Oracle Licensing Models on AWS
Running Oracle software on AWS involves two primary licensing models: Bring Your Own License (BYOL) and License Included. Each model has distinct benefits, limitations, and compliance requirements.
This article outlines how each licensing model works, provides practical examples, and offers guidance on selecting the right model for your organization.
Read Oracle on AWS Licensing FAQs 1 of 4
1. Bring Your Own License (BYOL)
Definition:
- Under BYOL, you deploy Oracle software on AWS using licenses you own or purchase separately.
- You remain responsible for complying with Oracle’s licensing rules (such as counting CPUs or users).
When to Use BYOL:
- If you already own Oracle licenses (with active support agreements).
- This is for Oracle editions or products AWS does not offer in a license-included model.
Applicable AWS Services:
- Amazon EC2 instances (all Oracle products).
- Amazon RDS for editions where AWS does not provide bundled licensing, especially Oracle Database Enterprise Edition (EE).
Practical Example:
- Your company owns Oracle Database EE licenses. You deploy an Oracle EE database on EC2 (m5.2xlarge):
- EC2 instance has eight vCPUs, requiring 4 Oracle processor licenses (assuming hyper-threading).
- You allocate four processor licenses from your existing Oracle license pool.
Key Considerations:
- You must maintain active Oracle Support contracts.
- Compliance (accurate vCPU counting) remains your responsibility.
- Document licenses allocated to AWS deployments.
2. License Included Model
Definition:
- AWS provides Oracle licenses bundled within the hourly cost of certain managed AWS services.
- No separate Oracle licenses are required from you under this model.
When to Use License Included:
- Ideal if you do not own Oracle licenses or prefer simplified compliance.
- Only available for specific editions and services, primarily Oracle Database Standard Edition Two (SE2) on Amazon RDS.
Applicable AWS Services and Limitations:
- Amazon RDS: License Included available for Oracle Standard Edition Two.
- Oracle Enterprise Edition is NOT available under the License Included model on AWS.
- You cannot reuse existing licenses under this model.
Practical Example:
- You want to quickly launch a small Oracle SE2 database without owning Oracle licenses:
- Deploy Amazon RDS Oracle SE2 with License Included.
- AWS handles licensing costs, simplifying your compliance responsibility.
- You pay only hourly service costs (including Oracle licensing fees).
Key Considerations:
- Easy, compliant deployment without upfront Oracle license costs.
- Suitable for short-term projects, dev/test environments, or small production databases.
- Limited to specific Oracle editions and configurations (no EE or custom deployments).
Read Bring Your Own License (BYOL) for Oracle on AWS.
Practical Summary: Oracle Licensing Models on AWS
| Licensing Model | AWS Services | Oracle Editions Supported | Licensing Responsibility | Ideal Use Cases |
|---|---|---|---|---|
| BYOL | EC2, RDS (all Oracle products) | All Oracle editions (SE2, EE, Middleware) | Customer (you must provide and track licenses) | Existing licenses, EE deployments, long-term or custom setups |
| License Included | RDS (managed) | Limited to Oracle SE2 only | AWS (bundled licensing cost) | Simplified deployment, no existing licenses, short-term workloads |
Oracle Licensing Checklist for AWS Deployment
✅ Identify if your AWS use case fits the BYOL or License Included model.
✅ Use BYOL if you already own licenses or need Enterprise Edition.
✅ Use License Included for quick, compliance-simplified deployments on SE2.
✅ Maintain clear documentation of license allocations and compliance under BYOL.
Common Misunderstandings Corrected
- Misconception: “AWS provides Oracle licenses included for all editions.”
- Reality: Only Oracle SE2 on Amazon RDS offers License Included; EE requires BYOL.
- Misconception: “BYOL compliance is handled automatically by AWS.”
- Reality: Compliance responsibility for BYOL remains yours; AWS only provides infrastructure.
- Misconception: “You can use existing licenses with License Included RDS instances.”
- Reality: License Included RDS instances do not accept existing licenses—you must select BYOL for license reuse.
Conclusion: Choosing the Right Oracle Licensing Model on AWS
Understanding the differences between BYOL and license-included models allows you to choose the best option for your AWS deployments.
- Use BYOL if leveraging existing investments or deploying Oracle EE.
- Choose License Included for easy, simplified deployment without upfront licensing.
Selecting the right licensing model ensures compliance, cost optimization, and efficient management of Oracle workloads on AWS.
