Oracle Database Standard Edition 2 Raises Licensing Questions

In August 2015 we published a blog commenting on the impact of the newly available Oracle Database 12c Standard Edition 2 (SE2) for existing Oracle Standard Edition (SE) and Standard Edition 1 (SE1) customers. This is the second edition expanding on what was touched upon in the previous blog.

In August 2015 we published a blog commenting on the impact of the newly available Oracle Database 12c Standard Edition 2 (SE2) for existing Oracle Standard Edition (SE) and Standard Edition 1 (SE1) customers.

The blog remains popular with our readers so we have updated it to include the facts we now know. SE2 is essentially a replacement of SE and SE1. Customers can no longer purchase these two legacy versions. However, the licensing changes included in SE2 will have significant implications for some customers.

The headlines

There are cost implications for customers looking to upgrade from SE or SE1, some of which are extremely significant. Below we cover six different configurations that you may have and the actions you need to take.

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Scenarios requiring no additional cost

Scenarios requiring additional cost

Scenarios requiring hardware changes

Implications of the change – a worked example

For customers that have deployed SE on a VMware cluster containing only hosts with a maximum of four sockets, there are serious ramifications. SE has a minimum of five Named User Plus (NUP) licenses per organization (not 25 per processor as with EE) – and NUP is a server-independent metric. Organizations can use the NUP metric as a method to limit the number of licenses required for the total number of NUPs in soft-partitioned virtualized environments.

Let’s consider a situation where a company has deployed SE on a VMware cluster with 2 ESX-hosts with each host containing four sockets. Each socket is occupied with a dual core Intel CPU. The company has 20 individuals authorized to use the database. This means you would only need 20 NUP licenses for SE (which would cost $7,000 at the current list price of $350 per NUP). But if you upgrade to SE2, that cluster would no longer meet the restrictions, because it has more than two physical sockets per host.

You would need to move to a new cluster with hosts that contain two physical sockets per host, or license EE. If you license EE on NUP, the original cluster would require a minimum of two (hosts) x four CPUs x two cores per CPU x 0.5 core factor x 25 NUP minimum = 200 NUP. This has a list price of $950 per NUP, so this would mean a bill for $190,000. Neither of these options looks very attractive.

Summary

Whatever situation you find yourself in, it’s crucial to have a clear view of your estate to make the correct decisions when performing an upgrade or hardware change. If you’d like to get a clear idea of the licensing situation within your environment, consider using Snow’s Oracle Management Option to gain visibility of your entire IT estate.

[1] A 20% uplift in support fee on average, according to the Oracle Database Standard Edition 2 brief