oracle licensing on aws

Oracle licensing on AWS is a complex topic that requires careful consideration and planning. As businesses migrate their workloads to the cloud, it is important to understand how Oracle licensing works in cloud environments.

Oracle has authorized Azure and AWS as public cloud providers and has granted its customers special licensing rules for these platforms. However, for other public cloud providers or traditional hosting providers, normal on-premises licensing rules apply. It is crucial to ensure that your organization is compliant with Oracle licensing policies before migrating to AWS. In this article, we will explore the intricacies of Oracle licensing on AWS, including the different licensing models, licensing compliance, and cost optimization strategies.

Our aim is to provide valuable insights and guidance for organizations that are planning to run Oracle software on AWS.

Oracle licensing on AWS

Oracle licensing on AWS and using AWS CPU optimize

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 2 vCPUs equal 1 Enterprise Processor license. For Standard Edition products, a licensing ratio of 1:1 applies for processor sockets, where 4 vCPUs equal 1 processor socket.”

As an example, if you have an AWS EC2 instance with 8 vCPUs and you want to run Oracle Enterprise Edition, you would need 4 Enterprise Processor licenses (8 vCPUs / 2 vCPUs per license = 4 licenses).

Alternatively, if you wanted to run Oracle Standard Edition, you would need 2 processor sockets (8 vCPUs / 4 vCPUs per socket = 2 sockets)

oracle licensing on aws

Which license 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 2 vCPUs count as one processor license.

For instance, if deploying Oracle Database Enterprise Edition on an 8 vCPU instance, the environment must be licensed with 4 processor licenses (8 vCPUs / 2 vCPUs per license = 4 licenses).

If multi-threading is not enabled, a licensing ratio of 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 an instance with 16 vCPUs running Oracle Database Enterprise Edition with multi-threading enabled, 8 processor licenses are required (16 vCPUs / 2 vCPUs per license = 8 licenses).

  • For an instance with 4 vCPUs running Oracle Database Standard Edition 2 with multi-threading enabled, 2 processor licenses are required (4 vCPUs / 2 vCPUs per license = 2 licenses).

  • For an instance with 6 vCPUs running Oracle WebLogic Server with multi-threading enabled, 3 processor licenses are required (6 vCPUs / 2 vCPUs per license = 3 licenses)

aws oracle licensing

 What are the benefits of licensing Oracle on AWS?

 Common License compliance issues for Oracle AWS?

  • Review your territory clause in your Oracle Ordering Document, are you allowed to 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 is only allowed to be licensed on an AWS instance with maximum 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 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, as a minimum of 10 user licenses per 8 vCPUs is required.
  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 included and Bring-Your-Own-License options.

By staying informed and compliant, organizations can avoid costly penalties and optimize their Oracle licensing costs on AWS.

Frequently asked questions on Oracle on AWS

How we can help – Oracle licensing to AWS service

  • Oracle Licensing Assessment: Conduct an assessment of your on-premise Oracle environment to determine licensing requirements and ensure compliance with Oracle licensing policies before migrating to AWS.
  • License Compliance Verification: Provide ongoing support to verify license compliance when running Oracle software on AWS.
  • Contract Review: Review your Oracle licensing contract to ensure compliance and identify any restrictions on running Oracle software on AWS.
  • Environment Rightsizing: Help optimize your AWS environment to ensure that resources are being utilized efficiently and Oracle licensing costs are minimized.
  • Cost Optimization: Provide guidance on how to reduce Oracle licensing costs while maintaining optimal performance in AWS.
  • Licensing Support: Offer expert guidance and support on licensing policies, pricing, and procurement for Oracle products running on AWS.
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