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Six Oracle Database Licensing Models and Costs – 2024

How does Oracle Database Licensing Work?

How is Oracle database licensing structured? Oracle database licensing hinges on the following:

  • The infrastructure, number of processor cores, and number of users.
  • The two main license models are processor and named user Plus.
  • For the processor model, physical core counts matter, but Oracle’s virtualization rules apply to virtual servers.
  • Oracle offers two main database editions: Enterprise and Standard.
    • The enterprise edition is core-based with 18 add-ons termed enterprise edition options or management packs.
    • The standard edition is socket-based. Different editions have varying user minimums and deployment rules.

Understanding Oracle Database Licensing

Oracle Licensing for Beginners
Table Of Contents
  1. Understanding Oracle Database Licensing
  2. How does Oracle Licensing Work?
  3. Oracle Databases Licensing Models
  4. Oracle Processor Licensing
  5. Virtualization Software & Partitioning
  6. When to Consider Oracle Processor Licensing
  7. Understanding Oracle Named User Plus Licensing
  8. Named User Plus Licensing in Oracle
  9. Opting for Oracle Named User Plus (NUP) Licensing
  10. Understanding Named User Plus – Licensing Minimums
  11. Oracle Database Options and Packs
  12. Overview of Oracle Database Options and Packs
  13. Oracle Database Enterprise Edition Options Licensing
  14. Applications and Environments
  15. Calculating Oracle Database License Costs
  16. Oracle Database Standard Edition 2 Licensing
  17. Oracle Term license change
  18. Oracle Authorized Cloud Computing Environments
  19. Six Oracle Database Licensing Compliance Risks
  20. FAQs on Oracle database licensing
  21. Oracle 19c Licensing Changes:
  22. Our Oracle License Compliance Service:
  23. Contact us

How does Oracle Licensing Work?

Oracle db 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.
  • Oracle 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.

Oracle Databases Licensing Models

Oracle Databases Licensing Models

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 the 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?

In the context of Oracle software, it’s vital to understand the scope of licensing requirements:

All Environments: Every server where the Oracle processor is installed or running must be licensed. This includes the production environment and test, development, and disaster recovery environments.

Oracle Processor Licensing

oracle processor license

Understanding Oracle Processor Licensing

  • When It’s Used: Oracle Processor Licensing is typically applied in scenarios where it’s difficult to count or identify individual users. This situation often arises in web-based applications where user tracking is challenging.

Calculating Licenses

  • License Determination: To calculate the required licenses, multiply the total number of processor cores by the core processor licensing factors. These factors are outlined in the Oracle Processor Table.
  • Contractual Reference: Always refer to the specific Oracle contract for detailed terms, as Oracle’s definition of a “processor” might differ from that of your hardware vendor.

Standard Edition Licensing

  • Licensing Model for Standard Editions: For Oracle Standard Edition and Standard Edition 2, the licensing count is based on sockets rather than cores. In the context of multi-chip modules, each chip is considered as one socket.

Licensing All Processors

  • Comprehensive Licensing Requirement: If Oracle Software is installed or running on a server, all processors in that server must be licensed. This requirement extends to all cluster members and applies to remote mirroring or standby machines.

Processor Calculation

  • Calculation Method: The total number of processor cores is multiplied by the core processor licensing factor to determine the processor license count.
  • Multi-core Consideration: Each core must be accounted for in the licensing for multi-core chips. All fractional numbers are rounded up before multiplying by the core-licensing factor.

Product-Specific Nuances

  • Unique Conditions Per Product: Each Oracle product may have specific licensing nuances. For example, in licensing Oracle Database Standard Edition, a processor is equated to an occupied slot, and in multi-chip modules, each chip counts as a single socket.

It’s crucial for organizations to comprehensively understand these licensing requirements to ensure compliance and avoid potential legal and financial repercussions. Oracle licensing can be complex, and the specifics can vary based on the product and deployment scenario.

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.

When to Consider Oracle Processor Licensing

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.

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.

oracle licensing user minimums

Understanding Oracle Named User Plus Licensing

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.
oracle named user plus licensing

Named User Plus Licensing in Oracle

Named User Plus licensing in Oracle is a model that focuses on counting distinct users and devices accessing the Oracle Database.

Understanding this licensing model is crucial for compliance and cost optimization.

Determining Who to Count

  • Human Users and Devices: The count includes human users and any devices or servers interacting with the Oracle Database.
  • Case Study Example: Consider a scenario where a company has a web application interfacing with an Oracle Database.
    • Counting Human Users: Everyone who accesses the Oracle Database via the web application must be included in the licensing count. This means every employee, customer, or external partner uses the application.
    • Counting Devices: Besides human users, any server, device, or automated tool that makes requests to the Oracle Database must also be included. This might include application servers, batch-processing servers, or even IoT devices.

Key Considerations

  • Comprehensive Counting: Ensure that all potential users and devices are accounted for. Overlooking any could lead to non-compliance with Oracle’s licensing agreements.
  • Dynamic Environments: In environments where user numbers fluctuate, careful monitoring and adjustment of the licensing count may be required.
  • Direct and Indirect Access: Remember to count users who might indirectly access the database through another application or tool.

Why It Matters

  • Compliance: Adhering to Oracle’s licensing agreements is a legal obligation and crucial to avoid substantial penalties and audit costs.
  • Cost Management: Counting users and devices can prevent over-licensing and optimize licensing expenses.

In summary, determining the count for Named User Plus licensing requires thoroughly assessing all human users and devices that access the Oracle Database.

Opting for Oracle Named User Plus (NUP) Licensing

Opting for Oracle Named User Plus 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 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

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 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 will exist on the Oracle price list.

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 option license’s quantity and license metrics 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.

They ensure that the license and quantity metrics match the database to avoid compliance issues.

oracle database option price
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Applications and Environments

oracle licensing 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

Let’s delve deeper into the provided scenario to understand better the licensing environment for Oracle’s E-Business Suite (EBS).

Scenario Context

  • Application in Use: The company utilizes Oracle’s E-Business Suite, specifically the EBS Financials module.
  • Purpose: This module primarily processes the company’s financial information.

Licensing Model

  • Component Model by Application User Metric: The company has chosen to license EBS Financials based on the number of individual users who access the application. This is a common approach for enterprise applications where each user’s access can be clearly defined and counted.

Customization and User Roles

  • Customization Example: The company has tailored the EBS system to fit its unique business processes in this scenario. A notable customization is the modified invoice approval form.
  • User Role – Managers: The customized form is designed for managers responsible for reviewing and approving invoices.

Counting Users for Licensing

  • Number of Users: Ten managers (Manager Users) interact with this customized feature of EBS Financials.
  • Licensing Implication: The licensing fee for EBS Financials in this specific case is based on these 10 Manager Users. Essentially, each manager who accesses the system to approve invoices counts towards the total number of licenses required.

Licensing Multiplexing Environments Example

oracle licensing Licensing Multiplexing Environments

Multiplexing in Oracle Licensing

  • Definition of Multiplexing: In Oracle’s context, multiplexing involves using hardware or software solutions to pool connections, reroute information, or simplify data movement between devices or systems.
  • Impact on Licensing: It’s critical to note that using multiplexing techniques does not decrease the number of Oracle licenses required.

Licensing Example: Banking Environment

  • Scenario Setup: Consider a banking scenario where employees manage account holders’ transactions and access information through web browsers. Account holders also access bank information through the bank’s website or Automated Teller Machines (ATMs).
  • Database and Server Specifications:
    • The bank uses Oracle Database Enterprise Edition to store transaction data.
    • The database runs on a server equipped with two 24-core processors.
    • Each core has a core factor of 0.5, as specified by Oracle.
  • Licensing Based on Processor Capacity:
    • In this multiplexing environment, the licensing requirement is determined by the capacity of the processors in the server.
    • The number of end-users or devices accessing the database, whether through web browsers or ATMs, does not influence the number of licenses required.

Key Takeaways for Licensing Multiplexing Environments

  • Processor-Based Licensing: Oracle’s licensing in multiplexed environments is predominantly based on the processor capacity rather than the number of users or devices.
  • Importance of Accurate Calculation: Correctly calculating the required licenses based on processor capacity is crucial to ensure compliance and avoid potential legal and financial consequences.

Oracle Database Licensing Per Version

  • Recent Changes: In recent years, Oracle has introduced licensing variations depending on the specific Oracle database version.
  • Version-Specific Differences:
    • For example, the Real Application Clusters (RAC) feature is no longer available in Oracle 19C Standard Edition.
    • Another notable change is the ability to run up to three Pluggable Databases (PDB) per Container Database (CDB) without needing an additional license in Oracle 19C and onwards.
  • Attention to Detail: It’s essential to pay close attention to these subtle yet significant nuances in licensing terms for different versions of the Oracle database.

Understanding these complex licensing requirements and their application in different scenarios, like multiplexing environments, is crucial for organizations using Oracle products.

Staying informed about version-specific changes and nuances can help maintain compliance and optimize licensing costs.

Calculating Oracle Database License Costs

oracle database license cost

Understanding Oracle License Cost Calculation

Importance: Accurately calculating Oracle license costs is vital for effective budgeting and maintaining compliance with Oracle’s licensing agreements. We will walk over how to calculate the Oracle license price.

Simplified Example: Intel Xeon Processor

  • Scenario: Imagine a server with an Intel Xeon processor 9200, which has 16 cores and one processor.
  • Oracle’s Licensing Factor: Oracle has assigned a licensing factor 0.5 for Intel processors.
  • Calculation Process:
    • Multiply the number of cores (16) by the licensing factor (0.5) to obtain 8 Processor licenses.
    • Thus, 8 Processor licenses are required for this server.
  • Total Cost Estimation:
    • If each Oracle enterprise license costs $47,500, the total cost would be eight licenses x $47,500 per license = $380,000.

Scenario: Licensing a Cluster with Oracle Standard Edition 2 (SE2)

  • Company Scenario: A company uses a cluster of 3 nodes, each with two processors, and utilizes VMware for virtualization. They are running Oracle Standard Edition 2 (SE2).
  • SE2 Licensing Model: Oracle SE2 is licensed per occupied CPU socket.
  • License Requirement:
    • Each node must be fully licensed with two processor licenses, for a total of six processor licenses for the entire cluster.
  • Cost Calculation:
    • Multiply the total number of processor licenses (6) by the cost per license ($17,500).
    • The total licensing cost for the cluster is six licenses x $17,500 per license = $105,000.

Oracle Database Standard Edition 2 Licensing

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 upon which it can be deployed.
  • 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

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.

Six Oracle Database Licensing Compliance Risks

oracle 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 OS configuration in hard partitioning scenarios like IBM LPAR or Oracle OVM requires licensing the whole server.

Misunderstanding Oracle Licensing Policy for Disaster Recovery

Misunderstanding Oracle Licensing Policy for Disaster Recovery

As a rule, if you have the Oracle binaries installed on a server, they must be licensed regardless of whether they are 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 from a license compliance perspective, this is not allowed.

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.

Oracle Licensing in Hyper V | Oracle licensing virtual servers

Useful links to learn more about Oracle licensing.

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 permission to individuals or systems to use specific software without restrictions on 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 Oracle database price?

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 number of users 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 relate 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 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, having many different product versions to choose from, and having 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 licensing all Oracle Enterprise Products 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, and vice versa if you have Named User Plus licensing.

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 and 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 on the physical processor power, 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, which 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 pricing method for an individual product. Available metrics include user-based metrics such as Application User, Employee, and 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 a license purchase. 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.

Oracle 19c Licensing Changes:

  1. Support for Pluggable Databases (PDBs) without Additional License: Oracle Database 19c now allows up to 3 PDBs per container database (CDB) without requiring an additional multitenant license. This change provided more flexibility in database management without extra licensing costs.
  2. No Real Application Clusters (RAC) in SE2: A notable change in Oracle 19c is the removal of support for Real Application Clusters (RAC) in the Standard Edition 2 (SE2). This means that RAC, previously available in SE2, can no longer be used starting from Oracle 19c.
  3. Licensing Limitations for SE2: The SE2 version imposed limitations on the total number of CPU sockets and the maximum number of CPU threads per database instance. While SE allowed up to four sockets (and SE1 two sockets), SE2 limited the number of sockets to two and restricted CPU threads.

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Author

  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, enhancing organizational efficiency.