Oracle Licensing

Oracle Verrazzano Licensing and Pricing Guide

Oracle Verrazzano Licensing

Oracle Verrazzano Licensing and Pricing Guide

Oracle Verrazzano Enterprise Container Platform is Oracleโ€™s integrated, multi-cloud container management solution, and its licensing model is critical to understand for effective IT asset management.

This guide provides a clear overview of Oracle Verrazzano licensing and pricing โ€“ highlighting the processor-based subscription model, cost structure per CPU pair, required support subscriptions (including Oracle Linux), and practical tips to optimize costs.

ITAM professionals will gain actionable insights into compliance requirements, potential pitfalls, and strategies to ensure their enterprise stays both compliant and cost-efficient with Oracle Verrazzano.

What is Oracle Verrazzano?

Oracle Verrazzano is an enterprise container platform for deploying and managing containerized applications across on-premises, hybrid, and multi-cloud Kubernetes clusters.

It is built on open-source cloud-native technologies (Kubernetes, Istio, Prometheus, etc.) and is designed to simplify application lifecycle management for both microservices and traditional Java EE applications.

Key features of Oracle Verrazzano include:

  • Unified Management: A single platform to deploy, secure, and monitor microservices alongside traditional WebLogic or Coherence workloads.
  • Multi-Environment Support: Consistent operations across private data centers and public clouds (e.g. Oracle Cloud, AWS, Azure).
  • Built-in Security and Observability: Integrated service mesh (Istio) for traffic encryption and policy enforcement, plus logging and monitoring stacks (Prometheus/Grafana/OpenSearch) out-of-the-box.
  • Open Source Core with Enterprise Support: Verrazzanoโ€™s core is open source (Apache 2.0 license), but Oracle provides enterprise-grade support via subscription. This means organizations can adopt the technology freely, but Oracleโ€™s licensing comes into play when you seek official support and updates for production use.

Insight: From an ITAM perspective, treat Oracle Verrazzano as you would any Oracle middleware product โ€“ it may leverage open-source components, but usage in an enterprise setting requires careful license compliance if you plan to receive Oracleโ€™s support services.

The following sections outline how the licensing works, the associated costs, and guide how to avoid common pitfalls.

Licensing Model Overview

Oracle Verrazzano licensing is based on processor count โ€“ specifically, the physical CPUs in the Kubernetes cluster nodes where Verrazzano is deployed.

Unlike some Oracle products (e.g., databases) that offer Named User or per-core metrics, Verrazzano uses a subscription model per CPU pair.

Key points of the licensing model include:

  • Processor-Based Subscription: You must license every processor (CPU) across all nodes of all Kubernetes clusters where Verrazzano components or โ€œimagesโ€ are running. This ensures that any server participating in a Verrazzano-managed environment is accounted for.
  • Physical CPU Pair Metric: Oracle sells Verrazzano on an annual subscription basis, with each subscription covering a โ€œphysical CPU pair.โ€ In simple terms, each license subscription covers two physical CPU sockets. This is the minimum granularity โ€“ even a single CPU system requires a subscription for a 2-CPU pair (you cannot buy half a license).
  • Virtual Environments: In virtualized or cloud environments, the same counting principle applies, but Oracleโ€™s Partitioning Policy is used to determine the processor count. This means if youโ€™re running Verrazzano on VMs or cloud instances, you need to count CPUs according to Oracleโ€™s rules:
    • Oracle-Approved Partitioning: If you use Oracle-approved hard partitioning or Oracleโ€™s hypervisor tools (like Oracle Linux KVM with strict CPU pinning), you can count only the allocated vCPUs or cores as per the policy.
    • Soft Partitioning (e.g. VMware): Oracle generally requires licensing all physical cores in the host if the partitioning method is not Oracle-approved. Example: If a Kubernetes node is a VMware VM running on a 16-core host, Oracle may consider all 16 cores as licensable, unless the host is partitioned in a way that Oracle recognizes. ITAM teams must exercise caution when virtualizing โ€“ ensuring alignment with Oracleโ€™s partitioning policy to avoid compliance gaps.
  • Dedicated Admin Clusters โ€“ License Exemption: Oracle provides a helpful exemption for certain infrastructure nodes. Suppose you set up a dedicated Verrazzano administration cluster (a Kubernetes cluster that runs Verrazzanoโ€™s admin components only and no business application workloads). In that case, the processors in those admin-only nodes do not require a Verrazzano license. This means you can run the Verrazzano control plane separately without incurring license charges, as long as itโ€™s not running user application containers. This design can be a cost saver.
    • Example: A company might use a small 2-node cluster for Verrazzanoโ€™s admin console and operators, and a separate large 10-node cluster for actual applications. Only the 10-node application clusterโ€™s CPUs would need licensing, while the admin clusterโ€™s CPUs are exempt. Actionable Takeaway: Utilize an isolated admin cluster to minimize licensing costs โ€“ a best practice that Oracle explicitly recommends.

Insight: The licensing model is straightforward in concept (per CPU subscription) but has nuances in counting. IT asset managers should maintain an accurate inventory of all Kubernetes nodes where Verrazzano is installed, including tracking any cluster scaling or infrastructure changes.

As your Kubernetes environment expands (by adding nodes or clusters), your Oracle Verrazzano licensing requirements will also increase correspondingly.

Always apply Oracleโ€™s core factor and partitioning rules for virtual deployments to determine the accurate processor count for licensing purposes.

Pricing Structure and Cost Drivers

Oracle positions Verrazzano as a subscription-based product, meaning you pay annually for the right to use the software and receive support.

The pricing structure for Oracle Verrazzano is primarily driven by two key factors: the number of CPU pairs required for licensing and the level of support needed.

Hereโ€™s a breakdown:

  • Base Subscription Fee: The standard list price for an Oracle Verrazzano Premier Support subscription is approximately $26,500 per year for each physical CPU pair. This is a โ€œPremier Licenseโ€ fee, which includes the right-to-use license plus Oracleโ€™s Software Update License & Support for that year. In other words, $26.5k/year covers two CPUs worth of Verrazzano.
  • Scaling Costs (CPU Pair โ€œStackingโ€): If your deployment has more than two CPUs, you must purchase additional subscriptions for each additional pair of CPUs. The cost scales linearly:
    • 2 physical CPUs (minimum) โ€“ require 1 subscription ($26,500/year).
    • 4 physical CPUs โ€“ require 2 subscriptions (~$53,000/year).
    • 8 physical CPUs โ€“ require 4 subscriptions (~$106,000/year), and so on.
    • Example: An on-premises Kubernetes cluster with 6 physical CPUs total (across all nodes) would need 3 subscriptions. This covers the first two CPUs with one license, and the other four CPUs with two more licenses. No volume discount is built into the metric โ€“ itโ€™s a simple multiple of the base fee.
  • Understanding the โ€œPhysical CPU Pairโ€ Metric: Itโ€™s important to note that Oracleโ€™s definition of a CPU is typically per processor socket (for standard x86 servers) unless multi-chip modules are present. A โ€œpairโ€ means two sockets. If a server has a single CPU socket, that still counts as one pair (youโ€™d be paying for up to 2). If a server has four CPU sockets, thatโ€™s two pairs (requiring two subscriptions). The pricing model inherently assumes enterprise deployments on multi-socket servers, but even smaller configs must align to the 2-socket increment.
  • Oracle Linux Support Requirement: One often overlooked cost driver is the mandatory Oracle Linux support prerequisite. Oracle Verrazzano is only supported on Oracle Linux as the host OS, and Oracle requires that you also have Oracle Linux Premier Support (or equivalent) for each system running Verrazzano. Oracle Linux support is sold separately (at roughly $1,399 per 2-CPU system per year for Premier Support). This means in addition to the Verrazzano subscription cost, you should budget for Oracle Linux support on those machines. The cost of Oracle Linux support is much lower than Verrazzanoโ€™s, but itโ€™s not negligible if you have many servers. For example, 10 two-CPU servers would incur approximately $13,990/year in Oracle Linux support fees, in addition to Verrazzano license fees.
  • Support Renewal and Subscription Term: The $26.5k per CPU-pair is an annual subscription price. It includes technical support and rights to upgrades/patches during that year. After the year, you must renew the subscription (likely at a similar or inflated list price) to continue using Verrazzano legally and receiving support. If you choose not to renew, your right to use the software ends. This is a subscription model โ€“ there is no โ€œperpetual licenseโ€ concept here. So, ITAM should treat it as an ongoing operational expense rather than a one-time capital license.

To summarize the cost drivers and an example scenario, consider the following table for clarity:

Deployment ScenarioVerrazzano Subscriptions RequiredAnnual License Cost (List)Additional Oracle Linux Support
Small deployment (2 CPUs total)1 subscription (covers 2 CPUs)~$26,500~$1,399 (Premier Support for 2 CPUs)
Medium cluster (8 CPUs total)4 subscriptions (2 CPU pairs *4)~$106,000~$5,596 (Oracle Linux for 8 CPUs)
Large cluster (16 CPUs total)8 subscriptions~$212,000~$11,192 (Oracle Linux for 16 CPUs)
Note: Admin-only clusters are excluded from CPU count if no workloads.(This can reduce the required subscriptions)Cost savings by exclusionOracle Linux still needed for those admin nodes, but no Verrazzano fee

Table: Oracle Verrazzano licensing cost examples at list price (not including any discounts). Each โ€œPhysical CPU pairโ€ subscription is approx. $26.5k/year. Oracle Linux support costs are shown for completeness as a separate required component.

Insight: The pricing model can lead to significant costs as environments scale. However, enterprises can negotiate with Oracle for discounts, especially for large deployments or multi-year commitments.

Itโ€™s not uncommon to secure a better unit price per CPU pair if you are licensing dozens of CPUs or bundling Verrazzano into a larger Oracle agreement.

From an ITAM perspective, always engage procurement early to explore volume discounting or enterprise agreements (such as an Oracle ULA or cloud credit deals) that may mitigate the listed prices.

Support and Subscription Requirements

Every Oracle Verrazzano license is tied to an Oracle Premier Support subscription, and Oracle enforces mandatory support coverage on all licenses.

In practical terms, this means:

  • Premier Support is Not Optional: When you purchase Verrazzano, you are inherently buying it as a subscription that includes support. Oracle does not offer a license-only (unsupported) price for Verrazzano Enterprise โ€“ support is bundled and required from day one. All CPUs you license must be under continuous support.
  • Initial Minimum Support: Oracleโ€™s policy requires at least the first two CPUs (one subscription) to be under Premier Support at all times. This aligns with the base subscription model โ€“ essentially, if you have Verrazzano, you have at least one Premier Support subscription active.
  • Scaling Support for Additional CPUs: As your processor count grows and you procure additional license subscriptions for Verrazzano, each of those comes with its support fee (again, usually included in that $26.5k subscription price). There is no separate line item for support โ€“ itโ€™s integrated โ€“ but Oracle tracks support entitlement per CPU pair. If you have five subscriptions covering your environment, all 5 are expected to be under active support contracts. You cannot drop support on some and keep using the licenses โ€“ that would violate Oracleโ€™s terms.
  • Mandatory Support = Compliance Requirement: Running Oracle Verrazzano without a current support subscription (or letting it lapse) is considered non-compliant use of the software. Oracle can potentially audit and back-charge for periods where support was not maintained. For ITAM, this means renewing support on time or de-installing the software if you decide not to renew. There is no โ€œgrace periodโ€ for using Verrazzano beyond the subscription term.
  • Support Entitlements Included: With Premier Support for Verrazzano, customers receive:
    • 24/7 access to Oracle support for issue resolution.
    • Software updates, security patches, and new version upgrades for Verrazzano and its included components.
    • Entitlements to support for integrated open-source components (Oracle will support not just the Verrazzano code, but also bundled tech like Coherence CE, Helidon, etc., as part of the subscription).
    • Note: Oracleโ€™s Verrazzano Premier Support subscription notably covered support for a range of open-source frameworks (Helidon, Coherence Community Edition, Micronaut, etc.) as they are part of the Verrazzano platform. This adds value for enterprises that want a one-stop support for the whole stack.
  • Prerequisite: Oracle Linux Support: As mentioned earlier, Oracle Linux Premier Support (or an equivalent Oracle Linux support offering) is a prerequisite. This is not bundled with Verrazzano; you must have it separately. In effect, to receive support for Verrazzano, your environment must be running on Oracle Linux, and those Linux instances must also be under support. Be sure to account for this dual requirement in your IT asset records:
    • Verify that any server on which Verrazzano is installed has an active Oracle Linux support contract. Oracle will consider Verrazzano unsupported (and possibly not even allow purchase) if you donโ€™t have the underlying OS support.
    • Oracle Linux Premier Support provides access to patches (via ULN โ€“ Unbreakable Linux Network), Ksplice for live patching, and other complementary services, which enhance the Verrazzano support. This ensures that the entire stack, from OS to container platform, is covered.
  • Support Lifecycle Consideration: Oracle announced that Premier Support for Verrazzano Enterprise Container Platform will end on January 31, 2025, after which the product enters Sustaining Support (no new patches or enhancements, only access to existing fixes). For current users, this is crucial: while you can continue to renew support (likely at a similar cost) to get sustaining support, you should not expect new features beyond that date. Enterprises should plan accordingly โ€“ either to continue on sustaining support or consider alternative solutions for the future. (More on this in Recommendations.)

Insight: The mandatory support model means Oracle Verrazzano is sold much like a cloud service or subscription software โ€“ you pay as you go, and stopping payment means losing access to the rights.

ITAM professionals should ensure budget owners understand that Verrazzanoโ€™s cost is recurring annually and tied to support value (not a perpetual asset). Also, keep an eye on Oracleโ€™s support notices.

With Premier Support ending for Verrazzano, any further use should be aligned with your organizationโ€™s support strategy (perhaps shifting to Oracleโ€™s other cloud-native offerings or staying on sustaining support if the platform meets your needs without new updates).

Best Practices for Cost Optimization and Compliance

Managing Oracle Verrazzano licenses in an enterprise requires striking a balance between compliance and cost optimization.

Here are several best practices and considerations to help maximize value and avoid surprises:

  • Right-Size Your Kubernetes Deployment: Since licensing costs scale with the number of CPUs, avoid deploying more cluster nodes or larger instance types than necessary for your workload. Work with engineering teams to optimize cluster size โ€“ e.g., run applications on as few nodes as possible (while meeting performance needs) and prefer scaling within a node (pods per node) rather than adding nodes, if that reduces total CPUs. Every CPU you eliminate could save approximately $ 13,000 per year in subscription fees (half of $ 26,500, since each license covers two CPUs).
  • Use the Admin Cluster Exemption: As noted, isolating Verrazzanoโ€™s control plane on a dedicated cluster can save licenses. Ensure that cluster truly doesnโ€™t run any user workloads so it qualifies for exemption. Document this design in case of an Oracle audit, so itโ€™s clear which servers were excluded and why. This architectural choice can be an easy win for licensing efficiency.
  • Leverage Existing Entitlements (WebLogic Suite customers): If your enterprise already licenses Oracle WebLogic Suite, you likely have entitlements to use Verrazzano Enterprise Edition at no extra license cost for managing WebLogic and related applications on Kubernetes. Oracle packaged Verrazzano EE as part of WebLogic Suite to encourage cloud-native adoption. However, make sure you understand the scope:
    • The entitlement usually covers using Verrazzano to deploy/manage WebLogic Server instances and associated microservices. Verify with Oracle if this means a full Verrazzano deployment is allowed without separate subscriptions, as long as youโ€™re a WebLogic Suite customer under support. If yes, this could represent a significant cost saving if you fall into that category.
    • Even with entitlements, you must still meet the Oracle Linux support prerequisite. And if you use Verrazzano for workloads beyond WebLogic, Oracle may require full licensing. Action: Consult your Oracle account representative or licensing counsel to clarify the extent of the WebLogic Suite entitlement and obtain any written confirmation.
  • Monitor Virtual Deployment Compliance: If running Verrazzano on VMs or in cloud providers, regularly audit how Oracleโ€™s partitioning rules apply. For instance, on Oracle Cloud Infrastructure (OCI), Oracle counts OCPUs differently than AWS vCPUs. On AWS/Azure, Oracleโ€™s standard policy is to count every 2 vCPUs as one processor if hyperthreading is enabled (similar to database licensing in the cloud). Ensure your architecture team aligns with an Oracle-verified counting method. When in doubt, err on the side of over-counting to stay compliant, or use Oracleโ€™s virtualization (like Oracle Linux KVM with cgroups or Oracle VM) to hard-partition.
  • Plan for Peaks โ€“ Licenses are Not Truly Elastic: Unlike true cloud-native pricing (e.g., pay-per-use), Oracleโ€™s model requires licensing for the maximum capacity of CPUs that might run Verrazzano. If your Kubernetes cluster scales up occasionally (by adding nodes during a surge), you theoretically need to license those additional CPUs as soon as they are utilized. Oracle doesnโ€™t offer short-term licenses for a one-week burst โ€“ youโ€™d be stuck purchasing an annual subscription for resources even if used briefly. To manage this:
    • Consider setting an upper limit on cluster size that you license and do not exceed it without buying more subscriptions.
    • If you expect seasonal scale-ups, talk to Oracle โ€“ in some cases, they may accommodate adding licenses pro-rated or adjust counts mid-term (with cost adjustment). But this must be negotiated; itโ€™s not standard.
    • For cloud deployments, evaluate if Oracleโ€™s cloud (OCI) offers a more flexible model. Oracle sometimes bundles certain services if you run on OCI. (For example, Oracle could include Verrazzano use within Oracle Cloud credits model, although currently itโ€™s primarily a support subscription everywhere.)
  • Keep Proof of Compliance and Documentation: Always maintain documentation of:
    • All clusters running Verrazzano (names, environments, node counts, CPU counts).
    • Your purchase documentation includes the number of subscriptions you have and renewal dates.
    • Oracle Linux support contracts for those systems.
    • Architectural diagrams showing any admin-only clusters that are license-exempt. This is useful during audits to clearly explain any discrepancies between the total number of Oracle Linux servers and the licensed Verrazzano CPUs.
    • Any Oracle communications about special entitlements (like WebLogic Suite usage of Verrazzano) or agreed-upon partitioning counting methods. Having this in writing can save a lot of headaches if your usage is questioned later.
  • Watch Oracleโ€™s Product Roadmap: Given Oracleโ€™s announcement of no new features for Verrazzano after Premier Support ends, assess the longevity of this investment. Oracle might shift focus to other container management tools (for instance, Oracle Cloud Native Environment (OCNE) or increased reliance on open Kubernetes without Verrazzano). If your enterprise is just now considering Verrazzano, weigh the benefits of a product in sustaining support mode. It might still be worth it for stability (especially if you run Oracle middleware on containers), but be mindful that Oracle might not aggressively develop it further. This could become a negotiation point: Oracle may be more flexible in pricing knowing the productโ€™s future is limited, or they might propose alternatives. ITAM professionals should be prepared to revisit licensing if the strategy changes (e.g., moving to a different platform might mean sunsetting Verrazzano licenses in a few years).

Insight: Cost optimization with Oracle Verrazzano largely depends on smart architecture and proactive management. By aligning technical deployment with licensing parameters (such as minimizing CPU count, isolating components, and utilizing entitlements), you can effectively control costs.

Simultaneously, strong governance (inventory tracking and knowledge of Oracleโ€™s rules) will keep you compliant. The goal is to avoid any nasty surprises โ€“ such as an audit revealing unlicensed CPUs or an under-budgeted renewal that spikes due to unanticipated cluster growth.

With the right practices, Verrazzanoโ€™s powerful capabilities can be leveraged without overspending or compliance risk.

Recommendations (Expert Tips)

In conclusion, here are expert recommendations for IT asset managers dealing with Oracle Verrazzano licensing:

  • 1. Inventory and Map Your Clusters: Maintain an up-to-date inventory of all Kubernetes clusters and nodes where Oracle Verrazzano is deployed. Map out the physical CPU count of each environment to know your exact licensing needs at any time.
  • 2. Isolate the Control Plane: Use a dedicated admin cluster for Verrazzanoโ€™s system components. By not co-locating user workloads there, you effectively exclude those nodes from licensing โ€“ a straightforward way to reduce costs.
  • 3. Optimize Before You License: Work closely with DevOps teams to optimize application density on Kubernetes nodes. By using fewer, more powerful nodes (up to a point) or efficiently bin-packing workloads, you can reduce the total CPU count that requires licensing.
  • 4. Verify Virtualization Compliance: If using virtualization (VMware, Hyper-V, cloud VMs), consult Oracleโ€™s Partitioning Policy and verify youโ€™re counting CPUs correctly. When in doubt, seek an Oracle review or use Oracleโ€™s virtualization tools to ensure compliance.
  • 5. Donโ€™t Skimp on Oracle Linux Support: Ensure Oracle Linux Premier Support covers every server running Verrazzano. This is not only required for compliance but also crucial for receiving OS patches and fixes that keep your container platform secure.
  • 6. Leverage Existing Oracle Agreements: Check if Verrazzano can be included in broader Oracle negotiations, for example, as part of an Unlimited License Agreement (ULA) or as an added component in your Oracle enterprise agreements. You may be able to gain more favorable pricing or credits.
  • 7. Monitor Product Lifecycle Updates: Keep an eye on Oracleโ€™s announcements regarding Verrazzano. With Premier Support ending, Oracle might offer migration paths or incentives to move to other solutions. Being aware can position you to take advantage of any transition offers (or push for better pricing to continue with Verrazzano).
  • 8. Budget for Renewals and Growth: Treat Verrazzano subscriptions as a recurring OPEX item. Forecast the 3-5 year cost at current usage and include potential growth (if your container footprint is expanding). Communicate this to finance early to avoid budget shortfalls at renewal time.
  • 9. Engage Oracle and Experts Proactively: Donโ€™t wait for an audit to assess your compliance. Consider an internal or third-party licensing review to validate that your understanding of the Verrazzano licensing is correct. Oracleโ€™s own reps or specialized licensing consultants can help clarify grey areas before they become problems.
  • 10. Evaluate ROI Periodically: As with any enterprise software, periodically evaluate if the value you get from Verrazzano justifies the ongoing cost. If alternatives emerge (such as open-source tools or cloud-managed services) that could replace some functionality at a lower cost, factor that into your IT strategy โ€“ and be prepared to adjust your Oracle licensing footprint accordingly.

Checklist: 5 Actions to Take

For a practical approach, hereโ€™s a quick checklist of actions to ensure youโ€™re on top of Oracle Verrazzano licensing and pricing:

  1. Audit Your Current Deployment: Identify all deployments of Oracle Verrazzano in your organization immediately. Note the cluster names, locations (on-prem or cloud), number of nodes, and CPUs per node. Confirm that none are running without proper licensing.
  2. Calculate License Needs: Using the CPU count data, determine the number of Verrazzano CPU-pair subscriptions required. Remember to exclude any pure admin clusters and apply Oracleโ€™s core factor/partitioning rules for VMs. Document this calculation for each environment.
  3. Verify Support Coverage: Cross-check that you have active Oracle Verrazzano Premier Support subscriptions equal to the number of CPU pairs you calculated. Also, verify that each Verrazzano host has Oracle Linux support. If there are gaps (e.g., a cluster not covered by Linux support), take steps to purchase the needed support or migrate the workload.
  4. Implement Architecture Changes: If your audit reveals inefficiencies (for example, a mixed cluster running admin and workloads together, or low-utilization nodes), plan and implement the necessary changes. This could involve reassigning the Verrazzano control plane to a separate cluster, consolidating applications to use fewer nodes, or adjusting VM hosting arrangements. These changes can reduce licensing requirements in the future.
  5. Engage with Oracle or a Licensing Advisor: Before your next renewal or any major expansion, engage Oracle or a trusted licensing advisor to review your findings. Discuss potential optimizations, such as leveraging WebLogic Suite entitlements or negotiating volume discounts. Make sure any special arrangements (like entitlements or agreed exclusions) are noted in contracts or Oracle correspondence. Finally, align on a renewal plan that secures support for the next term without surprises.

By following this checklist, you will create an actionable plan that covers assessment, remediation, and proactive vendor engagement โ€“ ensuring your Oracle Verrazzano licensing is both compliant and cost-effective.

FAQs

Q: How is Oracle Verrazzano licensed in simple terms?
A: Oracle Verrazzano is licensed via an annual subscription model based on physical CPU cores. Specifically, you purchase Oracle Verrazzano Premier Support subscriptions, each of which covers a pair of physical CPUs (sockets) in your Kubernetes cluster nodes. You need enough subscriptions to cover all the processors on which Verrazzano is running. For example, 4 CPUs = 2 subscriptions, 8 CPUs = 4 subscriptions, and so on. This subscription includes rights to use the software and receive support for one year.

Q: Do I have to license all Kubernetes nodes even if Verrazzano is only used on some of them?
A: You must license every node where Verrazzano components or managed workloads run. If a Kubernetes node ever pulls a Verrazzano container (for example, the Verrazzano platform operator or a Verrazzano-managed application), its CPU resources must be accounted for. However, if you have completely separate clusters or nodes that do not run any Verrazzano software, you do not need to license those. Additionally, Oracle offers an exemption for a โ€œVerrazzano Admin Clusterโ€ โ€“ nodes in a dedicated admin cluster that run only Verrazzano infrastructure (and no user applications) can be excluded from licensing. Itโ€™s wise to segregate such admin functions to avoid unnecessary licensing.

Q: What about virtualized environments or cloud deployments โ€“ how do we count CPUs for licensing?
A: In virtual or cloud scenarios, the same basic rule applies (license all CPUs where Verrazzano runs), but you determine the CPU count according to Oracleโ€™s Partitioning Policy. In practice:

  • If using Oracleโ€™s virtualization or approved hard partitioning (like certain hypervisors where CPUs are strictly allocated), you can count just those allocated CPUs.
  • If using common hypervisors (VMware, etc.) not recognized as hard partitioning, Oracle typically requires licensing the full physical hostโ€™s CPUs, because the VMs could move or use any core.
  • In public clouds (AWS, Azure), Oracle has guidelines: generally, they treat every 2 vCPUs (virtual CPU threads) as equivalent to one physical core for licensing purposes. Therefore, an AWS instance with 8 vCPUs would be considered 4 licenses’ worth of CPUs.
    Always refer to Oracleโ€™s official policy for the latest rules. Itโ€™s critical to get this right โ€“ miscounting virtual CPUs is a top source of unintentional non-compliance in Oracle licensing.

Q: Is Oracle Verrazzano free to use since itโ€™s based on open source?
A: The core components of Verrazzano are indeed open source (you can find the code on GitHub), but enterprise use of the Oracle Verrazzano Enterprise platform is not โ€œfreeโ€ if you want Oracleโ€™s support and certification. Oracle monetizes Verrazzano through the support subscription, which is effectively the license. You could theoretically deploy the open-source bits without paying Oracle. Still, you would not have rights to Oracleโ€™s support, nor the assurance that youโ€™re covered under Oracleโ€™s terms for any included Oracle-branded components. Most enterprises will take the supported route to ensure stability and get vendor support. So, think of Verrazzano as open-source software that Oracle commercially supports through a paid subscription. Using it in production without that subscription would mean no vendor support and potentially violating the license agreement if you obtained the software via Oracleโ€™s distribution.

Q: What happens if I donโ€™t renew the Verrazzano subscription or let support lapse?
A: If you do not renew, your right to use Oracle Verrazzano Enterprise Edition technically ends. Oracleโ€™s subscription terms state that you must discontinue use and uninstall the software if you choose not to renew. In practice, if the software is open source, the code may still run. Still, you would be running it without a valid license or support contract, which is against Oracleโ€™s terms of service (for the enterprise edition distribution) and puts you in non-compliant territory. Additionally, without support, you lose access to patches, security updates, and Oracleโ€™s help for any issues. Reinstating lapsed support later usually incurs back support fees or penalties. Therefore, itโ€™s highly recommended to either maintain continuous support or plan a transition off Verrazzano before support expires if you donโ€™t intend to renew. Always treat the renewal seriously โ€“ itโ€™s not optional if you plan to keep using the software.

Q: Are there any special deals or bundles (e.g., with WebLogic or Oracle Cloud) that can reduce Verrazzano licensing costs?
A: Yes, there are a couple of notable considerations:

  • WebLogic Suite Bundling: Oracle WebLogic Suite (the highest edition of WebLogic Server) includes entitlements to use Verrazzano Enterprise Edition. This means that if your enterprise has WebLogic Suite licenses under support, you may already have the rights to deploy Verrazzano to manage those WebLogic workloads on Kubernetes without purchasing separate Verrazzano subscriptions. Itโ€™s a way Oracle added value to WebLogic Suite. Be sure to confirm the details โ€“ typically, youโ€™d still need Oracle Linux support, but you might not need to pay the $26.5k per CPU again if itโ€™s for WebLogic use cases under that entitlement.
  • Oracle Cloud (OCI) Usage: Oracle offers more flexible arrangements for running workloads on its Cloud. Currently, Verrazzano is an on-premise subscription offering; however, Oracle Cloud Native Environment (a similar Kubernetes support offering) may be included if you utilize Oracleโ€™s cloud services. Itโ€™s worth asking Oracle if any credit or bundling is possible โ€“ for example, can Verrazzano subscription be counted against Universal Cloud Credits, or are there discounts for customers who also invest in OCI? These programs change over time, so please engage with Oracle sales regarding this question.
  • Negotiation and Volume Discounts: Like most enterprise software, Oracle licenses are negotiable. If youโ€™re making a significant commitment (e.g., you need 10+ CPU-pair subscriptions), you should negotiate for a better price per unit. Many organizations can secure discounts off the list price or obtain favorable terms, such as a multi-year lock on support costs, by leveraging their overall spend with Oracle. Use your procurement leverage โ€“ and consider using Oracleโ€™s fiscal year timing or end-of-quarter to get the best deals.

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  • Fredrik Filipsson

    Fredrik Filipsson is the co-founder of Redress Compliance, a leading independent advisory firm specializing in Oracle, Microsoft, SAP, IBM, and Salesforce licensing. With over 20 years of experience in software licensing and contract negotiations, Fredrik has helped hundreds of organizationsโ€”including numerous Fortune 500 companiesโ€”optimize costs, avoid compliance risks, and secure favorable terms with major software vendors. Fredrik built his expertise over two decades working directly for IBM, SAP, and Oracle, where he gained in-depth knowledge of their licensing programs and sales practices. For the past 11 years, he has worked as a consultant, advising global enterprises on complex licensing challenges and large-scale contract negotiations.

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