Oracle Licensing

Oracle Processor License: Explained in Detail

Oracle Processor License:

  • Licensing is based on total processor cores where Oracle software is installed/running.
  • Calculated using cores × Oracle’s core factor (e.g., Intel Xeon: 0.5).
  • Applies to Oracle Database EE, options/packs, and Fusion Middleware.
  • Includes unlimited user/device access.
  • Software installed but unused still requires licensing.
  • Virtualization impacts licensing significantly (often, entire clusters must be licensed).

Oracle Processor License

Oracle Processor License

Oracle Processor Licensing is a common licensing metric for Oracle products, particularly databases and middleware. Understanding this licensing model—including definitions of “installed and/or running,” Oracle’s Core Factor Table, and applicable products—is essential for maintaining compliance and effectively managing costs.

This article provides detailed information about Oracle Processor Licensing, illustrated with clear examples.

Read about Oracle Database License Models.


Oracle Processor License Definition

What is an Oracle Processor License?

An Oracle Processor License allows unlimited user access to Oracle software deployed on a server. Licensing is calculated based on the number of processor cores on servers where Oracle software is installed and/or running.

Meaning of “Installed and/or Running”

Oracle explicitly defines “installed and/or running” as follows:

  • Installed: Oracle software is physically present on the server, regardless of whether it is actively running or in use.
  • Running: Oracle software actively executing or operational on a server.

Licensing Implications

  • Oracle licensing rules require you to license software even if it is installed but not actively used.
  • Servers with standby, disaster recovery (DR), or development environments with installed Oracle software usually require licensing, depending on contractual terms.

Example Scenario: Installed vs. Running

  • Installed but not used: Oracle Database is installed on a server for potential future use but is currently inactive.
    Action required: This scenario requires licensing.
  • Running but limited use: Oracle Middleware actively runs on a server that is used occasionally.
    Action required: Licensing is required since the software is active.

Calculating Processor Licenses (Oracle Core Factor Table)

How Processor Licenses Are Calculated

Oracle Processor Licenses are determined using this formula:

Processor Licenses Required = Total Processor Cores × Core Factor

Oracle assigns a core factor to different processor types, reflecting their relative performance or capability.

Oracle Core Factor Table (Key Examples)

Oracle provides a standardized Core Factor Table indicating the licensing multiplier per processor type. Here’s an example summary:

Processor TypeCore Factor
Intel Xeon0.5
AMD EPYC0.5
Intel Itanium1.0
IBM POWER1.0
SPARC T-Series0.25
SPARC M-Series0.75

Important:
The core factor reduces licensing costs on some processors (e.g., Intel Xeon) by effectively requiring fewer licenses per core, whereas other processors (IBM POWER) require a full license per core.

Practical Example of Processor License Calculation

  • Server: 2 Intel Xeon CPUs
  • Cores per CPU: 12 cores
  • Total cores: 24 cores
  • Oracle Core Factor (Xeon): 0.5

Licenses Required:
24 cores × 0.5 core factor = 12 Processor licenses


Oracle Products Using Processor Licensing (Core Factor)

Oracle’s Processor licensing model applies broadly to specific Oracle software products, most commonly:

Oracle Database Products

  • Oracle Database Enterprise Edition (EE)
  • Oracle Real Application Clusters (RAC)
  • Oracle Partitioning, Advanced Security, Advanced Compression
  • Oracle Multitenant (Pluggable Databases)
  • Oracle Database In-Memory
  • Diagnostics and Tuning Packs

Note:
All Database EE options or management packs installed or running also require Processor licenses matching the underlying database licenses.

Oracle Middleware Products

Middleware products, particularly Fusion Middleware, typically follow Oracle Processor Licensing, including:

  • Oracle WebLogic Suite
  • Oracle SOA Suite
  • Oracle WebCenter
  • Oracle Identity and Access Management (IAM)

These middleware products often run on dedicated servers or clusters, requiring careful core counting and licensing.


Common Licensing Scenarios and Examples

Scenario 1: Database and Middleware Combined

  • Environment: Oracle Database EE running on a server with 16 Intel Xeon cores (core factor 0.5), and Oracle WebLogic Suite running on a separate 8-core AMD EPYC server (core factor 0.5).

Database License Calculation:
16 cores × 0.5 = 8 Processor licenses for Oracle Database EE

WebLogic License Calculation:
8 cores × 0.5 = 4 Processor licenses for WebLogic Suite


Scenario 2: Multiple Products on the Same Server

  • Server Configuration: Single server with 2 Intel Xeon CPUs (24 cores total)
  • Products Installed: Oracle Database EE and Diagnostics Pack

Processor licenses required:

  • Database: 24 cores × 0.5 = 12 Processor licenses
  • Diagnostics Pack: matches Database license quantity = 12 Processor licenses

Oracle requires the quantity of all installed options (e.g., Diagnostics Pack) to match the quantity of the underlying database licenses, even if options are minimally used.

Read about Oracle Named User Plus Licensing.


Best Practices to Manage Processor Licensing

Clearly Track Hardware and Cores

  • Document all server hardware details, processor types, and core counts regularly.
  • Update documentation whenever changes occur.

Monitor Installed vs. Running Status

  • Regularly audit servers to identify and remove unused installations, reducing unnecessary licensing exposure.
  • Document software usage patterns (installed, standby, production).

Verify Core Factor Regularly

  • Oracle updates core factors periodically—always confirm current core factors when calculating licenses.
  • Confirm with Oracle or licensing consultants during hardware upgrades.

Common Mistakes in Oracle Processor Licensing

Mistake 1: Not Licensing “Installed” Oracle Products

  • Many companies mistakenly believe inactive or unused Oracle software doesn’t require licensing.
  • Oracle’s definition explicitly states that installed software, even unused, requires licenses.

Mistake 2: Miscalculating Core Factor

  • Incorrect core factor use (e.g., counting Intel Xeon cores with a 1.0 factor instead of 0.5) significantly increases unnecessary licensing costs.
  • Regular validation of the latest Oracle Core Factor Table prevents this.

Mistake 3: Ignoring Virtualization Implications

  • VMware or similar virtualization can significantly affect processor license requirements (often requiring licensing of all cores in a cluster, not just individual VMs).
  • Understanding virtualization implications can prevent costly non-compliance.

Summary of Oracle Processor Licensing Key Points

  • License Definition: Licenses based on processors where software is “installed and/or running.”
  • Installed vs. Running: Oracle requires licensing for active and inactive software installations.
  • Core Factor Table: Essential for accurately calculating required licenses based on server hardware.
  • Applicable Products: Oracle Database EE, Database options/packs, and Fusion Middleware.
  • Avoid Mistakes: Carefully document server configurations, validate core factors, and regularly audit installed software.

Organizations adopting these practices effectively manage compliance risks, optimize license costs, and simplify Oracle Processor Licensing management.

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Author

  • 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, improving organizational efficiency.

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