Oracle Licensing

Oracle Cloud Licensing Explained: BYOL, RDS, and UCCs

Oracle Cloud Licensing:

  • BYOL: Use existing licenses in the cloud.
  • AWS: Supports RDS for Oracle and BYOL.
  • Azure: Oracle Database@Azure and BYOL.
  • OCI: UCCs and BYOL.
  • vCPU/OCPU: Licensing per cloud provider’s metrics.

Introduction to Oracle Cloud Licensing

Introduction to Oracle Cloud Licensing

Licensing Oracle products in public cloud environments such as AWS, Azure, and Oracle Cloud Infrastructure (OCI) involves specific requirements and options.

These vary by cloud provider; understanding them is essential for optimizing costs and ensuring compliance.

This article explores the different licensing options, best practices, and specific nuances associated with each major cloud provider.


Public cloud environments offer flexibility and scalability for deploying Oracle software. The primary licensing options for Oracle products in public clouds include Bring Your Own License (BYOL) and specific offerings from cloud providers.

Key Points

  • Flexibility: Cloud environments provide on-demand resources and scalability.
  • Cost Management: Different licensing models can help manage costs effectively.

Cloud Providers

Different cloud providers offer distinct options for licensing Oracle products, each with its unique benefits and considerations.

Amazon Web Services (AWS)

AWS supports Oracle BYOL for most products and offers Amazon RDS for Oracle, although this is limited to Standard Edition 2.

  • RDS for Oracle: Simplified management but limited to Standard Edition 2. RDS automates many database management tasks, providing a managed database service.
  • BYOL: Allows the use of existing Oracle licenses on AWS infrastructure, providing flexibility and potential cost savings. Customers can license Oracle software per vCPU, as the Oracle Cloud Licensing Policy document outlines.

Microsoft Azure

Azure offers Oracle Database@Azure, providing a tailored solution for running Oracle databases seamlessly within the Azure ecosystem.

  • Oracle Database@Azure: Seamless integration with Azure services, enabling organizations to run Oracle databases in a familiar Azure environment.
  • BYOL: Utilize existing Oracle licenses for deployments on Azure, optimizing current investments. Licensing is per vCPU and follows the Oracle Cloud Licensing Policy document guidelines.

Oracle Cloud Infrastructure (OCI)

OCI supports Universal Cloud Credits (UCCs) and BYOL, offering a versatile environment tailored specifically for Oracle products.

  • UCCs: Prepaid cloud credits for flexible use of Oracle Cloud services. UCCs can be used across various Oracle services, providing flexibility in resource allocation.
  • BYOL: Bring existing licenses to OCI, maximizing previous investments and ensuring cost-effective deployment of Oracle products. Licensing is per OCPU, as described in the Oracle Cloud Licensing Policy document.

Best Practices

Best Practices

To optimize Oracle licensing in public cloud environments, organizations should follow these best practices:

1. Evaluate Licensing Options

Assess each cloud provider’s available licensing models (BYOL, RDS for Oracle, UCCs) to determine the most cost-effective option.

  • Action: Compare each licensing model’s costs, benefits, and limitations.
  • Importance: Ensures the chosen licensing strategy aligns with the organization’s financial and operational goals.

2. Leverage BYOL

To reduce costs, utilize existing on-premises licenses in the cloud. Ensure that these licenses are eligible for BYOL and properly documented.

  • Action: Review existing licenses and confirm eligibility for BYOL.
  • Importance: Reduces the need to purchase new licenses and optimize current investments.

3. Monitor Usage

Continuously monitor the usage of Oracle products in the cloud to ensure compliance and optimize resource allocation.

  • Action: Implement monitoring tools to track license usage.
  • Importance: Helps identify and rectify any compliance issues promptly.

4. Conduct Regular Reviews

Conduct regular reviews of your cloud deployments to identify cost savings opportunities and ensure compliance with Oracle’s licensing policies.

  • Action: Schedule periodic reviews and audits.
  • Importance: Maintains compliance and identifies areas for cost reduction.

5. Engage with Experts

Engage with Experts

Consult with Oracle licensing experts to navigate the complexities of cloud licensing, including migration strategies, compliance issues, and cost optimization.

  • Action: Engage with professional consultants.
  • Importance: Provides tailored advice and support, ensuring effective license management.

6. Understand Licensing Metrics

Understand how to calculate licensing requirements based on vCPU or OCPU metrics. For detailed guidelines, refer to the Oracle Cloud Licensing Policy document.

  • Action: Familiarize yourself with the Oracle Cloud Licensing Policy document.
  • Importance: Ensures accurate calculation of licensing needs and compliance.

Frequently Asked Questions (FAQ)

What is Oracle’s BYOL program?
Oracle’s BYOL (Bring Your Own License) program allows organizations to use their existing Oracle licenses in the cloud, providing cost savings and flexibility.

Which cloud platforms support Oracle BYOL?
Oracle BYOL is supported by Oracle Cloud Infrastructure (OCI), Microsoft Azure, and Amazon Web Services (AWS).

How do I know if my existing licenses are eligible for BYOL?
Verify eligibility by reviewing the terms and conditions of your current Oracle licenses and consulting with Oracle representatives.

Can I use Oracle BYOL for hybrid cloud deployments?
Oracle BYOL supports hybrid cloud strategies, enabling seamless integration between on-premises and cloud environments.

What are the cost benefits of using Oracle BYOL?
Oracle BYOL provides significant cost savings by leveraging existing licenses, avoiding the need for additional cloud-specific licenses.

What is Amazon RDS for Oracle?
Amazon RDS for Oracle is a managed database service that simplifies database management tasks but is limited to Standard Edition 2 products.

How does Oracle Database@Azure work?
Oracle Database@Azure offers seamless integration with Azure services, allowing organizations to run Oracle databases in the Azure environment while utilizing existing licenses through BYOL.

What are Universal Cloud Credits (UCCs) in OCI?
Universal Cloud Credits (UCCs) are prepaid credits that allow flexible use of Oracle Cloud services and dynamic resource allocation.

Why is monitoring cloud usage important?
Monitoring cloud usage ensures compliance with Oracle’s licensing policies and helps optimize resource allocation, preventing unnecessary costs.

How often should I review my cloud deployments for Oracle licensing?
Regular reviews should be conducted quarterly to ensure compliance and identify cost-saving opportunities.

What role do Oracle licensing experts play in cloud deployments?
Oracle licensing experts provide valuable insights and guidance on navigating complex licensing scenarios, ensuring compliance, and optimizing costs.

How do I calculate licensing needs for vCPU and OCPU?
Refer to the Oracle Cloud Licensing Policy document for detailed guidelines on calculating licensing requirements based on vCPU (for AWS and Azure) and OCPU (for OCI).

Organizations can effectively manage Oracle licensing in public cloud environments by understanding and applying these best practices, ensuring compliance and optimizing costs.


  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, enhancing organizational efficiency.

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