculate Oracle Processor Licenses

Oracleโ€™s processor license calculation involves three clearly defined steps:

Step 1: Identify and count all physical CPU cores on the server or cluster.

Step 2: Apply Oracleโ€™s Core Factor (based on your CPU type).

Step 3: Multiply Cores ร— Core Factor to calculate the required Processor licenses.

  • Round up to the next whole number if the result is fractional.

Oracleโ€™s Core Factor

Oracle assigns each CPU type a Core Factor (a multiplier used to determine licensing costs). Common core factors:

CPU Type (Clearly Explained)Core Factor (Clearly Defined)
Intel/AMD x860.5
IBM POWER1.0
SPARCTypically 0.5 to 1.0
ARM-based processorsTypically 1.0

Note that the lower the Core Factor, the fewer licenses are required, thus lowering the overall cost.


Example: Processor License Calculation

  • Server Configuration:
    • CPU: 8 physical Intel cores
    • Core Factor for Intel CPUs clearly: 0.5

Clearly Explained Calculation:

  • 8 cores ร— 0.5 Core Factor = 4 Processor Licenses

This means you must purchase 4 Oracle Processor licenses for this server, allowing unlimited users.


Additional Example:

  • Server Configuration Clearly Explained:
    • CPU: 12 physical IBM POWER cores
    • Core Factor for IBM POWER clearly: 1.0

Clearly Explained Calculation:

  • 12 cores ร— 1.0 Core Factor = 12 Processor Licenses

You need 12 Processor licenses for unlimited user access on this server.


Oracle Processor License Calculation Checklist

โœ… Count the physical cores of the server (or cluster).
โœ… Identify the CPU type (Intel, AMD, IBM POWER, etc.).
โœ… Apply Oracleโ€™s Core Factor based on the CPU type.
โœ… Clearly multiply cores ร— core factor.
โœ… Round up fractional results to the next whole license.

Read Oracle Named User Plus (NUP) License: Definition and Counting Users.


Common Misunderstandings Corrected

  • Misconception: “Processor license cost depends on the number of users.”
    • Reality: Clearly, noโ€”Processor licenses cover unlimited users. The user count is irrelevant.
  • Misconception: “All cores have the same Core Factor.”
    • Reality: Oracle assigns different Core Factors depending on CPU type. Check Oracleโ€™s official table.
  • Misconception: Fractions do not require rounding up.”
    • Reality: Oracle requires always rounding up fractional results.

Read Oracle Licensing: Hard Partitioning to Reduce CPU Licensing Costs.


Practical Summary: Oracle Processor Licensing Calculation

StepAction (Clearly Explained)Example (Clearly Explained)
1Count physical cores16 cores (Intel)
2Apply Core Factor (e.g., Intel = 0.5)16 cores ร— 0.5
3Multiply and round up8 Processor licenses

Conclusion

Oracle Database Processor licensing allows unlimited users at a cost tied to CPU cores and Oracleโ€™s Core Factor. Understanding this calculation method ensures proper license compliance, accurate budgeting, and optimized Oracle software deployment costs.

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  • Fredrik Filipsson

    Fredrik Filipsson is the co-founder of Redress Compliance, a leading independent advisory firm specializing in Oracle, Microsoft, SAP, IBM, and Salesforce licensing. With over 20 years of experience in software licensing and contract negotiations, Fredrik has helped hundreds of organizationsโ€”including numerous Fortune 500 companiesโ€”optimize costs, avoid compliance risks, and secure favorable terms with major software vendors. Fredrik built his expertise over two decades working directly for IBM, SAP, and Oracle, where he gained in-depth knowledge of their licensing programs and sales practices. For the past 11 years, he has worked as a consultant, advising global enterprises on complex licensing challenges and large-scale contract negotiations.

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