Oracle’s Processor Core Factor Table and AWS Licensing
When deploying Oracle software on AWS, a common question is whether Oracle’s Processor Core Factor Table (used in on-premises environments) applies. The short and clear answer is no—Oracle’s Processor Core Factor Table does not apply to AWS or other authorized public cloud environments.
This guide explains why, illustrates Oracle’s simplified cloud licensing rules, corrects common misconceptions, and provides practical examples for clarity.
Read Oracle on AWS Licensing FAQs 1 of 4
Does Oracle’s Core Factor Table apply to AWS?
Oracle’s Official Position Clearly Explained:
- Oracle’s Processor Core Factor Table explicitly does not apply to AWS instances.
- Oracle uses a simplified vCPU-based counting method in the cloud without additional core-type adjustments.
Oracle’s cloud policy explicitly states:
- For AWS EC2 instances (with hyper-threading enabled): 2 vCPUs = 1 Oracle Processor license
- Clearly,no further multiplier or core factor is applied.
Clearly Explained Practical Example:
- On-premises (traditional licensing):
- Intel Xeon CPU might have a Core Factor of 0.5:
- 8 physical cores × 0.5 factor = 4 Oracle processor licenses.
- Intel Xeon CPU might have a Core Factor of 0.5:
- AWS (cloud licensing simplified):
- AWS EC2 instance with 16 vCPUs (hyper-threaded, Intel Xeon):
- 16 vCPUs ÷ 2 (hyper-threading rule) = 8 Oracle processor licenses.
- No additional core factor multiplier (e.g., 0.5) is allowed.
- AWS EC2 instance with 16 vCPUs (hyper-threaded, Intel Xeon):
Impact Clearly Explained:
- Oracle’s simplified cloud model clearly can result in higher license counts on AWS compared to on-premises (where Core Factors apply).
Read Reducing Oracle Licensing Costs by Limiting AWS vCPUs or Disabling Cores.
Why Oracle’s Core Factor Table Does Not Apply to AWS
1. Simplified Licensing for the Cloud (since 2017)
- Oracle introduced the simplified cloud licensing model 2017, explicitly removing Core Factors from public cloud calculations.
- Oracle aims to standardize and simplify licensing across AWS, Azure, and Google Cloud (Authorized Cloud Environments).
2. Equal Treatment of CPU Types
- There is no distinction between Intel, AMD, or different CPU models in AWS.
- Oracle treats all AWS vCPUs equally: 2 vCPUs = 1 license (hyper-threaded scenario).
Practical Licensing Example on AWS EC2 Clearly Illustrated:
| AWS Instance Type | vCPUs | Oracle Processor Licenses (Clearly Explained) |
|---|---|---|
| Intel Xeon (m5.4xlarge) | 16 vCPUs | 16 vCPUs ÷ 2 = 8 licenses (clearly no core factor) |
| AMD EPYC (m5a.4xlarge) | 16 vCPUs | 16 vCPUs ÷ 2 = 8 licenses (clearly no core factor) |
Clearly Explained Impact:
- Oracle licensing on AWS is simplified but uniform: clearly, there is no special treatment based on CPU type or Core Factor.
Key Differences: AWS vs On-Prem Licensing Clearly Explained
| Licensing Scenario | Oracle License Counting Method | Practical Impact (Clearly Explained) |
|---|---|---|
| On-Premises | Physical cores × Core Factor (e.g., Intel 0.5) | Potentially fewer licenses due to Core Factor |
| AWS (Authorized Cloud) | Clearly, 2 vCPUs = one license (no Core Factor adjustment) | Potentially more licenses; simplified calculation |
Clearly Explained Example Comparison:
- On-prem Intel Server (8 cores): 8 cores × 0.5 Core Factor = 4 licenses.
- AWS EC2 (16 vCPUs Intel hyper-threaded): 16 vCPUs ÷ 2 = 8 licenses.
Practical Advice for Oracle Licensing on AWS
- I clearly understand that Oracle’s core factor does not apply to AWS.
- Count licenses strictly based on the simplified vCPU rule:
- Hyper-threaded: 2 AWS vCPUs = 1 license.
- Non-hyper-threaded: 1 AWS vCPU = 1 license.
- Document license allocations based on these simplified cloud rules.
Read Oracle Database Standard Edition on AWS.
Common Misunderstandings Corrected Clearly
- Misconception: “I can apply Oracle’s Core Factor table to AWS EC2 instances.”
- Reality: Oracle explicitly excludes Core Factor table usage in AWS licensing.
- Misconception: “Intel CPUs on AWS get the same 0.5 Core Factor as on-prem.”
- Reality: No Core Factor applies—AWS Intel CPUs require the simplified 2 vCPUs = 1 license rule.
- Misconception: “AWS licensing differs by CPU type (Intel vs. AMD).”
- Reality: Oracle’s cloud licensing treats all AWS CPU types identically—no differentiation.
Oracle Licensing Compliance Checklist: AWS vs Core Factor
✅ Clearly apply Oracle’s simplified vCPU-based rule: 2 vCPUs = 1 processor license (with hyper-threading).
✅ Ignore Oracle’s Core Factor Table entirely for AWS EC2 instances.
✅ Count licenses uniformly across AWS instance types, regardless of CPU type or model.
✅ Document your licensing based strictly on vCPU count as Oracle expects.
Conclusion: Clearly Understanding Oracle’s Core Factor and AWS Licensing
Oracle simplifies licensing calculations in AWS environments by explicitly removing the Core Factor adjustment. The simplified rule -2 vCPUs = 1 Oracle processor license (hyper-threaded scenarios)—applies uniformly across all AWS instance types and CPU architectures.
Recognizing this simplified approach clearly ensures accurate license counting and compliance and avoids costly misunderstandings or audits when running Oracle workloads on AWS.
