Oracle on AWS: Minimum License Requirements (Per-Core and Per-User Explained)

Oracle on AWS: Minimum License Requirements

When licensing Oracle products on AWS, Oracle applies minimum requirements similar to those enforced for on-premises deployments. Understanding these minimums is crucial to staying compliant and avoiding unexpected costs.

Here’s a concise breakdown of these requirements, explained with straightforward examples.

Read Oracle on AWS Licensing FAQs 2 of 4

Processor License Minimums (Per-Core Licensing)

Oracle processor licenses cannot be split or purchased fractionally—there is always a minimum licensing requirement of one full processor per Oracle’s cloud policy:

• If hyper-threading is enabled (default on AWS):
  • 2 AWS vCPUs = 1 Oracle Processor license
• If hyper-threading is disabled:
  • 1 AWS vCPU = 1 Oracle Processor license

This means even the smallest AWS instances must be licensed as if you have at least one full Oracle processor.

Example:

• AWS EC2 instance with one vCPU (hyper-threading off):
  • It requires one full processor license (no fractional license is available).
• AWS EC2 instance with two vCPUs (hyper-threading on):
  • Requires one full processor license.

You cannot license a half-processor or a fraction of one—Oracle always rounds up to at least one full processor.

Named User Plus (NUP) Minimums

Oracle also enforces minimum user licensing (Named User Plus) on AWS, which is consistent with on-premises requirements. Oracle’s standard minimums:

• Enterprise Edition Database: Minimum of 25 Named Users per Processor licensed.
• Standard Edition 2 (SE2): Minimum of 10 Named Users per 8 vCPUs (equivalent to 10 NUP per 2 SE2 processor licenses, as each SE2 processor covers up to 4 vCPUs).

Example (Enterprise Edition NUP):

• EC2 instance with two vCPUs (1 processor license):
  • A minimum of 25 Named User licenses is required, even if fewer actual users.
• EC2 instance with four vCPUs (2 processor licenses):
  • A minimum of 50 Named User licenses is required.

Even if only a handful of users access the database, these minimums must be met.

Oracle Application Licensing (E-Business Suite, PeopleSoft, etc.)

Oracle application products are typically licensed per named user, employee, or specific business metrics. These user-based metrics remain unchanged when moving to AWS:

• If the employee count licenses an Oracle E-Business Suite module:
  • Regardless of AWS migration, you must maintain sufficient licenses to match your employee base.
• AWS does not change or reduce these user-based minimums.

The minimum license rules primarily affect Oracle technical products (databases, middleware), not standard Oracle applications.

Universal Cloud Credits and BYOL on AWS

When using Oracle’s BYOL (Bring Your Own License) on AWS, no AWS-specific minimum user or processor counts are enforced beyond Oracle’s standard minimums. Universal Cloud Credits are primarily relevant to OCI (Oracle Cloud Infrastructure), and don’t affect minimum licensing for AWS deployments.

Ensure you adhere to Oracle’s standard on-premises minimum license requirements for processors and users.

Licensing Minimums in Virtual Environments (AWS EC2)

When deploying Oracle databases or middleware on AWS EC2, remember the following clearly defined minimums:

• Processor licensing: Always round up to at least one processor license per deployment.
• Named User Plus (NUP) licensing: Always respect the minimum user count per processor:
  • Even if fewer users access the database, Oracle’s required minimum still applies.

Example Scenario (Clearly Illustrated):

• A small EC2 instance (e.g., t3.medium, 2 vCPUs with HT enabled):
  • Requires one processor license minimum (2 vCPUs ÷ 2).
  • If using NUP licensing instead:
    • It still requires a minimum of 25 named users, regardless of actual users (even if only 5 actual users).

Read Oracle Licensing on Amazon RDS for Oracle.

Practical Licensing Examples: Minimums on AWS

Licensing Checklist: Oracle Minimums on AWS

✅ Minimum 1 Processor license for any Oracle product deployment on AWS.
✅ Minimum Named User requirements (25 NUP per processor EE, 10 NUP per 8 vCPUs SE2).
✅ No fractional licenses permitted—always round up to at least one full processor.
✅ User-based Oracle apps licensing is unchanged by AWS (per user, employee count remains constant).
✅ Document processor and user licenses for compliance audits.

Common Misunderstandings Clarified

• Misconception: “Small AWS instances can use fractional processor licenses.”
  • Truth: Oracle always requires at least one full processor license.
• Misconception: “Using fewer than 25 users means fewer Named User licenses.”
  • Truth: Oracle’s minimum 25 Named Users per processor rule applies, regardless of the number of users.
• Misconception: “AWS deployments are exempt from Oracle’s minimum licensing.”
  • Truth: AWS requires adherence to the same Oracle minimum licensing rules as on-premises.

Conclusion: Oracle Minimum License Requirements on AWS Explained

Oracle’s minimum license requirements apply consistently to AWS environments, just as they do on-premises:

• Always license a minimum of one full Oracle processor.
• Always respect minimum Named User Plus licensing (25 per processor for EE, 10 per 8 vCPUs for SE2).

Understanding these minimums ensures you remain compliant, avoid unexpected costs, and properly license your Oracle deployments on AWS.

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