Oracle Licensing Overview


  1. Application
    E- Business Suite, Siebel, PeopleSoft, JD Edward, Hyperion, Primavera, etc.
  2. Middleware
    Oracle Fusion Middleware, the application infrastructure foundation.
  3. Database
    A wide array of Database products.
  4. Operating Systems
    Oracle Solaris, the enterprise UNIX Operating Systems and Oracle Linux.
  5. Virtualization
    Integrated virtualization, from the desktop to the data centre.
  6. Enterprise Management
    Oracle Enterprise Manager.


A.Oracle Technology Programs

Include the following:

  • Oracle Database
  • Oracle Middleware
  • Oracle Software Management Packs
  • And Oracle Developer Tools

B.Oracle Application Programs

Include the following:

  • Oracle EBS
  • Siebel
  • Hyperion
  • OFSA
  • Primavera


A.License Metrics

Oracle Technology Metrics

  1. Named User Plus
    The Named User Plus metric is defined as individuals authorized to use Oracle programs installed on single or multiple servers regardless if they are actively using the programs at any given time. In contrast, human and non-human operated devices are counted towards NUP license.
  2. Processor
    The Processor metric is used to license all processors where Oracle programs are installed and/or running. This metric is commonly used for uncountable or hard-to- manage user/count populations. Most Standard Edition products are licensed by Processor and Enterprise Edition and other technology products may be licensed by cores (# of cores x core factor = # of Processor licenses).
    Oracle Technology Metrics

Oracle Application Metrics

  1. User-Based Metrics
    Application User, Person, Employee, etc.
  2. Usage-Based Metrics
    Purchase Line, Expense, Reports, etc.

B.License Terms

  1. Perpetual
    For perpetual licenses, customers pay a one-time license fee that allows continued use of the software program for as long as they comply with all terms of the license agreement.
  2. Terms
    Licenses are in effect for a specific, limited period, during which the user is allowed to access and use the software. At the end of the term, the user must stop using the software or extend the term or purchase new licenses. Yearly Term Licenses are available from 1 to 5 years.

C.License Types

Outline the restrictions on customer’s usage:

  1. Full-Use License
    The Full-Use license enables the end user to use the software for multiple purposes such as development, testing, production, and failover. It is the least restrictive of the license types.
  2. Application Specific Full Use (ASFU) Licenses
    The ASFU license allows the end user to use the software for a specific application such as Oracle EBS, Sibel, or other.
  3. Embedded Software License (ESL)
    The ESL is the most restrictive license type, it allows the end user to use Oracle Software without doing any customization for example, end users can use oracle database when purchasing Oracle EBS where end user is not allowed to modify or customize.

D.Environment Types

Use of Oracle Software requires Customers to license the respective Oracle programs in:

  1. Production Environment
    Production Environment is used by end users for businesses or other operations. The Oracle programs must be fully licensed wherever they are installed and/or running. If any non-production environment is implemented on the same server and the production environment is fully licensed for all the available processors on the server or cluster, there is no need for any additional licensing for the non-production environment.
  2. Non-Production Environment
    If any non-production environment, it might be a test program or development, is set up on separate servers, the servers running the Oracle products must be fully licensed. At a cost optimization perspective, the lesser strict license metrics like the Processor License are assigned to the production environment, while the stricter one like the Named User Plus License are assigned to the non-production environment.

E.Licensing Conditions

  1. Minimums
    Minimums are used in conjunction with license metrics and refer to the minimum number of licenses a customer is required when licensing Oracle software. When a customer purchases an Oracle License, it should be licensed at the actual usage or minimum, whichever is greater.
    Example: If you’re purchasing Enterprise Edition, you’re required to buy a minimum of 25 Named User Plus licenses, per processor.
  2. Add-on Product
    In most cases, add-on products must match both the number of licenses and metric of the associated product (parent). These products are noted as Options in the Price List.
    Example: Enterprise Options and Management Packs must match the number of licenses of the associated product.
  3. Functional Dependencies
    Functional dependencies may exist among products and must be licensed separately as prerequisite products.
    Example: To license Diagnostics Packs, Database should be licensed separately.
  4. Included Products
    Some specific Oracle licensable products have been included as a part of a more comprehensive Oracle product.
    Example: The Oracle Internet Application Server Enterprise Edition is an included product with the Oracle WebLogic Suite.
  5. Conditions
    Some specific Oracle products need another Oracle licensable product, to be licensed themselves.
    Example: Oracle Database Diagnostic Pack is a preconditioned product for the licensing Oracle Database Tuning Pack.


For more information please visit Oracle Website

Disclaimer: The information is provided for general informational and educational purposes only and is not a substitute for professional advice. The use or reliance of any information contained on this site is solely at your own risk. ​All information has been provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information, as the information provided does not contain software licensing advice.

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