Oracle Cloud Licensing

Running Oracle on VMware Cloud on AWS: Licensing Explained

Running Oracle on VMware Cloud on AWS Licensing

Running Oracle on VMware Cloud on AWS

Running Oracle software on VMware Cloud on AWS (VMC) offers flexibility but introduces complex licensing scenarios. Oracle applies its standard VMware virtualization licensing rules here, and understanding these rules helps you avoid compliance issues.

Below is an easy-to-follow explanation of how Oracle licensing works, specifically on VMware Cloud on AWS.


How Oracle Views VMware Cloud on AWS for Licensing

Oracle has not published specific policies addressing VMware Cloud on AWS. Instead, Oracle applies its traditional VMware licensing policy, treating VMC similarly to any VMware vSphere environment:

  • Oracle licensing relies on the definition: “Processor where the program is installed and/or running.”
  • Implication: Oracle expects you to license all physical ESXi host cores where Oracle VMs run orย could run.

Read Oracle on AWS Licensing FAQs 4 of 4.


Dedicated Clusters for Oracle Licensing

The most effective licensing strategy for Oracle workloads on VMware Cloud on AWS is to create dedicated clusters (or Software-Defined Data Centers, SDDCs) specifically for Oracle:

  • VMware Cloud on AWS supports VM-Host Affinity rules.
    • These rules allow you to pin Oracle VMs to specific ESXi hosts.
    • This containment significantly limits the licensing impact, as Oracle workloads cannot migrate outside the licensed cluster or hosts.

Practical Example:

  • Suppose you have six hosts in VMware Cloud but only two Oracle workloads run.
  • You create a dedicated cluster of 2 hosts for Oracle.
  • Implement VM-host affinity rules to restrict Oracle VMs to these two hosts only.
  • Only these two hostsโ€™ cores need Oracle licensing, avoiding unnecessary licensing for the other four hosts.

This approach limits licensing costs by carefully managing VM mobility.

Read Running Oracle Software on AWS Outposts: Licensing and Considerations.


Counting Oracle Licenses on VMware Cloud on AWS

Oracle license counting in VMware Cloud on AWS can be complex. Key factors to understand clearly:

  • Each VMware Cloud host has a defined number of physical cores and vCPUs.
    • Example: VMware Cloud host type i3.metal has 36 cores (72 vCPUs with hyper-threading).
  • Oracleโ€™s standard cloud policy (2 vCPUs = 1 Oracle license) explicitly applies to AWS EC2/RDS, not VMware Cloud.
    • Oracle typically treats VMware Cloud deployments under standard VMware virtualization licensing rules.
    • Standard VMware rules: license all physical cores of each ESXi host running Oracle software.
  • Core Factor Considerations:
    • Core factors traditionally apply to physical hardware, reducing licensing requirements for certain CPUs.
    • VMware Cloud hardware is uniform (e.g., Intel CPUs), and Oracle does not explicitly state core factor applicability here.
    • Some Oracle licensing experts advise a conservative approach: either license all physical cores without applying core factor or explicitly clarify core factor applicability with Oracle.

Licensing Example (conservative scenario):

  • VMware Cloud host (36 cores, Intel CPU):
    • If Oracle explicitly permits Oracleโ€™s core factor:
      36 cores ร— 0.5 factor = 18 Processor licenses per host.
    • If Oracle does not explicitly allow core factor (more conservative):
      36 cores = 36 Processor licenses per host.

Given ambiguity, the safest approach (and commonly recommended by experts) is:

  • License every physical core (assuming no core factor), or
  • Negotiate explicitly with Oracle for core factor applicability.

Read Oracle Software from AWS Marketplace AMIs: Licensing.


Practical Licensing Scenarios for Oracle on VMware Cloud on AWS

Scenario 1: Dedicated Cluster (Recommended Approach)

  • 3 VMware Cloud ESXi hosts in total:
    • Create a dedicated Oracle cluster with one host running Oracle VMs.
    • VM-host affinity rules are strictly enforced.
    • Licensing: Only license cores on that single host (36 cores = 36 Processor licenses).

Scenario 2: Unrestricted VM Migration (Costly Scenario)

  • 4 VMware Cloud hosts with Oracle VMs allowed to migrate freely.
    • Oracle licensing: All 4 hosts must be licensed fully.
    • Total cores licensed: 4 hosts ร— 36 cores each = 144 Processor licenses (very costly).

Restricting VM mobility is critical.


Oracle Support and VMware Cloud on AWS

Oracleโ€™s official stance on VMware Cloud is identical to standard VMware:

  • Oracle does not formally certify VMware environments.
  • Oracle does provide support and will not outright deny issues purely because VMware is involved.
  • VMware and Oracle publish whitepapers clarifying support responsibilities to reassure customers.

Important best practices:

  • Maintain detailed documentation showing which VMware Cloud ESXi hosts Oracle software runs on.
  • Configure VM-host affinity rules and document their enforcement.
  • In Oracle support discussions, consistently clarify that your VMware-based environment is hosted on AWS hardware.

Documentation and Audit Considerations

Oracle may audit VMware Cloud environments similarly to on-premises VMware deployments. Documentation is critical:

  • Record VM-host affinity configurations.
  • Retain logs demonstrating VM containment.
  • Keep accurate records showing exactly which hosts run Oracle software.
  • Ensure you can prove that no Oracle VMs ran outside licensed ESXi hosts.

Example Documentation for Audits:

  • VMware logs confirming Oracle VMs only ever ran on licensed hosts.
  • Screenshots or records of VM-host affinity rule enforcement.
  • Detailed license inventory matching VMware host IDs to Oracle licenses owned.

Common Misunderstandings Clarified

Several common misconceptions exist around Oracle licensing on VMware Cloud on AWS. Letโ€™s clarify them:

  • Misconception: VMware Cloud licensing follows Oracleโ€™s AWS EC2 cloud policy (2 vCPUs = 1 license).
    • Clarification: VMware Cloud is licensed under standard Oracle VMware virtualization rules (all physical cores in each ESXi host).
  • Misconception: Oracle provides licensing discounts or special terms for VMware Cloud.
    • Clarification: Oracle licensing on VMware Cloud follows standard VMware policies. No discounts or special policies apply.
  • Misconception: Core factors always apply to VMware Cloud ESXi hosts.
    • Clarification: Oracle doesnโ€™t explicitly state core factor applicability to VMware Cloud hosts. Always confirm directly with Oracle or adopt the most conservative licensing interpretation.

Best Practices Checklist for Oracle Licensing on VMware Cloud on AWS

Summarized best practices:

  • โœ… Dedicated Clusters: Create separate clusters specifically for Oracle VMs.
  • โœ… Enforce VM-Host Affinity: Use affinity rules strictly to contain Oracle workloads.
  • โœ… Conservative Licensing: Unless explicitly clarified with Oracle, license every physical core on VMware Cloud hosts without assuming core factors.
  • โœ… Detailed Documentation: Record VM-host affinity clearly; retain VMware logs and host IDs to prove Oracle VM containment.
  • โœ… Regular Reviews: Periodically verify that Oracle VMs remain confined to licensed hosts.

Conclusion: Effective Licensing Strategy on VMware Cloud

Running Oracle on VMware Cloud on AWS involves nuanced licensing considerations. Oracleโ€™s traditional VMware licensing rules apply, emphasizing the importance of restricting VM mobility. By creating dedicated clusters, strictly using VM-host affinity rules, and maintaining detailed documentation, your organization can confidently remain compliant and avoid costly licensing pitfalls.

Planning and documenting Oracle deployments on VMware Cloud helps manage license costs effectively, ensuring you gain full advantage of VMwareโ€™s hybrid cloud flexibility without unexpected compliance risks.

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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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