Oracle Database@AWS (Exadata on AWS): Licensing Explained
Oracle Database@AWS, announced in 2022 and previewed in 2024, is a joint offering from Oracle and AWS. It provides Oracle’s high-performance Exadata Database Service directly inside AWS data centers.
This hybrid service combines Oracle’s Exadata hardware and managed service expertise with AWS’s flexibility and connectivity benefits.
This article explains exactly what Oracle Database@AWS is, how it’s licensed, and the practical considerations for compliance and usage.
Read Oracle on AWS Licensing FAQs 4 of 4.
What Exactly Is Oracle Database@AWS?
Oracle Database@AWS is essentially Oracle’s Exadata Database platform delivered and fully managed by Oracle within an AWS region:
- Oracle Exadata Hardware is placed physically inside AWS data centers.
- Fully Oracle-managed service, similar to Oracle Cloud Infrastructure (OCI) offerings, but integrated and accessible via AWS.
- Customers get Exadata’s high performance, scalability, and managed database services with seamless AWS connectivity.
This service is officially offered via AWS Marketplace, providing flexible purchasing and licensing options.
How Licensing Works with Oracle Database@AWS
Oracle Database@AWS licensing differs slightly from traditional on-premises or standard AWS EC2 licensing scenarios. It aligns closely with Oracle’s cloud licensing models and is offered in two straightforward ways:
1. Bring Your Own License (BYOL)
Under BYOL, you:
- Bring existing Oracle Database licenses directly to Oracle Database@AWS.
- Apply your perpetual Oracle Database licenses to the Exadata infrastructure hosted in AWS.
- You should pay Oracle only for infrastructure and managed services, not database licenses (since you already own them).
Important:
- Each Oracle Database@AWS Exadata shape uses Oracle’s OCPU concept.
- Typically, 1 OCPU equals 1 Oracle Database Enterprise Edition (EE) Processor license, plus licenses for any additional Oracle Database options used.
- Oracle specifies exactly how many licenses you need based on your selected Exadata shape.
BYOL Example:
- If Oracle Database@AWS service uses a shape with 4 OCPUs, you apply 4 Oracle Database EE Processor licenses (and any option licenses you require).
- These licenses are considered fully consumed on Oracle Database@AWS and cannot simultaneously cover other deployments (such as on-premises or EC2).
2. License-Included Option
Alternatively, Oracle Database@AWS offers a straightforward, license-included pricing model:
- Oracle database licenses are bundled clearly into a fixed hourly or monthly fee.
- No need to separately count vCPUs or OCPUs; Oracle handles licensing internally.
- Simplifies cost planning and compliance management significantly.
License-Included Example:
- You pay a monthly fee covering infrastructure, managed services, and all necessary Oracle licenses.
- Oracle manages license compliance internally—no additional Oracle license counting or audits are required.
Read Licensing Oracle on AWS Using Docker/Kubernetes Containers.
Why Choose Oracle Database@AWS?
Oracle Database@AWS delivers clear, significant benefits:
- Performance: Provides powerful performance and reliability for Exadata hardware in AWS.
- Convenience: It is fully managed by Oracle, significantly reducing operational overhead.
- Hybrid Cloud Integration: Ideal for AWS-connected applications requiring Oracle Database performance and availability.
- Licensing Flexibility: Simplifies license management through BYOL or license-included models.
Common Use Cases:
- Oracle ERP applications like E-Business Suite (EBS), PeopleSoft, and JD Edwards.
- High-performance database environments needing Exadata’s reliability and scalability combined with AWS connectivity.
Oracle Applications Supported on Database@AWS
Oracle explicitly supports key enterprise applications on Oracle Database@AWS, clearly making this a preferred option for critical workloads:
- Oracle E-Business Suite (EBS)
- PeopleSoft
- JD Edwards EnterpriseOne
- Siebel and other Oracle applications are typically supported on Oracle Exadata platforms.
This service model is effectively Oracle’s cloud platform co-located in AWS, fully sanctioned by Oracle for enterprise-critical workloads.
Read Optimizing Oracle Licensing Costs on AWS.
Oracle Support Rewards and AWS Spend Commitments
Oracle Database@AWS provides additional clear benefits related to spending and support:
- Oracle Support Rewards:
Spending on Oracle Database@AWS qualifies for Oracle’s Support Rewards program. You receive credits that offset your Oracle support renewal costs. - AWS Spend Commitments:
Spending on Oracle Database@AWS counts toward AWS spending commitments. Beneficial if you have annual AWS usage targets.
Practical Benefit Example:
- If you spend $1 million annually on Oracle Database@AWS, that spending simultaneously reduces your Oracle support renewal fees and counts toward AWS spending goals.
Licensing Compliance with Oracle Database@AWS
Oracle Database@AWS simplifies compliance compared to traditional self-managed Oracle Database deployments:
- Oracle directly manages the environment, ensuring infrastructure is always properly licensed.
- BYOL Model Compliance:
You must carefully allocate Oracle licenses to Database@AWS and document them internally. Oracle treats those licenses as clearly consumed by Database@AWS and unavailable elsewhere. - License-Included Model Compliance:
Oracle internally ensures compliance. You only pay clearly defined monthly fees.
Practical Compliance Advice Clearly Explained:
- Maintain clear internal records of Oracle license allocation if using BYOL.
- Regularly verify that your Oracle Database@AWS shapes match your licensed OCPU entitlement.
- License-included is simpler; Oracle manages compliance, significantly reducing your compliance risk.
Common Misunderstandings Clarified
Here are clearly explained misconceptions about Oracle Database@AWS licensing:
- Misconception: “Using Database@AWS means I can freely shift Oracle licenses between AWS and on-premises.”
Clarification: Licenses allocated to Database@AWS are consumed there; clearly, you can’t simultaneously count them elsewhere. - Misconception: “Database@AWS licensing rules differ significantly from other Oracle clouds.”
Clarification: Licensing aligns clearly with Oracle’s standard cloud rules. The key difference is that Oracle directly manages compliance on Database@AWS. - Misconception: “License counting complexity (like vCPUs) applies to license-included Database@AWS.”
Clarification: Oracle internally manages license counting; you simply pay a clearly stated monthly fee.
Best Practices Checklist for Oracle Database@AWS Licensing
Follow these clearly defined best practices to leverage Database@AWS effectively:
- ✅ Choose Licensing Model:
Decide upfront—BYOL or license-included—based on existing licenses and budget. - ✅ Track BYOL Licenses Internally:
Document clearly how many licenses you allocate to Database@AWS to ensure compliance. - ✅ Understand the OCPU Concept:
Confirm OCPU-to-license ratios for your Database@AWS shapes directly with Oracle. - ✅ Leverage Oracle Support Rewards:
Track Database@AWS spend to maximize Oracle support renewal discounts. - ✅ Monitor AWS Spend Targets:
Track Database@AWS spending toward your AWS spend commitments.
Conclusion: Oracle Database@AWS Clearly Simplifies Oracle Licensing and Management
Oracle Database@AWS delivers clearly defined value by combining Oracle’s powerful Exadata hardware with AWS’s flexible connectivity. Licensing is simplified through clearly presented options: BYOL or license-included. Oracle directly manages compliance, significantly reducing your risk and complexity compared to traditional deployments.
You can seamlessly integrate high-performance Oracle Database solutions into your AWS environment by clearly understanding Oracle Database@AWS licensing models, OCPU licensing rules, and compliance responsibilities.
