Oracle Licensing: Differences Between AWS and Oracle Cloud
Oracle licensing varies notably between Amazon Web Services (AWS) and Oracle Cloud Infrastructure (OCI). While technical counting methods are similar, OCI offers several advantages—like more flexible licensing models, financial incentives, and simplified compliance processes—compared to AWS.
This guide compares these differences and helps you make informed choices.
Read Oracle on AWS Licensing FAQs 3 of 4.
vCPU vs. OCPU: Understanding the Difference
AWS:
- Oracle licenses AWS using vCPUs.
- The standard Oracle licensing rule clearly states:
- 2 vCPUs (with hyper-threading enabled) = 1 Oracle Processor license.
Oracle Cloud (OCI):
- It uses an OCPU (Oracle CPU), equivalent to 1 physical CPU core with hyper-threading (2 vCPUs).
- One OCPU equals two vCPUs.
- Licensing is clearly stated as 1 Oracle Processor license per OCPU.
Example clearly explained:
| AWS | OCI |
|---|---|
| 20 vCPUs (10 Processor licenses) | 10 OCPUs (also 10 Processor licenses) |
Capacity-wise, these translate directly (both represent the same compute power), but OCI aligns its licensing clearly to Oracle products more explicitly.
License-Included Offerings: AWS vs OCI
AWS:
- Offers limited license-included Oracle Database options:
- Primarily RDS for Oracle Standard Edition 2 (SE2) only.
- The newly introduced Oracle Database@AWS provides a managed Exadata service with BYOL and license-included options, but it remains limited compared to OCI.
OCI:
- Provides a wide range of Oracle license-included services:
- Autonomous Database, Oracle Database Cloud Service, Exadata Cloud Service, and more clearly available with license-included pricing.
- Flexibility to choose BYOL or license-included for most Oracle services.
- The option to pay via Universal Credits simplifies consumption.
Example:
- On OCI, choose Autonomous Database (license-included) with flexible hourly/monthly billing.
- Such comprehensive Oracle-managed database services on AWS are limited and require mostly BYOL.
Oracle Support Rewards and Financial Incentives
AWS:
- Running Oracle workloads on AWS provides no Oracle-specific financial incentives or support discounts.
OCI:
- Oracle offers the Oracle Support Rewards program:
- Earns credits (25%-33% of OCI spend) directly offsetting annual Oracle support renewal costs.
- Incentivizes customers to migrate more workloads onto OCI clearly by reducing overall Oracle support expenses.
Example clearly illustrated:
- Spending $1M/year on OCI reduces Oracle support costs by up to $ 250K- $ 330 K/year.
- AWS offers no such offsetting support cost benefits.
Simplified Contractual and Licensing Compliance on OCI
AWS:
- Oracle has limited visibility into AWS environments.
- Customers must document Oracle usage and self-report during audits.
- Oracle regularly conducts audits clearly due to limited visibility into customer deployments on AWS.
OCI:
- Oracle provides a simplified compliance model:
- OCI’s internal tracking simplifies license compliance verification.
- Reduced likelihood of aggressive Oracle audits.
- Streamlined BYOL licensing is facilitated by self-attestation processes, relying on OCI’s internal monitoring.
Example clearly stated:
- On OCI, attest license ownership and leverage Oracle’s internal OCI tracking, reducing audit frequency or complexity.
- On AWS, detailed usage records are documented proactively to satisfy Oracle audits.
Special Oracle Licensing Offers on OCI Marketplace
AWS:
- Oracle software (like WebLogic Server) is available mainly under BYOL terms.
- Limited license-included software offerings are available on AWS Marketplace.
OCI:
- OCI Marketplace offers flexible Oracle licensing options for products such as WebLogic Server:
- Choose license-included or BYOL options directly on OCI Marketplace.
- It simplifies licensing clearly, offering flexible deployment models unavailable on AWS.
Perception of Licensing Compliance: AWS vs OCI
AWS:
- Historically, Oracle’s attitude was more adversarial due to competitive reasons.
- Oracle auditors and sales teams apply strict interpretations of license rules.
OCI:
- Oracle treats OCI deployments as trusted environments.
- Reduced likelihood Oracle challenges license counts aggressively, as they manage and monitor OCI infrastructure directly.
Practical Implication Clearly Stated:
- Deploying Oracle Database clearly on OCI typically lowers Oracle audit and compliance risks.
- AWS deployments require diligent documentation and proactive compliance monitoring.
Read Oracle Licensing: Differences in Policy Between OCI and AWS.
Practical Example: Comparing AWS vs OCI Licensing Costs Clearly
Scenario:
- You own 10 Oracle Processor licenses (Enterprise Edition).
| Environment | Licensing Calculation | Flexibility Clearly Explained |
|---|---|---|
| AWS | 10 licenses cover 10 OCPUs (20 vCPUs total). | Limited options: mostly BYOL, no support rewards. |
| OCI | 10 licenses clearly cover 10 OCPUs (20 vCPUs total). | Flexible: BYOL, license-included, support rewards available. |
OCI Flexibility Clearly Illustrated:
- Choose to BYOL your existing licenses, or
- Choose to use license-included services, reserving your licenses for other deployments.
- Additionally, OCI spending provides Oracle Support Rewards benefits, significantly reducing support costs.
Common Misunderstandings Clarified
- Misconception: “OCI’s licensing is fundamentally cheaper than AWS.”
- Clarification: Licensing metrics (OCPU vs. vCPU) are functionally similar; OCI’s advantage comes from financial incentives and flexible license-included options.
- Misconception: “Oracle’s licensing rules differ significantly on OCI vs. AWS.”
- Clarification: Core counting rules (2 vCPUs = 1 license) apply similarly; differences lie clearly in compliance flexibility, support rewards, and license-included options.
- Misconception: “Using OCI guarantees no Oracle audits.”
- Clarification: OCI deployments reduce audit likelihood but do not eliminate it; Oracle retains audit rights clearly in OCI contracts.
Summarized Checklist: AWS vs OCI Licensing
| Aspect | AWS | OCI |
|---|---|---|
| vCPU/OCPU Licensing Metric | 2 vCPUs = 1 Oracle license | 1 OCPU (2 vCPUs) = 1 Oracle license |
| License-Included Availability | Limited (RDS SE2, DB@AWS) | Extensive (Autonomous DB, Database Cloud Service, etc.) |
| Support Rewards & Incentives | No incentives available | Clear Oracle Support Rewards incentives |
| Contractual and Audit Simplicity | Requires detailed self-reporting | Simplified BYOL attestation and reduced audits |
| Special Marketplace Options | Limited (mostly BYOL) | Flexible (BYOL and license-included widely available) |
| Public Compliance Perception | Stricter Oracle interpretation historically | Trusted Oracle environment, less strict interpretation |
Conclusion: Understanding AWS vs OCI Oracle Licensing Differences
Oracle licensing on OCI offers clear advantages over AWS—not through different counting rules but through flexible licensing options, reduced compliance burdens, and attractive financial incentives like Oracle Support Rewards.
As an authorized third-party cloud, AWS applies strict standard licensing rules and has limited integrated Oracle-managed options. Choosing between AWS and OCI involves balancing operational preferences, cost optimization opportunities, compliance simplicity, and Oracle’s financial incentives.
