oracle database licensing / Oracle licensing

Oracle Licensing – Named User Plus vs Processor Licensing

Introduction to Named User Plus vs Processor Licensing


Named User Plus Licensing vs. Processor Licensing:

  • Named User Plus Licensing:
    • Based on the number of users accessing the Oracle software.
    • Suitable for environments with a countable number of users.
    • Requires a minimum number of licenses per processor.
  • Processor Licensing:
    • Based on the number of processors used to run Oracle software.
    • Ideal for environments with a high or uncountable number of users.
    • Offers unlimited user access per licensed processor.

Each licensing option has its specific scenarios where it is more cost-effective. Choosing the right type depends on an organization’s particular user base and usage patterns.

Brief Overview of Oracle Licensing

Oracle Licensing is a complex field with various metrics and terms that businesses must understand.

Two of the most important terms are Named User Plus and Processor Licensing. These are different licensing metrics that Oracle uses, and they can significantly impact the cost and compliance of your Oracle software.

Importance of Understanding the Difference Between Named User Plus and Processor Licensing

Understanding the difference between Named User Plus and Processor Licensing is not just about compliance but also cost efficiency.

Choosing the right licensing metric for your specific situation can save significant money.

Furthermore, understanding these differences can help you avoid non-compliance issues that could lead to hefty fines.

Understanding Oracle Licensing Metrics

Oracle Licensing Metrics are the rules and guidelines determining how Oracle software can be used. They define the rights and restrictions associated with Oracle software.

Let’s look at the two primary metrics:

  1. Explanation of the Processor Metric: The Processor metric is based on the number of processors used to run the Oracle software. This metric is typically used for environments where many users access the software, and it’s difficult to count the exact number of users.
  2. Explanation of the Named User Plus Metric: The Named User Plus metric, on the other hand, is based on the number of users accessing the Oracle software, regardless of whether they are actively using it. This metric is typically used for environments where the number of users can be easily counted.

Comparison Between the Two Metrics

cpu vs nup license

The main difference between the Processor and Named User Plus metrics is how they count usage.

While the Processor metric focuses on the hardware running the software, the Named User Plus metric focuses on the individuals accessing the software.

Therefore, the best metric for your business depends on your specific usage scenario.

How to License Your Oracle Environment Efficiently

Licensing your Oracle environment efficiently requires a deep understanding of your usage patterns and Oracle’s licensing metrics. Here are some factors to consider:

  1. Factors to Consider When Choosing a Licensing Metric: Consider the size of your user base, the type of hardware you’re using, and your expected growth. Also, consider the complexity of counting your users and the potential for non-compliance.
  2. Impact of User Population on Licensing: The size and nature of your population can significantly impact your licensing costs. For instance, the Processor metric might be more cost-effective if you have a large, uncountable user base. However, the Named User Plus metric might be more suitable if you have a small, countable user base.

Cost Comparison: Named User Plus vs Processor Licensing

When it comes to Oracle Licensing, the cost is a significant factor. Here, we will compare the cost of one Processor license with the cost of Named User Plus licenses.

  1. Cost of One Processor License vs the Cost of Named User Plus Licenses: A single Processor license can be more expensive upfront than a Named User Plus license. However, if you have many users, the Processor license can be more cost-effective in the long run as it allows unlimited users to access the Oracle software.
  2. Situations Where Each Metric is More Cost-Effective: Named User Plus licensing can be more cost-effective with a small, countable user base. However, if your user base is large and complex to count, or if you expect significant growth in the number of users, Processor licensing may be a better option.

Assumptions:

  • The cost of one Named User Plus license for Oracle Database Enterprise Edition is $950.
  • The cost of one Processor license for Oracle Database Enterprise Edition is $47,500.
  • Oracle’s core factor for Intel processors is 0.5.
  • Oracle’s minimum Named User Plus licensing requirement is 25 users per Processor. Since a Processor is defined as two cores, and we have four cores, we need to license for 2 Processors, which means a minimum of 50 Named User Plus licenses.

Named User Plus Licensing Cost:

  • We need to license a minimum of 50 Named User Plus licenses for a server with four cores of Intel.
  • So, the total cost would be 50 (Named User Plus licenses) * $950 (cost per license) = $47,500.

Processor Licensing Cost:

  • For a server with four cores of Intel, we need to license for 2 Processors (since 1 Processor = 2 cores).
  • So, the total cost would be 2 (Processors) * $47,500 (cost per Processor license) = $95,000.

In this example, if you have 50 or fewer users, Named User Plus licensing would be more cost-effective.

However, if you have more than 50 users, Processor licensing would be more cost-effective as it allows unlimited access to the Oracle software.

Top 5 Recommendations for Oracle Licensing

Navigating Oracle Licensing can be complex, but here are our top 5 recommendations to help you along the way:

  1. Understand the difference between Named User Plus and Processor Licensing.
  2. Choose the licensing metric that best fits your user base and usage patterns.
  3. Regularly review your licensing needs as your business grows and changes.
  4. Consider the cost implications of each licensing metric.
  5. Seek expert advice if you’re unsure about your licensing requirements.

Author

  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.

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