Oracle Licensing Terminology
- Oracle Master Agreement (OMA): Main licensing contract.
- Processor License: Based on core count and core factor.
- NUP: Named User Plus licensing metric for user-based licensing.
- BYOL: Use existing on-premises licenses in Oracle Cloud.
- Universal Credits: Prepaid cloud credits for multiple services.
Oracle Licensing Terminology
Oracle licensing can be challenging to understand due to its intricate structure and complex language. Navigating through Oracle’s agreements, metrics, and requirements means getting comfortable with a range of industry-specific terms. In this article, we’ll create a comprehensive glossary of common Oracle licensing terms and definitions so you can have a quick reference guide that demystifies these concepts.
1. Oracle Master Agreement (OMA)
The Oracle Master Agreement (OMA) is the fundamental contract that defines the terms and conditions under which Oracle software is used. It outlines the rights and obligations of Oracle and the customer, covering everything from usage restrictions to support terms. The OMA is the starting point for understanding any Oracle licensing relationship.
2. Processor License
A Processor License is a license metric that applies to the physical processors within a server. Oracle calculates processor licenses based on the number of physical cores multiplied by a Core Factor, which depends on the processor type. Processor licensing is often used for environments with unpredictable or fluctuating user numbers, as it avoids counting individual users.
3. Named User Plus (NUP)
Named User Plus (NUP) is a licensing metric that assigns a license to each named individual or device that accesses Oracle software. It includes minimum licensing requirements ranging from 10 to 25 users per processor. This metric works well for environments with a small, identifiable user group.
4. Core Factor
The Core Factor is a multiplier used to determine how many processor licenses are required based on the number of cores. Oracle maintains a Core Factor Table, which assigns different factors to various processor types, helping balance licensing requirements about hardware capabilities. For instance, an Intel or AMD core might have a factor of 0.5, meaning each physical core counts as half a processor for licensing purposes.
5. Bring Your Own License (BYOL)
Bring Your Own License (BYOL) is a program that allows customers to use their existing Oracle on-premises licenses in the Oracle Cloud. This can significantly reduce the cost of cloud migration by leveraging licenses already paid for, provided they comply with Oracle’s requirements and have current support contracts.
6. Oracle Ordering Document
The Oracle Ordering Document is an official record that specifies what licenses were purchased, their quantities, the metrics used, and any associated terms and conditions. This document is essential for tracking entitlements and maintaining compliance, proving what you are entitled to deploy.
7. Oracle License and Support Agreement
The Oracle License and Support Agreement outlines the scope of technical support that Oracle will provide, the annual support fees, and the duration of support coverage. It is distinct from the OMA in that it specifically relates to ongoing support and product updates rather than usage rights.
8. Universal Credits
Universal Credits is a flexible cloud pricing model that allows customers to purchase credits in advance. It can be used across multiple Oracle Cloud services. This provides more flexibility, enabling companies to experiment with different services without separate licensing agreements. It is particularly useful for businesses with dynamic cloud workloads.
9. Consumption-Based Pricing
Consumption-based pricing is a cloud billing model where customers pay based on the actual usage of Oracle services, such as CPU hours or storage. This approach is suitable for organizations with unpredictable workloads, as it provides flexibility and helps avoid over-provisioning resources.
10. Perpetual License
A Perpetual License allows indefinite use of Oracle software with a one-time purchase. While the initial cost can be high, perpetual licenses provide long-term access to Oracle products. However, customers must pay annual maintenance fees to receive software updates and technical support.
11. Subscription License
Subscription Licenses are recurring, time-limited licenses that require periodic payments—typically monthly or annually. These licenses offer lower initial costs and better scalability, making them ideal for businesses anticipating growth or having short-term projects. Subscription licensing has become more popular with the increased adoption of cloud-based models.
12. Term Licensing
Term Licensing is similar to subscription licensing but with a fixed duration, such as one, three, or five years. Unlike perpetual licenses, term licenses expire after the designated period, requiring renewal if continued use is desired. Term licenses can be cost-effective for temporary projects or limited deployments.
13. Oracle License Management Services (LMS)
Oracle LMS provides tools and resources to help customers manage their Oracle licensing and ensure compliance. LMS tools can identify under-licensed deployments, track usage metrics, and provide insights into software asset management. This helps avoid compliance issues and costly penalties during audits.
14. License Minimums
License Minimums refer to the minimum number of licenses required under a given metric. For example, the Named User Plus (NUP) metric has minimum requirements per processor, usually ranging from 10 to 25 users per processor. These minimums are non-negotiable and must be met to comply with Oracle’s licensing terms.
15. Disaster Recovery Licensing
Disaster Recovery Licensing involves licensing the standby or failover environments used to ensure business continuity in the event of a failure. Oracle typically allows one failover server without additional licenses, provided it is only used during unplanned outages and not for more than ten days per year.
16. Hard Partitioning vs. Soft Partitioning
Hard Partitioning refers to using specific hardware or software technology to physically segment a server into smaller parts. Oracle recognizes hard partitioning for licensing purposes, which allows organizations to reduce licensing costs by licensing only the cores used by Oracle software. Soft Partitioning, such as VMware, is not recognized by Oracle for reducing licensing requirements, meaning that all physical cores in the server must be licensed.
17. Real Application Clusters (RAC)
Oracle Real Application Clusters (RAC) allow multiple servers to access a single Oracle database, providing high availability and load balancing. RAC environments require full licensing of all participating nodes, which can significantly increase the overall licensing cost. Understanding the licensing implications of RAC is crucial for organizations seeking high availability.
18. License Mobility
License Mobility refers to the ability to move Oracle licenses from one server to another during hardware refreshes or cloud migrations. Oracle requires that licenses remain assigned to a server for at least 90 days before they can be reassigned to prevent the constant shifting of licenses in dynamic environments.
19. Support Renewals
Support Renewals are annual payments to maintain access to Oracle’s technical support and software updates. Without current support, licenses are still valid for use, but customers will not receive updates, patches, or help from Oracle’s support team. It is important to keep support agreements active, especially for mission-critical systems.
20. License Audit
An Oracle License Audit is an official process where Oracle reviews your software usage to ensure compliance with licensing agreements. Non-compliance discovered during an audit can lead to fines, backdated licensing costs, and potentially severe financial penalties. Conducting regular internal audits can help mitigate these risks.
21. High Availability (HA) Licensing
High Availability (HA) refers to the mechanisms that ensure continuous service operation. Oracle products such as Data Guard and RAC are used for HA. These configurations require full licensing of all nodes involved, including failover nodes if they run Oracle software for a limited time.
22. Oracle Technology Network (OTN) License Agreement
The Oracle Technology Network (OTN) License Agreement is a free license intended for development, testing, and demonstration purposes. It is not permitted for production use and has specific restrictions on the environments in which it can be deployed.
23. Oracle Database Editions
Oracle offers several database editions, including Standard Edition and Enterprise Edition, each with its own licensing requirements and features. Standard Edition is designed for small and medium businesses with limited features, while Enterprise Edition is more comprehensive and scalable, requiring more extensive licensing considerations.
24. Cloud at Customer
Cloud at Customer is a cloud solution provided by Oracle that allows customers to use Oracle’s cloud infrastructure within their data centers. The licensing model for Cloud at Customer is similar to Oracle Cloud, but it requires specific agreements that cover on-premises deployments.
25. License Reassignment
License Reassignment is moving a license from one server or environment to another. As mentioned earlier, licenses generally need to remain assigned to a server for 90 days before reassignment, except in cases of hardware failure. This policy helps manage compliance in dynamic environments.
26. Oracle Support Identifier (CSI)
The Customer Support Identifier (CSI) is a unique number assigned to each Oracle customer used to access Oracle’s support services. The CSI is required when logging support tickets, accessing updates, and verifying entitlement to Oracle’s support services.
27. Oracle VM
Oracle VM is Oracle’s virtualization technology that supports hard partitioning, which allows organizations to license only the specific cores allocated to Oracle software, thereby reducing licensing costs. Oracle VM can be advantageous for compliance, especially compared to unsupported soft partitioning technologies.
28. Software Investment Guide
The Software Investment Guide is a document provided by Oracle that helps customers understand their licensing options, compliance requirements, and best practices for managing Oracle software investments. It provides critical insights into optimizing Oracle software usage while minimizing costs.
29. Deployment Environment
A Deployment Environment is where Oracle software is installed and used. Deployment environments can include on-premises servers, cloud instances, and hybrid setups. Each environment may have different licensing requirements, so understanding the deployment context is crucial for determining the appropriate licensing model.
30. Unlimited License Agreement (ULA)
An Unlimited License Agreement (ULA) is a contractual agreement that allows an organization to deploy an unlimited amount of specified Oracle products for a fixed period, usually 3 to 5 years. The deployment must be counted and certified at the end of the term. ULAs benefit rapidly growing organizations but require careful management to ensure value.
Conclusion
Oracle licensing terminology can be complex, but having a solid grasp of these terms is the key to effectively managing Oracle software deployments and maintaining compliance. From understanding core metrics like Processor and Named User Plus (NUP) licensing to the intricacies of Cloud Licensing and Support Agreements, knowing what each term means will help your organization make informed decisions about Oracle products.
Oracle Licensing Terminology FAQ
What is the Oracle Master Agreement (OMA)?
The OMA is the fundamental contract that defines the terms and conditions under which Oracle software is used, including both usage rights and restrictions.
What is a Processor License in Oracle?
A Processor License is a metric based on the number of physical cores in a server multiplied by the core factor. It is often used in environments where counting users is impractical.
How does Named User Plus (NUP) licensing work?
NUP licensing is user-based, where each named user or device accessing the software needs a license. Oracle requires a minimum number of NUP licenses per processor.
What is the Bring Your Own License (BYOL) program?
BYOL allows customers to use their existing Oracle on-premises licenses in the Oracle Cloud, reducing the need for new licenses, provided support agreements are current.
How are Universal Credits used in Oracle Cloud?
Universal Credits are prepaid credits that can be used across various Oracle Cloud services. They offer flexibility in choosing different products without separate licensing agreements.
What is a Perpetual License?
A Perpetual License allows indefinite use of Oracle software for a one-time fee. If continued updates and support are needed, maintenance and support are paid annually.
How does Subscription Licensing differ from Perpetual Licensing?
Subscription licensing requires recurring payments (monthly or annually) and provides better scalability, while perpetual licensing requires a one-time payment and offers indefinite use.
What is the Oracle Ordering Document?
The Oracle Ordering Document specifies the licenses purchased, their quantities, and terms. It is an essential document for tracking your entitlements and maintaining compliance.
How is hard partitioning different from soft partitioning?
Hard partitioning, such as using Oracle VM, involves dedicating physical cores to reduce licensing requirements. Soft partitioning, like VMware, is not recognized by Oracle for limiting license requirements.
What is Oracle LMS?
Oracle License Management Services (LMS) provides tools and services to help customers manage their Oracle licenses and maintain compliance, avoiding potential audit issues.
How does Disaster Recovery Licensing work?
Oracle generally allows one failover server without additional licenses if used only during unplanned outages and for less than ten days per year. Beyond this limit, full licensing is required.
What is Oracle Real Application Clusters (RAC)?
Oracle RAC allows multiple servers to access the same database, offering high availability. RAC environments require licensing for all participating nodes.
Can Oracle licenses be reassigned between servers?
Yes, but Oracle requires that licenses remain assigned to a server for at least 90 days before they can be reassigned. This policy prevents frequent license shifting.
What are Support Renewals?
Support renewals are annual payments to maintain access to Oracle’s technical support and software updates. Without support, licenses remain valid but are not eligible for updates or patches.
What is an Oracle License Audit?
An Oracle License Audit is a formal review conducted by Oracle to ensure compliance with licensing agreements. Non-compliance can lead to fines, backdated costs, and the need to purchase additional licenses.
