Oracle Database License Models:
- Processor Licensing:
Based on total processor cores × Oracle core factor. Ideal for unlimited, unpredictable user counts. - Named User Plus (NUP) Licensing:
Based on the total authorized users/devices, it requires a minimum of 25 users per processor and is ideal for smaller, defined user populations. - Choose based on user count predictability, application type, and hardware configuration.
Oracle Database License Models
Oracle Database licensing is based primarily on two license metrics: Processor Licensing and Named User Plus (NUP) Licensing. Choosing the correct license metric depends on several factors, including server hardware, the number of users or devices accessing the database, and your organization’s specific needs.
This article explains clearly, using examples, how each licensing model works and when it’s most appropriate.
Oracle Processor Licensing
What is Processor Licensing?
Oracle Processor licensing requires licenses based on the number of processor cores within servers on which Oracle Database software runs. Each license covers all users and devices accessing the database software, making it ideal for environments with large or variable user populations.
How to Calculate Processor Licenses
Processor licenses are calculated using this formula:
Processor License Requirement = Total Processor Cores × Oracle Core Factor
Oracle provides a core factor table based on the type of processor installed.
Oracle Core Factor Table (Example)
| Processor Type | Core Factor |
|---|---|
| Intel Xeon | 0.5 |
| AMD EPYC | 0.5 |
| SPARC T-Series | 0.25 |
| IBM POWER | 1.0 |
Example Calculation of Processor Licensing
Scenario:
A company uses Oracle Database Enterprise Edition on a server with the following configuration:
- Server: 2 Intel Xeon processors
- Cores per processor: 12 cores
- Total cores: 2 processors × 12 cores each = 24 cores
- Core factor for Intel Xeon: 0.5
Licenses Required:
24 cores × 0.5 (core factor) = 12 processor licenses
This means the company must purchase 12 processor licenses to be compliant.
When Processor Licensing is Appropriate
Processor licensing fits best when:
- The number of users or devices accessing the database is high or unpredictable.
- Counting individual users or devices is impractical.
- Applications face external or public internet access, where user counts cannot be reliably managed.
Oracle Named User Plus (NUP) Licensing
What is Named User Plus Licensing?
User Plus licensing is based on the number of unique individuals or devices authorized to access Oracle Database software. This metric is not based on concurrency—every authorized user or device must be licensed individually.
Oracle also imposes minimum licensing requirements tied to the processor count of servers running the database.
How to Calculate Named User Plus Licenses
The calculation involves two steps:
- Count all authorized users or devices accessing the database.
- Check Oracle’s minimum requirement based on the number of processor licenses that would apply.
The required Named User Plus licenses must be equal to or greater than Oracle’s minimum licensing requirement.
Oracle Named User Plus Minimum Requirements
For Oracle Database Enterprise Edition, the minimum requirement is:
- 25 Named User Plus licenses per processor license
Even if user counts are below this minimum, organizations must comply with this requirement.
Example Calculation of NUP Licensing
Scenario:
A company deploys Oracle Database Enterprise Edition on a server with this configuration:
- Processors: 2 Intel Xeon processors
- Cores per processor: 8 cores each (16 cores total)
- Core factor: 0.5
Processor licenses required if licensed by processors:
16 cores × 0.5 = 8 processor licenses
Minimum Named User Plus required:
8 processor licenses × 25 NUP per processor = 200 Named User Plus licenses
- If the company has only 120 actual users:
They must still purchase a minimum of 200 NUP licenses. - If the company has 250 actual users:
They must license all 250 actual users because it’s higher than the minimum (200).
When Named User Plus Licensing is Appropriate
Named User Plus licensing fits best when:
- Organizations have a defined, smaller, or stable user base.
- Tracking all authorized users or devices accessing the database is easy and practical.
- Internal database systems with predictable and limited access requirements.
Examples of Choosing Between Processor and NUP Licensing
Example Scenario 1: Processor Licensing (Public Application)
- A large online retailer hosts a public-facing web application powered by Oracle Database.
- User count varies significantly—hundreds to thousands of daily visitors.
- Processor licensing makes sense because user counts are unpredictable, and licensing each visitor individually would be costly and impractical.
Example Scenario 2: NUP Licensing (Internal Use)
- An HR database was used internally with 150 employees authorized to access the system.
- NUP licensing may be more economical if the processor minimum is lower or close to actual users.
- Easier to count users, simplifying license management.
Common Mistakes in Processor and NUP Licensing
Mistakes in Processor Licensing
- Incorrect Core Counting: Miscalculating cores or core factors causes compliance gaps.
- Ignoring Virtualization: Virtual environments often require licensing full clusters, not just individual VMs.
Mistakes in Named User Plus Licensing
- Underestimating User Counts: Forgetting occasional users or indirect access scenarios.
- Ignoring Minimum Requirements: Failing to meet Oracle’s minimum user licensing rules, leading to non-compliance.
Best Practices for Managing Processor and NUP Licensing
Processor Licensing Best Practices
- Regularly verify processor core counts and documents.
- Evaluate processor licenses when the hardware is upgraded or changed.
- Carefully monitor virtualization environments (VMware, Hyper-V).
Named User Plus Licensing Best Practices
- Keep accurate records of all users and devices authorized for database access.
- Regularly reconcile actual user counts against Oracle’s licensing minimums.
- Perform regular internal licensing audits.
Final Recommendations: Choosing the Right Licensing Model
To decide between Processor and Named User Plus licensing metrics, organizations should carefully evaluate their specific use cases and user scenarios:
- Processor Licensing: Best for large, public, external-facing, or highly variable user-base scenarios.
- Named User Plus Licensing: Ideal for internal applications with stable, limited user populations.
Regular license assessments, accurate documentation, and a clear understanding of Oracle licensing rules help ensure compliance, reduce risks, and control licensing costs.
