Licensing Oracle on Amazon EC2 and RDS – now twice as expensive!

03 feb '17 - : Adrian Cristache & Andra Tarata - share: LinkedIN Mail

Cloud computing services are high on most organizations’ agenda, they plan to adopt cloud computing services, or have already started to use at least one of the cloud offerings. Each cloud computing environment comes with its specific restrictions and/or different metrics, but this doesn’t guarantee you’ll never get additional ones over the years.

As of January 23rd, 2017, Oracle changed its licensing policies for the so called “Authorized Cloud Environments”. The new policy says that an Amazon Web Services vCPU is now treated as a full core if hyper-threading is not enabled. This means that a user that deploys two AWS vCPUs needs to pay full freight for both, effectively doubling the number of licenses required to run Oracle inside AWS and also the cost.

This is a strategic move as well, as last year Oracle named AWS public enemy number one in the cloud, claiming its own cloud will be cheaper and faster than Amazon’s offering and will also be sold as on-premises kit tied to a subscription.

This change in licensing policies supports Oracle’s Cloud Strategy by making its own IaaS and PaaS Cloud Services more commercially attractive than other offerings, but not necessarily the cheaper part.

Our latest white paper “Licensing Oracle on Amazon EC2 and RDS – now twice as expensive!” will provide you an overview of what has changed in Oracle’s “Licensing Oracle Software in the Cloud Computing Environment”, how to count the required number of licenses in Amazon EC2, Amazon RDS and Microsoft Azure cloud environments and how to differentiate between virtual cores, vCPUs, physical cores and more. If you still have any questions, feel free to contact us and one of our specialists will help you.

In our next blog post, we will talk about “Licensing Oracle on Amazon EC2 and RDS – Previous VS. Current version”.

Our new white paper format is really mobile friendly, so you can easily read it on your tablet or mobile phone. 

Download Our Free White Paper: 
Licensing Oracle on Amazon EC2, RDS and Microsoft Azure - now twice as expensive!

Oracle Database and hardware infrastructure

The required number of licenses for Oracle’s Database programs are (almost) at all times related to the hardware infrastructure on which the software is installed. Incorrect interpretation or understanding of whether the software is deemed to be installed and how the installed software should be licensed in a certain specific hardware infrastructure is by far the number 1 license compliance issue. 

Oracle Database and hardware infrastructure


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