How Much Does an Oracle Database License Cost
When considering Oracle Database, the licensing cost is one of the biggest factors influencing a company’s IT budget. Oracle’s database licensing costs vary significantly based on several factors, including the edition chosen, the licensing metric, additional options or features selected, and the deployment environment (cloud or on-premises).
Below, we’ll break down the key components influencing Oracle Database license costs and provide practical examples to illustrate typical pricing scenarios.
Oracle Database Editions and Their Costs
Oracle offers several database editions, each tailored to different business needs and priced accordingly:
1. Oracle Database Enterprise Edition (EE)
Oracle EE is the most comprehensive version, offering advanced features like partitioning, clustering (Real Application Clusters – RAC), advanced security, and database management packs. It’s typically used by large enterprises with demanding workloads.
- License Cost:
- Processor license: $47,500 per processor
- Named User Plus (NUP) license: $950 per user (minimum 25 users per processor)
- Example Scenario:
A mid-sized enterprise licenses Oracle EE on a 2-processor Intel-based server (assuming a core factor of 0.5).- Calculation:
- 2 Processors × $47,500 = $95,000 one-time license fee
- Annual Support (22%) = $20,900 per year
- Calculation:
2. Oracle Database Standard Edition 2 (SE2)
Oracle SE2 is a more affordable option for small-to-medium businesses or departmental deployments. It offers core database functionality without advanced enterprise-level features.
- License Cost:
- Processor license (per socket): $17,500 per socket (maximum 2 sockets per server)
- Named User Plus (NUP) license: $350 per user (minimum 10 users per server)
- Example Scenario:
A small company licenses SE2 on a single 2-socket server.- Calculation:
- 2 sockets × $17,500 = $35,000 one-time license fee
- Annual Support (22%) = $7,700 per year
- Calculation:
3. Oracle Database Express Edition (XE)
Oracle XE is completely free to use, even in production, but it comes with usage limitations:
- Limited to 2 CPU threads, 2GB RAM, and 12GB user data storage.
- Ideal for developers, small-scale deployments, or proof-of-concept projects.
- License Cost: Free (with limitations, no support)
Licensing Metrics: Processor vs. Named User Plus
Oracle offers two main licensing metrics, influencing how much you’ll ultimately pay:
Processor Licensing
This metric is based on the number of processors (cores) used by the database, regardless of the number of users:
- Suitable for applications with many users or an unknown/variable user base.
- Typically used for external-facing or web-based applications.
- Cost example:
Licensing Enterprise Edition on a server with 8 Intel cores (core factor 0.5):- Calculation: 8 cores × 0.5 = 4 processors
- 4 processors × $47,500 = $190,000 total license cost
Named User Plus (NUP) Licensing
Charges based on the number of named individual users or devices accessing the database:
- Beneficial if the user count is limited and known in advance.
- A minimum user count applies (EE: 25 per processor, SE2: 10 per server).
- Cost example:
Enterprise Edition database used by 30 named users on a single-processor (Intel) server:- The minimum NUP for EE is 25 per processor. Actual users = 30, which exceeds the minimum.
- Calculation: 30 users × $950 = $28,500 total license cost
Additional Database Options (Extra Costs)
Oracle Database Enterprise Edition licensing does not automatically include all available advanced options. Certain features require separate licenses.
Examples:
- Real Application Clusters (RAC): Enables active-active database clusters
- Cost: $23,000 per processor
- Partitioning: Optimizes performance by dividing large tables
- Cost: $11,500 per processor
- Multitenant: Supports multiple Pluggable Databases (PDBs)
- Cost: $17,500 per processor
- Advanced Security: Provides Transparent Data Encryption (TDE)
- Cost: $15,000 per processor
- Diagnostics and Tuning Packs: Advanced performance monitoring and tuning
- Cost: $7,500 per processor per pack (often licensed together at $15,000)
Example scenario with options:
Enterprise Edition (2 processors) + Partitioning and Advanced Security:
- EE: 2 × $47,500 = $95,000
- Partitioning: 2 × $11,500 = $23,000
- Advanced Security: 2 × $15,000 = $30,000
- Total Cost: $95,000 + $23,000 + $30,000 = $148,000
Annual Support Costs (Maintenance)
Oracle charges annual support fees, typically 22% of the license fee, which provides:
- Software updates and patches
- Technical support and access to Oracle support resources
Example:
For a $95,000 Enterprise Edition processor license:
- Annual support = $95,000 × 22% = $20,900 per year
Oracle Cloud Licensing Costs (OCI – Oracle Cloud Infrastructure)
Oracle Database can also run in Oracle’s cloud under two main models:
License Included (Pay-as-you-go)
- Simple, no upfront license required
- Pricing example (OCI VM DB system with EE license): approximately $0.672 per OCPU per hour
Bring Your Own License (BYOL)
- Reduced cloud fees when bringing existing licenses
- Use existing perpetual licenses to lower OCI database costs significantly (around 50% discount).
BYOL Example:
Using 4 OCPU OCI database with existing EE licenses:
- No additional license fees; pay only discounted compute cost.
Typical Oracle Database Licensing Cost Scenarios (Summary Table)
| Scenario | Edition & Options | License Metric | Total License Cost (One-Time) | Annual Support (22%) |
|---|---|---|---|---|
| Small departmental DB (20 users) | SE2 (1 socket) | Processor | $17,500 | $3,850 |
| Medium DB (100 internal users) | EE (4 processors Intel) | Processor | $190,000 | $41,800 |
| Enterprise DB (50 named users) | EE (2 processors Intel) | Named User Plus | $47,500 (25 users/processor min) | $10,450 |
| Enterprise DB + RAC & Partitioning | EE (4 processors Intel) + RAC + Partitioning | Processor | $190,000 (EE) + $92,000 (RAC) + $46,000 (Partitioning) = $328,000 | $72,160 |
Strategies to Control and Optimize Oracle Licensing Costs
Oracle licensing can become expensive without careful management. Consider these strategies:
- Limit processor/core counts: Select hardware carefully, considering Oracle’s core factor table.
- Consolidate databases: Run multiple instances on fewer licensed servers.
- Evaluate named user licenses: Beneficial for smaller user populations or predictable usage.
- To limit licensed cores, use Oracle-approved virtualization (e.g., Oracle VM or Oracle Cloud).
- Regularly audit feature usage: Ensure you don’t inadvertently trigger additional option licensing.
Read What is Oracle Database Standard Edition 2 Licensing and Costs.
Final Thoughts and Recommendations
Understanding the costs associated with Oracle Database licensing requires careful consideration of your specific needs, the edition required, and how you will deploy the database.
To summarize:
- Small businesses or departmental workloads: Consider Standard Edition 2 (SE2).
- Enterprise-level requirements: Opt for Enterprise Edition (EE) and carefully select necessary options.
- Use Named User Plus licensing If your user count is fixed and manageable.
- Use processor licensing For external-facing or large-scale deployments.
Organizations can optimize Oracle Database licensing costs by strategically evaluating and managing these variables while staying compliant.
