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Oracle IAS Licensing – Licensing Considerations & Best Practices

Oracle Internet Application Server (IAS) is licensed through two primary methods:

  • Processor Metric Licensing calculates the license fee based on the number of cores on the processor multiplied by Oracle’s core factor table. It costs $35,000 per processor license, suitable for organizations with many users accessing the server simultaneously.
  • Named User Plus Licensing: This is for individual users, with a minimum requirement of 10 users per processor license. It costs $700 per Named User Plus license, ideal for organizations with fewer or sporadic server users.

Oracle IAS Licensing Methods

Oracle IAS Licensing Methods

Oracle Internet Application Server (IAS) licensing involves two primary methods: Processor Metric Licensing and Named User Plus Licensing. Each method caters to different organizational needs based on the scale of server usage and user access.

Below is a detailed explanation with practical examples to help organizations understand how these methods work.


Processor Metric Licensing

What is Processor Metric Licensing?
Processor Metric Licensing calculates the license fee based on the number of processor cores in the server, adjusted using Oracle’s Core Factor Table. This approach is ideal for organizations with a large user base accessing the server simultaneously, as the licensing cost is spread across all users.

How the Calculation Works:

  1. Count the Processor Cores: Determine the total number of cores in each processor on the server.
  2. Apply the Core Factor: Multiply the core count by the core factor for the specific processor model (found in Oracle’s Core Factor Table).
  3. Determine Total Licenses: The result is the total number of processor licenses required.

Example 1: Standard Configuration

  • Server Configuration: A server with 16 cores using processors with a core factor of 0.5.
  • Calculation:
    • Total cores = 16.
    • Core factor = 0.5.
    • Total licenses required = 16 cores * 0.5 = 8 processor licenses.
  • Cost:
    • Price per processor license = $35,000.
    • Total cost = 8 licenses * $35,000 = $280,000.

This method works well for organizations with hundreds of users accessing the server simultaneously, as the cost per user is effectively reduced due to the usage scale.

Example 2: High-Capacity Server

  • Server Configuration: A server with 64 cores using processors with a core factor 0.25.
  • Calculation:
    • Total cores = 64.
    • Core factor = 0.25.
    • Total licenses required = 64 cores * 0.25 = 16 processor licenses.
  • Cost:
    • Price per processor license = $35,000.
    • Total cost = 16 licenses * $35,000 = $560,000.

In this scenario, despite the high cost, Processor Metric Licensing remains efficient for organizations hosting high-volume applications accessed by thousands of concurrent users.


Named User Plus Licensing

What is Named User Plus Licensing?
Named User Plus Licensing is based on the number of users accessing the server. This method is suited for organizations with a smaller user base or sporadic server usage. Oracle requires a minimum of 10 users per processor license, ensuring compliance even in environments with low user counts.

How the Calculation Works:

  1. Identify the User Count: Determine the number of users accessing the server.
  2. Ensure Minimum Requirement: Ten users must be licensed for each processor license, regardless of actual usage.
  3. Calculate Costs: Multiply the number of users (or the minimum user requirement) by the per-user license fee.

Example 1: Small Business with Few Users

  • Server Configuration: A server with one processor and 15 users accessing the server.
  • Calculation:
    • Total users = 15.
    • Per-user license cost = $700.
    • Total cost = 15 users * $700 = $10,500.

This method is cost-effective for small businesses, as the total cost is significantly lower than that of processor metric licensing.

Example 2: Minimum User Requirement for a Multi-Processor Server

  • Server Configuration: A server with two processors, each requiring at least ten users (minimum 20 users total).
  • Calculation:
    • Total users = 20 (minimum requirement).
    • Per-user license cost = $700.
    • Total cost = 20 users * $700 = $14,000.

Even if fewer than 20 users actively use the server, the minimum user requirement must be met to ensure compliance with Oracle’s policies.

Example 3: Organization with a Moderate User Base

  • Server Configuration: A server with four processors and 50 users accessing the server.
  • Calculation:
    • Total users = 50.
    • Per-user license cost = $700.
    • Total cost = 50 users * $700 = $35,000.

Named User Plus Licensing offers flexibility for organizations with a predictable number of users while maintaining a lower initial cost than Processor Metric Licensing.

Editions in the Oracle Internet Application Server Product Family

Editions in the Oracle Internet Application Server Product Family

Oracle Internet Application Server (IAS) offers two primary editions: Standard Edition and Enterprise Edition. These editions cater to business needs and licensing requirements.

Below is a detailed breakdown of each edition, focusing on its components, applications, and licensing considerations.


Standard Edition

Components Included

The Standard Edition includes the following core components:

  1. Oracle HTTP Server
    • A web server based on Apache HTTP Server for deploying dynamic web pages and applications.
    • Licensing Implication: A license is required for the Standard Edition but does not mandate additional add-ons.
  2. Oracle Web Cache
    • A caching proxy server that accelerates web content delivery by caching frequently accessed data.
    • Licensing Note: Included in the Standard Edition license, offering cost-efficient caching capabilities.
  3. Oracle Forms and Reports
    • Tools for developing, deploying, and managing enterprise-level forms and reports.
    • Licensing Implication: No additional licensing is required for basic forms and reports, provided they remain within the Standard Edition scope.
  4. Oracle Business Intelligence Discoverer
    • A tool for ad-hoc queries, reporting, and analysis.
    • Licensing Requirement: Usage is limited to included modules under the Standard Edition license.

Applications and Deployment Scenarios

The Standard Edition is designed for small to medium-sized enterprises that:

  • Operate with a single middle-tier server for web applications, forms, and reports.
  • A cost-effective, reliable platform is required without extensive scalability or high availability.

Licensing Model

  • The Processor Metric and Named User Plus licensing methods apply to the Standard Edition.
  • Example:
    • A single server with four processors (core factor = 0.5) would require two processor licenses.
    • Named User Plus licensing might be more economical for smaller user bases, with a minimum of 10 users per processor license.

Enterprise Edition

Additional Features and Components

The Enterprise Edition includes all components from the Standard Edition, plus:

  1. Oracle WebLogic Server Enterprise Edition
    • A scalable, high-performance application server for enterprise-grade deployments.
    • Licensing Requirement: Licenses must match the number of processors or users accessing this feature.
  2. Oracle Web Services Manager
    • Ensures secure and reliable web services management.
    • Licensing Consideration: Additional configuration is required under the Enterprise Edition license.
  3. Oracle Internet Directory
    • An LDAP directory for managing user and resource information.
    • Licensing Note: Must be licensed as part of the Enterprise Edition.
  4. Oracle Single Sign-On
    • Centralized authentication for multiple applications.
    • Licensing Implication: Enhances security but requires Enterprise Edition licensing for all integrated applications.
  5. Oracle Discoverer, Reports Services, and Forms Services
    • Advanced tools for querying, reporting, and deploying complex forms.
    • Licensing Note: Features like Oracle Discoverer may have feature-specific licensing requirements if used beyond standard capabilities.
  6. Oracle Directory Services Manager
    • A web-based tool for managing LDAP directories.
    • Licensing Consideration: Integrated into the Enterprise Edition but requires proper allocation of licenses for administrators.

Suitable Applications and Infrastructures

The Enterprise Edition is ideal for large enterprises with:

  • High user and transaction volumes require robust scalability.
  • Critical applications demand high availability and advanced security.
  • Complex deployments need efficient resource management and minimal downtime during peak usage.

Licensing Model

  • Enterprise Edition licensing is based on either Processor Metric or Named User Plus, similar to the Standard Edition, but with additional considerations:
    • Processor Metric Example:
      • A server with eight processors (core factor = 0.5) requires four processor licenses.
      • Cost: 4 licenses * $35,000 = $140,000.
    • Named User Plus Example:
      • If 50 users access the system via a single processor, at $700 per user, the cost would be $35,000.
    • High Availability Requirement: Additional processors in failover or clustered environments may also need to be licensed, depending on Oracle’s licensing terms.

Comparing the Editions

Scalability

  • Standard Edition: Designed for limited scalability with single-server deployments.
  • Enterprise Edition: Supports high scalability, with capabilities for clustering, load balancing, and complex deployments.

Cost

  • Standard Edition: Lower initial and maintenance costs; suitable for businesses with constrained budgets.
  • Enterprise Edition: Higher costs, justified by advanced features and infrastructure capabilities.

Licensing Complexity

  • Standard Edition: Straightforward licensing, as most features are included in the base package.
  • Enterprise Edition: Requires detailed planning to ensure compliance, especially for advanced features like clustering and failover.

Feature Comparison Example

A multinational corporation with multiple interconnected applications and thousands of users needs the Enterprise Edition for its advanced features and scalability.

Small Business Use Case:

A retail company with 20 employees and a single web application would benefit from the Standard Edition, saving on licensing costs.

Licensing Oracle IAS on Different Platforms

Licensing Oracle IAS on Different Platforms

Bare Metal Server Licensing

Licensing Requirements for Oracle IAS EE on a Bare Metal Server

Licensing Oracle Internet Application Server Enterprise Edition (IAS EE) on a bare metal server involves calculating the number of processor licenses required based on the number of cores. The core factor for a bare metal server is 0.5.

Calculation Method and Practical Cost Example

For instance, if a bare metal server has 16 cores, the number of processor licenses needed would be calculated as follows:

  • Number of processor licenses = Number of cores * Core factor
  • Number of processor licenses = 16 * 0.5 = 8

For $35,000 per processor license, the total licensing cost would be:

  • Total cost = 8 * $35,000 = $280,000

AWS and Azure IAS Licensing

AWS and Azure IAS licensing

Licensing Requirements for Oracle IAS EE on AWS and Azure

Licensing Oracle IAS EE on cloud platforms such as AWS and Azure requires understanding the licensing formula, which states that two virtual CPUs (vCPUs) are equivalent to one processor license.

Calculation Method and Practical Cost Example

For example, if you want to run Oracle IAS EE on an AWS instance with eight vCPUs, the licensing requirements would be:

  • Number of processor licenses = Number of vCPUs / 2
  • Number of processor licenses = 8 / 2 = 4

For $35,000 per processor license, the total licensing cost would be:

  • Total cost = 4 * $35,000 = $140,000

These examples illustrate the licensing costs and requirements for running Oracle IAS EE on different platforms, helping organizations plan their infrastructure and budget accordingly.

FAQ for Oracle IAS Licensing

What is Oracle Internet Application Server (IAS)?
Oracle Internet Application Server (IAS) is a platform developed by Oracle for deploying and managing enterprise applications. It includes web services, business intelligence, and internet application services.

What licensing methods are available for Oracle IAS?
Oracle IAS offers two primary licensing methods: Processor Metric and Named User Plus. Each method caters to different organizational needs and usage patterns.

How does Processor Metric Licensing work?
Processor Metric Licensing calculates the license fee based on the number of processor cores, adjusted by Oracle’s core factor table. This method is suitable for organizations with many users accessing the server simultaneously.

How does Named User Plus Licensing work?
Named User Plus Licensing is based on the number of individual users accessing the server. It requires a minimum of 10 users per processor license, making it ideal for organizations with fewer or sporadic users.

What factors should be considered when choosing a licensing option?
When choosing a licensing option, consider the number of users accessing the server, the frequency of server usage, and your budget. These factors will help determine the most cost-effective and suitable licensing method.

What components are included in the Oracle IAS Standard Edition?
The Standard Edition includes Oracle HTTP Server, Oracle Web Cache, Oracle Forms and Reports, and Oracle Business Intelligence Discoverer. It is designed for organizations needing a single middle-tier server.

What additional features are available in the Oracle IAS Enterprise Edition?
The Enterprise Edition includes all components of the Standard Edition, plus Oracle WebLogic Server Enterprise Edition, Oracle Web Services Manager, Oracle Internet Directory, Oracle Single Sign-On, and other advanced features for high availability and scalability.

How do you license Oracle IAS on a bare metal server?
Licensing Oracle IAS on a bare metal server involves calculating the number of processor licenses based on the number of cores, using a core factor 0.5. For example, a server with 16 cores would require eight processor licenses.

What is the cost of a Processor Metric License for Oracle IAS?
As of this writing, a Processor Metric License costs $35,000 per processor. However, this cost may vary, so always check Oracle’s latest pricing information.

How do you license Oracle IAS on AWS or Azure?
Licensing Oracle IAS on AWS or Azure uses a formula where two virtual CPUs (vCPUs) equal one processor license. For instance, an AWS instance with eight vCPUs would require four processor licenses.

What is the difference between Oracle IAS Standard Edition and Enterprise Edition?
The Standard Edition is suited for single middle-tier server deployments and includes basic components for web applications and business intelligence. The Enterprise Edition is designed for high availability and scalability, including advanced features and additional components.

Can Oracle IAS be used in a virtualized environment?
Oracle IAS can be used in virtualized environments like AWS and Azure. Licensing in these environments follows specific rules and calculations based on vCPUs.

What is Oracle WebLogic Server Basic?
Oracle WebLogic Server Basic is included with all editions of Oracle IAS and Oracle Forms and Reports. It supports running components provided within these products but cannot be used for custom Java applications.

How does Oracle IAS support business intelligence?
Oracle IAS supports business intelligence through tools like Oracle Business Intelligence Discoverer and Oracle Reports Services, enabling the creation of ad-hoc queries, reports, and detailed business analyses.

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Author
  • 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, improving organizational efficiency.

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