Oracle Database Licensing: Common License for Enterprises

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Oracle Database Licensing

Oracle database licensing, Oracle offers various licensing options for its database products, making it challenging for enterprises to choose the right license type that suits their technical, user, and budgetary requirements. Many customers often end up overbuying and overspending on Oracle licensing, leading to compliance risks. This article explores the most common types of Oracle database licenses used by enterprise customers.

Cloud BYOL (Bring Your Own License)

One of the most popular Oracle database licensing options is the BYOL model, where customers can use their existing on-premise Oracle license to support their Oracle migration and deployment to the cloud. This option can deliver significant cost savings, making it a preferred choice for many customers.

Processor Licensing

Processor licensing is ideal for users who cannot count or verify users. Pricing is calculated per processor, but Oracle has a specific definition of a processor, which may differ from the definition used by the hardware vendor. This licensing model is best for web applications where counting users is challenging.

Named User Plus

Named User Plus licensing is commonly used in development and testing environments. Instead of being priced on a per processor basis, Named User Plus licensing is charged per user. Under this license type, Oracle defines a user as any human, system (such as a scanning robot, information board, and application servers), or other “end-node” that either receives or creates data from an Oracle database.

One important caveat with the Named User Plus licensing metric is that you must adhere to the Oracle User Minimums rule as part of this license. Named User Plus licenses are available for all Oracle database editions.

Advantages

  • Multiple editions are available to better suit your licensing needs
  • There is adequate room for license negotiation and optimization

Drawbacks

  • If the application server is connected to the outside world via a web application, you must buy processor-based licenses unless otherwise negotiated with proof that only a few users have access
  • You must have a minimum number of named users to the Oracle software

Oracle Enterprise Edition (EE) with Option

The Oracle Enterprise Edition (EE) is a highly versatile license type that is often utilized by enterprise customers. This license type includes all the features and functionalities of the Oracle database, and customers can add additional options to their license if necessary. There are many different options available, including:

  • Partitioning
  • Advanced security
  • Advanced compression
  • Database vault
  • Diagnostics pack

Advantages

  • Enterprise-level features and functionalities
  • Customers can add specific options to the license

Drawbacks

FAQ on Oracle Database Licensing

  1. What are the most common types of Oracle database licenses consumed by enterprise customers?
  • The most common types of Oracle database licenses consumed by enterprise customers are Cloud BYOL, Processor Licensing, and Named User Plus.
  1. What is the Cloud BYOL licensing model?
  • The BYOL licensing model allows customers to utilize their existing on-premise Oracle license to support their Oracle migration and deployment to the cloud. Customers can use their existing Oracle licenses to run on AWS or Azure, but it’s important to understand usage rights, core multiplier calculations, and specific licensing metrics in order to avoid risk of noncompliance.
  1. What is Processor Licensing?
  • Processor Licensing is offered by Oracle in the event users can neither be counted nor verified. In this case, pricing is calculated per processor. The metric allows you to multiply the total number of cores of the processors used by a single licensing factor.
  1. What is Named User Plus licensing?
  • Named User Plus licensing is charged per user instead of pricing on a per-processor basis. Oracle defines a user as any human, system (e.g., scanning robot, information board, and application servers), or other “end-node” that either receives or creates data from an Oracle database.
  1. What is the Oracle User Minimums rule?
  • The Oracle User Minimums rule must be adhered to when using the Named User Plus licensing metric. This rule requires customers to have a minimum number of named users to the Oracle software.

Conclusion

Choosing the right Oracle database licensing option is crucial for enterprises to ensure compliance and cost savings. BYOL, Processor, and Named User Plus are the most common types of licenses consumed by enterprise customers. It is essential to understand the nuances of each licensing type to avoid compliance risks and unnecessary overspending.

The article aims to provide insights into each licensing type to help enterprises make an informed decision. With proper licensing strategies and optimization, enterprises can maximize their investments in Oracle database licensing.

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