Oracle recently revised its cloud licensing policy document, providing updated rules for licensing Oracle core technology software in "Authorized Cloud Environments," including AWS, Azure, and now Google Cloud Platform (GCP). This document is crucial for organizations running Oracle software in the cloud, as it outlines key guidelines to avoid non-compliance and the financial risks associated with Oracle licensing audits.
At Cintra, we specialize in helping businesses navigate the complexities of Oracle licensing in the cloud. Here’s what you need to know about the latest changes and how they might affect your organization.
The June 12, 2024, update to Oracle's licensing policy introduces minimal changes compared to the previous version. The primary addition is the inclusion of GCP as an authorized environment, with clarified examples for licensing Oracle software on GCP. This is a positive step for organizations exploring Oracle workloads on GCP, simplifying a process that was previously opaque.
Oracle's licensing policy provides a framework for organizations to license Oracle software in public cloud environments using virtual CPU (vCPU) metrics instead of traditional physical processor metrics. While not all Oracle software is covered, the policy applies to most core products, with some notable exceptions, such as Oracle Real Application Clusters.
The document offers a way to:
License Oracle workloads based on vCPU, reducing ambiguity in cloud environments.
Avoid relying on physical processor metrics, which are challenging to determine in cloud setups.
Mitigate the risk of licensing audits by adhering to Oracle’s defined policies.
However, it’s important to note that this document is explicitly non-contractual, meaning the terms in your Oracle Master Agreement (OMA) or other contracts take precedence. Oracle can update this document at any time, often favoring their interests. Tracking these changes is essential to maintaining compliance.
The policy document is straightforward but includes a few critical clauses that organizations should be aware of:
Non-Contractual Nature
The document is described as "for educational purposes only" and explicitly states it cannot be incorporated into contracts. This means that while the policy provides useful guidelines, it is not binding. Your contractual agreements with Oracle will always take precedence, so understanding the differences is key.
Exclusion of the Core Factor Table
Oracle’s traditional core factor table, which reduces licensing costs for on-premises environments, is not applicable in cloud scenarios. Instead, each hyperthreaded vCPU counts as a single processor license, effectively doubling licensing costs for many cloud deployments. Organizations must factor this into their cloud cost planning.
Maximum vCPUs Clause
The policy requires licensing based on the maximum vCPUs of an instance, regardless of whether some vCPUs are disabled (e.g., via AWS Optimize CPU). This makes it vital to carefully evaluate instance types to balance performance, RAM, and disk I/O with licensing costs.
Standard Edition Licensing Limitations
For Oracle Standard Edition (SE), including SE1 and SE2, the policy defines every four vCPUs as a virtual processor socket. SE2 is limited to a maximum of 8 vCPUs, making hyperthreading a valuable strategy for optimizing performance within these constraints.
ULA Certification
The policy notes that licenses acquired under Unlimited License Agreements (ULAs) can be used in Authorized Cloud Environments but cannot be included in ULA certifications at the end of the agreement term. This clause appears redundant, as ULA terms are governed by specific contracts, not this policy.
Navigating Oracle's cloud licensing policies can be complex and time-consuming. At Cintra, we provide end-to-end support, ensuring your cloud deployments are fully optimized and compliant. Our services include:
Licensing Assessments: Evaluate your current licensing position to ensure compliance and avoid audits.
Cost Optimization: Identify opportunities to reduce licensing costs while meeting your performance requirements.
Cloud Architecture Guidance: Design cloud solutions that balance performance, scalability, and licensing needs.
By partnering with Cintra, your organization can confidently manage Oracle workloads in AWS, Azure, or GCP, ensuring compliance and cost efficiency.
We have assessed 5,769 Oracle databases running on 3,163 hosts and 15,629 CPU cores in the last twelve months. The total license value - database and options used - exceeds $690 million, with $150 million in annual support fees (based on list prices).
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