Oracle Licensing

Oracle Licensing on AWS vs. Azure and Google Cloud

Oracle Licensing on AWS vs. Azure and Google Cloud

Oracle Licensing on AWS vs. Azure and Google Cloud

Oracle licensing rules for the three major public cloudsโ€”AWS, Microsoft Azure, and Google Cloud Platform (GCP)โ€”are generally similar. However, there are important differences, primarily regarding the availability of Oracle-managed database services and specific convenience options.

Here’s a practical comparison of Oracle licensing across these cloud platforms.


Oracle Licensing Similarities Across AWS, Azure, and GCP

Oracleโ€™s core licensing rules apply consistently to all three major clouds (AWS, Azure, GCP). Key rules clearly stated include:

vCPU Counting Rules

  • Oracle officially recognizes AWS, Azure, and GCP as “Authorized Cloud Environments”.
  • Licensing follows Oracleโ€™s clear, standard cloud metric:
    • 2 vCPUs with hyper-threading enabled = 1 Oracle Processor license.
    • If hyper-threading is disabled, one vCPU = 1 license.

Example Clearly Explained:

  • An AWS instance with 16 vCPUs (hyper-threading enabled) needs 8 Oracle Processor licenses.
  • An Azure or GCP instance with the same specs requires 8 Processor licenses.

Thus, the license counting method is identical across all three cloud platforms.

Read Oracle on AWS Licensing FAQs 4 of 4.


No Oracle Core Factor

  • Oracle explicitly excludes cloud environments (AWS, Azure, GCP) from using core factors.
  • Regarding CPU type (Intel, AMD), Oracle licenses are counted strictly per vCPU, not using core factor adjustments.

This rule is consistent across AWS, Azure, and GCP clearly without exception.

Read How Oracle Collects Audit Data for AWS Deployments


Differences in License-Included Services

The significant licensing differences between AWS, Azure, and GCP revolve clearly around available license-included Oracle services:

AWS

  • AWS offers a license-included Oracle Database via Amazon RDS (only Standard Edition 2).
    • Useful for short-term or smaller-scale Oracle databases.
  • AWS also offers the newer Oracle Database@AWS (managed Exadata) with BYOL and license-included options.

Azure

  • Historically, Azure did not provide any license-included Oracle database services.
  • Azure recently introduced Oracle Database@Azure, an Exadata-based service similar to Database@AWS. It provides managed Oracle databases with license-included or BYOL options.
  • Otherwise, all traditional Oracle deployments on Azure require BYOL (Bring Your License).

Google Cloud Platform (GCP)

  • GCP provides no native managed Oracle database service.
  • GCP offers Bare Metal Solution for Oracle:
    • Dedicated physical hardware is hosted in Google Cloud data centers.
    • It requires full BYOL for Oracle licenses, but there is no license-included option.

Comparison Table Summarized

FeatureAWSAzureGoogle Cloud (GCP)
Authorized Cloud Environmentโœ… Yesโœ… Yesโœ… Yes
vCPU Licensing (Hyper-threading ON)2 vCPUs = 1 license2 vCPUs = 1 license2 vCPUs = 1 license
Core Factor AppliedโŒ NoโŒ NoโŒ No
License-Included (DB SE2)โœ… Yes (RDS for SE2 only)โŒ No (except new DB@Azure)โŒ No
Managed Exadata (Oracle Database@)โœ… Yes (Oracle Database@AWS)โœ… Yes (Oracle Database@Azure)โŒ No
Bare Metal OfferingโŒ NoโŒ Noโœ… Yes (BYOL required)
Oracle SupportSupported (Not officially certified)Supported (Not officially certified)Supported (Not officially certified)

Oracle Support Considerations Across Clouds

  • Oracle officially does not “certify” any of these clouds (AWS, Azure, GCP).
  • However, if you have valid licenses and active support contracts, Oracle fully supports Oracle software on AWS, Azure, and GCP.
  • Historical concerns about Oracle withholding support for non-Oracle clouds are now largely dispelled.
  • Oracle has even partnered closely with Microsoft and AWS (via Database@Azure and Database@AWS), clearly signaling strong support for these environments.

Read Outcomes of an Oracle License Audit on AWS.


Compliance and Audits: Same Rules Apply

Oracle licensing compliance rules remain identical regardless of cloud provider:

  • Oracle audits AWS, Azure, and GCP deployments equally.
  • Non-compliance penalties, required license purchases, and backdated support fees are consistent across cloud environments.
  • Oracle licensing enforcement does not differ between AWS, Azure, and GCP.

Oracle Cloud Infrastructure (OCI) Differences (Contextual)

While not directly part of the AWS/Azure/GCP comparison, understanding Oracleโ€™s cloud clearly highlights subtle licensing differences:

  • OCI allows core factor indirectly (using Oracleโ€™s OCPU metric instead of standard vCPU counting).
  • OCI offers extensive license-included options, differing from AWS/Azure/GCP.
  • Oracle naturally encourages customers to use OCI, sometimes leveraging AWS/Azure/GCP licensing costs.

This contextual difference explains Oracleโ€™s incentive clearly but doesnโ€™t alter third-party cloud licensing rules.


Practical Examples Clearly Explained

AWS Licensing Example:

  • Deploy Oracle Database EE on an EC2 instance (8 vCPUs with hyper-threading):
  • Oracle licenses required: 4 Processor licenses.

Azure Licensing Example:

  • Deploy the same Oracle Database EE on Azure VM (8 vCPUs, hyper-threading enabled):
  • It also clearly requiresย 4 processor licensesย (same as AWS).

GCP Licensing Example:

  • Deploy Oracle Database EE on GCP VM with identical specs (8 vCPUs, hyper-threading enabled):
  • Again, requires 4 Processor licenses.

Common Misunderstandings Clarified

  • Misconception: “Oracle licensing is cheaper or more expensive on AWS than Azure or GCP.”
    • Clarification: Licensing costs are identical (same vCPU metric, same rules). The differences are mainly in managed services and convenience.
  • Misconception: “Oracle supports AWS less than Azure or vice versa.”
    • Clarification: Oracle support treats AWS, Azure, and GCP equally, provided you have valid licenses/support agreements.
  • Misconception: “Using Googleโ€™s Bare Metal Solution reduces licensing costs.”
    • Clarification: Bare Metal Solution requires BYOL clearly, with no discounts or licensing advantages compared to other clouds.

Summarized Checklist for Oracle Licensing Across AWS, Azure, GCP

  • โœ… Licensing Metrics (vCPU): Identical on AWS, Azure, GCP.
  • โœ… Core Factor: Does not apply on AWS, Azure, GCP.
  • โœ… License-Included Services: AWS RDS (SE2), Database@AWS, Database@Azure; no native GCP service.
  • โœ… Managed Exadata: Clearly available on AWS (Database@AWS), Azure (Database@Azure); not on GCP.
  • โœ… Bare Metal Offering: Available on GCP only (BYOL required).
  • โœ… Oracle Support: Consistent support policy across all three clouds.
  • โœ… Compliance & Audits: Identical enforcement clearly across AWS, Azure, GCP.

Conclusion: Comparing Oracle Licensing Across AWS, Azure, GCP

Oracleโ€™s licensing rules are remarkably consistent across AWS, Azure, and Google Cloud. The key differences are primarily related to managed Oracle database offerings (like Database@AWS/Azure), license-included options, and GCPโ€™s Bare Metal solution.

Understanding Oracle licensing on one cloud prepares you to understand Oracle licensing across the others. The primary difference is not the rules but the availability of managed services and licensing convenience each cloud offers.

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Author
  • Fredrik Filipsson has 20 years of experience in Oracle license management, including nine years working at Oracle and 11 years as a consultant, assisting major global clients with complex Oracle licensing issues. Before his work in Oracle licensing, he gained valuable expertise in IBM, SAP, and Salesforce licensing through his time at IBM. In addition, Fredrik has played a leading role in AI initiatives and is a successful entrepreneur, co-founding Redress Compliance and several other companies.

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