Oracle Licensing

Oracle Unlimited License Agreements (ULAs) and AWS: How They Work and Key Considerations

Oracle Unlimited License Agreements (ULAs) and AWS

Oracle Unlimited License Agreements (ULAs) and AWS

Oracle Unlimited License Agreements (ULAs) provide organizations with unlimited usage rights for specific Oracle products during a defined term. However, using ULAs with AWS deployments introduces unique challenges and considerations that must be managed proactively to avoid costly surprises.

This article provides clear guidance and best practices for using Oracle ULAs with AWS effectively.

Read Oracle on AWS Licensing FAQs 2 of 4


1. Using Oracle ULAs on AWS During the Agreement Term

Whatโ€™s Allowed:

  • Oracle ULAs typically allow unlimited deployment of specified Oracle products (e.g., Oracle Database Enterprise Edition) on any infrastructure during the active ULA term.
  • Oracleโ€™s standard policy explicitly permits ULAs to be utilized within Authorized Cloud Environments such as AWS, Azure, and Google Cloud.

Practical Example:

  • If you have a ULA for Oracle Database EE:
    • During the ULA term, you can freely scale up deployments on AWS without incurring additional licensing costs.

Why It Matters:

  • Using ULAs on AWS provides the flexibility to scale Oracle deployments rapidly without incremental license expenses during the agreement.

2. Certification Exclusion: AWS Instances Not Counted at ULA End

Common Pitfall:

  • Oracle does not allow counting AWS deployments toward the perpetual license certification at the end of a standard ULA agreement.

What This Means Practically:

  • When the ULA ends, you must declare usage to convert to perpetual licenses.
  • AWS-based instances must typically be excluded from this perpetual license count under standard Oracle terms.

Example Scenario:

  • Organization heavily deploys Oracle EE databases on AWS under ULA:
    • At the ULA end, they attempt certification and discover that AWS instances cannot be included in perpetual license counts.
    • Result: Unexpected licensing shortfall on AWS after ULA expires.

How to Avoid:

  • Carefully plan AWS usage under ULAs, knowing standard Oracle terms exclude cloud deployments from final counts.

3. Negotiating Cloud-Inclusive ULAs

Recommended Action:

  • Explicitly negotiate cloud-inclusive terms with Oracle before signing the ULA to allow AWS-based deployments to count toward perpetual license certification.

Practical Example:

  • Before entering a ULA, negotiate with Oracle:
    • Obtain explicit language in the ULA agreement,ย including AWS (or other cloud) deployments in the certification count.
  • This ensures that AWS usage under the ULA is recognized as perpetual after the agreement ends.

Why It Matters:

  • Prevents costly surprises at ULA certification by ensuring your AWS deployments become perpetual licenses.

Read Using Oracle ULAs on AWS


4. Document AWS Usage Clearly During the ULA Term

Even though AWS deployments may not count toward standard ULA certification, clearly documenting all AWS-based Oracle deployments during the ULA period is essential.

Reasons to Document AWS Deployments:

  • Provides clear records for capacity planning and internal cost management.
  • Useful if the ULA is extended, renegotiated, or audited by Oracle.
  • Demonstrates proactive compliance management during Oracle license reviews.

Practical Example:

  • Maintain detailed records:
    • AWS instances and vCPU counts running Oracle EE under ULA.
    • Usage trends (scale-up/down) during the ULA term.
    • Record Oracle usage rights during the ULA period.

Why It Matters:

  • Good documentation supports your position during Oracle audits or ULA renegotiations.

5. Post-ULA Compliance: Planning for AWS Licensing After the Agreement Ends

Ending a ULA without accounting for AWS licensing is a significant compliance risk.

Common Pitfalls:

  • Assuming AWS deployments under a ULA become automatically perpetual licenses (they typically do not).
  • Not planning for AWS licensing costs after ULA certification.

Recommended Strategies:

  • Plan for the AWS licensing scenario at ULA termination:
    • Consider reducing AWS-based Oracle deployments to manageable levels before ULA ends.
    • Budget and procure additional licenses specifically for AWS usage after ULA expiration.
    • Negotiate a follow-up cloud-specific ULA or subscription licenses post-ULA term.

Practical Example:

  • After standard ULA ends:
    • Certified 100 processor licenses for on-prem Oracle Database EE.
    • However, AWS instances require additional licenses (not covered due to standard certification exclusions).
    • Immediately purchase or allocate licenses for AWS deployments or risk compliance issues.

Why It Matters:

  • Proactively planning AWS licensing post-ULA prevents expensive compliance gaps.

Practical Summary: Oracle ULAs and AWS Licensing

Key ConsiderationStandard Oracle ULA TermsRecommended Best Practice
ULA Usage During TermUnlimited deployment on AWS permittedDocument all AWS deployments during the ULA term.
Certification at ULA EndAWS deployments typically excluded from perpetual countNegotiate cloud-inclusive ULAs upfront.
Negotiation OpportunityDefault terms exclude AWS deploymentsObtain explicit cloud-inclusive terms in ULA.
AWS DocumentationNot required for certification, but critical for auditDocument all AWS deployments during the ULA term.
Post-ULA ComplianceAWS deployments require new licenses post-ULAPlan and budget proactively for AWS licensing after ULA expiration.

ULA Compliance Checklist for AWS Deployments

โœ… Understand Oracleโ€™s default ULA terms regarding cloud deployments (AWS is typically excluded from final certification).
โœ… Explicitly negotiate cloud-inclusive language in your ULA if planning significant AWS usage.
โœ… Document all AWS Oracle deployments during the ULA term, even if excluded from certification.
โœ… Strategically manage AWS usage toward the end of the ULA term to avoid licensing shortfalls post-certification.
โœ… Plan proactively for AWS license procurement post-ULA expiration if cloud-inclusive terms were not negotiated.


Common Misunderstandings Corrected

  • Misconception: “Oracle ULA covers unlimited AWS deployments permanently.”
    • Reality: Standard Oracle ULA excludes AWS deployments from perpetual license certification.
  • Misconception: “No need to document AWS usage under a ULA since it doesnโ€™t count toward certification.”
    • Reality: Always document AWS usage for internal management and potential Oracle audits.
  • Misconception: “Cloud-inclusive ULA terms are standard.”
    • Reality: Cloud-inclusive terms must be explicitly negotiated into the ULA.

Read How to Ensure Oracle License Compliance on AWS and Avoid Audit Issues.


Conclusion: Managing Oracle ULAs Effectively with AWS Deployments

Understanding how Oracle ULAs interact with AWS deployments ensures compliance and prevents unexpected licensing issues at ULA certification. Clearly documenting AWS usage, negotiating cloud-inclusive terms, and proactively planning for post-ULA scenarios provide a solid framework for leveraging Oracle ULAs effectively in AWS environments.

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Author
  • Fredrik Filipsson has 20 years of experience in Oracle license management, including nine years working at Oracle and 11 years as a consultant, assisting major global clients with complex Oracle licensing issues. Before his work in Oracle licensing, he gained valuable expertise in IBM, SAP, and Salesforce licensing through his time at IBM. In addition, Fredrik has played a leading role in AI initiatives and is a successful entrepreneur, co-founding Redress Compliance and several other companies.

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