Oracle Licensing: Minimum Named User Plus Requirements

Oracle Licensing: Minimum Named User Plus Requirements

Oracle’s Named User Plus (NUP) licensing model bases pricing on the number of individuals or devices authorized to access the Oracle Database. However, Oracle also sets minimum user license requirements based on the edition and processor count to ensure baseline coverage.

This article covers:

• What minimum Named User Plus requirements are
• How minimum requirements vary by Oracle Database edition
• Practical examples of calculating NUP minimums
• When processor licensing might be a better option
• Common pitfalls and best practices for compliance

Read more Oracle Database Licensing FAQs.

What are Oracle’s Minimum Named User Plus Requirements?

Oracle enforces a minimum number of Named User Plus licenses for each database processor or server. Even if the number of users accessing the database is lower, you must still license the minimum specified by Oracle.

These minimums vary depending on the edition of the Oracle Database:

• Enterprise Edition (EE): Minimum of 25 NUP licenses per Processor.
• Standard Edition 2 (SE2): Minimum 10 NUP licenses per server.

This policy ensures Oracle receives baseline revenue per system and prevents extremely low user counts on powerful hardware.

Read Licensing Oracle Database in VMware and Virtualized Environments.

Minimum NUP Licensing Requirements by Oracle Edition

Here’s how Oracle defines minimum Named User Plus requirements by database edition:

Enterprise Edition (EE)

• Minimum: 25 Named User Plus licenses per Processor license.
• The processor count is calculated using:
  • Total physical cores × Oracle core factor (from Oracle Core Factor Table).

Example (Enterprise Edition):

• The server has 2 Intel Xeon processors, each with eight cores (16 cores total).
• Oracle core factor for Intel Xeon: 0.5.
• Processor licenses required:
  16 cores × 0.5 = 8 Processor licenses.
• Minimum Named User Plus required:
  8 processors × 25 users each = 200 NUP licenses minimum.
• Even if actual users accessing the system are fewer (e.g., only 50), you must purchase at least 200 NUP licenses.

Standard Edition 2 (SE2)

• Minimum: 10 Named User Plus licenses per server.
• SE2 licensing is simpler:
  Licensed by socket, with a maximum of 2 sockets per server.

Example (Standard Edition 2):

• The server has a single socket with an 8-core CPU.
• SE2 does not use core factor calculations; licenses are per socket.
• Minimum Named User Plus required:
  At least 10 NUP licenses per server.
• If the actual user count is fewer (e.g., three users), you must still license 10 NUP.
• For multiple SE2 servers, each server independently needs at least 10 NUP licenses.

Practical Examples: Calculating Minimum Named User Plus Licenses

Scenario 1 (Enterprise Edition)

• Server configuration: 1 Intel CPU, 12 cores.
• Processor licenses: 12 cores × 0.5 (Intel) = 6 processors.
• Minimum NUP licenses: 6 processors × 25 NUP each = 150 NUP licenses required.
• Even if only 80 users connect, you must purchase at least 150 NUP.

Scenario 2 (Standard Edition 2)

• Server configuration: Single server, 2-socket configuration, each with eight cores.
• Minimum NUP licenses: 10 NUP licenses total (not per socket).
• Even if actual users are fewer (e.g., five users), you must license at least 10 NUP licenses.

When to Choose Processor Licensing Instead of Named User Plus

Given the enforced minimums, Named User Plus licensing might not always be cost-effective. Consider Processor licensing when:

• Your actual user count is significantly below the minimum required user count.
• Your system has a high processor count, which results in very high NUP minimums, potentially making processor licensing cheaper.
• User counts fluctuate frequently or are uncertain, making processor licensing simpler and more predictable.

Practical Example: Choosing Processor Licensing over NUP

• Enterprise Edition database on a 4-processor server:
  • Minimum NUP requirement: 4 processors × 25 NUP = 100 users minimum.
• If your actual user count is low (e.g., 10-20 users), you must buy more NUP licenses than you need (100 users minimum).
• In this scenario, processor licensing might be simpler and more cost-effective, especially if you plan to scale usage later.

Common Pitfalls with Named User Plus Minimums

Avoid common mistakes related to Oracle’s minimum NUP licensing requirements:

Pitfall 1: Ignoring Minimum NUP Requirements

• Organizations mistakenly assume only actual users require licensing.
• Oracle strictly enforces minimum NUP licenses, regardless of actual usage.
• Best practice: Always calculate actual and minimum required NUP licenses, licensing whichever number is higher.

Pitfall 2: Miscounting Processor Licenses (Enterprise Edition)

• Miscalculating processor licenses by forgetting Oracle’s Core Factor.
• Example: Treating each physical core as one license instead of applying the core factor.
• Best practice: Always apply the correct Oracle Core Factor before calculating the minimum NUP licenses.

Pitfall 3: Forgetting to License Each SE2 Server Separately

• SE2 minimum NUP is per server; multi-server setups each need minimum licenses.
• Example: 3 SE2 servers require at least 10 NUP licenses per server (30 total minimum).
• Best practice: Track and license each SE2 server separately.

Best Practices for Ensuring Compliance with Minimum NUP Requirements

Follow these best practices to remain compliant with Oracle’s minimum Named User Plus license rules:

• ✅ Calculate Processor Licenses First
  Use Oracle’s Core Factor Table (EE) or socket counts (SE2).
• ✅ Apply Oracle’s Minimums Accurately
  Ensure you meet or exceed Oracle’s published minimum NUP requirements.
• ✅ Compare Costs (NUP vs. Processor)
  If the minimum NUP exceeds actual usage, evaluate if processor licensing offers better value.
• ✅ Maintain Clear Licensing Records
  Document clearly how user counts and processor minimums are calculated and licensed.

Read How Multi-Core Processors and Oracle’s Core Factor Table Impact Database Licensing.

Quick Reference Table: Minimum NUP Requirements

Conclusion: Effectively Managing Oracle’s Minimum NUP Licensing

Oracle’s Named User Plus licensing model includes enforced minimums per processor (Enterprise Edition) or per server (Standard Edition 2). Properly calculating and complying with these minimum requirements prevents costly compliance mistakes.

Evaluate carefully whether Named User Plus or Processor licensing better aligns with your usage patterns and infrastructure, choosing the most cost-effective and compliant licensing model for your Oracle environment.

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