Six Oracle Database Licensing Models and Costs – 2023

In this comprehensive guide on Oracle database licensing, you’ll gain a deep understanding of the different licensing models available, common licensing scenarios, and potential pitfalls to avoid.

The article covers the complexity of the Oracle Database, the importance of choosing the right licensing model, and the differences in licensing models.

It also delves into Oracle’s Processor Licensing and Named User Plus Licensing, along with a detailed explanation of Oracle Database Options and Packs.

Key Points:

• Oracle Database Complexity: Oracle Database is a complex product with various editions, options, and licensing models.
• Importance of the Right Choice: Choosing the right licensing model and version can significantly reduce licensing costs.
• Differences in Licensing Models: Enterprise Edition is licensed per core, while Standard Edition is licensed per processor, resulting in different licensing costs.
• Oracle Processor Licensing: This model is used when it’s challenging to count or verify users, such as in web-based applications.
• Oracle Named User Plus Licensing: This model allows you to pay per user, extending beyond human users to any end node interacting with an Oracle database.
• Oracle Database Options and Packs: These are additional components that can be purchased to extend the functionality of your Oracle Database.

By understanding these key points, you’ll be better equipped to make informed decisions about your Oracle Database licensing needs and avoid costly mistakes.

Understanding Oracle Database Licensing

Oracle Licensing for Beginners

Understanding Oracle database licensing is essential for several reasons:

• Compliance: like many software providers, Oracle conducts audits to ensure customers use their software within their licenses’ terms. Understanding your license helps avoid legal issues and potential fines during these audits.
• Cost Management: Different licenses come with different costs. Understanding these can help you choose the most cost-effective license for your needs.
• Optimization: By understanding your license, you can maximize its features and capabilities.

Oracle Database Licensing Basics

Oracle software licensing can be complex, given the wide range of products and the different ways they can be used.

However, some basic principles apply to most Oracle licenses:

• License Types: Oracle primarily offers two types of licenses – Named User Plus and Processor. The Named User Plus license is based on the number of users accessing the software, while the Processor license is based on the number of processor cores in the servers where the software is installed.
• License Metrics: These are the units by which a license is measured (e.g., the number of users, processors, etc.). The metric depends on the type of license.
• License Restrictions: Oracle licenses come with certain restrictions, such as limitations on usage, reproduction, and disclosure. It’s important to understand these restrictions to avoid violating the terms of your license.

Understanding these basics is the first step toward mastering Oracle database licensing.

Oracle Databases Licensing Models

Oracle database software can be expensive and difficult to understand. Some database software is free, but Oracle may change the licensing terms, and you could have to pay in the future.

Here are some examples of Oracle database software:

• Oracle Enterprise Edition is the most expensive version of Oracle database software, core-based licensing with an add-on that triggers additional licenses called database options and management packs.
  
• Oracle Database Standard Edition 2: The latest version of Oracle Standard Edition can only be licensed on servers with at least 2 CPUs or clusters with 2 CPU sockets. It is important to note that the cluster limitation only applies if you run RAC. Starting from 19c, RAC has been removed from Standard Edition 2.
  
• Oracle Standard Edition can only be licensed on servers or clusters with a maximum of 4 processor sockets. It can no longer be purchased.
  
• Oracle Standard Edition One is less expensive than Standard Version. Only available for servers with a maximum of 2 processor sockets. This product can no longer be purchased. Read more in our SE One Licensing Guide.
  
• Oracle enterprise manager. The Database Control and Grid Control features are free with this Oracle DB version. However, management packs must be purchased and licensed to monitor additional users and CPUs. OEM is included for free in the Oracle database. However, only some features are free others require a license.

What needs to be licensed?

You need to license every server where the processor is installed or running. You must license production, test, development, and disaster recovery environments.

Understanding Oracle Processor Licensing

Oracle Processor Licensing is a model used when it’s challenging to count or verify users, such as in web-based applications. Here’s a simplified explanation of how it works and what you need to know:

Calculating Licenses

The number of licenses required is calculated by multiplying the number of cores by the core processor licensing factors specified on the Oracle Processor Table.

It’s crucial to refer to your Oracle contract for specific terms. Oracle software costs per processor, but Oracle’s definition of “processor” might differ from your hardware vendor’s.

Standard Edition Licensing

For Standard Edition and Standard Edition 2, licensing is counted the same as sockets. However, in the case of multi-chip modules, each chip is considered one socket.

Licensing All Processors

If Oracle Software is installed or running, all processors must be licensed. This rule extends to machines in a cluster – all cluster members must be licensed. The same applies to remote mirroring or standby machines.

Processor Calculation

A processor license is calculated by multiplying the total number of processor cores by the core processor licensing factor. Each licensed program must account for all cores on multi-core chips. All fractions of numbers are rounded up and multiplied by the appropriate core-licensing factor.

Product-Specific Nuances

Each product has its specific nuances. For instance, when licensing Oracle Database Standard Edition, a processor is considered equivalent to an occupied slot. However, in the case of multi-chip modules, each chip is regarded as one socket.

Virtualization Software & Partitioning

Oracle differentiates between hard and soft partitioning. Only partitions created with Oracle software must be licensed if partitioning methods, including virtualization, are part of hard partitioning.

Soft partitioned servers, on the other hand, must be fully licensed. This includes any third-party software like VMWare. Oracle VM can create hard partitioning if set up correctly.

When to Consider Oracle Processor Licensing

Here are two critical scenarios when Oracle Processor Licensing can be beneficial:

1. Large User Base: If many users access your system, it might be more cost-effective to license based on processors than users. For example, if you run a popular online service accessed by thousands of users, tracking and licensing each user can be cumbersome and expensive.
2. Fluctuating User Base: Processor Licensing can provide more flexibility if the number of users accessing your system changes frequently. For instance, running a retail website with traffic spikes during sale events would be easier to license based on processors rather than trying to account for each user during peak times.

However, if your system has a small number of processors but is accessed by many users, Processor Licensing might not be the most cost-effective choice.

Typical Use Case: Web-Based Applications

Oracle Databases for web-based applications are a common scenario for Processor Licensing.

This model allows you to run your web applications on Oracle Database without counting individual users or devices. This can significantly simplify the licensing process.

Simplifying Licensing in Virtualized Environments

Processor Licensing can also simplify licensing in virtualized environments. Instead of tracking the number of users accessing each virtual machine, you can license based on the number of processors allocated to run the Oracle Database.

The Advantage of Processor Licensing

One of the main advantages of Processor Licensing is that it eliminates the need to count or track users.

This can save significant time and effort, especially in large organizations with many users. Instead, you focus on the number of processors in your system, which is typically more manageable and stable.

Understanding Oracle Named User Plus Licensing

Oracle Named User Plus Licensing is a model that allows you to pay per user. However, the definition of a ‘user’ in this context extends beyond human users to any end node interacting with an Oracle database.

User Minimums Based on Database Edition

The minimum number of user licenses required depends on the Oracle Database edition:

• Enterprise Edition: Requires a minimum of 25 Named User Plus licenses per processor, or the total number of users using the Oracle Database, whichever is greater.
• Standard Edition 2: Allows for a minimum of 10 users per server.

Licensing Considerations

Here are some key points to consider when licensing Named User Plus:

• Non-Human Operated Devices: All devices that connect to the Oracle Database must be licensed, even if humans do not operate them. For example, a server that automatically pulls data from the Oracle Database must be licensed.
• Human-Operated Devices: All humans who use devices to connect to the Oracle Database need to be licensed. This includes users operating devices like barcode scanners or computers.
• Mixed Usage: If both non-human-operated devices and human-operated devices are connected to the Oracle Database, all non-human devices, as well as all human-operating devices, must be licensed.

Determining Who to Count for Named User Plus License

When determining who to count for Named User Plus licensing, consider the source of the requests. This includes both human users and devices that interact with the Oracle Database.

For example, if you have a web application that connects to the Oracle Database, you would need to count all human users of the application and any servers or other devices that interact with the database.

Opting for Oracle Named User Plus (NUP) Licensing

Oracle Named User Plus (NUP) Licensing can be a suitable choice if operating in a closed environment with a small, easily countable number of users. For instance, test and development environments often benefit from NUP licensing.

Advantages of NUP Licensing

1. Specific User Licensing: This model allows you to pay for a particular number of users accessing the system rather than the number of processors or machines. This can be beneficial if you have a small team of developers working on an Oracle database.
2. Cost-Effective for Small Environments: NUP licensing can be cost-effective for small environments with limited users. For example, a startup with a small development team might find NUP licensing more affordable than Processor Licensing.
3. Negotiable Minimums: Oracle licensing minimums can sometimes be negotiated, which can help reduce costs. For instance, if you’re a small business with fewer than the minimum required users, you might be able to negotiate a lower minimum with Oracle.
4. Upgrade Path: If you eventually outgrow NUP licensing or tracking your user population becomes too difficult, you can easily upgrade to Oracle Processor Licensing. This flexibility allows your licensing model to scale with your business.

Potential Downsides of NUP Licensing

1. User Tracking: With NUP licensing, you need to keep track of your users to ensure compliance with the licensing agreement. This can be challenging if your user base fluctuates frequently.
2. Multiplexing Software: Multiplexing software, like an application server, can be a typical “unknown” gateway to uncountable licensing populations, such as web users. This can lead to compliance problems.
   
   For example, suppose a web application with thousands of users accesses your Oracle database. In that case, tracking each user for NUP licensing can be difficult and potentially lead to licensing violations.

Understanding Named User Plus – Licensing Minimums

When you opt for Oracle NUP (Named User Plus) licensing, you must base your licensing on a minimum of 25 users per Oracle processor.

Here are some key points to consider:

• Minimum User Requirement: Even if you only have five users, you must purchase licenses for 25 users to meet the minimum requirement.
• Higher Number Rule: You must purchase licenses for the higher number, whether the actual number of users or the calculated minimum number.

Scenario:

Let’s consider a company using Oracle Database Enterprise Edition with no EE options.

They have one server with eight cores. They only have ten employees who use the system, but they need to ensure they meet the minimum licensing requirements.

The server uses an Intel core with a license factor of 0.5.

1. Calculate Oracle Processor Licenses: First, multiply the number of cores (8) by the license factor (0.5). This gives you 4 Oracle processor licenses.
2. Determine User Minimum: The user minimum per Oracle processor is 25 NUP per Oracle Processor.
3. Calculate Required Licenses: Despite having only ten users, the company must purchase 100 licenses (4 x 25) to meet the minimum requirement.

Oracle Database Options and Packs

Oracle provides various options and packs that enhance the capabilities of its database products.

These options and packs offer additional features and tools that can help optimize database performance, improve management efficiency, and provide advanced analytics.

Overview of Oracle Database Options and Packs

Oracle database options and packs are additional components that can be purchased to extend the functionality of your Oracle Database.

They are designed to meet specific needs and use cases, such as performance tuning, data compression, and advanced security.

Here’s a brief overview of some critical options and packs:

1. Oracle Management Packs
2. Oracle Database Enterprise Edition Options
3. Oracle Database Enterprise Management Packs

Detailed Explanation of Each Option and Pack

Oracle Management Packs

Oracle Management Packs offer a cost-effective solution for managing Oracle environments. They provide comprehensive tools for database management tasks such as performance diagnostics, tuning, space management, and backup and recovery.

Oracle Database Enterprise Edition Options

Oracle Database Enterprise Edition Options are designed to address the most demanding business and IT challenges. They offer advanced capabilities in performance, availability, security, and compliance.

These options include Real Application Clusters (RAC), Partitioning, Advanced Compression, and Advanced Security.

Oracle Database Enterprise Management Packs

Oracle Database Enterprise Management Packs provide comprehensive solutions for managing Oracle Database Enterprise Edition.

They offer tools for change management, configuration management, and performance management, among others.

Understanding these options and packs can help you customize your Oracle Database to meet your specific needs better and maximize the value of your Oracle investment.

Oracle Database Enterprise Edition Options Licensing

Oracle offers 18 different Oracle enterprise edition options products, each containing multiple features. These products are only available to license under Oracle Database Enterprise Edition.

• If you use or enable these options on a Standard Edition database, you must license that database with Enterprise Edition.

It is essential to match the licenses and quantities for each option to ensure correct licensing while using Oracle Database Enterprise Edition Options. The following guidelines should be kept in mind:

• If you purchase a license for one option, you should purchase licenses for all other options you use at the same level and quantity.
• All Oracle Enterprise Products are licensed based on the number of cores in the system. Therefore, the more cores you have, the more expensive the licensing will be.

In 2023, the following Oracle products exist on the Oracle pricelist.

• Multitenant
• RAC
• RAC One Node
• Active Data Guard
• Partitioning
• Real Application Testing
• Advanced Compression
• Advanced Security
• Label Security
• Database Vault
• Oracle OLAP
• TimesTen Application
• Database In-Memory
• Diagnostic Pack
• Tuning Pack
• Database Lifecycle Management Pack
• Data Masking and Subsetting Pack
• Cloud Management Pack for Oracle Database.

To license Oracle Database Enterprise Edition options, you need to follow these steps:

1. Count the number of physical cores in the server and cluster.
2. Multiply the physical processor cores with the Oracle license factor to obtain the “Oracle processor” requirements.
3. The license and quantity metrics for the option license must match the database. Suppose you have 8 Enterprise Edition processors and are using partitioning in one of the databases running on that server. In that case, you must license the DB EE with the same quantity and metric as the Partitioning license.

Scenario:

A company has a server with eight physical cores of Intel and is using the multitenant option on their Oracle Database Enterprise Edition. They need to ensure that they are appropriately licensed for this option.

Using the new core factor of 0.5 (intel) and the processor-to-core ratio of 2:1, the company calculates the number of required processor licenses as follows:

• The number of cores (8) multiplied with license factor 0,5 = 4 Oracle processors

In addition, the company must license Oracle Database Enterprise Edition in the same way, with the exact quantities and metrics as the multitenant option.

They must purchase four licenses for the multitenant option and Oracle Database Enterprise Edition. To avoid compliance issues, they ensure that the license and quantity metrics match the database.

Applications and Environments

Oracle’s licensing models are determined by the type of product, the number of users, and the specific applications and environments in which the software is used.

This section will provide examples of how licensing works in different scenarios.

Applications Licensing Environments Example

Consider a scenario where a company uses Oracle’s E-Business Suite (EBS) system for processing its financial information. The company licenses EBS Financials in the Component model by Application User metric.

In this case, the company has customized the invoice approval form for managers to review and approve. There are 10 Manager Users who validate and/or approve the invoices.

The licensing in this scenario would be based on the number of users accessing the specific application (EBS Financials), which is 10 Manager Users.

Licensing Multiplexing Environments Example

Multiplexing refers to using hardware or software to pool connections, reroute information, or reduce the complexity of data movement between devices. In a licensing context, multiplexing does not reduce the number of Oracle licenses required.

For instance, consider a bank where employees access information and manage transactions of account holders through web browsers. Account holders can access bank information through the bank’s website or Automated Teller Machines (ATMs).

The Oracle Database Enterprise Edition storing banking transactions runs on a server with two 24-core processors, with a core factor 0.5. In this scenario, the licensing would be based on the capacity of the processors in the server, regardless of the number of end-users or devices accessing the database.

Understanding these examples can help you navigate Oracle’s licensing models in different applications and environments.

Oracle OEM/ISV licensing

Application Specific Full Use licenses (ASFU) are sold as part of a 3^rd party application package. One common and recognizable example of Oracle ASFU licensing is SAP, which still has many customers running Oracle databases under their applications.

The application vendor or partners handle sales and support of ASFU licenses, not directly by Oracle. Oracle ASFU licenses explained.

Oracle Database Licensing per version.

In recent years, Oracle has started to implement licensing differences depending on which version of the Oracle database you are running.

One example is no more RAC in 19C for SE or that you can run up to 3 PDB per CDB without a license in 19C and onwards. Always look at those small nuances.

Oracle Enterprise License Agreements

Another trendy way to consume Oracle database technology is one where you get unlimited license grants for a specific set of products.

The ULA is a term-based agreement, between 1 – 5 years. You can renew or certify the ULA at the end of your term.

Certification is turning the unlimited license grant into standard perpetual licenses. Learn what an Oracle ULA is. The PULA is a perpetual version of the ULA; it never expires.

Calculating Oracle License Costs – Enterprise Database Products

Understanding how to calculate Oracle license costs is crucial for budgeting and compliance. Here’s a simplified example:

Suppose you have an Intel Xeon processor 9200 with 16 cores and one processor. Oracle has defined Intel with a licensing factor of 0.5.

To calculate the licenses needed, multiply the number of cores by the licensing factor (16 * 0.5), which equals 8 Processor licenses.

Therefore, you need to license that server with eight processor licenses. If each license costs $47,500, the total cost would be 8 * $47,500 = $380,000.

Scenario: Licensing a Cluster with SE2

Consider a company with a cluster of 3 nodes with two processors using VMware. They are running Oracle Standard Edition 2 and need to ensure proper licensing.

Since Oracle SE2 is licensed per CPU socket occupied, the company would need to fully license each node with two processor licenses. This means a total of 6 processor licenses for the entire cluster.

To calculate the cost, they multiply the number of processor licenses by the cost per license ($17,500).

Therefore, the total cost of licensing the cluster would be 6 * $17,500 = $105,000. It’s crucial to ensure that the license and quantity metrics match the database to avoid compliance issues.

Oracle Database Standard Edition 2 Pricing

1. Let’s use the same server as an example, an Intel Xeon CPU 9200 – 1 processor with 16 cores. However, Oracle SE2 is not licensed per core but per CPU socket occupied. In this case, you would license the server with one processor license for $17,500 per processor.

Oracle Database Standard Edition 2 Licensing

• Oracle Database Standard Edition is licensed per CPU socket occupied.
• Oracle Database Standard Edition has licensing limits on the server size it can be deployed upon.
• Oracle Database Standard Edition 2 may only be deployed on a server with a maximum of two processor sockets.
• You may not use Enterprise Edition options such as diagnostic or tuning packs on a standard edition 2 database.
• If licensing Oracle Database Standard Edition 2 NUP is calculated, 10 NUP per server is the licensing minimum.

Oracle Term license change

The license Term provides the timeline for the customer’s usage

• As of September 1, 2020, Oracle has ended the availability of term licenses for all on-premise software except specific Oracle Technology products for 1-year Term only available; Oracle sales representative for more information. Existing customers paying support on their term licenses will remain supported through the end of their term.
• The list price for a term license is based on a specific percentage of the perpetual license price with one year at 20% of the list price: Exadata Storage Server Software, Oracle Active Data Guard, Oracle Advanced Compression, Oracle Advanced Security, Oracle Database Enterprise Edition, Oracle Database In-Memory, Oracle Database Standard Edition 2, Oracle Database Vault, Oracle Diagnostic Pack, Oracle Forms and Reports, Oracle GoldenGate, Oracle Internet
  Application Server Enterprise Edition, Oracle Multitenant, Oracle OLAP, Oracle Partitioning, Oracle Real Application Clusters, Oracle Real Application Clusters One Node, Oracle Real Application Testing, Oracle SOA Suite for Oracle Middleware, Oracle Tuning Pack, Oracle Weblogic Server Enterprise edition, Oracle Weblogic Standard Edition, Oracle Weblogic Suite.
• Note that the list support price for term licenses is 22% of the list perpetual license fee.

Oracle Bring Your Own License (BYOL)

If you’ve already invested in Oracle database technology, you can leverage that investment in Oracle Cloud through the Bring Your Own License (BYOL) option.

This is one of Oracle’s strategies to compete with other public cloud vendors like Microsoft Azure and AWS.

Advantages of Oracle’s BYOL

With Oracle’s BYOL option, you can access Oracle cloud services at a discount. However, the benefits and potential savings depend on specific use cases.

BYOL for Azure and AWS

Bringing your own license for Azure and AWS is not much different from licensing software on-premise. The critical difference is that Oracle has approved Azure and AWS hypervisors, and you can license per vCPU.

Unique Value of Oracle Cloud

Oracle Cloud offers a unique value proposition: if you have Oracle software licenses under support, you can use them to set up Oracle environments in Oracle Cloud.

Free Licensable Features in Oracle Cloud

1. Oracle Cloud allows you to use several licensable features for free, including the diagnostic and tuning pack. However, if you’re using Enterprise Edition products and start an EE high-performance environment using a database enterprise option that you don’t have a license for, Oracle won’t send you a warning. As the end user, it’s your responsibility to manage and control this.

Oracle Authorized Cloud Computing Environments

• Customer can deploy their Oracle Technology programs licenses on two Authorized cloud providers: Amazon EC2 and RDS Microsoft Azure Platform.
• To license Oracle Technology programs in the Authorized Cloud, customers are required to count the maximum available vCPUs of an instance type as follows:
• Count two virtual CPUs (vCPU) to 1 Oracle Processor license if multi-threading of processor cores is enabled, and one virtual CPU (vCPU) to 1 Oracle Processor license if multi-threading of processor cores is not enabled.

Oracle Applications Licensing

This covers products such as Oracle EBS, Oracle Siebel, JD Edwards, and Peoplesoft.

• Licensing Models offer flexibility for purchasing programs in different pricing models such as Component, Custom Application Bundle (CAS), or Enterprise.
• Licensing Metrics allow customers to purchase based on user or usage-based counts for Component pricing, bundle users across select programs for CAS pricing, or company-wide usage for Enterprise pricing. There also exists concurrent licensing and other legacy metrics.

Oracle Applications Licensing Models are offered as follows:

Component Model is an a la carte type of pricing for an individual product. Metrics available are:

• User-based metrics such as Application User, Employee, Subscriber, etc
• Usage-based metrics such as Electronic Order Lines, Expense Reports, and $M Costs Of Goods Sold, etc
• The Custom Application Suite Model allows the creation of custom bundles across select product lines based on the needs of specific user populations. Custom Suite User is the only metric available and refers to the individual authorized to use any of the products included in the bundle and assembled across different application product lines.
• Enterprise Model is ideal for large companies to license an individual product for their entire organization without keeping track of specific users, servers, or deployment locations. Metrics refers to company-wide values, e.g., Enterprise $M in Revenue.

Six Oracle Database Licensing Compliance Risks

Understanding Oracle Database licensing compliance risks is crucial to avoid unexpected costs and legal issues.

Misunderstanding Oracle Licensing Policies for Virtual Environments

Oracle’s licensing policy document distinguishes between two types of virtualizations: hard partitioning and soft partitioning.

• Hard Partitioning: This allows you to limit the processors you license, for example, in a cluster or on a large server. This is also known as sub-capacity licensing.
• Soft Partitioning: Technologies where Oracle does not allow sub-capacity licensing, and you need to license the whole cluster or server. VMware is counted as soft partitioning.

Reasons for non-compliance can include:

• It is not aware of Oracle licensing rules for the specific virtualization technology.
• Misunderstanding or misinterpreting Oracle soft partitioning policy document.
• Incorrect configuration of the OS in hard partitioning scenarios like IBM LPAR or Oracle OVM, requiring licensing the whole server.

Misunderstanding Oracle Licensing Policy for Disaster Recovery

As a rule, if you have the Oracle binaries installed on a server, it must be licensed regardless of whether it’s turned on or off. The only exception is the 10-day rule or when testing your DR instances.

Not Fulfilling Oracle Licensing User Minimums

Oracle database, both Enterprise Edition and Standard Edition, can be licensed with the processor or Named User Plus licensing.

However, even if you only have a few users, you must apply the licensing user minimums per processor to that server.

A few user minimums include:

• Oracle Database Enterprise Edition – 25 user minimums per Oracle processor license.
• Oracle Database Standard Edition 2 – 10 user minimums per server.
• Oracle WebLogic Enterprise Edition – 10 users per Oracle processor license.
• WebLogic Suite – 10 users per Oracle processor license.

Unknowingly Using Oracle Database Enterprise Edition Options Without a License

Oracle Database Enterprise Edition comes with 18 additional licensable options and management packs.

These features, if used, would trigger additional licenses. For example, the Oracle Database Enterprise Edition license is $47,500 per processor.

Still, the Oracle Database Multitenant option is licensed at $17,500 and, if used, would trigger additional licenses to match the number of Oracle Database EE licenses.

Usage of Oracle Database EE Options on Standard Edition

Some of the Oracle Database Enterprise Options can technically be used on Standard Edition databases, but it is not allowed from a license compliance perspective.

If discovered in an audit, you must upgrade to Enterprise Edition and apply the core factor licensing to purchase licenses for this usage.

Installing Oracle Database Standard Edition on a Too-Large Server

Oracle Database Standard Edition and Standard Edition 2 have different licensing limitations on the server type eligible to run them.

If you install any of these versions on a server with a capacity more than what is suitable, you must license that server with an Enterprise Edition license.

Useful links to learn more about Oracle licensing.

• Oracle Database Licensing https://www.oracle.com/assets/databaselicensing-070584.pdf
• Oracle Partitioning (Virtualization) https://www.oracle.com/assets/partitioning-070609.pdf
• Oracle Licensing Disaster Recovery https://www.oracle.com/assets/data-recovery-licensing-070587.pdf
• Oracle Application Licensing https://www.oracle.com/assets/application-licensing-table-070571.pdf
• Oracle Licensing in the Cloud https://www.oracle.com/assets/cloud-licensing-070579.pdf
• Oracle Database Licensing Information: https://docs.oracle.com/database/121/DBLIC/editions.htm#DBLIC109
• Oracle Middleware Licensing Information: https://docs.oracle.com/cd/E24628_01/doc.121/e24474/toc.htm

FAQs on Oracle database licensing

What are some examples of Oracle database software?

Examples of Oracle database software include Oracle Enterprise Edition, Oracle Database Standard Edition 2, Oracle Standard Edition, and Oracle Standard Edition One.

What needs to be licensed?

Every server where the processor is installed or running needs to be licensed. This includes production, test environments, development environments, and, most likely, any disaster recovery environment.

How does Oracle license work?

Oracle’s licensing model grants permissions to individuals or systems to utilize a specific software without restrictions on the frequency of usage. This means that a single license can support multiple deployments of the same software across various servers. No further licenses are necessary once a license has been procured for an individual or processor.

What is Oracle Processor Licensing?

Oracle Processor licensing is used when users cannot be counted or verified. This is often the case with web-based applications. The number of licenses required is calculated by multiplying the number of cores by the core processor-licensing factors specified in the Oracle Processor Table.

What is the price per processor for Oracle software?

The price for Oracle software is per processor. However, Oracle’s definition of “processor” may not be identical to that of your hardware vendor. Standard Edition and Standard Edition 2 are counted the same as sockets when Oracle software is licensed. However, multi-chip modules count each chip as one socket. You must use the right licensing formula for Enterprise edition products to determine the “processors” required.

What is Named User Plus Licensing?

User Plus Licensing is a licensing model allowing the licensee to pay per user. A user can be defined as any end node that creates or receives data from an Oracle database.

What are the minimums for Named User Plus licenses?

The Database edition determines the license user minimums. Enterprise Edition licenses require a minimum of 25 named users plus per processor licenses, or the total number using the Oracle Database. Standard Edition 2 allows for a minimum of 10 users per server.

Which devices need to be licensed under Named User Plus Licensing?

All devices connected to the Oracle Database must be licensed if humans do not operate them. All humans using human-operated devices, such as barcode scanners, must be licensed if they connect to the Oracle Database. Non-human and human-operated devices that connect to the Oracle Database must be licensed.

How can you understand who needs to be counted for Named User Plus licensing?

To understand who needs to be counted for Named User Plus licensing, consider the source of information and where the requests are coming from. Oracle NUP licensing may be a good choice in closed environments with few users, such as test and development.

What are the benefits and cons of Named User Plus licensing?

The benefits of Named User Plus licensing include cost-effectiveness, negotiable licensing minimums, and easy upgrade to Oracle processor licensing. The cons include the need to keep track of users and compliance problems with multiplexing software.

What are the licensing scenarios for Oracle Processor licensing?

Oracle Processor licensing is used in scenarios where the user population is not countable or very large, such as Oracle Databases for applications accessing the web.

What are the benefits and cons of Oracle Processor licensing?

The benefits of Oracle Processor licensing include not having to count or keep control of users, many different product versions to choose from, and easy upgrades. The cons include being unable to downgrade to a lesser product version and being the most expensive licensing choice in many situations.

What are the licensing fundamentals for Oracle Database Enterprise Edition?

Licensing fundamentals for Oracle Database Enterprise Edition include requiring the same license and quantities for Oracle Database Enterprise Edition Options and all Oracle Enterprise Products being licensed by counting cores. If licensing with Oracle NUP, the user minimum is calculated as 25 users per Oracle processor, meaning even if you have five users, you still need 25 to cover the licensing minimums.

What are Oracle Database Enterprise Edition options?

Oracle Database Enterprise Edition options are products that each contain multiple features and are available to license under Oracle Database Enterprise Edition only. There are 18 different Oracle Enterprise Edition options products, including Multitenant, RAC, Active Data Guard, Partitioning, Real Application Testing, Advanced Compression, Advanced Security, Label Security, Database Vault, OLAP, TimesTen Application, Database In-Memory, Diagnostic Pack, Tuning Pack, Database Lifecycle Management Pack, Data Masking and Subsetting Pack, and Cloud Management Pack for Oracle Database.

What happens if you use or enable Oracle Enterprise Edition options on Standard Edition databases?

If you use or enable Oracle Enterprise Edition options on Standard Edition databases, Oracle will require you to license that database with Enterprise Edition.

How do you license Oracle Database Enterprise Edition options?

To license Oracle Database Enterprise Edition options, you must count the number of physical cores in the server and cluster. Then, multiply the physical processor cores with the Oracle license factor to obtain the “Oracle processor” requirements. The same license and quantity metrics for the option license must match the database. If you have 8 Enterprise Edition processors and are using partitioning in one of the databases running on that server, you need to license the entire server with a partitioning license. Vice versa if you have Named User Plus licensing.

What is Oracle OEM/ISV licensing?

Application Specific Full Use (ASFU) licenses are sold as part of a 3rd party application package. An example of Oracle ASFU licensing is SAP, which still has many customers running Oracle databases under their applications. The application vendor or partners handle sales and support of ASFU licenses, not directly by Oracle. Other license models have embedded licensing and Hosting licenses.

What are Oracle Enterprise License Agreements?

Oracle Enterprise License Agreements provide unlimited license grants for a specific set of products. The ULA is a term-based agreement, between 1-5 years, and at the end of the term, you can renew or certify the ULA. The PULA is a perpetual version of the ULA that never expires. Another Oracle ELA is the pool of funds agreement.

How much does Oracle licensing cost?

Oracle Database Enterprise licensing is $47,500 per Oracle Processor license, and you can find Oracle prices publicly available. However, it’s important to note that an Oracle processor does not equal an Intel or AMD processor. An Oracle processor is calculated by licensing the number of physical cores a processor has and multiplying this with the Oracle licensing core factor table.

How can you calculate Oracle license costs for Enterprise Database Products?

To calculate Oracle license costs for Enterprise Database Products, multiply the physical cores by the Oracle licensing factor table. For example, if you have an Intel Xeon processor 9200 with 16 cores and one processor, and Oracle has defined Intel with an Oracle licensing factor of 0.5, you would need to license that server with eight processor licenses x $47,500 = $380,000.

How can you calculate Oracle license costs for Database Standard Edition 2?

To calculate Oracle license costs for Enterprise Database Products, multiply the physical cores by the Oracle licensing factor table. For example, if you have an Intel Xeon processor 9200 with 16 cores and one processor, and Oracle has defined Intel with an Oracle licensing factor of 0.5, you would need to license that server with eight processor licenses x $47,500 = $380,000.

How many databases can I run on a server that is licensed 1 processor Standard Edition?

You can run as many as you want; licensing is based upon the physical processor power and not the number of database instances.

If we want to upgrade from 10 to 19c, do we need to purchase a new license?

No, licensing is perpetual; it does not expire. However, you need to keep paying the annual support. The annual support allows you to upgrade to later versions at no cost.

Is Oracle licensing perpetual?

Yes, when you purchase an Oracle license, it is usually perpetual and never expires. This means there are no additional licensing fees after the one-time license fee. Additionally, when you purchase a perpetual license, you also purchase one year of technical support, which is renewed annually.

What is the list price for a term license?

The list price for a term license is based on a specific percentage of the perpetual license price, with one year at 20% of the list price.

How does BYOL work for Azure and AWS?

BYOL for Azure and AWS is not very different from licensing software on-premise. The only difference is that Oracle has approved Azure and AWS hypervisors, and you can license per vCPU.

What licensing models are offered by Oracle for Applications?

The Component Model is an a la carte type of pricing for an individual product, and available metrics include user-based metrics such as Application User, Employee, Subscriber, and usage-based metrics such as Electronic Order Lines, Expense Reports, and $M Costs Of Goods Sold.

Is Oracle database free?

The only free version of the Oracle database is the Oracle Database XE version; all other editions require that you purchase a license. Oracle 23c For Developers is also free.

Can I transfer my Oracle license to another party?

Yes, but Oracle’s prior written approval is required. If your company is engaged in M&A – you should review your contracts.

Do Oracle have different licensing policies?

Yes, at least five different Oracle database license policy documents deal with how to license Oracle in virtual environments, public cloud, disaster recovery, and more.

Does Oracle EBS come with an Oracle Database Included?

Yes, however, very few organizations, if any, can avoid triggering full use of the Oracle EBS database.

How is Oracle Big Data SQL Licensed?

Oracle Big Data SQL is not licensed per processor or named user plus but rather by the disk drive.

What is Oracle SIG?

Oracle SIG is short for Oracle Software Investment Guide. It was an educational document that was published on Oracle.com.

Our Oracle License Compliance Service:

• Oracle Licensing Assessment: Conduct a thorough analysis of your Oracle environment to determine whether you’re using the correct licenses and identify any licensing compliance gaps or risks using Oracle LMS scripts.
• Reviewing Licensing Agreements: Examine your Oracle licensing agreements and terms of use to assess your level of contractual risk, highlighting any areas that could lead to non-compliance.
• Optimizing Oracle Licensing: Identifying opportunities to optimize your Oracle licensing usage to reduce costs and streamline operations.
• Advisory Services: Providing guidance and recommendations to help you achieve Oracle licensing compliance, including advice on negotiating with Oracle if necessary.

If you need assistance reviewing your Oracle licensing, contact us today to schedule a meeting.