oracle aws

Oracle licensing on AWS – Top5 License Compliance Risks

Oracle licensing on AWS works as follows:

  1. Authorized Cloud Providers: Oracle has given special licensing rules to AWS and Azure, recognizing them as public cloud providers.
  2. Licensing on AWS EC2: The licensing for Oracle software on an AWS EC2 instance depends on the number of virtual CPUs (vCPUs) available to the instance type.
  3. AWS RDS for Oracle: AWS provides a cloud-based relational database service. It offers two licensing options:
    • Rent a license from AWS
    • Bring your own Oracle licenses
  4. Calculating Oracle Licensing on AWS involves determining the number of vCPUs required for the workload.
  5. Common Licensing Compliance Issues: Businesses must be aware of potential compliance issues to avoid penalties and optimize their Oracle licensing costs on AWS.

Oracle licensing on AWS

Oracle licensing on AWS and using AWS CPU optimize

Oracle Licensing on AWS EC2

oracle licensing on aws

When running an Oracle database on Amazon Web Services (AWS) EC2 instances, the licensing model considers the specific nature of cloud-based virtual resources.

  • Licensing Based on vCPUs: Oracle software licensing on AWS EC2 is calculated based on the number of virtual CPUs (vCPUs) available to your instance type.
  • Enterprise Edition Licensing Ratio: Oracle Enterprise Edition has a 2:1 licensing ratio. This means two vCPUs are equivalent to one Enterprise Processor license.
  • Standard Edition Licensing Ratio: In contrast, Standard Edition products follow a 1:1 licensing ratio for processor sockets, where four vCPUs equate to one processor socket.
  1. Enterprise Edition on EC2:
    • If your EC2 instance has eight vCPUs and you’re running Oracle Enterprise Edition, you’d need four Enterprise Processor licenses (8 vCPUs divided by two vCPUs per license).
  2. Standard Edition on EC2:
    • To run Oracle Standard Edition on an EC2 instance with eight vCPUs, you would require two processor sockets (8 vCPUs divided by four vCPUs per socket).

Which licenses are available AWS RDS for Oracle

Which licenses are available AWS RDS for Oracle

AWS RDS for Oracle provides a cloud-based relational database service, enabling users to run Oracle databases in the AWS cloud.

  • Licensing Options on AWS RDS for Oracle:
    • Rent a License from AWS: This option is available only for Standard Edition 2 licenses. It’s suitable for users who don’t have Oracle licenses and don’t need Enterprise Edition’s advanced features.
    • Bring Your Own License (BYOL): Users can bring their Oracle licenses, like Enterprise Edition, to AWS RDS for Oracle. However, it’s essential to have active support for these licenses.
  • Considerations for Licensing Choice:
    • Standard Edition 2 Rental: Ideal for cost-effectiveness and users without existing Oracle licenses.
    • Enterprise Edition BYOL: Necessary for users requiring advanced features or those who wish to utilize existing licenses.
  • Additional AWS Resource Costs: Regardless of the licensing choice, users must pay for AWS resources (compute, storage, etc.) to run the database.

In both scenarios, understanding the specifics of Oracle licensing in a cloud environment like AWS is crucial for compliance and optimal resource utilization.

The choice between renting a license or using BYOL depends on your needs, existing license ownership, and the required Oracle Database edition.

Steps to Calculate Oracle Licensing AWS

Steps to Calculate Oracle Licensing AWS

Calculating Oracle licensing AWS requires a clear understanding of your instance’s number of virtual CPUs (vCPUs) and how they correlate with Oracle’s licensing metrics.

Here’s an enhanced breakdown of the process:

  1. Determine vCPU Requirements:
    • Before deploying Oracle software on AWS, assess the workload to decide the required number of vCPUs.
  2. Multi-threading Enabled Scenario:
    • If multi-threading is enabled, Oracle uses a 2:1 licensing ratio. This means two vCPUs are considered equivalent to one Oracle processor license.
    • Example: For Oracle Database Enterprise Edition running on an eight vCPU AWS instance, you would need four processor licenses (calculated as eight vCPUs / two vCPUs per license).
  3. Multi-threading Not Enabled Scenario:
    • When multi-threading is not enabled, the licensing ratio is 1:1, where each vCPU is counted as one Oracle processor license.
    • This calculation applies across all core-based Oracle software products.

Additional Examples

  • Sixteen vCPUs with Multi-threading (Enterprise Edition): Requires eight processor licenses (16 vCPUs / 2 = 8).
  • Four vCPUs with Multi-threading (Standard Edition 2): Requires two processor licenses (4 vCPUs / 2 = 2).
  • Six vCPUs with Multi-threading (WebLogic Server): Requires three processor licenses (6 vCPUs / 2 = 3).

Key Points to Remember

  • Cloud Environment Licensing: Licensing in a cloud environment like AWS differs from traditional on-premises licensing due to the dynamic nature of cloud resources.
  • Compliance: Ensuring the correct number of licenses is crucial for compliance with Oracle’s licensing terms.
  • Cost Optimization: Proper calculation helps optimize the cost of running Oracle software on AWS.

By carefully assessing the vCPU requirements and understanding Oracle’s licensing ratios, organizations can accurately determine the licenses needed to run Oracle software on AWS instances.

This ensures compliance with Oracle’s licensing terms and effective cost management of cloud resources.

aws oracle licensing

 What are the benefits of licensing Oracle on AWS?

  • You only need to license the capacity you need by licensing on vCPU.
  • Oracle licensing policy on virtualization (licensing all physical hosts) doesn’t apply.

Oracle on AWS Licensing – Compliance Issues

  • Review your territory clause in your Oracle Ordering Document. Can you deploy Oracle where the AWS region is?
  • Review your licensing agreement for any other restrictions that may exist, preventing you from deploying in AWS.
  • Oracle Database Standard Edition 2 can only be licensed on an AWS instance with a maximum of 8 vCPUs.
  • Oracle ULA usually does not allow you to count the AWS deployments to your exit numbers. Review your Oracle ULA certification clause for details.
Oracle on AWS top 5 license compliance

Top 5 Oracle AWS Licensing Risks

Top 5 Oracle AWS Licensing Risks

1. Oracle Database SE1 or SE2 on AWS

  • More than eight vCPUs Requirement: If you deploy Oracle Database Standard Edition 1 (SE1) or Standard Edition 2 (SE2) on an AWS instance with more than eight vCPUs, you must license it with the Enterprise Edition. This shift to a higher edition due to the vCPU count is crucial for compliance.

2. Named User Plus Licenses in SE2

  • Minimum User License Requirement: For Oracle Database SE2 deployments, there is a minimum requirement of 10 Named User Plus licenses per 8 vCPUs. Miscounting these licenses can lead to non-compliance.

3. Enterprise Management Options on SE

  • Restriction on Diagnostic and Tuning Packs: If using Oracle Standard Edition (SE), be aware that utilizing Enterprise Management options like Diagnostic and Tuning Packs can lead to non-compliance. These options are exclusively available for Oracle Enterprise Edition databases.

4. AWS RDS for Oracle and Proprietary Application Hosting

  • License-Included Option Limitations: It’s not permissible under the license-included option when using AWS RDS for Oracle for proprietary application hosting, especially for third-party legal entities. This option is strictly for internal business operations.

5. Bring-Your-Own-License (BYOL) on AWS RDS

  • Importance of License Agreement Review: If you opt for the Bring-Your-Own-License model for AWS RDS deployments, it’s vital to thoroughly review the Oracle licensing agreements. Licensing terms and limitations from on-premises deployments are still applicable and must be complied with to avoid non-compliance issues.

Licensing options – When deploying Oracle Software on Amazon Web Services

Licensing options – When deploying Oracle Software on Amazon Web Services

1. AWS RDS – Renting a License from AWS for Database SE2

  • Applicability: This option is exclusively available for Oracle Database Standard Edition 2 (SE2).
  • Renting a License: Users can rent a license for Oracle Database SE2 directly from AWS. This can be a cost-effective solution for users who don’t own Oracle licenses and don’t need the advanced features of more sophisticated editions like the Enterprise Edition.
  • Ease of Management: Renting a license through AWS RDS simplifies the licensing management process, as AWS handles the licensing aspect.

2. AWS EC2 Oracle Licensing – Bring Your Own License (BYOL)

  • License Ownership: In this model, users who already own Oracle licenses can bring them to the AWS cloud.
  • Compliance with Public Cloud Licensing: When bringing your own license, it is critical to ensure compliance with Oracle’s public cloud licensing policies.
  • Flexibility and Use of Existing Licenses: This option is particularly suitable for businesses investing in Oracle licenses and leveraging their existing licenses in the cloud.

3. No Option to Rent Enterprise or Other Licenses from AWS

  • Limitation: AWS does not offer the option to rent Oracle Enterprise Edition or other specialized Oracle licenses.
  • Implication for Users: Users requiring the Enterprise Edition or other specific Oracle licenses must either bring their own licenses to AWS or explore other deployment options that meet their licensing needs.

Key Considerations for Oracle Licensing on AWS:

  • Cost Optimization: Understanding these options helps optimize costs, especially when considering cloud infrastructure expenses and licensing fees.
  • Compliance: It’s essential to stay informed about Oracle’s licensing policies to ensure compliance, especially in a cloud environment where configurations can be dynamic and scalable.
  • Strategic Planning: Businesses must strategically plan their Oracle deployments on AWS, considering their current licensing state and future scalability needs.

These licensing options provide flexibility and choices for businesses leveraging Oracle databases on AWS, allowing for a balance between cost, compliance, and technical requirements.

Transitioning Oracle to AWS

Transitioning Oracle to AWS

Migrating from on-premises Oracle to AWS requires careful planning, especially regarding licensing.

Here are some best practices for managing your Oracle licenses during this transition:

1. Understand Your Current On-Premise Usage and Conduct a Licensing Assessment

  • Comprehensive Inventory: Before making any moves, take stock of your current Oracle usage on-premises. This involves identifying all Oracle products, their versions, and how they are utilized.
  • Licensing Assessment: Perform a detailed licensing assessment. This should include understanding the types of licenses you own, the terms and conditions associated with these licenses, and how they might translate in a cloud environment.
  • Compliance Check: Ensure your current usage complies with Oracle licensing terms. Resolve any non-compliance issues before migration to avoid complications.

2. Migrate Instances to AWS and Educate IT Staff on Licensing

  • Migration Planning: Carefully plan the migration of your Oracle instances to AWS. This includes selecting the right AWS services and instance types that align with your licensing and performance needs.
  • Staff Training: Your IT staff must understand the intricacies of Oracle licensing in a cloud context. They should fully know how Oracle licensing works on AWS, including nuances of core factors and virtual CPUs.
  • License Optimization: As you migrate, look for opportunities to optimize your licensing. This might involve consolidating databases or reassessing the need for certain features or products.

3. Review Licensing Post-Migration on AWS

  • Post-Migration Assessment: Once you run on AWS, conduct another licensing review to ensure that your instance sizes and types on AWS match the licenses you hold.
  • Monitor and Adjust: Regularly monitor your Oracle instances in AWS. Be prepared to adjust your setup to align with licensing requirements, especially if your AWS usage changes over time.
  • Ongoing Compliance: Oracle’s licensing policies can change. Staying informed will help you maintain compliance and optimize your licensing costs.

By following these best practices, you can ensure a smoother transition to AWS while maintaining compliance with Oracle licensing terms.

Proper planning, staff education, and regular reviews are key to successfully migrating and running Oracle databases on AWS.

Frequently asked questions on Oracle on AWS.

How does Oracle licensing work on AWS?

You can Bring Your Own Oracle License to AWS EC2, or you can use AWS RDS and rent a license (Only available as SE2)

How does Oracle licensing calculation work on AWS?

Oracle has given AWS special licensing rights and can license per vCPU, where two vCPUs equal 1 processor license.

What is AWS CPU optimization?

AWS CPU optimization is a feature that allows customers to shape EC2 instance shapes based on their requirements. This is useful for Oracle SQL workloads that are not CPU-core-intensive. By building custom instances, Oracle licensing costs can be lowered.

Is it possible to deploy Oracle ULA software in AWS?

Yes, but there are restrictions on the number of licenses that can be used after the Oracle ULA expires. The specific terms and conditions of the contract should be reviewed.

Can I bring my Oracle EBS licenses and deploy them on AWS?

Yes, in most cases, it is permissible to deploy EBS on AWS. However, it is essential to review the contract for any restrictions and ensure compliance with user and privilege requirements. Oracle may conduct audits if deployed on AWS instead of OCI or Fusion.

Is it possible to deploy Java on AWS?

Java Licenses can be deployed on AWS, and vCPUs are counted for enterprise licensing.

Can I use Oracle Standard Edition 2 on AWS?

Yes, Oracle Standard Edition 2 can be used on AWS, but it is essential to ensure compliance with Oracle licensing policies and the terms and conditions of the license agreement. Also, note that only a limited number of licenses are available for rent from AWS for Standard Edition 2.

Can we use our existing Oracle licenses on AWS?

Yes, users can bring their own Oracle licenses to AWS, but the licenses must comply with Oracle licensing policies and the terms and conditions of the license agreement. Additionally, users must have active support to run Oracle software on AWS RDS.

Can I use Amazon RDS for Oracle with my license?

Users can bring their own Oracle licenses to use Amazon RDS for Oracle. However, active Oracle support is required to run the software on RDS.

Can we Run Oracle Peoplesoft on AWS?

Yes, you can use your PeopleSoft Licenses as BYOL.

Can we Run Oracle Siebel on AWS?

Yes, you can use your existing Siebel Licenses as BYOL.

Oracle Weblogic AWS, How does licensing work?

Yes, Weblogic licenses work the same way as database licenses on AWS. You license per vCPU.

How Can Redress Compliance Assist You with Oracle Licensing on AWS?

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  • 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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