As of 2025, Oracle's licensing landscape has evolved, especially concerning cloud deployments, Java subscriptions, and licensing models
Cloud Licensing: Bring Your Own License (BYOL) vs. License Included
Cloud Licensing: Bring Your Own License (BYOL) vs. License Included
Oracle offers two primary licensing models for cloud environments:
- BYOL (Bring Your Own License): Allows organisations to apply existing Oracle licenses to cloud services, potentially reducing costs.
- License Included: Oracle licenses are bundled into the cloud service costs, simplifying billing but possibly leading to higher expenses over time.
When using BYOL, licensing is typically based on virtual CPUs (vCPUs). For instance, in Oracle Cloud Infrastructure (OCI), one Oracle Processor license is equivalent to two OCPUs
Java Licensing: Transition to Employee-Based Subscriptions
Oracle has shifted Java licensing to an "Employee for Java SE Universal Subscription" model. This change means organisations must license Java based on their total employee headcount, including full-time, part-time, temporary employees, contractors, and consultants.
This model can lead to significant cost increases, especially for organisations with large numbers of employees. Oracle has been actively monitoring Java usage, including tracking downloads and IP addresses, to ensure compliance
Unlimited License Agreements (ULAs): Considerations for 2025
ULAs allow organisations to deploy unlimited instances of specific Oracle products for a set period, typically three to five years. At the end of the ULA term, organisations must either renew or certify their usage.
In 2025, Oracle is aggressively promoting ULA renewals. Organizations should assess their current usage and future needs before renewing, as certification might be more cost-effective if actual usage has declined.
What Is Oracle?
Oracle Corporation (founded in 1977) is a U.S.-based software company that:
Develops and sells databases, cloud infrastructure, and business software
Serves large enterprises, governments, and institutions
Competes with companies like Microsoft, SAP, and AWS
Oracle’s Main Products & Services
1. Oracle Database
Their flagship product
One of the most popular relational databases in the world
Used for storing, processing, and retrieving large volumes of data
Known for scalability, performance, and enterprise-grade features (like clustering, security, analytics)
2. Oracle Cloud Infrastructure (OCI)
Cloud platform that provides computing, storage, networking, and database hosting
Competes with Amazon Web Services (AWS), Microsoft Azure, and Google Cloud
Offers services like Autonomous Database, Kubernetes, and AI
3. Oracle Applications
Business software for managing:
- Finance (Oracle ERP Cloud)
- Human Resources (Oracle HCM Cloud)
- Customer relationships (Oracle CRM)
- Supply Chain (Oracle SCM)
Also includes:
- Oracle E-Business Suite
- PeopleSoft
- JD Edwards
- NetSuite (cloud-based ERP for SMBs, acquired by Oracle)
4. Oracle Java
Oracle owns and maintains the Java programming language, used by millions of developers
Recently moved Java SE to a paid subscription model for businesses
What Makes Oracle Unique?
Pioneered the relational database model (RDBMS) and SQL
Known for high performance and reliability in mission-critical environments
Offers powerful business intelligence, analytics, and automation features
Aggressively markets and audits licensing—known for strict licensing policies
Who Uses Oracle?
- Banks
- Governments
- Telecoms
- Healthcare providers
- Large global enterprises