Oracle Partitioning Policy – Oracle Sub Capacity Licensing Rules

Oracle Partitioning Policy

• Defines which virtualization technologies are approved to limit Oracle software licenses.
• Differentiates between hard and soft partitioning.
• Hard partitioning is allowed for sub-capacity licensing; soft partitioning is not.
• It is not legally binding but an advisory guideline for Oracle customers.

What is the Oracle Partitioning Policy Document?

The Oracle Partitioning Policy Document is a key guideline that defines which virtualization technologies are allowed for sub-capacity licensing of Oracle software.

It explains when and how to license only a part of your server rather than the entire server or cluster. This document is crucial for anyone who wants to manage Oracle licensing costs effectively.

Here’s what the partitioning policy covers:

• Sub-Capacity Licensing: This licensing model requires you to pay only for the processors allocated to the Oracle software instance, not the entire server or pool. This can be a significant cost saver if your workloads don’t require a full server.
• Types of Partitioning: Oracle differentiates between hard and soft partitioning technologies. Each type has different licensing implications, which we’ll discuss further.
• Oracle’s Decision: Oracle has the final say on which technologies it deems acceptable for partitioning. The policy document outlines These approved technologies clearly, which helps customers know their options.

Understanding the details of this policy can help you avoid unexpected licensing costs. Let’s examine the specifics of hard and soft partitioning.

What is Hard Partitioning in Oracle?

Hard Partitioning refers to Oracle-approved technologies that physically limit the number of processors or cores available to an Oracle instance.

Oracle recognizes this form of partitioning as a valid method of limiting the number of software licenses required for a server or cluster.

Here’s a detailed breakdown:

• Hard Partitioning Basics: Hard partitioning means configuring a server to restrict Oracle software to a fixed set of physical resources. For example, if you use hard partitioning to dedicate two processors to an Oracle Database, you only need to pay for those two processors.
• Approved Technologies: Not every partitioning technology qualifies as hard partitioning. Oracle has approved a select list of technologies that meet its criteria for hard partitioning, and it’s important to strictly adhere to Oracle’s guidelines. Incorrect configurations can lead to Oracle requiring licenses for the entire server or cluster, which can be costly.

List of Approved Hard Partitioning Technologies

Oracle allows the following technologies for hard partitioning. To benefit from sub-capacity licensing, use one of these approved technologies and configure them as instructed:

The key here is that all approved hard partitioning technologies must be configured to cap or limit the maximum number of cores or

Examples:

• Solaris Zones: If you’re using Solaris Zones and cap the resources allocated to an Oracle instance, Oracle will recognize this as a hard partition, and you can license only those capped resources.
• IBM LPAR: When using LPAR, the dynamic partitioning capabilities must be configured to cap usage; otherwise, Oracle may not accept it as hard partitioning.

What is Oracle Soft Partitioning?

Soft Partitioning is another category of virtualization that Oracle does not recognize as a valid way to limit licensing. If you use a virtualization technology that Oracle classifies as soft partitioning, you may need to license all physical hosts involved rather than just the resources allocated to Oracle software.

Here’s what you need to understand about soft partitioning:

• Definition: Soft partitioning involves technologies that cannot bind Oracle software strictly to a set of physical processors or cores. Instead, the resource allocations are flexible, meaning they can change dynamically without hard boundaries.
• Oracle’s Standpoint: According to Oracle, unless explicitly approved as hard partitioning, any virtualization technology falls under the category of soft partitioning. The implication is significant: you cannot use soft partitioning to limit the number of Oracle licenses required. You must license all processors on all physical hosts in the cluster.
• Examples of Soft Partitioning:
  • VMware ESXi: One of the most common examples. If you use VMware to run Oracle workloads, Oracle requires that all physical hosts in the cluster be licensed, not just the ones on which Oracle runs
  .Microsoft Hyper-V: Similar to VMware, Oracle considers Hyper-V
  • a soft partitioning method, thus requiring licensing for all physical resources.
  Quote from Oracle’s Partitioning Policy Document:“Unless explicitly stated elsewhere in this document, soft partitioning (including features/functionality of any technologies listed as examples above) is not permitted as a means to determine or limit the number of software licenses required for any given server or cluster of servers.”

Practical Example: Imagine you have a VMware cluster with ten hosts. Even if you configure Oracle Database to use only one of those hosts, Oracle’s soft partitioning rule requires you to license all ten hosts. This can lead to significantly higher licensing costs than hard partitioning.

Non-Contractual Nature of the Oracle Partitioning Policy

It is very important to understand that Oracle’s Partitioning Policy Document is not a legally binding contract. At the bottom of the document, Oracle explicitly states that it is for educational purposes only and does not form part of any contractual commitment.

Here’s the disclaimer from the document:

“This document is for educational purposes only and provides guidelines regarding Oracle’s policies in effect as of February 14, 2022. It may not be incorporated into any contract and does not constitute a contract or a commitment to any specific terms. Policies and this document are subject to change without notice. This document may not be reproduced in any manner without the express written permission of Oracle Corporation.”

What this means for customers is:

• Informative, Not Binding: The Partitioning Policy Document helps inform customers about how Oracle interprets partitioning and virtualization technologies for licensing. However, it doesn’t weigh the same as an actual licensing agreement.
• Contracts Take Precedence: Your Oracle licensing contract ultimately governs your use of Oracle software. If there is any discrepancy between the policy document and your contract, the contract will prevail.
• Policy Changes: Oracle can change the partitioning policy at any time without notice. This means staying updated with the latest version is crucial to avoid unpleasant surprises.

Practical Advice: If you plan to use any partitioning technology for Oracle workloads, it’s best to consult with a licensing expert or Oracle directly. Ensure that you comply based on your specific licensing agreement and not rely on the policy document, which is subject to change.

How to Challenge Oracle’s Position

Navigating Oracle’s licensing position can be tricky, but it is possible to challenge Oracle’s claims, especially around partitioning policies and virtualization.

Here are some key points to consider:

• Non-Contractual Document: The Partitioning Policy Document is not contractual. It is not part of any contract you have signed with Oracle, and no official hyperlink connects your licensing agreements to this policy document. This means Oracle cannot legally enforce this document as a part of your licensing terms.
• Oracle’s Policy vs. Customer Contracts: Just because Oracle publishes a policy on its website, does it mean it overrides what’s in your contract? No. This question is still a gray area in many scenarios. The policies are just guidelines, but what matters is what is explicitly defined in the signed contracts. Interpreting your contract’s partitioning policy and the Oracle license definitions can lead to drastically different license counts and costs.

Read about Oracle soft vs Hard Partitioning.

Oracle’s Contractual License Definition

During an Oracle audit, their audit team, known as Oracle LMS (License Management Services), will typically refer to the Oracle Master Agreement (OMA) for licensing definitions.

Here’s how to navigate this process effectively:

• Oracle OMA and Schedule P govern the rights granted to customers when using Oracle software. Upon Oracle accepting your order, the OMA gives you a non-exclusive, non-assignable, royalty-free, perpetual right to use the software for your internal business needs.
• Processor Definition: According to Oracle, a Processor is defined as all processors where the Oracle software is installed and/or running. This definition in the OMA does not reference the partitioning policy document for guidance on counting licenses in virtual environments. Hence, you are only obligated to license processors running Oracle software.
• Partitioning Policy Document: Despite the clarity in the contract, Oracle LMS often uses the Partitioning Policy Document as a guide to determine licensing requirements. This is where confusion arises. To counter this approach, we suggest:
  • Document Usage: Maintain records showing you are not using unlicensed Oracle hosts to run Oracle environments. Documenting your infrastructure and usage will help build an effective audit defense strategy, especially if you run Oracle in virtualized environments like VMware.

Oracle Partitioning Policy FAQ

What is Oracle’s Partitioning Policy? Oracle Partitioning Policy defines approved virtualization technologies that determine whether customers can limit the licenses for Oracle software.

Is the Oracle Partitioning Policy legally binding? No, it is not. It is a guideline and not part of any official contract with Oracle.

What is the difference between hard and soft partitioning? Hard partitioning is Oracle-approved for limiting licenses, while soft partitioning cannot be used to determine or reduce licensing requirements.

Which technologies qualify as hard partitioning? Technologies like Oracle OVM, IBM LPAR, and Solaris Zones qualify as hard partitioning if properly configured.

Does Oracle recognize VMware for partitioning? No, Oracle classifies VMware as soft partitioning, meaning all physical hosts in a VMware cluster must be licensed.

What is sub-capacity licensing? Sub-capacity licensing means licensing only part of the server resources dedicated to running Oracle software instead of the entire server.

How does Oracle treat soft partitioning? Oracle does not recognize soft partitioning as a way to limit licenses, requiring customers to license all hosts where Oracle software can potentially run.

Can Oracle change the Partitioning Policy? Yes, Oracle can change the Partitioning Policy without prior notice, as it is not part of any binding contract.

Why does Oracle differentiate between partitioning types? Oracle differentiates between hard and soft partitioning to limit which technologies can be used for sub-capacity licensing.

Does the Partitioning Policy apply to all Oracle customers? The policy is intended for all customers, but its use depends on specific contracts and whether Oracle has approved your technology as a hard partition.

Can I use Oracle’s Partitioning Policy in an audit defense? You can use it as a reference, but since it is not legally binding, your actual contract terms hold greater importance during an audit.

What should I do if Oracle challenges my partitioning? Maintain detailed documentation on your environment, adhere to Oracle-approved hard partitioning configurations, and consult a licensing expert.

Is Oracle OVM still supported for partitioning? Oracle OVM is supported and qualifies as an approved hard partitioning technology if configured according to Oracle’s requirements.

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