Oracle database licensing

Running Multiple Oracle Database Instances on One Server: Licensing Guidelines

Running Multiple Oracle Database Instances on One Server

Running Multiple Oracle Database Instances on One Server: Licensing Guidelines

Running multiple Oracle Database instances on a single server is allowed and often encouraged for cost savings and efficiency. However, organizations often ask whether a single Oracle license covers multiple database instances on one machine.

This article addresses this question and guides licensing implications, practical examples, and compliance considerations.

The article covers:

  • Licensing basics for multiple Oracle database instances
  • Processor-based licensing considerations
  • Named User Plus (NUP) licensing considerations
  • Consolidation scenarios
  • Licensing implications of Oracle options and management packs
  • Practical examples for clarity
  • Recommendations for compliance

Read more Oracle Database Licensing FAQs.


Licensing Basics: Multiple Instances, Single License

Key Point: Oracle licensing is tied to the hardware (physical CPUs/cores) or the total number of users, not the number of instances you install on a server.

This means:

  • You do not need a separate Oracle Database license for each instance running on the same licensed server.
  • Your licenses are tied to the physical serverโ€™s cores or the user population accessing that server.
  • You can freely runย multiple database instancesย under a single license, provided the total licensed cores or users cover all server usage.

Example:
A physical server with 8 Intel cores (core factor 0.5) requires 4 Processor licenses for Oracle Enterprise Edition. With those four licenses, you can run one, two, or even ten database instances simultaneously without purchasing additional licenses. The license covers all Oracle databases running on that licensed hardware.


Processor-Based Licensing: Single Server, Unlimited Instances

Processor licenses allow unlimited users and database instances, provided you fully license the serverโ€™s processors.

Key Considerations:

  • License all physical CPU cores (multiplied by Oracleโ€™s core factor) on the server.
  • Once licensed, you can run multiple Oracle database instances without additional cost.
  • Ideal for consolidation scenarios or multiple departmental databases on one powerful server.

Practical Example:
You have a 16-core Intel server (core factor 0.5), thus requiring 8 Processor licenses. With those licenses, you can:

  • Run multiple Oracle Enterprise Edition database instances (production, test, QA, and more).
  • Consolidate databases from multiple servers onto this single server without paying extra licensing fees per database.

Named User Plus (NUP) Licensing Considerations

If you license Oracle using Named User Plus, the principle remains the same, but you must pay attention to user counts rather than processors.

Key Considerations:

  • Count all distinct individuals (or devices) accessing any database instance on that server.
  • You do not count users multiple times if they access multiple instances. Count each user only once.
  • Ensure you meet Oracleโ€™s minimum NUP licensing requirements per processor (Enterprise Edition minimum: 25 users per processor).

Practical Example:
You have one server licensed for 50 Named User Plus licenses. If the total number of unique users does not exceed 50, you can run multiple database instances (HR, Finance, Sales). However, users who access multiple databases are still counted as only one user each.


Consolidation Scenarios: Reducing Licensing Costs

Organizations commonly leverage Oracleโ€™s licensing policy, allowing multiple instances per licensed server to achieve cost-effective database consolidation.

Benefits of Consolidation:

  • Reduce hardware footprint by consolidating databases onto fewer servers.
  • Optimize software licensing using licenses more efficiently (fewer servers, fewer licenses).
  • Simplify management, backup, patching, and administration with fewer physical servers.

Practical Scenario:
A company currently runs 10 Oracle Database servers with four cores (Intel). Each server requires 2 Processor licenses (0.5 factor ร— 4 cores).

  • Total licenses required separately: 20 Processor licenses (2 licenses ร— 10 servers).
  • By consolidating these onto a larger server with 20 cores (10 Processor licenses), the company saves 50% of licensing costs.

This licensing flexibility strongly incentivizes consolidation.


Licensing Implications of Oracle Options and Management Packs

Important Exception:
While the base database license covers unlimited instances per server, Oracleโ€™s separately licensed database options and management packs have specific rules:

  • If used by any instance, options likeย Partitioning, Advanced Compression, and Real Application Clusters (RAC)ย must be licensed for the entire server.
  • Management packs (diagnostics and tuning) must also be licensed for all server processors if any instance uses those features.

Practical Example:
If you run multiple instances on an 8-core server (4 Processor licenses), and only one instance uses Partitioning, Oracle licensing policy requires licensing Partitioning for all 4 Processor licenses. Once installed on the Oracle software home, options are considered available to all instances running from that installation.

Read Oracle Database Enterprise Edition: Features Included at No Extra Cost.


Practical Examples for Clarity

Example 1: Processor Licensing

  • Server: 8-core Intel (core factor: 0.5), requires 4 Processor licenses.
  • Instances: You run three separate Oracle databases (Sales, HR, Development).
  • Licensing: No additional licenses are needed beyond the initial 4 Processor licenses. Unlimited instances are covered.

Example 2: Named User Plus Licensing

  • Server: Licensed with 100 Named User Plus licenses.
  • Instances: Four databases (Finance, CRM, Reporting, Analytics).
  • Users: Total distinct users across all databases = 80 (many users access multiple databases).
  • Licensing: The 100 NUP licenses fully cover all 80 distinct users. No additional licenses are required.

Recommendations for Ensuring Compliance

To remain compliant when running multiple database instances on a single server:

  • Always clearly document which server and cores your licenses cover.
  • Regularly perform internal audits or reviews to ensure you meet license requirements.
  • Use Oracle-approved hard partitioning methods to isolate licenses within a larger server.
  • Educate your DBAs and developers about the licensing implications of database options and packs, preventing accidental license violations.

Summary Table: Licensing Oracle Database Instances on a Single Server

ScenarioLicensing RequiredAdditional Cost?
Single InstanceLicensed per server/cores or usersNo extra cost
Multiple InstancesCovered by same server licenseNo extra cost
Named User PlusLicense per distinct user, regardless of number of instancesNo extra cost (as long as minimums are met)
Database Options/PacksMust license for entire server if any instance uses themYes (if options/packs used)

Final Thoughts

Running multiple Oracle Database instances on a single licensed server is a significant benefit offered by Oracleโ€™s licensing model. Leveraging this effectively enables database consolidation, reduces hardware costs, simplifies management, and maximizes the value of your Oracle licenses. Manage separately licensed options and packs to avoid compliance risks and unexpected costs.

Do you want to know more about our Oracle Advisory Services?

Please enable JavaScript in your browser to complete this form.
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.

    View all posts