Oracle software is a critical part of many IT environments, but understanding its licensing requirements can be complex, especially during a migration. Whether upgrading hardware, moving to the cloud, or shifting to a hybrid model, organizations often face a period where both old and new platforms run simultaneously. This transition phase can bring compliance challenges, as Oracle requires licenses for all processors where the software is installed and/or running.

Failing to address licensing during migration can lead to costly surprises, especially if Oracle conducts an audit. At Cintra, we’ve worked with organizations across industries to ensure migrations are smooth, compliant, and cost-effective. Below, we outline proven strategies to help you stay on track.

Strategies for Maintaining License Compliance

1. Make use of shelf licenses

If your organization has unused or unassigned Oracle licenses (commonly referred to as shelf licenses), they can be temporarily allocated to the new environment during migration. Once the old environment is retired, those licenses can be reassigned.

To minimize costs, consider:

• Starting with a smaller instance size in the new environment, especially if you're migrating to cloud platforms like AWS.

• Using Named User Plus (NUP) metrics for environments with limited users until migration completes.

1. Optimize resources with a license shuffle

The "shuffle game" involves reallocating existing licenses by consolidating or temporarily reducing resources in other parts of your environment. Examples include:

• Reducing redundancy in Oracle RAC: Temporarily remove a node from your RAC cluster to free up licenses.

• Consolidating virtualized hosts: Decommission one or more physical hosts in a VMware or similar cluster to reallocate licenses.

• Adjusting disaster recovery (DR) plans: Temporarily scale down DR environments or switch to a backup-only strategy with extended RTO/RPO.

Important note: Be cautious when deactivating servers or nodes—Oracle requires licenses for where software is “installed and/or running.” Verify compliance before reassigning licenses.

1. Use AWS RDS license-included options

If you’re migrating to AWS and using Oracle Standard Edition 2 (SE2), consider leveraging AWS’s Relational Database Service (RDS) with license-included (LI) options. This eliminates the need for separate Oracle licensing during migration, providing flexibility and cost savings.

For organizations looking to streamline operations, RDS LI may even become a long-term solution, simplifying license management in the cloud.

4. Purchase term licenses

When existing licenses aren’t sufficient, term licenses can provide temporary coverage. These short-term agreements (typically one year) allow you to maintain compliance without the long-term commitment or costs of perpetual licenses.

While term licenses are more cost-effective, we recommend:

• Purchasing only the minimum required to cover the migration period.

• Using term licenses as a fallback when other strategies don’t meet your needs.

5. Invest in new licenses

In some cases, the migration process may highlight the need for additional Oracle licenses to accommodate future growth or changing requirements. Purchasing new licenses can help ensure compliance and provide flexibility for scaling the new environment.

As with other strategies, consider starting with a scaled-down deployment and expanding as workloads transition.

Tailoring strategies to business needs

Every migration is unique, and compliance solutions depend on your organization’s specific goals and existing Oracle licenses. In practice, most migrations benefit from combining multiple strategies, for example, using shelf licenses alongside a temporary reduction in DR capacity.

To determine the best approach, ask:

• What licenses do you currently have, and how are they used?

• What are the timelines and goals of your migration?

• How can you balance compliance with cost efficiency?

Avoiding pitfalls and ensuring compliance 

Migration is a complex process, and compliance is just one piece of the puzzle. Oracle’s licensing rules can be rigid and opaque, making proactive planning essential. Here are some final tips:

• Understand your contracts: Check for limitations on non-production or DR licenses before reallocating them.

• Monitor deployments closely: Use tools to track feature usage and ensure compliance during the transition.

• Engage experts when needed: Licensing specialists can help you minimize risks and optimize costs.

Let Cintra guide your migration

At Cintra, we specialize in helping organizations migrate while maintaining compliance and minimizing unnecessary costs. Whether you’re moving to the cloud, upgrading hardware, or exploring hybrid solutions, our team can help you align your licensing strategy with your business goals.

Contact us today to learn how we can support your journey to a compliant, cost-efficient Oracle environment.