Oracle Licensing in Public Cloud

Oracle Licensing in Public Cloud

• vCPU Licensing: 2 vCPUs = 1 Processor License (with hyperthreading).
• Standard Edition Limitations: Capped at 16 vCPUs.
• Provider Specifics: AWS, Azure, and GCP each have unique requirements.
• Compliance: Active support agreements are mandatory.
• Audits: Internal audits help ensure ongoing compliance.

Oracle Public Cloud Licensing Rules

The rise of public cloud services has transformed how businesses deploy and manage their IT infrastructure, and Oracle is no exception. As major cloud providers like AWS, Azure, and now Google Cloud Platform (GCP) from 2024 are utilized to host Oracle applications, the Oracle Public Cloud Licensing Rules have evolved to meet this shift.

This article will examine Oracle’s licensing in public cloud environments, focusing on vCPU-based calculations, specific restrictions, and provider-specific requirements. Understanding Oracle’s licensing policies is crucial for organizations to remain compliant and manage their costs effectively.

Core Licensing Calculations

Licensing Oracle products in public cloud environments requires accurate calculations of virtual CPUs (vCPUs). These calculations are particularly crucial for products like Oracle Database Enterprise Edition, where costs can escalate quickly if not managed properly.

Enterprise Edition Licensing

Oracle uses a straightforward vCPU-to-processor license calculation model in public cloud environments, but it’s important to be aware of the details:

• 2 vCPUs = 1 Oracle Processor License (when hyperthreading is enabled).
  • Example: If you deploy an Oracle Database on an AWS instance with 8 vCPUs and hyperthreading is enabled, you would need 4 Oracle Processor licenses.
• 1 vCPU = 1 Oracle Processor License (when hyperthreading is disabled).
  • Example: Deploying Oracle Database on a GCP instance with 6 vCPUs without hyperthreading requires 6 Oracle Processor licenses.

The distinction between hyperthreading enabled or disabled is critical because it impacts the total number of licenses required. Many cloud providers use hyperthreading to improve performance, doubling the number of visible logical CPUs. Therefore, understanding whether hyperthreading is enabled directly affects licensing costs.

Standard Edition Restrictions

Deploying Oracle Standard Edition (SE) products on public cloud platforms also includes specific licensing requirements and restrictions. These rules ensure that Oracle SE’s use remains within certain limits aligned with its lower cost.

• For Instances with up to 4 vCPUs, 1 socket is required, equivalent to 1 Oracle Processor license.
  • Example: Running Oracle SE on an Azure instance with 3 vCPUs requires 1 socket equivalent to 1 Oracle Processor license.
• For Instances with more than four vCPUs, 1 socket is required for every 4 vCPUs.
  • Example: An instance with 12 vCPUs will require 3 sockets (each covers 4 vCPUs).
• Oracle Database SE Capped at 16 vCPUs: Deployments beyond 16 vCPUs are not allowed for Oracle Database SE.
• SE1 and SE2 Limited to 8 vCPUs: Oracle SE1 and SE2 are limited to a maximum of 8 vCPUs.
  • Example: Deploying SE2 on an instance with 10 vCPUs would be non-compliant since the limit is 8 vCPUs.

Provider-Specific Requirements

Oracle’s licensing requirements vary depending on the cloud provider being used. Each cloud provider must adhere to specific rules as outlined in Oracle’s licensing policy, and these rules cover aspects like instance size limitations, user requirements, support obligations, and compliance verification.

Instance Size Limitations

Oracle sets instance size limitations for the cloud providers it supports. These limitations define which virtual machine configurations can be used to deploy Oracle software.

• Example: On AWS, certain instance types may be supported for running Oracle databases, while Azure might have different instance sizes that are optimal or permissible under Oracle’s policies.
• Organizations must carefully review each cloud provider’s supported instance types to avoid non-compliance.

Minimum User Requirements for Named User Plus Licensing

The Named User Plus (NUP) licensing model applies for some Oracle products, meaning a minimum user requirement must be met.

• Minimum of 25 Named Users per Oracle Processor: This requirement often applies to many Oracle Database configurations.
  • Example: An organization running Oracle Database on AWS must ensure that it has at least 25 Named Users per licensed Oracle Processor.

This requirement ensures that even if the deployment is small, a minimum number of users are accounted for, which can increase the overall licensing cost.

Support and Maintenance Obligations

To stay compliant, organizations must maintain active support agreements for their Oracle deployments. These agreements provide access to important software updates, patches, and security features.

• Support Agreement Requirements: Without an active support agreement, organizations risk losing access to critical updates and may fall out of compliance.
  • Example: If an organization does not renew its support agreement, it could lose access to patches, making its cloud deployment vulnerable and non-compliant with Oracle policies.

Compliance Verification Procedures

Oracle often conducts audits to verify compliance, and cloud providers must have proper procedures to ensure adherence to Oracle’s licensing terms.

• Internal Audits: Organizations are encouraged to conduct internal audits and maintain detailed deployment records.
  • Example: A company using Azure should maintain a log of Oracle software deployments, configurations, and user access to provide documentation if Oracle requests an audit.

Read about Regional Differences in Oracle Licensing Policies.

Best Practices for Managing Oracle Licensing in Public Cloud

Managing Oracle licensing in a public cloud environment requires careful planning and diligent tracking. Here are some best practices to consider:

1. Understand Cloud Provider Licensing Policies
   • Each cloud provider has unique rules for Oracle licensing. Ensure your team understands the nuances between AWS, Azure, and GCP to remain compliant.
2. Leverage Oracle License Portability
   • Oracle allows for license portability between on-premises and cloud environments. This means existing licenses can be used in the cloud but must comply with cloud licensing rules.
3. Monitor Hyperthreading Settings
   • Track whether hyperthreading is enabled for each virtual machine instance, as it affects vCPU calculations and licensing requirements.
4. Perform Regular Internal Audits
   • Conducting internal audits helps in tracking compliance, ensuring that deployments do not exceed the licensed vCPUs or violate any Named User Plus requirements.
5. Maintain Active Support Agreements
   • Active support agreements are not optional but crucial for maintaining compliance and receiving updates. Always budget for the 22% support fee annually.

Future Trends in Oracle Licensing for Public Cloud

With the growing adoption of cloud infrastructure, Oracle’s licensing framework will continue to evolve. Some key trends to look out for include:

• Increased Multicloud Integration: Oracle’s partnerships with cloud providers like Microsoft Azure and Google Cloud highlight a trend towards increased multicloud capabilities, which may result in more flexible licensing terms for customers using multiple cloud platforms.
• Shift Toward Subscription Models: Like other software vendors, Oracle is likely to move toward subscription-based cloud product licensing. This could simplify licensing but may also change cost structures.
• Automation of Compliance: Oracle may introduce tools or partnerships that help automate license compliance checks, making it easier for organizations to track their usage in real-time without requiring extensive manual audits.

Read about recent Oracle license policy changes.

Common Challenges in Oracle Cloud Licensing

Licensing Oracle software in the cloud comes with a range of challenges that organizations need to be aware of to avoid costly mistakes:

• Complex vCPU Calculations: The distinction between hyperthreaded and non-hyperthreaded vCPUs can lead to confusion, especially if the cloud environment changes frequently.
• Multi-Provider Compliance: Managing licenses across multiple cloud providers can be complex, as each may have different requirements or instance limitations.
• Named User Plus Requirements: Meeting the minimum user requirements of 25 Named Users per processor can be difficult and lead to over-licensing for small teams.

Provider-Specific Details

AWS

• AWS offers many instances, many of which are suitable for running Oracle databases. However, to ensure compliance, it is essential to choose instances that align with Oracle’s licensing terms.

Azure

• Azure’s hybrid benefit can be leveraged for certain Oracle deployments, potentially reducing costs. Azure also has predefined instance types that are suited for different Oracle workloads.

Google Cloud Platform (GCP)

Starting in 2024, GCP will also be part of Oracle’s cloud licensing framework. Understanding how GCP’s infrastructure handles vCPU counts and hyperthreading will be critical for effective license management.

FAQ for Oracle Licensing in Public Cloud

What is Oracle’s Public Cloud Licensing framework? Oracle Public Cloud Licensing outlines rules for deploying Oracle products on public cloud platforms like AWS, Azure, and GCP, focusing on vCPU-based licensing.

How is vCPU licensing calculated for Oracle products? For Enterprise Edition products, two vCPUs equal 1 Processor License if hyperthreading is enabled, and one vCPU equals 1 Processor License if hyperthreading is disabled.

What are the restrictions for Standard Edition in the cloud? Oracle Standard Edition is limited to 16 vCPUs per deployment. Oracle SE1 and SE2 are capped at eight vCPUs.

Can we deploy Oracle SE2 with more than eight vCPUs? No, deploying Oracle SE2 with more than 8 vCPUs would be non-compliant with Oracle’s licensing restrictions.

Do I need a support agreement for Oracle in the cloud? All Oracle cloud deployments must maintain active support agreements to ensure compliance and access to patches and updates.

What is Named User Plus (NUP) licensing? NUP licensing requires a minimum of 25 Named Users per Oracle Processor. This metric ensures compliance in many Oracle cloud deployments.

How does hyperthreading affect Oracle licensing? If hyperthreading is enabled, two vCPUs count as 1 Processor License. If hyperthreading is disabled, each vCPU counts as one license.

Can Oracle licenses be moved between cloud providers? Yes, Oracle licenses can be moved between providers like AWS, Azure, and GCP, but they must comply with each provider’s licensing rules.

What are the audit requirements for Oracle cloud licensing? Oracle may conduct audits, and organizations are advised to maintain detailed records of cloud deployments, configurations, and user access.

How are standby systems licensed in the cloud? Standby systems that are active and capable of taking over require full licensing, similar to production environments, even in the cloud.

What is the role of internal audits for compliance? Internal audits help verify that Oracle cloud deployments are compliant, ensuring proper vCPU counts and adherence to Named User Plus requirements.

Are there specific Oracle requirements for AWS deployments? Yes, instance types and configurations must be aligned with Oracle’s licensing policies to avoid non-compliance when deploying Oracle on AWS.

How do licensing rules vary for Azure? Azure has specific supported instance types and allows customers to leverage Azure Hybrid Benefits in certain scenarios, which may reduce costs.

What are the new rules for Oracle on GCP in 2024? 2024 GCP will be included in Oracle’s licensing framework, with specific rules regarding vCPU calculations similar to those of AWS and Azure.

Can compliance checks for Oracle cloud licensing be automated? Oracle may offer support tools that help automate compliance verification, allowing organizations to manage cloud licenses more effectively.