Oracle Licensing: Differences in Policy Between OCI and AWS
Oracle’s licensing policies treat its own Oracle Cloud Infrastructure (OCI) differently than third-party clouds like AWS, Azure, and Google Cloud Platform (GCP). While AWS falls under Oracle’s standard “authorized cloud” rules, OCI provides greater flexibility, favorable incentives, and streamlined compliance processes.
Below are clear, practical insights into exactly how Oracle licensing differs when comparing OCI and AWS.
Read Oracle on AWS Licensing FAQs 3 of 4.
Core Counting: OCI’s Simplified OCPU vs. AWS vCPU
AWS (Authorized Cloud):
- Licensing based on Oracle’s established vCPU rule:
- 2 vCPUs (hyper-threaded) = 1 Oracle Processor license.
- Explicitly excludes core factor adjustments.
- Documented policy leaves no ambiguity, but Oracle explicitly mentions it as a third-party environment.
Oracle Cloud (OCI):
- Oracle uses the OCPU (Oracle CPU) concept, which is aligned directly with licensing:
- 1 OCPU = 2 vCPUs (1 physical core hyper-threaded).
- Licensing matches 1 OCPU = 1 Oracle Processor license without ambiguity.
- No need for core factor adjustments—OCI is standardized around Oracle’s license metrics.
Practical Example Clearly Explained:
| AWS Licensing | OCI Licensing |
|---|---|
| 16 vCPUs = 8 licenses | 8 OCPUs (16 vCPUs) = 8 licenses |
While technically equivalent, OCI’s simplified presentation reduces confusion.
License Mobility and Conversion Programs: OCI Advantage
AWS:
- Oracle licenses move to AWS under the standard BYOL policy.
- No formalized license conversion programs exist.
- Customers simply pay annual Oracle support fees and deploy licenses on AWS infrastructure.
OCI:
- Oracle offers extensive license mobility and conversion programs:
- Allows conversion of existing on-premises licenses to OCI cloud credits (e.g., BYOL to PaaS program).
- Temporarily suspend on-prem support costs, clearly paying cloud service fees instead.
- Allows Oracle to restructure license agreements to encourage OCI adoption.
Clear Practical Advantage:
- Moving licenses to OCI can reduce ongoing support costs through cloud credits.
- AWS provides no equivalent structured program, so support contracts remain standard.
Support and Certification: OCI’s Clear Preference
AWS:
- Oracle supports software running on AWS, though it is not officially certified.
- Rare instances require customers to reproduce issues on Oracle-certified platforms before Oracle provides full support.
OCI:
- Oracle certifies all products on OCI.
- OCI environments receive priority or exclusive availability for new products, patches, and quicker resolution.
- Oracle support clearly cannot use lack of certification as a barrier—fully eliminating certain troubleshooting steps common on AWS.
Clear Practical Example:
- Oracle Database 23c might be available on OCI first.
- On AWS, Oracle might clearly ask to reproduce issues on OCI or certified hardware before fully addressing complex support cases.
Read Oracle Licensing: Differences Between AWS and Oracle Cloud.
Pricing and Financial Benefits: OCI’s Clear Incentives
AWS:
- No Oracle-provided financial incentives or support discounts exist tied to AWS spending.
- Customers must rely purely on AWS’s pricing incentives, not Oracle’s.
OCI:
- Oracle offers robust financial programs (Universal Credits), allowing flexible consumption of OCI services:
- Purchase credits are usable across all OCI services.
- Structured programs offering cloud credits to incentivize OCI adoption (e.g., migration credits).
- Provides financial benefits directly offsetting Oracle support costs (Oracle Support Rewards program).
Example Clearly Illustrated:
- Spending $500K annually on OCI will reduce Oracle support renewal costs by up to $125K-$165K per year.
- AWS spending offers no equivalent Oracle support reduction benefits.
Vendor Behavior and Strategic Treatment: OCI vs AWS
AWS:
- Historically, Oracle’s sales teams portrayed AWS as riskier or more expensive from a licensing perspective.
- Audits tend to be more rigorous, and Oracle field teams are less flexible in negotiating AWS-related licensing terms.
OCI:
- Oracle’s sales teams position OCI as preferable, offering more favorable terms, relaxed audits, and better negotiations.
- Oracle’s approach encourages customers to shift more workloads to OCI.
Practical Example Clearly Explained:
- Oracle auditors might scrutinize AWS environments more strictly.
- Conversely, migrating workloads to OCI often results in better Oracle-negotiated deals and reduced audit complexity.
Practical Example Scenario Comparing OCI and AWS
Example Scenario:
- You own 10 processor licenses for Oracle Database EE.
| Cloud Platform | Licensing Allocation | Compliance Simplicity | Financial Incentives |
|---|---|---|---|
| AWS | Covers 10 OCPUs (20 vCPUs total) | Simplified license counting and compliance process | No direct financial or support rewards |
| OCI | Requires thorough documentation for audits | Eligible for OCI credits, Universal Credits, Oracle Support Rewards | Clearly eligible for OCI credits, Universal Credits, Oracle Support Rewards |
OCI offers superior simplicity, compliance clarity, and financial advantages compared to AWS.
Common Misunderstandings Clarified
- Misconception: “Oracle’s licensing counting method is fundamentally different on OCI.”
- Clarification: Technically equivalent (2 vCPUs = one license), clearly OCI just presents it differently (OCPU).
- Misconception: “Oracle’s license mobility rules apply equally to AWS and OCI.”
- Clarification: OCI offers structured mobility programs, conversion to cloud credits, and flexible licensing options unavailable on AWS.
- Misconception: “Oracle software isn’t supported on AWS.”
- Clarification: Oracle fully supports AWS, though it is not officially certified, potentially adding troubleshooting complexity compared to OCI.
Summarized Checklist Comparing OCI and AWS
| Licensing Policy Aspect | AWS (Authorized Cloud) | Oracle Cloud (OCI) |
|---|---|---|
| Core Counting Metric | 2 vCPUs = 1 license | 1 OCPU (2 vCPUs) = 1 license |
| Core Factor Applied | ❌ No | ❌ No (already standardized) |
| License Mobility Programs | Limited (BYOL only) | Clearly, less rigorous audits and better terms |
| Support and Certification | Fully certified | Extensive (BYOL to PaaS, Cloud Credits) |
| Pricing & Financial Benefits | No Oracle incentives | Clear incentives (Universal Credits, Support Rewards) |
| Vendor Behavior & Audits | More rigorous Oracle scrutiny | Clearly less rigorous audits and better terms |
Conclusion: Clearly Understanding the Oracle Licensing Differences between OCI and AWS
Oracle treats OCI (its cloud) differently from AWS and other authorized third-party clouds. OCI offers clearer licensing terms, structured license mobility programs, financial incentives, streamlined compliance processes, and full product certification. While fully supported, AWS remains under Oracle’s standard third-party cloud licensing rules and compliance processes.
Customers must follow Oracle’s licensing rules on any platform. Still, OCI provides clear strategic advantages—it simplifies licensing, makes it more financially beneficial, and reduces overall Oracle-related compliance risks compared to AWS.
