What is Oracle License Optimization: A Guide from an Expert



What is Oracle License Optimization?

Oracle License Optimization is the process of ensuring that an organization is properly licensed for the Oracle software it is using in a way that minimizes costs and compliance risks. This involves steps like reviewing current licenses, identifying potential over- or under-licensing, negotiating with Oracle for cost-effective licenses, and implementing tools to track and manage usage for compliance and cost savings.

Why is Oracle License Optimization Important?

Oracle licenses can be expensive, and optimization is essential to avoid unnecessary costs and compliance risks. Optimizing your licenses can lead to significant savings and help you stay in compliance with your agreements.

5 Ways to Do Oracle License Optimization

There are many ways to optimize your Oracle licenses, but here are five tips from an expert:

License Non-Production Environments with Named User Plus Licenses

Non-production environments can be licensed with named user plus licenses, which can optimize licensing by 50%. Many organizations make the mistake of using processor licenses for non-production environments, resulting in unnecessary costs.

Take Advantage of Special Test and Development Licensing Rights

Oracle offers special licensing rights for test and development environments, allowing for a reduced user minimum of 10 instead of 25 per processor. This can cut licensing costs by 60%.

Review Oracle Application Usage

Review your organization’s usage of Oracle applications and determine if all users with access to Oracle EBS or similar actually need to keep their licenses. Our experience has shown that over 30% of users do not need access to these applications, leading to unnecessary costs.

Check Hardware Platform for Sub-Capacity Licensing

Check if your hardware platform allows for hard partitioning or sub-capacity licensing. If not, consider switching to a hardware platform that does allow for sub-capacity licensing, which can yield significant Oracle licensing optimization results.

Move to Oracle Cloud

Consider moving to Oracle Cloud, which allows for licensing on vCPU and offers a range of Oracle products to choose from. AWS and Azure also offer vCPU licensing, but it is only available for Bring-Your-Own-License.

What Our Oracle License Optimization Service Includes

Our Oracle License Optimization service includes the following:

  • Review of current Oracle license agreements and usage
  • Identification of cost-saving opportunities
  • Negotiation of new or revised Oracle license agreements
  • Implementation of license management processes and tools
  • Ongoing support and guidance


Oracle License Optimization is essential to minimize costs and compliance risks. By reviewing your licenses, identifying potential savings, negotiating for cost-effective licenses, and implementing tools to manage usage, you can optimize your Oracle licensing. By following these tips and insights from a 15-year Oracle licensing expert, you can achieve cost savings and stay in compliance with your agreements.


Q: Can I negotiate my Oracle license agreements on my own?
A: It’s possible to negotiate Oracle license agreements on your own, but engaging an Oracle licensing expert can help ensure that you are getting the best possible terms and pricing.

Q: Can Oracle change the terms of my license agreement?
A: Oracle can change the terms of your license agreement, but it’s important to review any changes and negotiate for favorable terms if possible.

Q: How often should I review my Oracle licenses for optimization opportunities?
A: It’s recommended that organizations review their Oracle licenses at least once a year for optimization opportunities.

Q: Can an Oracle licensing expert help me manage my licenses over time?
A: Yes, an Oracle licensing expert can provide ongoing support and guidance to help you manage your licenses over time, including regular reviews of your usage and agreements, as well as assistance with any questions or issues that arise. This can help you stay in compliance with your agreements and optimize your licensing costs over time.

Q: Is Oracle License Optimization only for large organizations?
A: No, Oracle License Optimization is important for organizations of all sizes, as any organization using Oracle software can benefit from cost savings and compliance risk reduction through effective license optimization.

Q: Can Oracle License Optimization lead to compliance risks?
A: No, effective Oracle License Optimization should reduce compliance risks by ensuring that you are properly licensed for the software you are using and are using it in compliance with your agreements. By working with an Oracle licensing expert and implementing tools to track and manage your usage, you can avoid compliance risks and ensure ongoing compliance with your agreements.

Q: How much can I expect to save through Oracle License Optimization?
A: The amount you can save through Oracle License Optimization will depend on the specifics of your organization and usage. However, even small optimizations can lead to significant savings, especially if you have a large number of database licenses.

Q: Can I do Oracle License Optimization on my own?
A: While it is possible to do Oracle License Optimization on your own, working with an Oracle licensing expert can provide valuable insights and guidance to help ensure that you are getting the most cost-effective and appropriate licenses for your organization’s needs.

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