Oracle licensing on AWS – Top5 License Compliance Risks

Oracle Licensing on AWS is vital for businesses shifting their operations to the cloud. It’s a complex process, but understanding it is essential for successful migration.

Here’s a simplified breakdown:

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 EC2

When running an Oracle database on an AWS EC2 instance, licensing for the Oracle software is based on the number of virtual CPUs (vCPUs) available to the instance type.

Specifically, a licensing ratio of 2:1 applies for Enterprise Edition, where two vCPUs equal 1 Enterprise Processor license. For Standard Edition products, a licensing ratio 1:1 applies for processor sockets, where four vCPUs equal one processor socket.”

For example, if you have an AWS EC2 instance with eight vCPUs and want to run Oracle Enterprise Edition, you would need 4 Enterprise Processor licenses (8 vCPUs / two vCPUs per license = 4 licenses).

Alternatively, if you wanted to run Oracle Standard Edition, you would need two processor sockets (8 vCPUs / four vCPUs per socket = 2 sockets)

Which licenses are available AWS RDS for Oracle

• Amazon Web Services (AWS) offers RDS for Oracle, a cloud-based relational database service that allows users to run Oracle databases on the AWS cloud platform.
• When using RDS for Oracle, users have two options for licensing:
  • Rent a license from AWS, which is only available for Standard Edition 2 licenses.
  • Bring their own Oracle licenses, such as Enterprise Edition, but they must have active support to run it on AWS RDS for Oracle.
• The option to rent a license from AWS for Standard Edition 2 is a cost-effective solution for users who do not already own Oracle licenses and do not require the advanced features of Enterprise Edition.
• Bringing your own license may be necessary for users who require the advanced features of Enterprise Edition or have existing licenses they wish to utilize.
• It is important to note that regardless of which licensing option is chosen, users must still pay for the AWS resources (e.g. compute, storage) used to run the database.

How to calculate Oracle licensing on AWS?

Before deploying Oracle software on an AWS instance, it is necessary to determine the number of virtual CPUs (vCPUs) required for the workload. For Oracle software with multi-threading enabled, a licensing ratio of 2:1 applies, where two vCPUs count as one processor license.

For instance, if Oracle Database Enterprise Edition is deployed on an eight vCPU instance, the environment must have four processor licenses (8 vCPUs / two vCPUs per license = 4 licenses).

If multi-threading is not enabled, a licensing ratio 1:1 applies, where each vCPU counts as one Oracle processor license. This calculation applies to all core-based Oracle software products.

Additional examples:

• For instance, with 16 vCPUs running Oracle Database Enterprise Edition with multi-threading enabled, eight processor licenses are required (16 vCPUs / two vCPUs per license = 8 licenses).
• For instance,, four vCPUs running Oracle Database Standard Edition 2 with multi-threading enabled require two processor licenses (4 vCPUs / two vCPUs per license = 2 licenses).
• For instance, with six vCPUs running Oracle WebLogic Server with multi-threading enabled, three processor licenses are required (6 vCPUs / two vCPUs per license = 3 licenses)
  

 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.

 Common License compliance issues for Oracle AWS?

• 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.

Top 5 Oracle Licensing Compliance Issues in AWS

1. Deploying Oracle Database SE1 or SE2 on an AWS instance with more than 8 vCPUs requires licensing with Enterprise Edition.
2. Miscounting Named User Plus licenses in Oracle Database SE2 deployments can result in non-compliance, requiring a minimum of 10 user licenses per 8 vCPUs.
3. Using Oracle Enterprise Management options on SE can result in non-compliance, as Diagnostic and Tuning Pack options are only available for Enterprise Edition databases.
4. Using AWS RDS for Oracle proprietary application hosting for third-party legal entities is not allowed under the license-included option, which is only for internal business operations.
5. Failure to review Oracle licensing agreements when using Bring-Your-Own-License for AWS RDS deployments can result in non-compliance, as licensing terms and limitations from on-premises deployments still apply.

It is essential to carefully consider and adhere to Oracle licensing policies to avoid compliance issues when running Oracle software on AWS.

In particular, organizations should pay close attention to licensing requirements for Oracle Database Standard Edition, Named User Plus licenses, and Oracle Enterprise Management options, as well as the licensing terms and limitations for AWS RDS deployments under the license, including Bring-Your-Own-License options.

Organizations can avoid costly penalties and optimize their Oracle licensing costs on AWS by staying informed and compliant.

Frequently asked questions on Oracle on AWS.

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

Navigating Oracle licensing on AWS can be challenging, but Redress Compliance is here to help.

Our services are designed to simplify the process and ensure you get the most out of your Oracle software on AWS.

Here’s how we can assist:

1. Oracle Licensing Assessment: We conduct a thorough assessment of your on-premise Oracle environment to:
   • Determine your licensing requirements
   • Ensure compliance with Oracle licensing policies before migrating to AWS
2. License Compliance Verification: We provide ongoing support to:
   • Verify license compliance when running Oracle software on AWS
3. Contract Review: Our team will review your Oracle licensing contract to:
   • Ensure compliance
   • Identify any restrictions on running Oracle software on AWS.
4. Environment Rightsizing: We help optimize your AWS environment to:
   • Ensure efficient utilization of resources
   • Minimize Oracle licensing costs.
5. Cost Optimization: We guide you on reducing Oracle licensing costs while maintaining optimal performance in AWS.
6. Licensing Support: We offer expert guidance and support on:
   • Licensing policies
   • Pricing
   • Procurement for Oracle products running on AWS

Take Control of Your Oracle Licensing on AWS Today

Navigating Oracle licensing on AWS can be complex, but you don’t have to do it alone. Our team of experts is ready to guide you through every step of the process, ensuring you stay compliant while optimizing your costs.

Whether you’re just starting your cloud migration journey or looking to fine-tune your existing setup, we’re here to help. We’ve covered you, from understanding your licensing requirements to avoiding common compliance pitfalls.

Don’t let Oracle licensing complexities slow down your cloud journey.

Contact us today to learn how we can help you make the most of your Oracle software on AWS. Let’s unlock the full potential of your cloud strategy together.