Oracle licensing

Oracle Term License: Benefits and Key Information

What is an Oracle TERM License?

An Oracle term license is:

  • A license for Oracle software.
  • Only available for certain Oracle technology products.
  • Valid for one year.
  • Both license and support expire after this period.
  • It cannot be renewed; it requires a new purchase afterward.

What is an Oracle Perpetual License?

A perpetual license from Oracle gives you the right to continuously use a particular software version without expiration. In other words, the license does not expire.

Introducing the Oracle TERM License

oracle term license

Oracle’s TERM license is a specific offering that allows users to use Oracle software for a limited duration—precisely one year.

Once this period concludes, both the license and its associated support end. Contrary to some licensing models, you can’t renew an expired TERM license.

Instead, you must acquire a new license and support.

  • License Term: This dictates the user’s software usage span. The term license lasts explicitly for one year.
  • Perpetual License: Offers users an ongoing right to use the license.
  • Changes in Term License Offerings: Starting September 1, 2020, Oracle has stopped offering term licenses for all on-premise software, with the sole exception being certain Oracle Technology products. These are now available for a 1-year term only.
  • Pricing Insights: The cost of a term license is a fraction of the list price of a perpetual license. For instance, Oracle Advanced Security’s one-year term is pegged at 20% of its perpetual counterpart’s price.
  • Support Costs: A key point to remember is that the support fee for term licenses is 22% of the list price of the perpetual license, not 22% of the TERM License Fee.

Benefits and Applicability of Oracle TERM License

Here’s when opting for an Oracle TERM license makes strategic sense:

  1. For Short-Term Compliance: If you momentarily find yourself non-compliant or without licenses, the term license is a cost-friendly alternative to the perpetual option.
  2. Transient Software Requirements: The TERM license is apt for needs like a brief migration phase.
  3. Following an Oracle Audit: In scenarios where Oracle’s audit highlights license anomalies, procuring a term license is a frequently favored remedy.

FAQs on Oracle TERM Licenses

How does a term license differ from a perpetual one?

While a perpetual license grants indefinite software use, a term license is valid for just one year.

Is Oracle still rolling out term licenses for all its software?

Since September 1, 2020, Oracle has discontinued term licenses for all on-premise software, barring a few select technology products, which are now limited to a one-year term.

Armed with this knowledge, you’re better positioned to make informed decisions about the Oracle term license and how it can be integrated into your organizational software strategy.

For further insights or assistance, we’re here to help!

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, enhancing organizational efficiency.

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