Overview on Oracle Database Licensing
1. Perpetual Licenses
Description: Perpetual licenses are a one-time purchase that allows indefinite use
of the software. This type of license is ideal for organizations looking for a
long-term solution without the need for recurring payments.
Best For:
- Companies with
stable, long-term database needs.
- Organizations
with the budget to make a significant initial investment.
Key Point: While the initial cost is high, there are no ongoing fees, making it
cost-effective over time. However, maintenance and support fees may still
apply.
Considerations:
- Initial
Investment: Be prepared for a significant upfront cost.
- Maintenance: Plan for
annual maintenance fees, typically around 22% of the license cost.
- Scalability: Ensure the
license can accommodate future growth without excessive additional costs.
2. Term Licenses
Description: Term licenses are temporary, usually ranging from one to five years.
They are more affordable upfront compared to perpetual licenses but need to be
renewed at the end of the term.
Best For:
- Short-term
projects.
- Organizations
with limited budgets.
Key Point: Lower initial cost, but recurring payments are required. It provides
flexibility for short-term needs without a long-term commitment.
Considerations:
- Renewal Costs: Plan for
recurring costs at each renewal.
- Project
Duration: Align the license term with the project timeline.
- Scalability: Evaluate if
the term license allows for scaling up or down as needed.
3. Oracle Cloud Licensing
Description: Oracle Cloud Licensing is a subscription-based model for accessing
Oracle’s cloud services. This model is flexible and scalable, adapting to the
changing needs of the organization.
Best For:
- Businesses
seeking flexibility.
- Organizations
that anticipate growth or changes in usage.
Key Point: Monthly or annual fees with the ability to scale resources up or down.
Ideal for businesses looking to avoid large upfront investments and wanting the
ability to pay-as-you-go.
Considerations:
- Subscription
Fees: Understand the pricing structure and what is included.
- Flexibility: Take
advantage of the ability to scale resources according to demand.
- Service Level
Agreements (SLAs): Review Oracle’s SLAs to ensure
they meet your business needs.
4. Licensing Metrics
Processor Licensing: Licensing is based on the number of processors in the
server. The cost is determined by multiplying the number of cores by a factor
specified in Oracle’s core factor table.
Best For:
- High-performance
environments.
- Large-scale
deployments with significant processing power requirements.
Considerations:
- Core Factor
Table: Use Oracle’s core factor table to calculate the required licenses
accurately.
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Oracle Processor Core Factor Table |
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Last Updated: March 5, 2023 |
|
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Vendor and Processor |
Core Processor |
|
Sun and Fujitsu UltraSPARC T1
processor (1.0 or 1.2 GHz) |
0.25 |
|
Sun Netra T2000, 1.0 or 1.2 GHz
UltraSPARC T1 processor |
0.25 |
|
SPARC T3 processor |
0.25 |
|
Sun and Fujitsu UltraSPARC T1 1.4
GHz |
0.5 |
|
Sun T6300, 1.4 GHz UltraSPARC T1
processor |
0.5 |
|
AMD EPYC™ 7XX1 and AMD Opteron™
Models 13XX, 23XX, 24XX, 32XX, 41XX, 42XX, 43XX, 61XX, 62XX, 63XX, 83XX, 84XX
or earlier Multicore chips |
0.5 |
|
Intel® Xeon® Platinum 81XX, Intel®
Xeon® Gold 61XX, Intel® Xeon® Gold 51XX, Intel® Xeon® Silver 41XX, Intel®
Xeon® Bronze 31XX, Intel Xeon Series
56XX, Series 65XX, Series 75XX, Series E7-28XX, E7-28XX v2, Series E7-48XX,
E7-48XX v2, E7-48XX v3, E7-48XX v4, Series E7-88XX, E7-88XX v2, E7-88XX v3, E7-88XX v4, Series E5-24XX,
E5-24XX v2, E5-24XX v3, Series E5-26XX,
E5-26XX v2, E5-26XX v3, E5–26XX
v4, Series E5-46XX, E5- 46XX v2, E5-46XX v3, E5-46XX v4, E3-15XX v5, Series
E3-12XX, E3-12XX v2, E3-12XX v3, E3-12XX v4, E3–12XX v5, E5-14XX v3, E5-14XX
v2, E5-16XX v4, |
0.5 |
|
Intel Itanium Series 93XX or earlier
Multicore chips (For servers purchased prior to Dec 1st, 2010) |
0.5 |
|
Intel or AMD Desktop,
Laptop/Notebook, or Netbook Multicore chips |
0.5 |
|
Sun UltraSPARC T2+ |
0.5 |
|
SPARC64 VII+ |
0.5 |
|
SPARC64 X, SPARC64 X+, SPARC64 XII |
0.5 |
|
SPARC T4 processor |
0.5 |
|
SPARC T5 |
0.5 |
|
SPARC M5, SPARC M6, SPARC M7, SPARC M8 |
0.5 |
|
SPARC S7 |
0.5 |
|
|
|
|
Sun and Fujitsu SPARC64 VI, VII |
0.75 |
|
Sun UltraSPARC IV, IV+, or earlier
Multicore chips |
0.75 |
|
Sun UltraSPARC T2 |
0.75 |
|
HP PA-RISC |
0.75 |
|
IBM POWER5+ or earlier Multicore
chips |
0.75 |
|
All Single Core Chips |
1.0 |
|
Intel Itanium Series 93XX (For servers purchased on or after Dec
1st, 2010) |
1.0 |
|
Intel Itanium Series 95XX |
1.0 |
|
IBM POWER6 |
1.0 |
|
IBM POWER7, IBM POWER7+ |
1.0 |
|
IBM POWER8 |
1.0 |
|
IBM System z (z10 and earlier) |
1.0 |
|
All Other Multicore chips |
1.0 |
|
* SPARC Enterprise T1000 and SPARC Enterprise
T2000 Servers may be sold and branded by Oracle, Sun Microsystems, Fujitsu or
Fujitsu Siemens. |
|
- Server
Configuration: Assess the server’s configuration to ensure compliance with
licensing requirements.
- Cost Efficiency: Compare the
cost against the Named User Plus model to determine the most
cost-effective approach.
Named User Plus Licensing (NUP): Licenses are based on the number of
users or devices accessing the database. This model is beneficial for
environments with a limited number of users.
Best For:
- Smaller user
bases.
- Environments
with clearly defined user groups.
Considerations:
- User Count: Accurately
count the number of users or devices to avoid over-licensing.
- Growth
Potential: Plan for potential increases in user count and the associated
costs.
- Compliance: Ensure
compliance by maintaining accurate records of user access.
5. Choosing the Right License
Assess Needs: Evaluate your organization’s current and future database requirements.
Consider factors such as user base size, database workload, and projected
growth.
Scalability: Choose a license that accommodates potential growth without incurring
excessive additional costs. Consider both horizontal (adding more servers) and
vertical (increasing server capacity) scaling.
User Base: Determine whether processor or user-based licensing is more
cost-effective. For environments with a small number of users, Named User Plus
licensing may be more economical.
Considerations:
- Future Growth: Ensure the
chosen licensing model can scale with your organization.
- Budget
Constraints: Balance the initial investment with ongoing costs to fit your
budget.
- Licensing
Flexibility: Consider if you might need to switch between licensing models as
your needs change.
6. Cost Management Strategies
Regular Audits: Conduct regular audits to track database usage and ensure compliance.
This helps avoid over-licensing and underutilization, optimizing costs.
Oracle Tools: Use Oracle’s tools for compliance checks and cost management. These
tools can provide insights into usage patterns and help identify opportunities
for cost savings.
Negotiation: Engage with Oracle representatives to negotiate better terms. Seek
advice from licensing experts to ensure you get the best possible deal.
Considerations:
- Audit Frequency: Schedule
regular audits to keep track of changes in usage.
- Compliance: Use Oracle’s
tools to ensure compliance and avoid penalties.
- Professional
Advice: Consult with licensing experts to optimize costs and terms.
7. Best Practices for Oracle Licensing
Maintain Detailed Records: Keep thorough documentation of all
licenses and their usage. This aids in audits and compliance checks, ensuring
accurate tracking of license deployment.
Stay Informed: Regularly update your knowledge of Oracle’s licensing policies and any
changes. Follow Oracle’s official communications and updates to stay compliant.
Consult Professionals: Engage with Oracle licensing experts or third-party
consultants. Professional advice can help ensure compliance and optimize
licensing costs, providing tailored solutions for your organization.
Considerations:
- Documentation: Maintain
comprehensive records of all licensing agreements and usage.
- Policy Updates: Stay updated
on any changes in Oracle’s licensing policies.
- Expert
Consultation: Regularly consult with professionals to stay compliant and
optimize costs.
Conclusion
Understanding and managing Oracle Database licensing is essential for
organizations using Oracle products. By selecting the appropriate license type,
using the right metrics, and implementing best practices, organizations can
ensure compliance and optimize their investments. For detailed information and
professional advice, consult Oracle’s official documentation or speak with an
Oracle representative.
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