Oracle database licensing / Oracle Licensing

Oracle Named User Plus Licensing

  • Named User Plus (NUP) Licensing: A user-based model for Oracle databases.
  • Licenses are required for each user or device accessing the database.
  • Suitable for controlled environments like development, testing, or small production.
  • Minimum users per processor: 25 for Enterprise Edition, 10 per server for Standard Edition 2.
  • Tracks both human users and automated systems.

Oracle Named User Plus Licensing

Oracle Named User Plus (NUP) licensing is a user-based model that allows organizations to license Oracle software based on the number of individuals or devices accessing the database.

This licensing model is particularly suitable for environments with a countable and controlled user base, such as development, testing, or small production environments.

Under the NUP model, a “user” is defined as any end node that receives or creates data from an Oracle database.

This includes both human users and non-human-operated devices. For example:

  • Human users operating computers or mobile devices
  • Automated systems or servers that connect to the database
  • IoT devices or sensors that interact with the database

User Minimums

Oracle imposes minimum user requirements based on the database edition:

Enterprise Edition:

  • Minimum of 25 Named User Plus licenses per processor
  • Or the total number of users accessing the database, whichever is greater

Standard Edition 2:

  • Minimum of 10 users per server

Calculating Named User Plus Licenses

calculate user based licensing

Determining the correct number of NUP licenses requires thoroughly assessing all users and devices accessing the Oracle database. To calculate the required licenses, organizations must count:

  1. All human users who access the database directly or indirectly
  2. All non-human operated devices that connect to the database
  3. Any servers or systems that automatically pull data from the database

Even if the number of users is below the minimum, organizations must purchase licenses to meet the minimum requirement. For example, if a company has only ten users but uses Enterprise Edition on a single processor, they would still need to purchase 25 NUP licenses. The core factor must be applied when calculating processor counts for minimum user requirements. The core factor varies depending on the processor type:

  • Intel processors: 0.5
  • AMD processors: 0.5
  • Oracle SPARC processors: 0.25

Licensing Scenario Example

Let’s consider a practical example to illustrate how NUP licensing works:Scenario:
A company uses Oracle Database Enterprise Edition on a server with 8 Intel cores.

Its 20 employees access the database.

Calculation:

  1. Determine the number of Oracle processors:
    • 8 cores * 0.5 (Intel core factor) = 4 Oracle processors
  2. Calculate the minimum NUP licenses required:
    • 4 processors * 25 (minimum per processor) = 100 NUP licenses
  3. Compare with actual users:
    • Actual users: 20
    • Minimum required: 100
  4. Result: The company must purchase 100 NUP licenses to comply with Oracle’s licensing terms.

Benefits of Named User Plus Licensing

NUP licensing offers several advantages for certain types of organizations and use cases:

  • Cost-effective for small environments with a limited number of users
  • Allows organizations to pay for a specific number of users accessing the system
  • Scalable as an organization grows, easily adding more NUP licenses
  • Potentially negotiable minimums for small businesses or specific use cases

Licensing Considerations

When implementing NUP licensing, organizations should keep several factors in mind:

  • All devices connecting to the Oracle database must be licensed, including non-human-operated devices
  • In mixed-usage environments, all connections must be licensed accordingly
  • Multiplexing or pooling software does not reduce the number of licenses required
  • Regular auditing is necessary to maintain compliance and optimize costs

When to Choose Named User Plus Licensing

NUP licensing is most suitable in the following scenarios:

  1. Closed environments with an easily countable number of users
  2. Test and development environments with a limited and well-defined user base
  3. Small production environments with a stable and manageable user count
  4. Specific applications with a known user base

Potential Drawbacks of NUP Licensing

While NUP licensing offers many benefits, it also has some potential drawbacks:

  1. Complex user counting in large or dynamic environments
  2. Minimum license requirements may result in over-licensing for very small environments
  3. Limited flexibility as an organization grows, potentially necessitating a switch to processor-based licensing

Compliance and Auditing

Compliance with Oracle’s licensing terms is crucial to avoid penalties and unexpected costs. Organizations should:

  1. Implement robust user management systems to track all database access
  2. Regularly review and update user counts to ensure accurate licensing
  3. Use Oracle’s tools and reports to monitor user activity and verify compliance
  4. Conduct internal audits to identify any potential licensing gaps or over-licensing situations

Comparing NUP to Processor Licensing

To determine the most cost-effective licensing model, organizations should compare NUP licensing with processor-based licensing:

AspectNamed User PlusProcessor Licensing
BasisNumber of users/devicesNumber of processors
Ideal forThe large or uncountable user baseLarge or uncountable user base
ScalabilityEasy to add usersUnlimited users per processor
Cost predictabilityCan vary with user growthFixed cost per processor
ComplexityRequires user counting and trackingSimpler, based on hardware

Oracle Support and NUP Licensing

When purchasing NUP licenses, organizations should consider Oracle’s support services, including technical support, updates and patches, and version upgrades. Support costs are typically calculated as a percentage of the license fee and should be factored into the overall licensing budget.

By understanding the intricacies of Oracle Named User Plus licensing, organizations can make informed decisions about their database licensing strategy, optimize costs, and ensure compliance with Oracle’s terms and conditions.

FAQ: Oracle Named User Plus Licensing

What is Oracle Named User Plus (NUP) licensing?
NUP licensing is a model in which organizations pay based on the number of users or devices accessing the Oracle database rather than the number of processors.

Who counts as a user in NUP licensing?
A user is any human or non-human entity (like servers, IoT devices, or automated systems) that accesses or interacts with the Oracle database.

What are the minimum user requirements for NUP licensing?
For Oracle Enterprise Edition, the minimum is 25 NUP licenses per processor. For Standard Edition 2, there are ten users per server.

Can I use NUP licensing in a cloud environment?
NUP licensing can be used in cloud environments, but the same user counting and minimum licensing requirements apply.

How do I calculate NUP licenses for my organization?
Count all human users and devices accessing the database. You must purchase licenses to meet the required minimums per processor if the total is below the minimum.

How do core factors impact NUP licensing?
Core factors vary by processor type (e.g., 0.5 for Intel and AMD). You apply the core factor to calculate the number of processors you need for NUP licenses.

What happens if the number of users is less than the minimum requirement?
Even with fewer users, you must purchase enough licenses to meet the minimum requirements per processor or server.

Is NUP licensing more cost-effective than processor licensing?
NUP can be more cost-effective for environments with a small, controlled user base. However, processor licensing might be more efficient for large, unpredictable user counts.

What is the impact of multiplexing on NUP licensing?
Multiplexing (e.g., using application servers to pool connections) does not reduce the number of required licenses. All users and devices must still be counted.

Can NUP licenses be scaled easily as my business grows?
Yes, NUP licenses can be added as needed. However, switching to processor-based licensing may become more cost-effective if your user base grows too large.

What are the potential drawbacks of NUP licensing?
Tracking users in large or fluctuating environments can be complex. Minimum license requirements in small setups might lead to over-licensing.

How should I track and manage NUP licenses?
Implement a robust user management system to track all human and non-human database access. Regular audits help maintain compliance.

What happens if I don’t comply with Oracle’s NUP licensing terms?
Non-compliance can result in significant financial penalties during Oracle audits. It’s crucial to ensure accurate user tracking and correct licensing.

Is technical support included with NUP licenses?
Technical support is separate and calculated as a percentage of the NUP license cost. It covers updates, patches, and version upgrades.

When should I consider switching from NUP to processor licensing?
If your user base becomes too large or unpredictable, processor licensing may be simpler and more cost-effective.

Read more about our Oracle License Management Services.

Do you want to know more about our Oracle License Management Services?

Please enable JavaScript in your browser to complete this form.
Author
  • 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.

    View all posts