Oracle Multitenant Licensing

Oracle Multitenant Licensing

• The multitenant option is required only if using four or more PDBs in one CDB.
• Up to 3 PDBs per CDB allowed without extra cost (Oracle DB 19c+).
• Licensed per CDB, not per PDB.
• Matches EE database licensing metric (Processor or Named User Plus).
• Supports up to 252 PDBs per CDB once licensed.

Oracle Multitenant Licensing

Oracle Multitenant simplifies database management by enabling multiple databases to share a single container database (CDB). This option significantly improves resource utilization, agility, and operational efficiency.

However, understanding Oracle’s licensing terms for Multitenant is crucial to ensuring compliance and managing costs effectively.

Read more about Oracle Database Options licensing.

What Is Oracle Multitenant?

Oracle Multitenant is an architectural feature introduced with Oracle Database 12c and significantly enhanced in later versions (18c, 19c, and beyond). It allows multiple Pluggable Databases (PDBs) to operate independently within a single Container Database (CDB).

Each PDB functions as a separate logical database, isolated yet sharing common infrastructure components like memory, background processes, and storage resources.

Core Functionalities of Oracle Multitenant:

• Rapid Provisioning and Cloning: Quickly deploy new databases or clone existing ones for testing or production.
• Efficient Consolidation: Host multiple isolated databases within one physical instance, optimizing hardware utilization.
• Simplified Management: Apply patches, upgrades, or configuration changes at the container level, automatically affecting all PDBs within the container.
• Resource Management: Centralize resource allocation control, simplifying administration, and improving scalability.

Oracle Multitenant Licensing Basics

Oracle Multitenant is optional and requires specific licensing when used beyond certain limitations.

It is licensed separately from the standard Oracle Enterprise Edition (EE) database license but shares the same licensing metrics.

Key Licensing Considerations:

• Free Tier (Limited Use): Oracle Database 19c and later allow up to three PDBs per CDB without requiring a separate Multitenant license. This includes a single-tenant scenario (one PDB) or two to three PDBs.
• Licensed Tier (Extended Use): Any CDB hosting four or more PDBs requires a paid Multitenant license. Once licensed, a single CDB can host up to 252 PDBs.

When is Oracle Multitenant Licensing Required?

Oracle clearly defines when licensing for Multitenant becomes mandatory based on the number of PDBs within a single CDB:

• One PDB (Single-Tenant):
  • No additional license is required.
  • Included by default in the EE database license.
• Up to Three PDBs:
  • Allowed under your existing EE license (for Database 19c onwards).
  • No additional Multitenant license is required.
• Four or More PDBs:
  • Requires the purchase of the Multitenant option.
  • Once licensed, it supports consolidation of up to 252 PDBs per CDB.

Read about Oracle RAC licensing.

Licensing Metrics: Processor vs. Named User Plus (NUP)

Oracle Multitenant licensing follows the licensing metric of your existing Enterprise Edition (EE) database.

There are two primary metrics:

Processor Metric:

• Licensing is based on the number of processor cores used by the physical or virtual machine running the CDB.
• Matches your EE database processor licensing exactly.

Named User Plus (NUP) Metric:

• Licensing is based on the number of authorized users accessing the database.
• Oracle requires a minimum of 25 Named User Plus licenses per processor.
• The NUP count for Multitenant must match the user count licensed for your EE database.

Important: Oracle’s standard licensing minimums always apply. To ensure compliance, observe the NUP minimum of 25 users per processor.

Practical Example: SaaS Provider Scenario

To clearly illustrate Oracle Multitenant licensing in practice, consider the following scenario involving a Software-as-a-Service (SaaS) provider:

Scenario:

A SaaS company manages databases for 10 separate customers. Each customer previously had their dedicated database instance, which consumed significant resources and administrative effort. The company consolidates these into a single Oracle database instance using Multitenant technology.

• Consolidation Setup:
  • One Container Database (CDB)
  • 10 Pluggable Databases (PDBs), each housing a customer’s data separately

Licensing Implications:

• Because they have 10 PDBs, the company surpasses Oracle’s three-PDB threshold.
• A Multitenant license is required.
• If their EE database is licensed by Processor metric (e.g., eight processors), the Multitenant option must be licensed identically—covering the same eight processors.
• The Multitenant license acquired allows the company to host up to 252 PDBs in that same CDB.

Benefits Achieved:

• Improved hardware utilization and simplified administration.
• Single-container upgrades and patching propagate automatically to all customer databases.
• Rapid provisioning of additional customer databases through fast cloning of existing PDBs.

Licensing Misconceptions and Common Mistakes

Organizations sometimes misunderstand Oracle Multitenant licensing, leading to compliance issues.

Some common misconceptions include:

• Misunderstanding “Free” Limits: Unlimited PDBs are allowed without additional licensing. Remember, only up to three PDBs are permitted free.
• Incorrectly Counting Licenses Per PDB: Licensing is based on the number of processors or users for the CDB, not per PDB. Once, licensing covers all PDBs in that CDB.
• Ignoring Minimum Named User Plus Requirements: Even with fewer users, Oracle’s minimum of 25 NUP licenses per processor applies. Failure to meet this requirement can trigger compliance issues.

Licensing Audits and Compliance Risks

Oracle regularly conducts license audits. Incorrect Multitenant licensing can result in significant financial liabilities and compliance issues.

Organizations must maintain clear documentation of their Multitenant deployment and licensing status.

Recommendations to Ensure Compliance:

• Accurate Tracking: Document the number of PDBs within each CDB.
• Regular Reviews: Schedule periodic internal reviews to ensure Multitenant licensing aligns with actual deployments.
• Expert Advice: Consult Oracle licensing specialists when planning major changes or expansions.

Strategic Licensing Decisions for Multitenant Deployments

Choosing the correct licensing model and deploying Oracle Multitenant strategically can significantly affect costs and compliance efforts:

When Processor Licensing Makes Sense:

• When databases support large numbers of users or external customer applications (e.g., SaaS platforms).
• NUP licensing is impractical or expensive when the user count is high or unpredictable.

When Named User Plus Licensing Makes Sense:

• Environments with a limited, stable number of users.
• Internal deployments or specialized systems with restricted user groups.

Benefits of Correct Oracle Multitenant Licensing

Proper licensing and strategic deployment of Oracle Multitenant bring considerable benefits:

• Cost Efficiency: Licensing per CDB (instead of per PDB) greatly reduces licensing overhead.
• Improved Agility: Quickly create, clone, and manage databases without concern for individual database licensing.
• Simplified Compliance: A clear understanding of licensing terms simplifies management and significantly reduces the risk of audit-related liabilities.

Quick Summary of Multitenant Licensing Requirements:

Conclusion

Oracle Multitenant offers powerful features for database consolidation, resource optimization, and simplified administration.

However, correctly managing Oracle licensing is vital for achieving its benefits without incurring unnecessary costs or compliance risks. Organizations can confidently leverage Oracle Multitenant’s advantages by clearly understanding Oracle’s rules, especially the three-PDB licensing threshold.

Organizations deploying Oracle Multitenant are strongly advised to document their deployments, frequently review licensing usage, and seek specialized guidance. Doing so ensures full compliance, predictable costs, and maximized value from Oracle Multitenant.

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