Oracle database licensing

Oracle Licensing: Hard Partitioning to Reduce CPU Licensing Costs

Oracle Licensing Hard Partitioning to Reduce CPU Licensing Costs

Hard Partitioning to Reduce CPU Licensing Costs

Oracle allows customers to license a subset of CPU cores on a physical serverโ€”but only if they use an Oracle-approved method known as โ€œhard partitioning.โ€ Understanding Oracleโ€™s policy on hard partitioning is critical for correctly managing license costs and ensuring compliance.

This guide clearly explains:

  • What Oracle considers “hard partitioning.”
  • Approved methods recognized by Oracle.
  • Common methods Oracle does not accept (“soft partitioning”).
  • Clear practical examples to illustrate valid and invalid scenarios.

Read our Oracle Database Licensing FAQs.


Can You License Only Certain CPU Cores for Oracle?

Clearly:

  • Yes, but only through approved “hard partitioning” methods.
  • No, if using “soft partitioning” or non-approved virtualization methods.

Oracle explicitly defines which partitioning methods are acceptable. Using unapproved methods does not reduce licensing requirements.


Hard vs. Soft Partitioning for Oracle Licensing: Clearly Explained

Oracle clearly distinguishes between two types of CPU partitioning:

  • Hard Partitioning (Approved by Oracle):
    • Physical or virtualization methods Oracle explicitly recognizes.
    • It allows licensing only the subset of cores dedicated to Oracle workloads.
  • Soft Partitioning (Not Approved by Oracle):
    • Virtualization methods Oracle does not recognize for license reduction.
    • It requires the licensing of all available cores, regardless of actual usage.

Oracleโ€™s Approved Hard Partitioning Methods

Oracle explicitly approves specific virtualization and partitioning technologies:

  • Oracle VM Server (OVM) has pinned vCPUs.
  • Oracle Linux KVM is configured with hard partitioning.
  • Solaris Zones (Capped Zones) explicitly limit core usage.
  • IBM LPAR (Logical Partitioning) clearly defined hardware partitions.

These methods explicitly isolate cores for Oracle software. Oracle agrees that you can license only these dedicated cores.

Clearly Explained Example:

  • 16-core physical server using Oracle VM Server:
    • Assigning a VM clearly to 4 specific cores allows licensing just these 4.

Read Oracle Database Processor Licensing: Definition and Calculation.


Methods Oracle Does NOT Accept (Soft Partitioning)

Oracle explicitly classifies several virtualization methods as “soft partitioning,” meaning no reduction in licensing:

  • VMware vSphere (ESXi)
  • Microsoft Hyper-V
  • Docker/Kubernetes CPU shares or limits
  • Any software-based CPU throttling

Even if these methods limit cores or vCPUs at runtime, Oracle explicitly requires licensing the entire physical server or cluster.

Clearly Explained Example:

  • 16-core physical server using VMware ESXi:
    • Assigning a VM limited to 4 cores still requires licensing all 16 cores.

Practical Examples Comparing Hard vs. Soft Partitioning

Partitioning Method (Clearly Explained)Cores AllocatedPartitioningCores licensed
Oracle VM Server (Pinned vCPUs)4 of 16 coresโœ… Yes (Hard Partitioning)2 cores licensed
Oracle Linux KVM (Hard Partitioned)8 of 32 coresโœ… Yes (Hard Partitioning)8 cores are licensed
Solaris Zones (Capped)2 of 8 coresโœ… Yes (Hard Partitioning)2 cores licensed
IBM LPAR (Hardware Partitioned)6 of 24 coresโœ… Yes (Hard Partitioning)2 cores are licensed
VMware vSphere (Soft Partitioning)4 of 16 coresโŒ No (Soft Partitioning)all 16 cores licensed
Docker CPU Limits (Soft Partitioning)2 of 8 coresโŒ No (Soft Partitioning)6 cores are licensed

Oracle Licensing Best Practices Clearly Explained

To limit Oracle CPU licensing, follow these best practices:

โœ… Use Oracle-approved hard partitioning methods (Oracle VM Server, Oracle Linux KVM, Solaris Zones, IBM LPAR).
โœ… Document your partitioning setup and the assigned cores explicitly.
โœ… Avoid “soft partitioning” methods (VMware, Hyper-V, and Docker CPU limits) if license reduction is your goal.
โœ… Consult Oracleโ€™s official documentation to verify the approved methods.


Common Misunderstandings Corrected Clearly

  • Misconception: “VMware vSphere with limited vCPUs reduces Oracle licenses.”
    • Reality: Oracle explicitly classifies VMware as soft partitioningโ€”clearly no license reduction permitted.
  • Misconception: “CPU pinning on Docker containers counts as hard partitioning.”
    • Reality: Docker CPU limits are considered soft partitioningโ€”requires licensing all cores.
  • Misconception: “Any virtualization method reduces Oracle licensing if vCPUs are limited.”
    • Reality: Only Oracleโ€™s explicitly approved methods qualify as hard partitioning.

Licensing Compliance Checklist for Hard Partitioning

โœ… Verify that ur partitioning method is explicitly Oracle-approved for license reduction.
โœ… Document dedicated cores and configurations clearly for audit purposes.
โœ… Avoid virtualization methods Oracle clearly defines as soft partitioning.
โœ… Review and confirm Oracleโ€™s published guidelines regularly.


Conclusion: Understanding Oracle Hard Partitioning Licensing

Oracle permits sub-capacity licensing only through approved hard partitioning methods. Understanding Oracleโ€™s definitionsโ€”whatโ€™s explicitly approved (Oracle VM Server, Oracle Linux KVM, Solaris Zones, IBM LPAR) and whatโ€™s clearly not (VMware, Hyper-V, Docker)โ€”ensures compliance and accurate cost management.

By following Oracleโ€™s policies and guidelines, you avoid licensing pitfalls, audit complications, and unexpected costs, optimizing your Oracle software investment.

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  • Fredrik Filipsson

    Fredrik Filipsson is the co-founder of Redress Compliance, a leading independent advisory firm specializing in Oracle, Microsoft, SAP, IBM, and Salesforce licensing. With over 20 years of experience in software licensing and contract negotiations, Fredrik has helped hundreds of organizationsโ€”including numerous Fortune 500 companiesโ€”optimize costs, avoid compliance risks, and secure favorable terms with major software vendors. Fredrik built his expertise over two decades working directly for IBM, SAP, and Oracle, where he gained in-depth knowledge of their licensing programs and sales practices. For the past 11 years, he has worked as a consultant, advising global enterprises on complex licensing challenges and large-scale contract negotiations.

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