Azure counting rule
BYOL vs pay-as-you-go over 3 years
Standard Edition 2 on Azure
Oracle DB Enterprise Edition list price
📋 Table of Contents
- Why Oracle Licensing on Azure Is a Multi-Million Dollar Risk
- Oracle's Authorised Cloud Environment Policy Explained
- The vCPU Licensing Rule: How Azure Counts Oracle Licences
- BYOL on Azure: Strategy, Benefits, and Compliance Requirements
- Licence-Included Options: Database@Azure and Marketplace
- BYOL vs Licence-Included: Cost Comparison and Decision Framework
- Oracle Database Licensing on Azure: Edition-by-Edition Guide
- Oracle WebLogic Server Licensing on Azure
- Azure VMware Solution and Dedicated Hosts: The Licensing Traps
- Key Cost Considerations and Common Pitfalls
- 8 Strategies to Optimise Oracle Licensing on Azure
- FAQ: Oracle Licensing on Azure
1. Why Oracle Licensing on Azure Is a Multi-Million Dollar Risk
Oracle licensing on Azure is one of the most expensive compliance risks in enterprise IT. A single misconfigured VM — the wrong edition, too many vCPUs, or a deployment on Azure VMware Solution instead of a native VM — can expose your organisation to millions in unexpected licence fees. At $47,500 per processor licence for Oracle Database Enterprise Edition (and $23,000 per processor for options like Partitioning or Diagnostics Pack), the maths gets painful fast.
In my 20 years of Oracle licensing work — nine of them inside Oracle — I've seen organisations routinely overspend 30-60% on Oracle in Azure. The root causes are almost always the same: vCPU miscounts, wrong edition choices, forgotten options packs, and the catastrophic mistake of running Oracle on Azure VMware Solution without understanding Oracle's position.
Oracle treats Azure as an Authorised Cloud Environment, which means special licensing rules apply. These rules are simpler than on-premises in some ways (no Core Factor table) but create unique traps in others (constrained-core VM gotchas, Standard Edition vCPU limits, and ULA certification complications). This guide gives you the complete playbook — every rule, every trap, every optimisation lever — so you can run Oracle on Azure with confidence and without overpaying.
Case Study — Fortune 500 Manufacturer
A Fortune 500 manufacturer migrating 24 Oracle databases to Azure had provisioned 16-vCPU VMs across the board — requiring 8 processor licences per VM. Our assessment found that 40% of those databases could run on Standard Edition 2 with 4-vCPU VMs (1 licence each), and the remaining Enterprise Edition workloads only needed 8-vCPU VMs (4 licences each). The right-sizing eliminated 68 surplus processor licences and saved $2.8M over three years in licence and support costs.
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2. Oracle's Authorised Cloud Environment Policy Explained
Oracle officially recognises Microsoft Azure as an "Authorised Cloud Environment" for licensing Oracle software. This recognition — published in Oracle's Licensing Oracle Software in the Cloud Computing Environment policy document — means that special, simplified rules apply for counting processor licences on Azure. These rules differ significantly from traditional on-premises licensing.
The authorised cloud list currently includes Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) (Google was added in 2024). Oracle Cloud Infrastructure (OCI) operates under its own, more favourable rules. Any cloud provider not on the authorised list is treated like on-premises hardware — meaning you must licence all physical cores in the underlying infrastructure, which can be astronomically expensive.
What the Authorised Cloud Status Gets You
Simplified vCPU counting. Instead of licensing physical cores with Oracle's Core Factor table (which assigns different weights to Intel, AMD, and SPARC processors), Azure uses a straightforward vCPU-based formula. Two vCPUs with hyper-threading enabled equals one Oracle processor licence. No Core Factor adjustments, no processor-type distinctions.
Licence mobility. Oracle's policy allows you to deploy your existing Oracle Database or WebLogic licences on Azure VMs without additional licence fees from Oracle. Azure is treated as an extension of your data centre for licensing purposes — provided you follow the cloud counting rules exactly.
Standard Edition access. You can run Oracle Database Standard Edition 2 on Azure under BYOL, subject to the 8-vCPU limit. This is a significant cost-saving opportunity for smaller workloads.
"Oracle's cloud licensing policy is a public guideline — it is not part of your contract. Oracle reserves the right to update or withdraw these policies at its discretion. I have seen Oracle change the rules and then enforce the new rules retroactively during audits. Always document which version of the policy you relied on when making deployment decisions, and negotiate explicit cloud use rights into your Oracle contract wherever possible."
— Fredrik Filipsson, Co-founder, Redress Compliance3. The vCPU Licensing Rule: How Azure Counts Oracle Licences
This is the single most important rule for Oracle on Azure, and the one most frequently miscounted. Here is how it works:
Enterprise Edition (Processor Licensing)
With hyper-threading enabled (true for the vast majority of Azure VM types): 2 vCPUs = 1 Oracle processor licence. An 8-vCPU Azure VM requires 4 processor licences. A 16-vCPU VM requires 8 licences. Simple division by two.
Without hyper-threading (rare on Azure): 1 vCPU = 1 Oracle processor licence. This doubles your licence requirement for the same compute capacity, which is why you should always verify that hyper-threading is enabled on your chosen VM type.
No Core Factor. Oracle's on-premises Core Factor table (which gives Intel/AMD a 0.5 multiplier) does not apply in authorised clouds. The vCPU counting rule replaces it entirely. This simplifies calculations but also means there is no "discount" for using certain processor types.
Standard Edition (Per-Socket Licensing)
Oracle Standard Edition databases use a per-socket licensing concept, mapped to vCPU counts in the cloud:
1 to 4 vCPUs = 1 socket = 1 Standard Edition processor licence. An Azure VM with 4 or fewer vCPUs requires just one SE licence. VMs with 5 to 8 vCPUs count as two sockets (2 licences). Each additional increment of 4 vCPUs adds another socket.
Standard Edition 2 (SE2) is capped at a maximum of 8 vCPUs in Azure. If your workload needs more than 8 vCPUs, you must use Enterprise Edition — there is no workaround. For a full breakdown of SE2 rules and limitations, see our Oracle Database Standard Edition 2 Licensing Guide.
vCPU-to-Licence Reference Table
| Azure VM vCPUs (HT enabled) | Enterprise Edition Licences | Standard Edition 2 Licences |
|---|---|---|
| 2 vCPUs | 1 processor licence | 1 processor licence (≤4 vCPUs = 1 socket) |
| 4 vCPUs | 2 processor licences | 1 processor licence (4 vCPUs = 1 socket) |
| 8 vCPUs | 4 processor licences | 2 processor licences (8 vCPUs = 2 sockets) |
| 12 vCPUs | 6 processor licences | Not permitted — SE2 max is 8 vCPUs |
| 16 vCPUs | 8 processor licences | Not permitted — SE2 max is 8 vCPUs |
| 32 vCPUs | 16 processor licences | Not permitted |
Constrained-core VM trap: Azure offers "constrained vCPU" VM SKUs that provide high memory with fewer active vCPUs (e.g., an E64-16s_v3 with 16 active vCPUs on a 64-vCPU chassis). Oracle counts the SKU's stated vCPU count, not the underlying physical capacity. However, you must use official constrained-core SKUs — simply disabling CPUs in the OS does not reduce your licence requirement. Oracle will count the full VM's allocated vCPUs if you just "turn off" cores manually.
Oracle Cloud Licensing Compliance Playbook
Download our comprehensive guide covering vCPU counting rules across Azure, AWS, and GCP — with worked examples, audit preparation checklists, and licence calculation worksheets.
Browse White Papers →4. BYOL on Azure: Strategy, Benefits, and Compliance Requirements
Bring Your Own Licence (BYOL) means deploying your existing Oracle software licences on Azure VMs. This is the most common approach for organisations already invested in Oracle. For a detailed comparison of BYOL economics, see our guide on BYOL vs Licence-Included on Azure.
How BYOL Works on Azure
Licence mobility. Oracle's policy allows you to move your existing Oracle Database, WebLogic, or middleware licences to Azure VMs without additional Oracle fees. You must adhere to the vCPU counting rules above and remain current on Oracle support. Azure is treated as an extension of your data centre.
Azure Marketplace BYOL images. Microsoft's Azure Marketplace offers Oracle-certified VM images for Oracle Database and WebLogic Server, labelled "Bring-Your-Own-License." These images have Oracle software pre-installed, but you are responsible for holding the appropriate licence entitlements. All official Oracle WebLogic Server images on Azure are BYOL only.
Support requirements. When you BYOL, you must continue paying Oracle support (typically ~22% of licence cost per year). This provides you with access to patches, updates, and technical support. Support costs are in addition to your Azure infrastructure costs and must be factored into your total cost of ownership (TCO).
ULA Implications for Azure
If your organisation has an Oracle Unlimited Licence Agreement (ULA), you can deploy Oracle software freely on Azure during the ULA term. However, Oracle's standard ULA contracts may not allow counting Azure deployments toward your certification at expiration. This is a critical trap — you could deploy extensively in Azure under a ULA, then be unable to certify those instances as perpetual licences when the ULA ends. See our Oracle ULA Certification Guide for strategies to handle this.
"In my experience advising on over 200 ULA certifications, the cloud deployment question trips up at least a third of enterprises. If you are running Oracle on Azure under a ULA, negotiate explicit language into your contract that allows cloud instances to be counted during certification. Without that language, Oracle will push back — hard — at certification time."
— Fredrik Filipsson, Co-founder, Redress ComplianceCompliance Tracking for BYOL
Being in Azure does not shield you from an Oracle licence audit. Oracle can — and does — request proof that you have sufficient licences for your Azure deployments. Best practices include tagging all Azure VMs running Oracle software, maintaining a licence allocation spreadsheet mapping licences to specific VMs and vCPU counts, and conducting quarterly internal audits to catch drift before Oracle does.
Need Help Managing Oracle Licences on Azure?
Our Oracle Licence Management service provides continuous compliance monitoring, vCPU-to-licence mapping, and proactive risk identification — so you never face an audit unprepared.
5. Licence-Included Options: Database@Azure and Marketplace
If you do not have existing Oracle licences — or prefer not to use your own — Azure offers licence-included options where the Oracle software fee is bundled into the service pricing.
Oracle Database@Azure
Launched in 2023 through the Oracle-Microsoft partnership, Oracle Database@Azure deploys Oracle's managed database services (running on Oracle Exadata infrastructure) inside Azure regions. This service provides a fully licensed Oracle database as part of the Azure service. You can choose BYOL or a "licence-included" model where the Oracle licence cost is bundled into the hourly pricing.
Key benefits of Database@Azure: Microsoft bills the entire cost through your Azure account, which means it counts toward your Azure committed spend (MACC). You also gain access to Oracle's Support Rewards program — earning 25-33% of your Oracle Cloud spend as credits against Oracle support fees. This can materially reduce the total cost of maintaining Oracle on-premises licences.
BYOL on Database@Azure is powerful. If you bring existing Enterprise Edition licences to Database@Azure, Oracle includes Diagnostics and Tuning packs at no extra charge — products that normally cost $7,500 and $5,000 per processor respectively. This alone can save hundreds of thousands across a large deployment.
Azure Marketplace VM Images
Historically, Azure offered some Oracle Database VM images on a pay-as-you-go basis. In recent years, Oracle has focused on Database@Azure as the primary licence-included offering. Standard Azure Marketplace Oracle images are predominantly BYOL. For WebLogic Server, there is no licence-included option on Azure — all deployments require BYOL.
When to Use Licence-Included
Licence-included models work best for short-term projects (3-12 month development, testing, or proof-of-concept), variable workloads with unpredictable demand, and situations where you have no existing Oracle licences and don't want to commit to a perpetual purchase. For long-term, steady-state production workloads, BYOL is almost always more cost-effective.
6. BYOL vs Licence-Included: Cost Comparison and Decision Framework
This is the most consequential financial decision you'll make when running Oracle on Azure. The wrong choice can cost your organisation hundreds of thousands — or millions — over a multi-year period. For the full deep-dive, read our dedicated guide on BYOL vs Licence-Included on Azure.
Head-to-Head Comparison
| Dimension | BYOL on Azure VMs | Licence-Included (Database@Azure) |
|---|---|---|
| Licence cost | Use licences you already own. No new Oracle licence fee. | Oracle licence bundled into hourly/monthly pricing (OpEx). |
| Oracle support | You pay annual support to Oracle separately (~22% of licence value). | Included in service cost. Eligible for Support Rewards credits. |
| Upfront investment | High if purchasing new licences ($47,500/processor for DB EE). | Zero — pay as you go. |
| Ideal use case | Long-term, steady-state production. Existing licence investments. | Short-term projects, dev/test, uncertain demand. |
| WebLogic availability | Yes — all WebLogic editions supported. | Not available — WebLogic has no licence-included option on Azure. |
| Compliance burden | Your responsibility to track and maintain. | Oracle manages the licence as part of the service. |
| 3-year TCO (8-vCPU DB EE) | ~$190,000 + $31,350/yr support = ~$284,000 | ~$120,000-150,000/yr = ~$360,000-450,000 |
| Break-even point | Typically 18-24 months. Beyond that, BYOL wins decisively. | |
Case Study — European Logistics Company
A European logistics provider used a hybrid approach: Database@Azure licence-included for 12 dev/test environments (spun up and down as needed), and BYOL for 8 production databases running 24×7. This hybrid model saved $1.4M per year compared to an all-BYOL approach that would have required purchasing 32 additional processor licences for environments used less than 4 months per year.
Oracle BYOL Cost Modelling Toolkit
Our free white paper includes a TCO calculator template for comparing BYOL vs licence-included across 1-year, 3-year, and 5-year horizons — with support cost modelling and Support Rewards projections.
Download White Papers →7. Oracle Database Licensing on Azure: Edition-by-Edition Guide
Choosing the right Oracle Database edition for each Azure workload is one of the highest-leverage decisions you can make. The licence cost difference between Enterprise Edition and Standard Edition 2 is enormous — and many organisations default to Enterprise Edition out of habit when SE2 would be perfectly adequate.
Enterprise Edition
No vCPU limit. You can use as many vCPUs as needed, licensing them all at the 2:1 ratio. List price: $47,500 per processor licence, plus ~$10,450/year in support. Enterprise Edition is required for any workload that needs Partitioning, RAC, Advanced Security, Diagnostics Pack, Tuning Pack, or other EE-only features. Each option/pack carries its own additional per-processor licence cost.
Standard Edition 2 (SE2)
Maximum 8 vCPUs in Azure (2 processor licences). List price: $17,500 per processor licence, plus ~$3,850/year in support. SE2 includes the full Oracle database engine but lacks advanced features like Partitioning, RAC, and Advanced Security. For workloads that don't need those features, SE2 can cut your licence cost by 60-70%. Read the full Oracle SE2 Licensing Guide for complete details on limitations and best practices.
Edition Comparison on Azure
| Feature | Enterprise Edition | Standard Edition 2 |
|---|---|---|
| Max vCPUs on Azure | Unlimited | 8 vCPUs |
| Licence price (list) | $47,500/processor | $17,500/processor |
| Annual support | $10,450/processor | $3,850/processor |
| Licence metric | 2 vCPUs = 1 licence | 4 vCPUs = 1 licence (per socket) |
| Partitioning | Available (+$11,500/proc) | Not available |
| RAC | Available (+$23,000/proc) | Not available |
| Advanced Security | Available (+$15,000/proc) | Not available |
| Diagnostics/Tuning Pack | Available (+$7,500/$5,000 per proc) | Not available |
| Best for | Large-scale, mission-critical, feature-rich | Small/medium databases, cost-sensitive workloads |
High Availability and Disaster Recovery
Oracle's licensing rules include a 10-day failover policy: a passive standby instance (e.g., Data Guard) can run on an unlicensed Azure VM for up to 10 cumulative days per year for testing or failover purposes. Beyond 10 days — or if the standby is active and serving read/write traffic — it must be fully licensed. In Azure, this means your DR VM can remain powered off or in recovery mode without a separate licence, but plan carefully for any scenario where it might be activated longer.
Multiple VMs. Each Azure VM running Oracle must be independently licensed — there is no licence pooling across VMs. Two VMs with 4 vCPUs each require 4 Enterprise Edition licences total (2 per VM), not 2.
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8. Oracle WebLogic Server Licensing on Azure
Oracle WebLogic Server is Java's leading enterprise application server, and its licensing on Azure follows the same fundamental vCPU rules — with some critical distinctions.
BYOL Only — No Licence-Included Option
All Azure deployments of WebLogic are Bring Your Own Licence only. There is no licence-included VM offer, no pay-as-you-go option, and no Database@Azure equivalent for WebLogic. If you need WebLogic on Azure, you must purchase licences from Oracle (or already own them). The only alternative for licence-included WebLogic is Oracle Cloud Infrastructure (OCI), which offers WebLogic instances on a subscription basis.
Licensing by Edition
WebLogic Enterprise Edition uses the same 2 vCPUs = 1 processor licence rule. An 8-vCPU Azure VM running WebLogic EE requires 4 processor licences. WebLogic Standard Edition uses per-socket licensing: up to 4 vCPUs counts as 1 socket (1 licence). Standard Edition lacks certain features like full multi-machine clustering.
WebLogic on Azure Kubernetes Service (AKS)
Some organisations containerise WebLogic and run it on AKS. The same licensing rules apply — the underlying worker nodes hosting WebLogic containers must be licensed based on their vCPU counts. There is no container-specific licensing exception. If an AKS node has 8 vCPUs and runs WebLogic containers, you need 4 WebLogic processor licences for that node.
Auto-scaling trap: If your WebLogic cluster auto-scales to instances larger than your licence pool covers — even temporarily — you are technically out of compliance. Implement Azure Policy restrictions on allowed VM SKU sizes and cap scale-out counts to stay within your licensed capacity.
For additional context on licensing Oracle middleware and enterprise applications on Azure, read our guide on running Oracle Enterprise Applications on Azure, covering E-Business Suite, PeopleSoft, and more.
9. Azure VMware Solution and Dedicated Hosts: The Licensing Traps
This section contains the most expensive mistake organisations make with Oracle on Azure. Read it carefully.
Azure VMware Solution (AVS): Not an Authorised Cloud
Oracle does not recognise Azure VMware Solution as an Authorised Cloud Environment for licence counting purposes. AVS runs VMware vSphere clusters inside Azure regions, and Oracle treats it exactly like any other VMware deployment: you cannot just count the vCPUs of a VM in AVS. Oracle's position is that you must licence every physical core in the entire AVS cluster — or have an unlimited agreement (ULA).
AVS can require 10-50x more licences than native Azure VMs. Example: A small Oracle Database VM using 4 vCPUs on a native Azure VM requires 2 processor licences ($95,000 list). The same VM deployed in an AVS cluster with 3 hosts (each with 18 physical cores = 54 total cores) could require licensing all 54 cores — that's 27 processor licences ($1.28M list). Same workload, same performance, 13.5x the licence cost. This is not hypothetical — we have seen multiple enterprises caught by this trap. For a detailed analysis of Oracle's VMware licensing position, see our guide to Oracle licensing in virtualised environments.
Azure Dedicated Hosts
Azure Dedicated Hosts provide a physical server dedicated to your organisation. Oracle treats dedicated hosts like on-premises hardware: you must licence the full host's vCPU capacity, not just the VMs running on it. A dedicated host with 64 vCPUs (32 physical cores with hyper-threading) requires 32 Enterprise Edition processor licences — even if your Oracle VM only uses 8 vCPUs. The standard Azure shared VM model is always more licensing-efficient for Oracle.
Deployment Model Comparison
| Deployment Model | Oracle Licence Requirement (DB EE, 8 vCPUs used) | Estimated Licence Cost |
|---|---|---|
| Native Azure VM (8 vCPUs) | 4 processor licences | $190,000 |
| Database@Azure (Exadata) | Licence included in service pricing | Pay-as-you-go |
| Azure Dedicated Host (64 vCPUs) | 32 processor licences (full host) | $1,520,000 |
| AVS (3-host cluster, 54 cores) | 27+ processor licences (all cluster cores) | $1,282,500+ |
Recommendation: For Oracle workloads, stick to native Azure VMs or Oracle Database@Azure. Avoid AVS and Dedicated Hosts unless you have a ULA that explicitly covers cloud deployments, or you're prepared for the full licensing load. For more on Oracle's Hyper-V position (which also applies to Azure's underlying infrastructure), see our guide on Oracle licensing compliance on Hyper-V.
Oracle Virtualisation Licensing Risk Assessment
Our white paper covers VMware, Hyper-V, AVS, and container licensing rules — with decision trees, cost comparison models, and audit preparation checklists for virtualised Oracle deployments.
Browse White Papers →10. Key Cost Considerations and Common Pitfalls
Oracle licensing on Azure can save money or cost dramatically more than on-premises, depending entirely on how you manage licences. Here are the critical pitfalls and how to avoid them.
Over-Licensing
Wrong edition. Using Enterprise Edition out of habit when Standard Edition 2 would suffice. With SE2 at $17,500/processor vs EE at $47,500/processor, this mistake costs $30,000 per processor — and adds $6,600/year in excess support. Across a fleet of databases, this adds up to hundreds of thousands.
Excess vCPUs. Provisioning 16-vCPU VMs for workloads that only need 8. Every unnecessary pair of vCPUs costs $47,500 in EE licence value plus $10,450/year in support. Right-sizing VMs is the single highest-return optimisation activity.
Unused options and packs. Oracle Database options (Partitioning, Advanced Security, Diagnostics Pack, Tuning Pack) must be licensed per processor if enabled — even if rarely used. A single enabled option on a 16-vCPU VM can add $92,000+ in licence costs. Audit your databases for enabled options and disable anything not actively required.
Under-Licensing and Compliance Gaps
vCPU miscounts. The most common audit finding. Administrators who think "8 vCPUs = 8 cores, times 0.5 Core Factor = 4 licences" get the right answer by accident — Core Factor doesn't apply in Azure. Others who think "I have 4 physical cores, so I need 4 licences" may overcount. Always use the exact formula: vCPUs ÷ 2 = licences (with hyper-threading).
Constrained-core misunderstanding. Oracle counts the VM SKU's stated vCPU capacity, not the number of active cores. If you use a VM that has 8 vCPUs but only activates 4, Oracle still counts 8 — unless you're using an official constrained-core SKU where the vCPU count in the SKU itself is lower.
VM resizing drift. Cloud makes it easy to resize VMs. If someone temporarily scales an Oracle VM from 8 to 16 vCPUs during a spike, that's a compliance gap for the duration — and Oracle audits examine evidence over time. Implement Azure Policy to restrict allowed VM sizes for Oracle-tagged resources.
Support Cost Blindspot
Moving to Azure does not eliminate Oracle support fees under BYOL. You continue paying ~22% of licence value annually. This is a recurring cost that many organisations overlook in TCO calculations. For strategies on managing Oracle support costs — including third-party support options — read our guide on maintaining Oracle licence compliance on third-party support.
Case Study — Global Financial Services Firm
A global financial services company deployed Oracle Database on Azure VMware Solution, assuming the same vCPU counting rules applied as native Azure VMs. An Oracle audit flagged the AVS deployment, asserting that all physical cores across the 5-host cluster (90 cores total) required licensing — generating a $4.2M compliance claim. We helped them migrate to native Azure VMs within 90 days, reducing their licence requirement by 85% and negotiating the audit claim down to $380,000 in additional licence purchases.
Don't Wait for an Audit — Get Proactive
Our Oracle Contract Negotiation service helps you secure explicit cloud use rights, favourable vCPU counting terms, and audit protections in your Oracle agreements — before problems arise.
11. 8 Strategies to Optimise Oracle Licensing on Azure
These are the specific, actionable strategies we recommend to every client migrating Oracle to Azure. Together, they typically reduce Oracle Azure costs by 30-50%.
- Inventory and assess before migration. Conduct a thorough inventory of your Oracle licences — editions, quantities, options, and support status — and map them to your planned Azure deployment. Determine which workloads truly need Enterprise Edition and which can use SE2. Identify unused licences that Azure could repurpose. This assessment alone typically uncovers 15-25% in wasted spend.
- Right-size VMs with constrained-core instances. Choose Azure VM sizes that meet performance needs without excess vCPUs. Memory and I/O throughput are often more critical for databases than CPU cores. Use Azure's constrained-core VM SKUs (e.g., E-series memory-optimised VMs) to get high memory with fewer licensable vCPUs. A 4-vCPU high-memory VM instead of an 8-vCPU VM cuts your licence requirement in half.
- Evaluate SE2 for every workload. Don't default to Enterprise Edition. For databases under 8 vCPUs that don't need Partitioning, RAC, or Advanced Security, Standard Edition 2 saves 60-70% on licence and support costs. We frequently find that 30-50% of an organisation's Oracle databases can run on SE2.
- Use Database@Azure for short-term workloads. For development, testing, training, and proof-of-concept environments, licence-included services avoid the capital expense of permanent licences. Spin up, use, shut down — and stop paying. Reserve BYOL for steady-state production.
- Leverage Oracle's Support Rewards programme. For every dollar spent on Oracle services through Database@Azure (which counts as Oracle Cloud consumption), you earn 25-33% back as credits against Oracle support fees. If you're spending $500K/year on Oracle support, running some workloads on Database@Azure could earn $75K-125K/year in support credits. Model this against your total Oracle spend.
- Monitor and enforce licence-aware policies. Use Azure Policy to restrict allowed VM SKU sizes for Oracle-tagged resources. Set up Azure Monitor alerts for any Oracle VM that exceeds licensed vCPU thresholds. Implement auto-shutdown schedules for non-production Oracle VMs to limit licence exposure.
- Stay informed on Oracle policy changes. Oracle's cloud licensing policies evolve — Google Cloud was only officially added in 2024. Subscribe to updates, track Oracle's policy documents, and verify the latest rules before making deployment decisions. Negotiate explicit cloud use rights into your Oracle contracts so you're not dependent on a policy that Oracle can change unilaterally.
- Document everything for audit readiness. Maintain a clear record of Azure VM sizes, vCPU counts, licence allocations, edition choices, and enabled options. Map each licence to a specific Azure deployment. This documentation is invaluable during an Oracle audit and prevents the "scramble" that leads to overpayment under pressure.
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Browse White Papers →Ready to Optimise Your Oracle Azure Deployment?
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