Oracle ULA

Oracle ULA to Cloud – A Simplified Guide

Introduction to Oracle ULA to Cloud

  • Oracle Unlimited License Agreements (ULAs) allow customers to deploy unlimited quantities of specific Oracle products. However, complications arise when non-ULA software is mistakenly deployed.
  • The end of an Oracle ULA involves an audit phase, where deployment information is verified. If non-ULA software is found, customers must pay for new licenses or sign a new ULA.
  • This article presents three contractual solutions to manage public cloud deployments under Oracle ULAs, providing a simplified understanding of Oracle ULA to Cloud.

Oracle ULAs: The Basics and Challenges

Oracle ULA 2 Cloud

Oracle ULAs are contracts that grant customers the right to deploy unlimited quantities of specific Oracle products.

However, deploying non-ULA software can lead to issues during the audit phase at the end of the ULA.

Key Takeaway: Review your Oracle ULA contract and understand your “exit process” to avoid complications.

Oracle ULA 2 Cloud – The Conflict

Customers can deploy Oracle ULA software in any public cloud within their territory deployment during the Oracle ULA.

However, any deployments made in the third-party cloud cannot be counted towards your “exit numbers” when the Oracle ULA ends.

Contractual Solutions for Oracle ULAs and Public Cloud

Oracle ULAs and Public Cloud

1. No Public Cloud – Standard Option

Under this option, Oracle does not allow customers to count any deployments in a third-party cloud. This standard clause is found in about 90% of all Oracle ULA contracts.

Example: If you have deployed Oracle software in a third-party cloud during your ULA, these deployments will not be counted towards your “exit numbers” at the end of the ULA.

2. Last 365 Average – Option

Oracle allows customers to certify cloud deployments, but they can only count the average number of the last 365 days.

Example: If you have deployed Oracle software in the cloud throughout the year, you can only certify an average of these deployments. You may face compliance challenges if you have deployed a large amount of software in the last six months.

3. Restricted Use Option

Oracle allows customers to certify public cloud deployments, but those licenses are restricted to public cloud or on-premise software.

Example: If you have deployed Oracle software on-premise and in the cloud, you will have two sets of licenses post-Oracle ULA certification – one for on-premise and one for the cloud. This can create difficulty in managing your Oracle software post-ULA.

Recommendation: Review and negotiate your Oracle ULA or PULA contract’s certification clause before signing.

Conclusion and Recommendations

Oracle ULAs offer a lot of flexibility for deploying Oracle products. However, they also come with their own set of challenges, especially when it comes to cloud deployments. Understanding these challenges and the potential solutions can help avoid complications during the audit phase at the end of the ULA.

Key Takeaway: Negotiating the certification clause in your Oracle ULA or Oracle PULA contract can help manage these challenges. This clause deals with public cloud deployments and your exit strategy. By negotiating this clause, you may be able to avoid an audit from Oracle.

FAQ

What is an Oracle ULA?

An Oracle ULA (Unlimited License Agreement) is a contract that gives Oracle customers the right to deploy unlimited quantities of specific Oracle products.

What are the main challenges with Oracle ULAs?

The main challenges with Oracle ULAs arise when customers mistakenly deploy non-ULA software, leading to complications during the audit phase at the end of the ULA.

What happens when an Oracle ULA ends?

When an Oracle ULA ends, any deployments made in the third-party cloud cannot be counted toward your “exit numbers.” Customers are also contractually obliged to declare quantities for their Oracle ULA deployments.

What are the three contractual solutions for Oracle ULAs and Public Cloud?

The three solutions are:

  1. No Public Cloud – Standard Option: Oracle does not allow customers to count deployments in a third-party cloud.
  2. Last 365 Average – Option: Oracle gives customers the right to certify cloud deployments, but they can only count the average number of the last 365 days.
  3. Restricted Use Option: Oracle allows customers to certify public cloud deployments, but those licenses are restricted to public cloud or on-premise software.

What is the recommended approach before signing an Oracle ULA or Oracle PULA?

Reviewing and negotiating the certification clause before signing an Oracle ULA or Oracle PULA is recommended. This clause deals with public cloud deployments and your exit strategy. By negotiating this clause, you may be able to avoid an audit from Oracle.

What is the "Last 365 Average" option?

The “Last 365 Average” option allows your company to certify public cloud deployments and claim licenses at the end of the Oracle ULA. However, you can only certify an average of the past 365 days.

What is the "Restricted Use Option"?

The “Restricted Use Option” allows customers to certify public cloud deployments, but those licenses are restricted to public cloud or on-premise software. This can create difficulty in managing your Oracle software post-Oracle ULA.

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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