Using Oracle ULAs on AWS
Oracle Unlimited License Agreements (ULAs) allow organizations to deploy certain Oracle products extensively during a specified period. While AWS deployments are allowed, using a ULA with AWS has significant caveats, particularly at the end of the agreement.
This article explains the key considerations, caveats, and practical solutions when using Oracle ULAs on AWS.
Read Oracle on AWS Licensing FAQs 2 of 4
1. Deploying Oracle on AWS During the ULA Period
Permitted Usage:
- During an active Oracle ULA, you can deploy specified Oracle products on AWS.
- AWS deployments are explicitly allowed as Authorized Cloud Environments under standard Oracle ULAs.
Practical Example:
- You hold a ULA for Oracle Database Enterprise Edition:
- You can launch 50 EC2 instances running Oracle Database EE without immediate incremental licensing costs.
Important Consideration:
- Oracle expects that your AWS instances comply with certified Oracle configurations (e.g., supported OS versions, database editions).
2. Major Caveat: ULA Certification and AWS Deployments
The key issue arises at the end of the ULA term, usually after 3 to 5 years, when you must certify your usage to convert licenses from unlimited to perpetual.
Standard Oracle Policy:
- Oracle excludes AWS and other public cloud deployments from counting toward perpetual licenses at ULA certification.
- Cloud deployments like AWS are not included because Oracle views cloud hardware as third-party-owned infrastructure.
Practical Example:
- You deployed 50 Oracle Database EE instances on AWS and 20 processor licenses on-prem during the ULA.
- At certification:
- Only the 20 on-prem processors count toward perpetual licenses.
- The 50 AWS instances are excluded, potentially unlicensed after the ULA ends.
Why It Matters:
- This can result in a significant compliance gap and unexpected licensing costs without proactive management.
3. Strategies to Manage ULA Certification and AWS Deployments
There are several effective strategies to avoid licensing pitfalls at the end of your ULA period.
A. Extend or Renew the ULA
- If AWS deployment is extensive and reducing cloud usage is impractical:
- Negotiate to extend or renew your ULA.
- You maintain unlimited deployment rights, including AWS, and defer certification complications.
Example:
- Your organization heavily utilizes Oracle on AWS; you negotiate a 3-year renewal:
- Cloud licensing remains unlimited, delaying certification challenges.
B. Transition to Cloud-Specific ULA or Subscription Model
- Oracle offers alternative licensing structures tailored to cloud deployments:
- “Oracle Cloud at Customer” or similar subscription-based licensing models.
- Consider converting your existing ULA into one of these metrics to include AWS usage.
Example:
- Convert traditional ULA to a subscription-based model explicitly covering AWS workloads:
- Provides clear license coverage for AWS instances without certification gaps.
C. Budget for License Purchases Upon ULA Exit
- Plan to purchase licenses to cover AWS instances when exiting a standard ULA.
- Optimize AWS usage before certification to minimize required licenses.
Example:
- Before ULA ends:
- Review AWS deployments.
- Consolidate databases or reduce instance counts.
- Budget for additional licenses needed to cover remaining AWS workloads.
Read Oracle Unlimited License Agreements (ULAs) and AWS.
D. Negotiate Cloud-Inclusive Terms at ULA Signing
- The optimal strategy is to negotiate explicit cloud-inclusive language upfront in the ULA.
- Oracle sometimes allows counting “Authorized Cloud Environment” deployments toward final certification.
Example:
- During ULA negotiations, explicitly request language allowing AWS deployments to be counted at certification:
- Eliminates major compliance issues post-ULA.
Practical Summary: Oracle ULAs and AWS—Caveats and Solutions
| Scenario or Issue | Standard Oracle Policy | Recommended Solution |
|---|---|---|
| AWS Deployments During ULA | ✅ Permitted (unlimited) | Document and track AWS deployments clearly |
| AWS at ULA Certification | ❌ Excluded by default | Negotiate explicit cloud-inclusive terms |
| Certification Compliance Risks | High compliance risk post-ULA | Plan AWS licensing proactively post-ULA |
| Extending or Renewing ULA | ✅ Allowed | Extend ULA to defer licensing challenges |
| Cloud-Specific ULAs/Subscriptions | ✅ Offered by Oracle | Budget and procure needed licenses |
| Buying Licenses for AWS | Required if cloud deployments continue post-ULA | Clearly budget and procure needed licenses |
ULA Compliance Checklist for AWS Usage
✅ Clearly understand Oracle’s default exclusion of AWS at ULA certification.
✅ Document AWS deployments thoroughly throughout the ULA term.
✅ Negotiate cloud-inclusive language in your initial ULA agreement.
✅ Plan proactively for licensing requirements post-ULA certification.
✅ Evaluate alternative licensing models (cloud subscriptions) to cover AWS deployments.
Common Misunderstandings Corrected
- Misconception: “AWS deployments automatically count toward perpetual ULA licenses.”
- Reality: Standard Oracle ULAs explicitly exclude AWS deployments at certification.
- Misconception: “No need to track AWS usage under ULA.”
- Reality: Documenting AWS deployments is critical for internal management and audits, even if excluded from final counts.
- Misconception: “Negotiating cloud-inclusive terms is impossible.”
- Reality: Cloud-inclusive ULA terms are negotiable but must be explicitly requested upfront.
Conclusion: Effectively Managing Oracle ULAs with AWS Deployments
Understanding Oracle ULA terms regarding AWS usage ensures you avoid significant compliance pitfalls. By documenting AWS deployments, negotiating explicitly cloud-inclusive ULAs, considering subscription models, or proactively budgeting for license purchases, you can confidently manage Oracle licensing on AWS, avoiding costly surprises at ULA certification.
