Oracle Licensing Policies

Oracle Licensing Policies

• License Triggers: Installation, deployment, or presence of Oracle binaries require licensing.
• Cloud Licensing: Uses vCPU counts, e.g., two vCPUs = 1 Processor License.
• SaaS Monitoring: Active user counts and metrics tracked for compliance.
• Disaster Recovery: Limited test periods and failover allowances need licensing.

Oracle’s License Terms & Conditions

The Oracle Master Agreement (OMA) is the foundational contract between Oracle and its customers. It sets the rules for organizations using Oracle software, defining rights, restrictions, and obligations.

Key Aspects of the Contract

• Non-Exclusive Rights: Oracle grants non-exclusive, non-transferable rights for software usage. The main license types include:
  • Full Use License: No specific usage limitations.
  • Application Specific Full Use (ASFU): Linked to specific applications.
  • Embedded Licenses: Embedded within a solution; cannot be used outside the provided context.
• Payment & Compliance Terms: Customers are obligated to:
  • Pay fees within 30 days of invoicing.
  • Maintain accurate records of software deployments.

Usage Restrictions

Oracle’s agreements come with detailed usage restrictions. These include:

• No unauthorized third-party access.
• No reverse engineering.
• Restrictions on running benchmark tests without Oracle’s approval.
• Geographic deployment limits and specific hardware requirements.

Compliance Requirements

Staying compliant means actively tracking and auditing your Oracle software usage:

• Keep detailed records of deployments and configurations.
• Track user access.
• Conduct regular internal audits to stay ahead of issues.
• Be prepared for Oracle-initiated audits (with a 45-day notice).
• Pay fees for over-deployment or unauthorized use promptly.

Oracle Software Investment Guide

The Software Investment Guide is a strategic resource designed to help businesses maximize their Oracle investments while ensuring compliance.

What the Guide Covers

• License Metrics: Understand metrics like Processor, Named User Plus (NUP), etc., and how they are calculated.
• Deployment Planning helps you choose the right license models for different environments (e.g., on-premise vs. cloud).
• Support Requirements: Details on Oracle’s support tiers and their benefits.
• Cost Optimization: Strategies for reducing costs, such as by consolidating licenses or moving to subscription-based models.
• Compliance Tips: Ongoing measures to prevent non-compliance, like periodic license reviews and optimizing under-utilized licenses.

Oracle Global vs Regional Policy Variations

Oracle licensing can differ based on geography, which affects compliance and deployment policies.

Territorial Restrictions

• Deployment Locations: Licenses may specify the geographic boundaries for software use.
• User Access Rights: Users in certain regions may have different access capabilities.
• Support Availability: Support services may vary based on location.

Regional Compliance Requirements

Operating in multiple regions means dealing with different local rules:

• Data Protection Laws: Compliance with local regulations like GDPR in Europe.
• Industry Regulations: Specific industries may face regional licensing restrictions.
• Cross-Border Data Transfers: Some regions restrict where data can be processed or stored.

Cross-Border Considerations

For multinational operations, you need to think about:

• Currency and Exchange Rates: Pricing can vary by region due to exchange rate fluctuations.
• Local Taxes and Pricing Structures: Taxes and Oracle’s regional pricing may affect licensing costs.
• Multi-National Agreements: Oracle sometimes creates a unified licensing structure for global organizations, which requires careful negotiation.
• Data Sovereignty: In certain countries, data must stay within national borders, impacting cloud deployments and overall software use.

Maintaining compliance across regions requires documentation and frequently revisiting policies to adapt to data localization laws and pricing changes.

Oracle Public Cloud Licensing Rules

Oracle’s cloud licensing framework has evolved to cover major cloud providers, including AWS, Azure, and, starting from 2024, Google Cloud Platform (GCP). This framework defines how organizations should license Oracle products in cloud environments, focusing on virtual CPU (vCPU) counts.

Core Licensing Calculations

Oracle’s licensing calculations for Enterprise Edition products across these cloud platforms are straightforward but require careful attention:

• 2 vCPUs = 1 Oracle Processor License (when hyperthreading is enabled).
  • For example, if you deploy an Oracle database on an AWS instance with 8 vCPUs and hyperthreading is enabled, you will need 4 Oracle Processor licenses.
• 1 vCPU = 1 Oracle Processor License (when hyperthreading is disabled).
  • For instance, deploying on a GCP instance with 6 vCPUs without hyperthreading requires 6 Oracle Processor licenses.

Understanding whether hyperthreading is enabled is crucial for accurately calculating your license needs.

Standard Edition Restrictions

Deploying Standard Edition (SE) products on cloud platforms has specific requirements and restrictions:

• For instances with up to 4 vCPUs, 1 socket is required (equivalent to 1 Oracle Processor License).
  • Example: If you run Oracle SE on an Azure instance with 3 vCPUs, it requires 1 socket, translating to 1 Oracle Processor license.
• For instances with more than 4 vCPUs, 1 socket is required for every 4 vCPUs.
  • Example: An instance with 12 vCPUs will require 3 sockets (each covers 4 vCPUs).
• Under Standard Edition licensing, Oracle Database SE is capped at 16 vCPUs. Deployments above this are not allowed.
• Oracle SE1 and SE2 are limited to 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. Each provider must follow specific rules outlined in Oracle’s licensing policy document.

These include:

• Instance Size Limitations: Each cloud provider has instance size limitations that define which virtual machine configurations can be used for Oracle software.
  • Example: AWS instances might have different supported instance sizes compared to Azure when deploying Oracle databases.
• Minimum User Requirements for Named User Plus Licensing: Organizations must meet the minimum requirements of Named User Plus (NUP).
  • Example: A minimum of 25 Named Users per Oracle Processor is typically required for certain products.
• Support and Maintenance Obligations: Organizations must maintain active support agreements to stay compliant. Without these agreements, access to updates and security patches may be revoked, putting compliance at risk.
• Compliance Verification Procedures: Oracle often conducts audits, and each cloud provider must have compliance verification procedures in place to ensure adherence to licensing terms.
  • Example: Organizations should maintain deployment records and conduct internal audits to ensure compliance across AWS, Azure, and GCP.

Organizations must actively track their cloud deployments and ensure all support agreements are current to avoid non-compliance.

Oracle License Termination Policies

Terminating Oracle licenses involves specific steps organizations must follow to meet Oracle’s contractual and compliance requirements. Failing to do so could result in financial penalties or other repercussions.

Post-Termination Obligations

Upon terminating an Oracle license, organizations must meet several obligations to finalize the termination process:

• Cease All Software Usage: The organization must stop using the Oracle software immediately.
  • Example: If an Oracle Database license is terminated, all associated applications that use this database must also stop immediately.
• Remove Oracle Software from All Systems: The software must be uninstalled from all physical and virtual systems.
  • Example: Completely remove the Oracle software from all AWS instances if those licenses are terminated.
• Maintain Compliance with Oracle’s Requirements: Remove any data, files, or installations associated with the software.
• Address Outstanding Financial Obligations: Any unpaid fees related to the licenses must be settled promptly.
  • Example: If termination fees are incurred, they must be paid before the termination is fully processed.

Transition Procedures

To ensure a smooth transition when terminating Oracle licenses, follow these steps:

• Formal Notification Procedures: The process starts with a written notice to Oracle about the intent to terminate a license.
  • Example: Send an official letter or email to Oracle’s legal department specifying the licenses that are being terminated.
• Required Actions for Agreement Wind-Down: Fulfill any contractual obligations for the wind-down period, such as finalizing payments and documenting software usage.
• Documentation of Software Removal: Document the steps to remove the software from your systems.
  • Example: Keep a checklist of all instances and servers where Oracle was deployed and confirm removal.
• Verification of Compliance Status: Oracle may require proof that all software has been removed, so be ready to provide detailed reports.
  • Example: Generate uninstallation logs and provide them to Oracle to verify compliance.

Oracle Policy on Virtual Environments

Oracle has distinct virtualization policies, which are important to understand for organizations using virtual environments. Oracle differentiates between hard and soft partitioning, which impacts how licenses are applied.

Hard vs. Soft Partitioning

• Hard Partitioning refers to technologies that physically separate system resources, and Oracle approves these methods for limiting licensing requirements. Examples include:
  • Physical Domains (PDomains): Often used in enterprise environments for physically splitting hardware resources.
  • IBM LPAR: Logical partitions that Oracle recognizes as hard partitioning.
  • Solaris Zones (Capped Only): Only capped zones are considered compliant.
  • Integrity Virtual Machines: Used in HP environments for compliance.
  • Example: If you use IBM LPAR to allocate resources, you must license only the specific processors allocated to Oracle software, not the entire physical host.
• Soft Partitioning: This includes technologies like VMware, which Oracle classifies as soft partitioning. This means that all physical processors, not just those hosting Oracle workloads, must be licensed.
  • Example: If Oracle is deployed on a VMware cluster with 8 physical processors, all 8 processors must be licensed, regardless of the number running Oracle software.

Virtualization Technologies

• VMware: Classified as soft partitioning, you cannot limit your licensing to a subset of physical processors. Instead, the entire physical infrastructure running VMware must be licensed for Oracle.
  • Example: If Oracle is deployed on a VMware environment, all 16 physical processors in the cluster must be licensed, even if Oracle runs on only a portion of them.
• Oracle VM Server: Recognized as suitable for limiting license needs, provided that specific configuration requirements are met.
  • Example: You can configure Oracle VM Server to allocate specific cores to Oracle, limiting the required licenses to only those cores.
• Linux KVM: Organizations using Linux KVM must adhere to Oracle’s requirements under Oracle Linux Virtualization Manager.
  • Example: When using Linux KVM, ensure compliance by managing the virtualization with Oracle’s tools to meet licensing rules.

Understanding Oracle’s virtualization policies helps organizations manage licensing costs and avoid unexpected fees. Misclassifying your partitioning technology or not adhering to Oracle’s policies can lead to significant non-compliance risks.

Oracle Policy Changes in Recent Years

Oracle has made significant policy changes over the past few years, reshaping licensing across its product portfolio. One of the most impactful updates occurred in 2023, introducing the “Employee for Java SE Universal Subscription” model. This new model replaces the previously named User Plus and Processor-based licensing.

Major Updates

The move to employee-based metrics represents a fundamental shift in Oracle’s approach to licensing Java SE. Under this new model:

• All employees, including full-time, part-time, and contractors, must be licensed for any Java deployment within the organization.
  • Example: If a company has 500 employees, regardless of their roles, all are included in the license count if Java SE is deployed anywhere.

This shift simplifies the licensing model but can significantly affect costs, especially for organizations with a large workforce but limited Java usage.

Impact on Existing Licenses

• Existing licensing agreements will remain valid until they expire.
• Upon renewal, organizations must transition to the new employee-based subscription model.
  • Pricing Changes: The new model often increases costs, especially for companies that previously minimized Java deployments to control licensing costs.
  • Compliance Requirements: This change also introduces stricter compliance requirements. Companies must monitor all employees, including contractors, to remain compliant.

How Oracle Calculates License Fees

Oracle determines licensing costs using a complex calculation framework based on multiple factors.

The calculation varies by product and deployment type, so organizations must understand the metrics involved.

License Metrics

Core licensing calculations depend on the product:

• Enterprise Edition Products: Typically require one processor license per 2 vCPUs when deployed in cloud environments.
  • Example: An Enterprise Edition deployment on a cloud server with eight vCPUs requires four processor licenses.
• Standard Edition Deployments: Have specific vCPU limitations and thresholds.
  • Example: Oracle Standard Edition might be limited to 16 vCPUs total.
• Named User Plus Licensing: Minimum user requirements apply, typically based on a set number of users per processor.
  • Example: A deployment may require at least 25 Named Users per Processor, which can be challenging for smaller teams.

Core Factor Calculations

To determine the final number of required licenses, Oracle uses the Core Factor Calculation approach:

1. Counting Processor Cores: Count all cores in the hardware where Oracle is deployed.
2. Applying Core Factor Table: Use Oracle’s Core Factor Table to determine the licensing requirement.
   • Example: A server with 16 cores and a core factor 0.5 would require eight processor licenses.
3. Adjusting for Virtualization: Licensing needs may vary based on the type of technology used.
   • Example: VMware deployments typically require licensing all physical processors, while certain Oracle-approved partitioning technologies can limit licensing needs.

Oracle Partner Agreements & Policies

The Oracle PartnerNetwork (OPN) provides partners with specific tracks that align with different business models and solution types.

These tracks help partners engage with Oracle based on their expertise and services.

Program Types

The OPN operates through several partner program types:

• Cloud Build Track: For partners creating integrated cloud solutions.
• Cloud Sell Track: This is for partners focused on reselling Oracle’s cloud services.
• Cloud Service Track: For partners specializing in implementing and supporting Oracle services.
• License and Hardware Track: This is for partners in traditional Oracle products, including software licensing and hardware.

Distribution Rights

Partners receive specific rights and resources based on their membership level and the track they are part of:

• Development and Demonstration Licenses: Partners gain access to development and demo versions of Oracle products.
  • Example: A partner in the Cloud Build Track can access Oracle software to develop new solutions.
• Marketing Enablers: Includes resources for co-marketing, such as access to Oracle branding and joint event opportunities.
• Cloud Marketplace Participation: Eligible partners can list their offerings on Oracle’s Cloud Marketplace to reach more customers.
• Partner Store Privileges: Partners may also gain special privileges in the Partner Store, allowing them to access exclusive offers and resources.

Oracle’s partnership framework evolves with technological advancements and changing business needs. Partners must stay updated on policy changes to maintain compliance and effectively leverage new opportunities.

Oracle Trial & Demo Use Policies

Oracle offers specific trial programs to help organizations evaluate their software before fully committing.

These trial licenses have strict limitations and requirements, typically valid for 30 days from delivery.

Evaluation Parameters

• Trial Period: Trial licenses are valid for 30 days.
  • Example: An organization wanting to test Oracle Database can do so for 30 days before purchasing a full license.
• Support Limitations: Trial software is provided “as is” without technical support or warranties.
• Post-Evaluation Requirements:
  • After the 30 days, organizations must either:
    • Obtain a full license for continued use.
    • Cease usage and delete the programs from all systems.
    • Document software removal to ensure compliance.

These strict guidelines prevent unauthorized use beyond the trial period and ensure companies commit to a full license or fully discontinue the software.

Oracle Technical Support Policies

Oracle offers a three-tiered support framework to assist customers throughout their product lifecycle. Each level of support offers different degrees of assistance.

Support Structure

• Premier Support: Provides comprehensive maintenance and upgrades for the first five years of a product’s availability.
  • Includes bug fixes, critical patch updates, and new releases.
• Extended Support: Available for an additional three years beyond Premier Support but involves additional fees.
  • Ideal for organizations that require more time before upgrading to a newer product version.
• Sustaining Support: Available indefinitely after Premier and Extended Support ends.
  • Includes access to existing patches and assistance but no new updates or significant bug fixes.

Matching Service Requirements

• Uniform Support: All licenses within a license set must have the same technical support level.
  • Example: If an organization has a set of Oracle Database licenses, it cannot choose Premier Support for some licenses and leave others unsupported. They must either support all licenses or terminate the unsupported ones.

This ensures a consistent support experience and minimizes discrepancies in product maintenance.

Licensing Policy for Temporary Environments

As of September 2021, Oracle has made several changes to its policies regarding temporary licensing. These changes affect how organizations can license Oracle products for short-term or specific use cases.

TERM Licensing Changes

• Limited to One-Year Terms: TERM licensing is now restricted to one-year terms for specific Oracle Technology products.
  • Affordability: TERM licenses are 20% cheaper than perpetual licenses, making them more accessible for short-term needs.
  • Support Fee: Requires a standard 22% annual technical support fee.
  • No Longer Available for Longer Terms: Oracle no longer offers TERM licenses for over one year.

Development and Testing

Organizations using Oracle products for development and testing must ensure they comply with specific licensing provisions, especially for disaster recovery:

• 10-Day Failover Allowance: Oracle allows up to 10 days of failover usage per year for disaster recovery.
• Testing Periods: Up to four testing periods are allowed annually, each for two days.
  • Example: Testing Oracle Database disaster recovery capabilities can only be performed for two days per quarter.
• Full Licensing for Active Use: Full licensing is required if the binaries are actively used beyond these testing or failover allowances.

These rules require organizations to diligently track the use of Oracle software in temporary or test environments to avoid compliance issues and unexpected costs.

The licensing framework continues to evolve, which requires companies to carefully evaluate their temporary environment needs. By doing so, they can ensure compliance while also maintaining cost efficiency.

Oracle Licensing Policy for Installation

Oracle’s installation-based licensing requires careful attention to the presence of binaries across all environments. Understand that Oracle binaries, executables, or DLLs on a system trigger licensing requirements, even if the software is not actively used.

Installation Requirements

Oracle software is considered installed when any of the following conditions are met:

• Executable Files Exist: Licensing is required if executable files are present on any storage accessible by the server.
  • For example, If Oracle executables are stored on a local hard drive, they are considered installed and require a license.
• Binaries on Shared Storage: Licensing requirements apply when binaries are present on shared storage systems that multiple servers can access.
  • Example: Storing Oracle binaries on an NFS share that multiple servers can access triggers the need for a license.
• DLLs Deployed on Connected Systems: Oracle’s licensing policy includes DLLs or other linked library files deployed across connected systems.
  • Example: If an Oracle DLL is placed on a network server that other systems link to, it is considered an installation.
• Software Not Actively Running: Even if the software is installed but not actively running, licensing is still required.
  • Example: A valid license is required if Oracle Database is installed for future use but not currently in use.

Binary Presence Rules

Oracle requires licensing based on the presence of binaries, regardless of whether the software is actively utilized:

• Shared Storage Installations: If Oracle software is installed on shared storage accessible by multiple servers, all servers accessing that storage must be properly licensed.
  • Example: A SAN with Oracle software that multiple virtual hosts can access needs licenses for each host.
• Backup Copies: Any backup copies of existing Oracle binaries must also be considered in licensing evaluations.
  • Example: If a copy of Oracle Database binaries is kept on a backup server, a license is required for that server.
• Virtual Environments: Oracle binaries present in virtual environments also trigger licensing requirements.
  • Example: The installation requires a valid license if Oracle binaries are found on a VMware VM template.
• Deployed but Not Configured: The licensing requirement applies if the software has been deployed but not fully configured.
  • Example: Oracle software installed in a test environment but not yet configured for usage must be licensed.

Oracle Compliance Requirements in SaaS

Oracle’s SaaS licensing model centers around monitoring usage and ensuring compliance through regular reporting and verification processes.

Compliance is vital to ensure that the usage matches the terms of the licensing agreement.

Service Metrics

Key metrics Oracle uses for SaaS compliance include:

• Number of Authorized Users: The total number of users authorized to access the service must align with the licensing agreement.
  • Example: If your license allows for 100 users, but 120 users are accessing the system, you are out of compliance.
• Active User Counts vs. Licensed Quantities: Tracking active user counts versus the number of licensed users helps prevent unauthorized overage.
• Usage Patterns and Peak Utilization: Monitoring peak utilization helps ensure compliance during heavy use.
  • Example: If your license is capped at a certain usage level, exceeding that level during peak times could lead to a compliance issue.
• Service-Specific Consumption Metrics: Metrics related to specific Oracle services, such as data usage or API call volumes, are also tracked.

Usage Monitoring

To maintain compliance, organizations must implement comprehensive monitoring protocols, including:

• Regular Usage Reports: Conduct regular reviews of usage reports to verify compliance with the licensing agreement.
  • Example: Monthly reports should be reviewed to ensure user counts and usage levels align with licensing terms.
• User Access Tracking: Organizations should maintain an up-to-date list of users accessing the Oracle SaaS environment.
  • Example: Removing access for employees who have left the organization helps maintain accurate counts.
• License Allocation Monitoring: Proper monitoring of license allocation ensures no unauthorized users access the system.
• Compliance Verification: Routine compliance verification processes are crucial to prevent unintentional breaches.

Oracle Licensing for Disaster Recovery

Oracle’s licensing framework for disaster recovery environments provides allowances for backup and failover systems but still imposes strict compliance rules.

Standby Systems

The licensing requirements for standby environments are as follows:

• Full Licensing for Active Standby Systems: If a standby system is active (meaning it can take over immediately), it requires full licensing similar to a production environment.
  • Example: An Oracle standby server in an active data guard setup must be licensed like the production server.
• Matching Metrics with Production: Standby environments must match the licensing metrics of the primary production environment.
  • Example: If the production server is licensed based on a certain number of cores, the standby server must follow the same metric.
• Physical Server Capacity Calculations: Oracle requires licenses based on the physical server capacity in the disaster recovery environment.
  • Example: You may need additional licenses if the failover system has more CPU cores than the production system.
• Geographic Location Considerations: Standby systems in different regions must still comply with Oracle’s policies, which may involve specific location-based licenses.

Testing Allowances

Oracle allows limited testing of disaster recovery systems without requiring additional licenses:

• Four Testing Periods Annually: Up to four test periods, each limited to two days, are permitted each year.
  • Example: A quarterly failover test to validate your standby environment is allowed for up to two days.
• 10-Day Failover Allowance: Oracle permits up to 10 days of failover use per calendar year for disaster recovery.
  • Example: If a disaster occurs and the standby system takes over, it can operate for up to 10 days without requiring additional licensing.
• Testing Restricted to Specific Scenarios: Testing must be restricted to specific scenarios, such as disaster recovery validation.
• Documentation Requirements: Proper documentation of all test periods is required to ensure compliance.
  • Example: Keep detailed logs of each failover test, including dates, duration, and systems involved.

Oracle’s licensing rules for disaster recovery require organizations to carefully monitor their backup and standby systems and maintain thorough documentation. Compliance ensures proper coverage without incurring unexpected costs, even in complex deployment scenarios.

Read about Oracle License Policy Exceptions.

Oracle Licensing in Government Contracts

Oracle’s government licensing framework is designed to meet the strict compliance requirements of public-sector clients. Government cloud regions in the US, UK, and Australia offer dedicated infrastructure with enhanced security features and compliance certifications to support sensitive workloads.

Public Sector Requirements

Licensing for government contracts comes with specific considerations to ensure compliance with various standards, including:

• FedRAMP High Certification: Ensures cloud services meet federal risk management and information security standards.
• DISA Impact Level Certifications (IL2/IL4/IL5): These certifications are required for U.S. Department of Defense workloads and define security standards for handling data of various sensitivity levels.
• Specialized Cloud Deployment Models: Oracle provides specialized deployment models for government clients, maintaining geographic isolation and data sovereignty while offering the same pricing as commercial regions.
  • Example: Government contracts for Oracle Cloud Infrastructure (OCI) services maintain pricing similar to commercial regions but provide enhanced security classifications to meet regulatory requirements.

Security Compliance

Oracle’s Government Cloud regions maintain stringent security standards to protect sensitive data and support government compliance needs:

• FedRAMP High and DISA IL2 Accreditation: These accreditations ensure Oracle’s cloud services meet the strictest standards for managing classified and sensitive workloads.
• Support for Classified Workloads: Oracle’s infrastructure can handle classified workloads, ensuring data protection at all security levels.
• Data Sovereignty Requirements: Data stored in government cloud regions adheres to sovereignty requirements, meaning it must remain within designated geographical borders.
• Geographic Isolation: Government regions are completely isolated from Oracle’s commercial cloud regions, providing additional security for public sector clients.

Future Trends in Oracle Policies

Oracle’s licensing policies continue to evolve as part of the broader shift toward digital transformation and cloud adoption across industries.

Key emerging trends shape how Oracle engages with customers and delivers its services.

Cloud Transition

Oracle’s strategic focus has decisively shifted towards cloud services, with several notable trends:

• Infrastructure Revenue Growth: Oracle’s infrastructure revenue grew 42% year-over-year, underscoring a rapid shift towards cloud-based solutions.
• Cloud Revenue Growth: In FY2024, Oracle’s total revenue reached $19.8 billion, highlighting its ongoing investment and customer adoption of cloud offerings.
• Data Center Expansion: Oracle has committed $10 billion towards expanding its data center footprint, including new government-focused regions to meet growing public sector demand.
• Enhanced Multicloud Capabilities: Partnerships with Google and Microsoft have allowed Oracle to improve multicloud options for customers, allowing more flexibility in integrating services from different cloud providers.
  • Example: Oracle’s interconnectivity with Microsoft Azure allows customers to use Oracle databases and Azure services, streamlining operations in multicloud deployments.

Technology Integration

Oracle is integrating new technologies into its licensing and service delivery models to align with the latest industry trends:

• AI Workload Support: Oracle is aggressively moving into the AI space, with over $17 billion in AI-related contracts, highlighting its capability to support AI and machine learning workloads.
• Improved Multicloud Connectivity: Oracle’s enhanced partnerships offer better connectivity between cloud providers, making hybrid deployments more seamless.
• Elimination of Data Transfer Fees Between Clouds: Oracle has eliminated fees for data transfer between cloud environments, making multicloud strategies more cost-effective and practical for customers.

Technological advancements, market demands, and ongoing cloud adoption trends will shape the future of Oracle licensing. Staying informed of these changes is crucial for organizations to maintain compliance, optimize investments, and prepare for future opportunities in their Oracle deployments.

Oracle Licensing Policies FAQ

What triggers Oracle licensing requirements? The presence of Oracle binaries, even if unused, triggers licensing. This includes binaries in shared storage, backups, and virtual environments.

Can Oracle software be installed without being licensed? No, Oracle requires licenses to install binaries, regardless of whether or not the software is actively in use.

How are vCPUs licensed for Oracle Cloud? For Enterprise Edition products, 2 vCPUs equal 1 Processor License if hyperthreading is enabled.

Do I need separate licenses for standby environments? If the standby system is active and can take over operations, a full license matching the production setup is required.

Is technical support mandatory for all Oracle licenses? All licenses within a set must maintain the same level of technical support. It cannot be selective.

What are the requirements for temporary licensing? Oracle allows TERM licensing for up to one year, priced at 20% of perpetual license costs plus a 22% annual support fee.

Are there limits for testing environments? Yes, Oracle allows four testing periods annually, each limited to two days and a 10-day failover for disaster recovery.

How does Oracle enforce SaaS compliance? Oracle enforces SaaS compliance by regularly monitoring metrics, including the number of authorized users, active users, and usage patterns.

Do data sovereignty rules apply to Oracle Cloud? Oracle’s Government Cloud enforces data sovereignty, ensuring data remains in designated geographical regions.

What is the Oracle core factor calculation? The core factor depends on the processor type. It determines the licenses needed by multiplying core counts with the core factor value.

How does Oracle handle support for different licenses? All licenses in a set must maintain the same support level. If one license in a set has Premier Support, they all must.

Can licenses be transferred across servers? Oracle generally requires licensing based on the server where the software is installed. Transferring installations often requires a reevaluation of licensing needs.

What is the licensing policy for backups? Backup copies of Oracle binaries must be considered in licensing calculations and typically require full licensing.

Is Oracle VM Server considered hard partitioning? Yes, Oracle recognizes Oracle VM Server for hard partitioning, allowing you to limit licenses to assigned resources.

Does Oracle provide any cost savings for cloud partnerships? Oracle has eliminated data transfer fees between partnered clouds, such as Microsoft Azure, making multicloud deployments more cost-effective.