Oracle Named User Plus Licensing

• Per-User Licensing: Charges based on the number of users or devices accessing the Oracle database.
• Minimum User Requirement: A minimum number of licenses per processor is required.
• Covers Devices: Includes both human users and automated devices.
• Cost-Effective: Ideal for environments with a controlled and predictable number of users.

Oracle License Model – Oracle Named User Plus Licensing

Oracle’s Named User Plus (NUP) licensing model is critical for organizations that utilize Oracle databases and want to ensure their licensing strategy aligns with their actual usage.

This Oracle license model is particularly suited for environments where the number of users or devices accessing the database is known and controlled.

This article will explore how Oracle Named User Plus licensing works, provide examples of how to calculate licensing requirements and discuss this model’s potential benefits and challenges.

What is Oracle Named User Plus Licensing?

Oracle Named User Plus licensing is designed to license individual users or devices that access an Oracle database.

Unlike processor-based licensing, which charges based on the hardware’s processing power, NUP licensing focuses on the number of distinct users or devices.

This model is ideal for organizations that clearly understand how many users or devices will access the database. It allows for more tailored and potentially cost-effective licensing.

Key Characteristics of NUP Licensing:

• Per-User Licensing: Charges are based on the number of users or devices rather than the number of processors or cores.
• Devices: Human-operated devices (like computers and mobile devices) and automated systems (like servers or bots) that access the database must be licensed.
• Minimum User Requirements: Oracle enforces minimum licensing thresholds based on the used database edition.

How to Calculate Oracle Named User Plus Licenses

Calculating NUP licenses involves counting every user and device that accesses the Oracle database.

It’s important to understand that Oracle requires you to meet or exceed minimum license requirements, even if your actual usage is lower.

Step-by-Step Calculation:

1. Determine the Database Edition:
   • Oracle Database Enterprise Edition (EE) requires a minimum of 25 Named User Plus licenses per processor.
   • Oracle Database Standard Edition 2 (SE2) requires a minimum of 10 Named User Plus licenses per server.
2. Calculate Processor Licenses:
   • For Enterprise Edition, multiply the number of cores by the Oracle core factor (typically 0.5 for Intel-based processors).
   • Example: A server with 8 cores on Intel processors has a core factor of 0.5, leading to 4 Oracle processor licenses (8 cores * 0.5 = 4 processor licenses).
3. Apply the Minimum User Requirement:
   • Multiply the number of processor licenses by the minimum user requirement.
   • Example: For the server in the previous example, the minimum user requirement would be 100 Named User Plus licenses (4 processor licenses * 25 users = 100 NUP licenses).
4. Count All Users and Devices:
   • Ensure you count every distinct user and device accessing the Oracle database. This includes direct access (e.g., employees using the database) and indirect access (e.g., users accessing the database through an application).

Licensing Considerations

When implementing NUP licensing, it’s essential to consider both human-operated and automated devices and the possibility of mixed-usage environments where both types of devices are present.

Human-Operated Devices:

• Employees use laptops, desktops, and mobile devices to access the Oracle database.
• All such devices must be counted and licensed accordingly.

Non-Human Operated Devices:

• These include servers, bots, or automated systems interacting with the Oracle database without human intervention.
• Even if humans do not operate these devices, they must be licensed as they still access the database.

Mixed Usage:

• In environments where human and non-human-operated devices are accessing the database, ensure that all devices are accounted for in the license count.
• Example: A retail company using barcode scanners (automated devices) and workstations (human-operated devices) to interact with the Oracle database would need to license both devices.

Compliance and Cost Management

Adhering to Oracle’s NUP licensing agreements is crucial to avoid penalties and audit costs. Properly counting users and devices ensures compliance while also helping to prevent over-licensing, which can unnecessarily increase costs.

Compliance:

• Regularly audit your user and device counts to ensure all active entities are licensed.
• Use Oracle’s tools and reports to monitor user activity and update your licensing counts accordingly.

Cost Management:

• Avoid over-licensing by accurately counting and tracking users and devices.
• Consider the long-term implications of under-licensing, which can lead to significant penalties during an audit.

Opting for Oracle Named User Plus Licensing

The NUP licensing model offers several benefits, particularly for organizations with a manageable number of users and devices. However, it also comes with challenges that require careful management.

Benefits:

• Cost-Effective for Small Environments: NUP licensing is often more affordable for smaller teams or environments with a known number of users than processor-based licensing.
• Specific User Licensing: You only pay for the users and devices that access the database, allowing for more precise budgeting and cost control.
• Negotiable Minimums: In some cases, Oracle’s minimum user requirements can be negotiated, particularly for smaller businesses with fewer users.

Challenges:

• User Tracking: Tracking users to ensure compliance can be difficult, especially in dynamic environments where the number of users fluctuates.
• Multiplexing Software: Multiplexing software, which allows multiple users to access the database through a single connection, can complicate licensing and lead to non-compliance if not managed carefully.

Licensing Minimums: Understanding the Rules

When using NUP licensing, it’s important to understand the minimum user requirements and how they apply to your environment.

Minimum User Requirement:

• Even if your user count is below Oracle’s minimum threshold, you must still purchase the minimum number of licenses.
• Example: If ten users access Oracle Database Enterprise Edition on a server with four processor licenses, you still need to purchase 100 Named User Plus licenses, not just 10.

Higher Number Rule:

• Always license for the higher number, whether it’s the actual number of users or the minimum required by Oracle.
• Example: If you have 50 users but the minimum requirement is 100, you must purchase 100 licenses.

Potential Downsides of Oracle Named User Plus Licensing

While NUP licensing can be beneficial in many scenarios, there are potential downsides that organizations should be aware of.

User Tracking:

• NUP licensing requires diligent tracking of users to ensure compliance. This can be challenging, especially if your user base changes frequently.

Multiplexing Software:

• Using multiplexing software, such as application servers that connect multiple users to the Oracle database, can complicate licensing.
• Organizations must ensure that they correctly count all users accessing the database, even if they do so indirectly through multiplexing software.

Example of Calculating NUP Licensing in a Dynamic Environment

Let’s consider an organization that uses Oracle Database Enterprise Edition with a dynamic user base:

• Environment: The organization has two servers, each with 8 Intel-based cores, used by 150 employees.
• Step 1: Calculate Processor Licenses: Each server has eight cores, and with a core factor of 0.5, this equals four processor licenses per server (8 * 0.5 = 4).
• Step 2: Apply Minimum User Requirement: The minimum requirement for EE is 25 users per processor, so each server requires 100 NUP licenses (4 processors * 25 = 100).
• Step 3: Compare to Actual Users: The organization has 150 users accessing the database. Since the user count exceeds the minimum requirement, they would need 150 NUP licenses per server, totaling 300 licenses for both servers.

In this scenario, the organization must purchase 300 Named User Plus licenses to comply with Oracle’s licensing requirements.

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