Oracle licensing

Oracle License Optimization: Strategies to Reduce Your Costs

Oracle License Optimization is:

  • Adjusting Oracle software licenses for cost-effectiveness and compliance.
  • Using Named User-Plus Licenses in non-production settings for savings.
  • Leveraging special rights in test and development areas.
  • Optimizing hardware and considering Oracle Cloud for better licensing terms.
  • Avoiding excessive licensing, especially with VMware, and removing unused licenses.
  • Exploring options like cloud migration and third-party support for reductions.

Understanding Oracle License Optimization

oracle license optimization

Oracle license optimization involves reviewing and adjusting your software licenses and usage to ensure you are not overpaying while remaining compliant with Oracle’s terms.

This process is crucial for large Oracle customers, who often possess thousands of database licenses.

Critical Strategies for Oracle License Optimization

  1. Use Named User-Plus Licenses in Non-Production Environments: This can reduce licensing costs by up to 50%. Many organizations mistakenly license non-production environments with more expensive processor licensing.
  2. Special Licensing Rights for Test and Development: Lower the minimum number of users per processor from 25 to 10, resulting in a 60% cost reduction.
  3. Review Oracle Applications Usage: Ensure only necessary users can access applications like Oracle EBS. It’s common to find that over 30% of users do not require access, leading to potential reductions in license requirements.
  4. Optimize Hardware for Licensing: Switch to hardware platforms that allow for hard partitioning or sub-capacity licensing, optimizing licensing fees.
  5. Leverage Oracle Cloud: Migrating to Oracle Cloud can offer more cost-effective licensing options on a vCPU basis compared to other cloud platforms with Bring-Your-Own-License models.
  6. Avoid Over-licensing with VMware: Oracle requires licensing all VMware servers in your IT environment, even if Oracle technology is used on a few machines. Avoiding VMware can prevent unintended over-licensing.
  7. Eliminate Shelfware: Identify and terminate unused or underutilized licenses that still incur maintenance fees.
  8. Explore Cloud Migration Deals and Discounts: Oracle often offers incentives for moving technology to the cloud, which can include cost savings.
  9. Consider Third-Party Support Options: Third-party support can be a cost-effective alternative to Oracle’s support, providing similar services at reduced rates.
  10. Negotiate with Oracle: Engage in negotiations for better pricing and terms, especially when making significant changes in your Oracle environment.
oracle license optimization

How Redress Compliance can help you optimize Oracle licenses

oracle license optimization service

Comprehensive License Review and Optimization Service

A thorough review of your current licensing arrangements is vital. This includes:

  • Analyzing Oracle EBS and other application usages.
  • Reviewing hardware platforms for potential licensing optimizations.
  • Examining current Oracle support agreements for cost reduction opportunities.
  • Providing tailored recommendations for optimizing licenses and support contracts.


Oracle license optimization is not just about cost savings; it’s about making intelligent decisions regarding your Oracle environment.

By understanding and applying these strategies, your organization can achieve a more cost-effective and compliant Oracle software landscape.

Ready to optimize your Oracle licensing strategy?

Contact us today.


  • Fredrik Filipsson

    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, enhancing organizational efficiency.