Oracle Licensing Change in the Cloud: Amazon EC2/RDS & Microsoft Azure

More and more end-users are planning to or have been going to a cloud computing environment. Each cloud computing environment comes with its specific restrictions and/or different ways on how to count the required number of Oracle licenses when the Oracle programs are deployed on a cloud computing environment.

Oracle Corporation changed its licensing policies for the so called “Authorized Cloud Environments” since January 23rd, 2017. Initially Oracle stated that for the “Authorized Cloud Environments” (including Amazon Web Services – Amazon Elastic Compute Cloud (EC2), Amazon Relational Database Service (RDS) and Microsoft Azure Platform) end-users would need to consider each virtual core as a physical core (and multiple the amount of virtual cores with the Processor Core Factor of 0.5 to determine the number of ‘Processors” as per Oracle’s Processor definition).

As of January 23rd, 2017, Oracle changed its licensing policies, in which different counting methodologies are applied for both Amazon EC2 and RDS and for Microsoft Azure.

Amazon EC2 and Amazon RDS end-users are required to count and license:

two vCPUs = one Oracle Processor license if hyper-threading is enabled

one vCPU = one Oracle Processor license if hyper-threading is not enabled.

Microsoft Azure end-users are required to count and license:

one Azure CPU Core = one Oracle Processor license.

Full details of Oracle’s licensing policies on the “Authorized Cloud Environments” can be found here. This change in licensing policies does support Oracle’s own Cloud Strategy by making its own IaaS and PaaS Cloud Services more attractive (less expensive) than its competitors Amazon and Microsoft.

In the next coming weeks we will publish our newest whitepaper around the licensing of Oracle’s Technology programs on the different cloud providers, including Amazon EC2 and RDS, Microsoft Azure and others.

Don’t miss this new white paper in order to start learning everything about the differences in licensing Oracle software on these different cloud environments!

This article was published on 30-01-2017