Oracle Universal Cloud Credits – 2 different purchase models

Oracle Universal Cloud Credits is Oracle cloud currency for which you purchase Oracle compute, middleware and database cloud services. Are you looking for a way to pay for your Oracle cloud services? Are you unsure about the different pricing models? Read this article to understand what Oracle UCs are and which payment method would best fit your needs. Here are the basic benefits and costs of Oracle Universal cloud credits. Interested? Get started today by reading the remainder of this article. You’ll soon be able to make an informed decision on the most effective Oracle cloud solution for your business.

 

What is Oracle Universal Cloud Credits ? 

 

The Oracle Cloud currency program offers a flexible buying and consumption model. The UCC program offers higher discounting as your cloud usage grows. It also helps your business pay for its Oracle cloud services. In general, you can use these credits for a variety of applications, including Oracle database hosting, analytics, and social collaboration.

 

The Oracle UC  program gives customers the flexibility to use any region in the Oracle Cloud. Customers must sign up for an annual agreement and agree to advance billing. Each month, Oracle deducts their accounts based on actual usage. Annual credits must be consumed within the specified burn-down period. The burn-down period for these credits is specified in the price list. If you want to use the credits in a specific region, you’ll be billed monthly for the amount of time you’ve used.

 

The new cloud credits offer an attractive price comparison. Compared to AWS and Azure, Oracle’s new universal credits will offer a better value. For example, customers will pay only a small portion of their invoice compared to other cloud providers. That way, a large number of customers can benefit from Oracle’s universal credits program. Furthermore, customers can switch between AWS and Oracle PaaS services without notice, allowing them to enjoy the flexibility and price.

 

 

Which are the different pricing models available for Oracle Universal Cloud Credits?

 

The Oracle Universal cloud credit pricing model offers a variety of discount options, annual has a discount and pay as you go offers no discounts. Customers should pay attention to the different pricing options. Oracle customers can also negotiate discounts by asking for full transparency of pricing.

 

As with other cloud infrastructure services, Oracle offers several different pricing models. Several models are available to meet various budgets. Oracle offers Pay-as-you-go, Free-Tier, Pay-as-you-go, and Annual Commit pricing models. The pricing options vary, depending on the services being used and the amount of data moved. For example, free outbound data transfer for 10TB per region or product can be paid for through a flat monthly fee. There are also differences in rate structures across geographies, depending on carrier rates.

What is annual commit in UC?

 

The annual commit in Oracle UC program is a of pre-payment for a set amount of Oracle IaaS or PaaS services. A customer must use their Annual Universal Credits within the yearly Credit Period, and any unused credit will expire. Once the Credit Period expires, the pre-paid amount is not refundable. The customer may also negotiate a discount based on their usage patterns.

 

The monthly spend on Oracle UC credits are predictable and largely comparable to the on-demand model. The annual commitment to Oracle Universal Credits is typically equal to the contractual cost of the service. When the user activates the service, the user receives account login information and begins billing on the activation date. A monthly credit pool is required to use Oracle Cloud services. The credit amount can also be re-assigned if the customer wants to change providers or scale their usage.

 

Warning: There is an over-usage charge that is much more costly than your annual commit, its important to size your Oracle Cloud Credits contract correctly.

 

What is Pay as you go? PAYG?

 

Oracle Pay as you go for Oracle UCs is quite simple. There is no upfront payment and no commit on consumption levels over a 12 month period. You simply spin up your Oracle instance and then you billed every month for your consumption. The pricing is higher than on the annual commit. The PAYG option is a good option for customers who wants to test Oracle Cloud before committing to a larger amount or if you have a short term need for an Oracle instance. One example can be that you want to test an Oracle product that you do not have a license for during a short time period, then you go with the PAYG option for Universal Cloud Credit. Another scenario is when you are doing a migration and need duplicate environments, instead of purchasing license for the second environment you deploy in Oracle cloud.

 

 

How does Oracle Cloud Credits work?

 

You can spend your credit on anything in the Oracle cloud, including a production workload. With Bring Your Own License, you can drop a service without notifying Oracle. You can apply Universal Credits to any new services when they come available, which can be very useful for leveraging your on-premises license investment. Here are some tips to get the most from your Universal Cloud credits. During your negotiation, be sure to ask for pricing transparency so that you know how much you will be charged and what you can do to negotiate.

Oracle UCs represents a flexible model for the services you use in the Oracle Cloud. This flexible model covers PaaS, IaaS, Data Management, various bare metal offerings, network services, and more. This program simplifies the contracting process by allowing you to use the amount you want whenever you want. And you can use Oracle Cloud Credits to cover whatever expenses your business will incur.

Purchasing UCs from Oracle is a good way to save money and simplify your IT infrastructure. While you’ll have to pay more upfront, you’ll get a discount as you use the Oracle Cloud more. You’ll also get access to a higher level of support if you need it and you use more Cloud Credits than you originally planned. However, it’s important to read up on Oracle’s licensing policies before signing a cloud deal.

 

You will negotiate a discount rate for Oracle Cloud services, discounts being offered from Oracle are conservative and range from 0-20%

universal cloud discounts

 

 

That discount is then applied to your burn down rate card.

 

 

oracle universal cloud credits

 

How does Oracle UCs work in practice?

 

Oracle Oracle Universal Credits, Oracle UC is a an amount that you pay to Oracle either as a pre-payment or pay as you consume. The Oracle UCs can be used to pay for Oracle compute cloud services or Oracle platform services such as Oracle database, Oracle middleware or Oracle Integration cloud services. Oracle UCs cannot be used to pay for Oracle SaaS services.

 

Moving to Oracle Cloud

 

If you are considering deploying infrastructure or Oracle software on Oracle cloud, you will need to purchase UCs . And if you own Oracle licenses you have two choices: (1) will you use Oracle BYOL to use for databases or middleware on Oracle cloud (2) or will you spend more on Oracle Universal cloud services.

 

Oracle Cloud credits are available to purchase on 2 different models

 

  • Annual Oracle Universal CreditsYou make an annual commitment to Oracle, and you will receive a discounted rate for which you can burn down the credits over a 12-month period. Any unspent UC will be forfeited.
    Invoicing is done in advance for 12 months. Credits will be used towards Oracle cloud infrastructure and platform services, which includes database, middleware, and compute.

 

When to consider:  Only to consider after you have independently of Oracle reviewed your utilization in Oracle cloud. We often see companies relying on Oracle assessment of UC requirements and it always ends up being higher than what you consume.

 

  • Pay as you Go

 

No commitment and you pay monthly. Can be used towards Oracle Cloud Infrastructure or platform services. You only pay for what you consume/use, pricing is higher than the annual commitment.

 

When to consider: If you are uncertain about your commitments to Oracle cloud and need to deploy or test Oracle cloud before making an annual commitment.

 

What is best – Oracle UCs  vs Oracle BYOL ?

 

If you have actively supported Oracle technology licenses, such as Oracle database enterprise edition. You can then take that existing Oracle license and use it for Oracle BYOL.

 

Each supported enterprise edition database will give you 2 free OCUP of Oracle platform service, database. If you have 100 processors of Oracle Database Enterprise Edition and you choose to use them as BYOL, you will be granted 200 OCPU of Oracle database (1 processor = 2 OCPU).

 

To run 200x OCUP of Oracle Databases of Enterprise edition will cost you approx. 64,000 $ monthly. That is 767 000 $ yearly additional new Oracle Universal cloud credit spend.

 

The alternative for customers who have available licenses and use BYOL, would be an 767 000 $ annual saving, if you use BYOL vs purchasing cloud credit for the Oracle DB EE.
Pay attention Oracle ULA customers – Oracle is mentioning on their Oracle BYOL FAQ that you cannot count deployments on Oracle Cloud towards your Oracle ULA deployment exit numbers.

 

 

Recommendation:

 

If you are an Oracle customer and you own Oracle technology licenses you must review, how to purchase Oracle Universal cloud services – Oracle BYOL or purchasing Oracle UCs. Finding the right balance with leveraging your existing software licenses vs purchasing Oracle UC is essential to understand what is the cost effective way for you to move to Oracle Cloud.

 

 

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Are you moving to Oracle cloud and need help? We are Oracle cloud licensing experts and can help you with Universal Cloud Credits. We can help you understand which UC model is right for you, is it Pay as go for Oracle Universal credit credits or can you benefit from an annual commit?  We help you answer all your questions and provide advise on building your Oracle Universal Cloud Credits, schedule an consultation.