Expert tips for compliance with Oracle licensing VMware

Oracle licensing VMware

If you are trying to solve Oracle licensing VMware, you may have found that navigating the complex and often confusing world of Oracle licensing can be a challenge. It is not uncommon for companies to struggle with understanding how to properly license Oracle on VMware, and seeking guidance from Oracle licensing experts is often necessary. However, even consulting with these experts can be frustrating, as it is common to receive conflicting advice on this topic. 

This article will delve into the various solutions available for Oracle licensing on VMware and why it is important to work with an independent Oracle licensing expert who can provide you with the best advice and guidance. Whether you are facing an audit or simply trying to ensure that your company complies with Oracle’s licensing policies, you must have a clear understanding of your options and the support of an expert who can help you navigate this complex issue.

Oracle view on how to license Oracle when using VMware

• In older versions of VMware’s vSphere ESXi (up to 5.0), shared storage is required to move virtual machines running Oracle throughout the VMware environment. In these cases, Oracle requires licensing all physical cores of the physical ESXi hosts that are part of the cluster connected to shared storage within the VMware environment.
• In newer versions of vSphere ESXi (5.1 and later), shared storage is no longer necessary for live migrating a running virtual machine. The end-user can move the virtual machine running Oracle anywhere within the vCenter Server Instance. As a result, Oracle requires licensing all physical cores of all physical ESXi hosts that are part of the same vCenter Server Instance, including across data centers within the vCenter Server Instance.
• With vCenter Server 6.0 or higher, a running virtual machine can be moved across vCenter Server Instances, which impacts licensing across the entire environment. As a result, Oracle requires licensing all physical cores of all physical ESXi hosts of all vCenter Server Instances with ESXi 5.1 or later hypervisors.

Oracle is basing its view on its licensing policy document.

Oracle on VMware – What you should know

• If you are using Oracle technology on VMware and being audited by Oracle, it is a serious matter, and you should be concerned.
• Running Oracle on VMware can be a major issue in IT asset management.
• If the audit has not started yet, you still have options for how to handle the situation.
• However, your options are more limited if you have already received the audit report.
• Oracle has made a lot of money from auditing customers using Oracle on VMware and claiming that they need to license servers not running any Oracle software.
• The issue of Oracle licensing on VMware has been a controversial and unresolved topic for many years.
• Many companies have struggled with this issue during Oracle audits.
• This article will explain Oracle’s position on licensing Oracle technology on VMware.
• Oracle’s contractual position on this matter is unclear and not specifically addressed in its licensing agreements.
• Many Oracle customers have entered into Oracle User License Agreements to address this issue.

An insider story about VMware and Oracle Licensing

• During our time at Oracle, we observed that the issue of Oracle licensing on VMware was often used to extract as much money as possible from customers during audits.
• Additionally, Oracle did not try to educate its customers about proper licensing, especially regarding this topic.
• If Oracle wanted stronger licensing contracts or policies, they should have done so in the past. This would have eliminated any wiggle room for customers, and they would simply have to pay the required fees. However, this has not happened, and Oracle licensing agreements do not address virtualization policies or soft partitioning.
• When vSphere 6.0 was released, there were discussions at our local Oracle office about the implications for customers. Some of us believed the demands were outrageous and chose not to discuss them with our customers.
• Generally, if a customer was found to be non-compliant due to virtualization, we did not expect them to pay the full amount of the initial findings for the license gap. It was successful if the customer paid 10% of the initial findings.
• We often tried to negotiate and claim that “all processors” needed to be licensed and send “nice emails” to customers under audit.

What is our experience: 

• When we joined a service provider in 2015, I was tasked with helping small, and large customers understand Oracle licensing and contracts.
• I found that all types of companies struggled with how to properly license Oracle on VMware, from Fortune 500 firms with large software asset management teams to small companies with just a few servers.
• I often received questions about how to address this issue when deploying virtualization technologies, specifically VMware.
• Unfortunately, there is no one-size-fits-all solution to this problem. Even when consulting with Oracle licensing experts, it is common to receive conflicting advice.
• No specific clause in the contract or published article can definitively say whether Oracle’s stance on this issue is right or wrong.
• It is important to carefully review your contract and policies and determine what you think is the right course of action. You have the option to pay Oracle or not. 
• It can be helpful to work with an independent Oracle licensing expert who can offer different strategies and advice on this topic. Here are some options that our clients have chosen and that I have heard other Oracle licensing experts discuss:

Six solutions to Oracle licensing on VMware

1. Some companies simply pay whatever Oracle demands, even a large sum. They may sign a User License Agreement (ULA) for a smaller amount to avoid further issues. These companies may remain in an Oracle unlimited license agreement or exit such an agreement with many licenses. You do not need to worry about Oracle licensing on VMware when you are in an Oracle unlimited license agreement.
2. Other companies work with Oracle to sign a contractual amendment and agree to perform storage and network isolation. At the same time, this solution is widely available but often seen as impractical and restrictive. You can contact us if you are considering this option and want independent Oracle licensing advice.
3. Some customers refuse to agree with Oracle’s position on this issue, even if they are audited and receive audit reports showing large gaps in their licensing. It is worth noting that I have not seen or heard of a single case that has gone to court over this issue. In many cases, these Oracle licensing audits remain limbo if the customer refuses to pay.
4. Some customers create their bare metal or isolated virtualized environments to comply with Oracle’s rules on virtualization. They may move any new Oracle deployments to this specific environment.
5. Some customers follow VMware’s advice, which Oracle does not necessarily agree with. You can read more about this on VMware’s blog post about Java and VMware.
6. Some companies move their Oracle workloads away from VMware and towards solutions such as Oracle on AWS or Azure, which allows for licensing per vCPU, or Oracle Cloud or Oracle Cloud at Customer. Others may migrate to Oracle Private Appliance and use trusted partitions and VMware.

1. What is the issue with Oracle licensing on VMware? The issue with Oracle licensing on VMware is that it can be confusing and complex to understand how to properly license Oracle software when it is running on VMware virtualization technology. There is often conflicting advice on this topic and it can be difficult to determine the best course of action.
2. Why is Oracle licensing on VMware such a controversial topic? Oracle licensing on VMware has been a controversial topic for many years because Oracle’s position on this issue is not clearly defined in their licensing agreements. As a result, companies have struggled to understand how to properly license Oracle on VMware and have faced challenges in audits.
3. What are the different solutions that are available for Oracle licensing on VMware? There are several solutions that are available for Oracle licensing on VMware, including paying whatever Oracle demands, signing a contractual amendment and agreeing to perform storage and network isolation, refusing to agree with Oracle’s position and remaining in limbo, creating isolated environments to follow Oracle rules, following VMware’s advice, and moving Oracle workloads away from VMware.
4. Why is it important to work with an independent Oracle licensing expert on this issue? It is important to work with an independent Oracle licensing expert on this issue because they can provide unbiased guidance and assistance in navigating the complex landscape of Oracle licensing on VMware. An expert can help you understand your options and make informed decisions about how to properly license Oracle in your organization.
5. How can I prepare for an Oracle licensing audit on VMware? To prepare for an Oracle licensing audit on VMware, you should carefully review your current deployment and ensure that you have a clear understanding of your usage and licensing needs. You should also gather any relevant documentation, such as license agreements and contracts, and consider seeking the guidance of an independent Oracle licensing expert.
6. What are the consequences of non-compliance with Oracle licensing on VMware? If you are found to be non-compliant with Oracle’s licensing policies on VMware, you may face fines and other penalties. You may also be required to retroactively purchase licenses to cover any period of non-compliance.

Need Expert Help?

Our company specializes in helping organizations solve the complex and often confusing issue of Oracle licensing on VMware. We have a team of expert Oracle licensing consultants who can provide guidance and assistance in designing a licensing strategy that is compliant with Oracle’s policies and meets the needs of your organization.

If you are facing an Oracle audit, our team can also provide support and representation to help you navigate the audit process and achieve the best possible outcome. We have a track record of successfully helping organizations resolve Oracle licensing issues and avoid costly penalties.

Our services include:

• Reviewing your current Oracle licensing and VMware setup to identify any potential issues or areas of non-compliance
• Providing guidance on how to properly license Oracle on VMware based on your specific needs and usage
• Assisting in the creation of a licensing strategy that is compliant with Oracle’s policies and meets the needs of your organization
• Representing your organization during an Oracle audit and negotiating with Oracle to achieve a favorable outcome
• Providing ongoing support and assistance with managing and maintaining compliance with Oracle’s licensing policies.

By working with us, you can feel confident that you have the expert support and guidance you need to navigate the complexities of Oracle licensing on VMware and ensure that your organization is in compliance with all relevant policies.