Oracle License Optimization – 10 tips how to reduce costs

What is Oracle License Optimization?

  • Definition: Strategic management of Oracle software licenses to minimize costs and maximize value.
  • Key Steps:
    • Audit software usage to eliminate unnecessary licenses.
    • Switch to more cost-effective licensing models.
    • Utilize hardware and cloud options that optimize licensing requirements.
    • Consider third-party support alternatives for savings.
    • Regularly review and adjust licensing to match actual usage and needs.

Optimize Your Oracle Licensing: Top 10 Tips for Cost Savings

Optimize Your Oracle Licensing: Top 10 Tips for Cost Savings

Are you tired of sky-high Oracle license fees in your company’s budget? Look no further. We’ve compiled the top 10 Oracle license optimization tips to help you save money and get the most out of your investments.

From hard partitioning and avoiding VMware to leveraging the cloud and exploring third-party support options, these strategies have yielded significant cost savings for Oracle customers.

Don’t let expensive licenses hold your company back any longer – read on to learn how to optimize your Oracle licensing and start saving today.

Oracle License Optimization: A Comprehensive Guide

Oracle License Optimization: A Comprehensive Guide

Oracle license fees can significantly impact your company’s budget, but effective license optimization strategies can help you save money and maximize your investment. This guide explores various methods to optimize your Oracle licenses, ensuring cost efficiency and compliance.

Introduction to Oracle License Optimization

Oracle software is integral to many organizations, but its licensing fees can be hefty. Optimizing your Oracle licenses involves strategic management of your software assets to reduce costs and improve utilization. You can achieve substantial savings and operational efficiency by understanding and implementing the following strategies.

Use Named User-Plus Licenses

For non-production environments, named user-plus licenses can significantly reduce licensing costs. These licenses are based on individual users rather than processors, which can be more economical for environments with fewer users.

Leverage Special Licensing Rights

Oracle offers special licensing rights for test and development environments. By lowering the minimum number of required users per processor from 25 to 10, you can achieve up to 60% cost savings. This approach is particularly beneficial for organizations with extensive test and development setups.

Audit Usage of Oracle EBS and Applications

Review and audit the usage of Oracle EBS (Enterprise Business Suite) and other applications regularly. Ensure that all licensed users actually need access to these applications. This practice can reduce the number of required licenses significantly, often by over 30%.

Switch to Hard Partitioning or Sub-Capacity Licensing

Switch to Hard Partitioning or Sub-Capacity Licensing

Consider switching to a hardware platform that supports hard partitioning or sub-capacity licensing. This strategy allows you to allocate licenses more efficiently and reduce costs. Hard partitioning helps divide a server into smaller units, requiring fewer licenses.

Move to Oracle Cloud

Transitioning to Oracle Cloud can be a cost-effective option. Oracle Cloud allows you to license on a vCPU basis and choose only the products you need. This flexibility can lead to more cost-effective solutions than traditional on-premises setups or using other cloud providers with Bring-Your-Own-License (BYOL) options.

Use Higher Core Factor Hardware

Utilize hardware with higher core factors to reduce the number of required licenses. Oracle’s Processor Core Factor Table helps determine the licenses needed based on the server model and processor type. The higher the core factor, the more licenses are required, so selecting hardware with a favorable core factor can minimize costs.

Avoid Using VMware with Oracle

Using VMware in combination with Oracle can lead to audits and increased licensing fees. Oracle requires licensing all VMware servers in your environment, even if Oracle technology is used on only a few machines. Avoiding VMware can help prevent these issues.

Identify and Eliminate Shelfware

Identify and eliminate shelfware or unused licenses that incur maintenance fees. Oracle’s monitoring tools and third-party tools track software usage and remove no longer needed licenses. If you invest in their cloud offerings, Oracle may allow support to be dropped for certain licenses.

Take Advantage of Cloud Deals

Explore deals and discounts available when moving Oracle technology to the cloud. Oracle often offers incentives for transitioning to its cloud services, including “swapping” on-premises software for cloud services at a favorable rate.

Consider Third-Party Support Options

Third-party support providers, such as Spinnaker Support or Rimini Street, can offer cost-effective alternatives to Oracle’s support. These providers can reduce support fees by at least 50%, though you will lose access to Oracle’s updates and upgrades. Evaluate the trade-offs to determine if third-party support is viable for your organization.


Oracle license optimization is a critical strategy for reducing costs and maximizing the value of your software investments. By implementing these ten strategies, you can achieve significant savings while ensuring compliance and efficient use of your Oracle products. Regularly reviewing your licensing needs and exploring new optimization opportunities will help maintain cost-effectiveness in the long run.


  • 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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