Oracle licensing

Understanding Oracle License Types: A Comprehensive Guide

Introduction to Oracle License Types

Understanding the different Oracle License Types is crucial when managing your Oracle software.

Oracle offers a variety of licensing options tailored to meet an organization’s technical, user, and budgetary requirements.

This article will delve into the most common types of Oracle database licenses and their unique features.

Table Summary

License TypeDescription
Cloud BYOLAllows customers to use their existing on-premise Oracle licenses in the cloud
Named User PlusBased on the number of users accessing the software
ProcessorBased on the number of processor cores in the servers where the software is installed
Full-Use LicenseEnables the end user to use the software for multiple purposes
Embedded Software License (ESL)Most restrictive license type, allowing the end user to use Oracle software without any customization
Application Specific Full Use (ASFU)A restricted license sold by an Oracle Solution Provider in conjunction with its third-party application package

Oracle License Types

  1. Cloud BYOL (Bring Your Own License): This licensing model supports migration and deployment to the cloud using existing on-premise Oracle licenses. It’s popular among enterprise customers due to potential cost savings.
  2. Named User Plus: This license type is based on the number of users accessing the software. It applies to both Oracle technology and application programs.
  3. Processor: This license type is based on the number of processor cores in the servers where the software is installed. It applies to Oracle technology programs.
  4. Full-Use License: This license enables the end user to use the software for multiple purposes, such as development, testing, production, and more.
  5. Embedded Software License (ESL): This is the most restrictive license type, allowing the end user to use Oracle software without customization.
  6. Application Specific Full Use (ASFU): This license type is sold by an Oracle Solution Provider in conjunction with its third-party application package.

Choosing the suitable licensing model for your organization is crucial to avoid overspending on Oracle licensing and unintentionally exposing your Oracle software estates to compliance risk.

Organizations should conduct an Oracle License Review annually to avoid incorrect usage of Oracle software.

FAQs

What is a Cloud BYOL license?

Cloud BYOL (Bring Your Own License) allows customers to use their existing on-premise Oracle licenses in the cloud.

What is a Named User Plus license?

Named User Plus license is based on the number of users accessing the software.

What is a Full-Use License?

Full-Use License enables the end user to use the software for multiple purposes: development, testing, production, and more.

Conclusion

Understanding Oracle License Types is a crucial part of managing your Oracle software. By familiarizing yourself with the different types of licenses, you can ensure that your organization is compliant and that you’re making the most cost-effective decisions.

Call to Action

Need help navigating Oracle License Types? Contact our team at Redress Compliance for expert guidance and support.

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, improving organizational efficiency.

    View all posts