Oracle Licensing in the Cloud. A Version Version 1 All Rights Reserved

Contents Cloud types Oracle policies revisited Oracle s Cloud policy AWS/Azure Oracle Cloud Non-approved providers Cloud Behaviours SAM process considerations Conclusions 2

What is the Cloud? For you: More flexibility / elasticity Rapid / standard deployment Security / availability concern Less capex / more opex?? Licensing challenge? For Cloud vendors More customers/less kit More $$$ More lock-in Software currency Contractual challenge 3

Cloud Offerings; infrastructure visibility SaaS subscription Physical 4

Cloud Offerings; infrastructure visibility SaaS DB Schema subscription Physical 5

Cloud Offerings; infrastructure visibility PaaS DB SaaS Schema BYOL / License subscription Included (Oracle) Physical 6

Cloud Offerings; infrastructure visibility DBaaS PaaS DB SaaS Schema BYOL / License Included (Oracle) RDS, Oracle subscription subscription or BYOL Physical 7

Cloud Offerings; infrastructure visibility DBaaS PaaS DB SaaS IaaS Schema BYOL / License Included (Oracle) RDS, Oracle subscription BYOL subscription or BYOL Physical 8

Software as a Service Less customisation, less control Licensing of infrastructure is not a consideration Purchased on user basis (e.g. Hosted Named User) + term Rights to access service; ownership? Ensure you(?) have awareness and control of user management Need to consider adoption of service and ramping up of users vs timing of purchase 10

Subscription / License Included Models Utility-based; true cloud model Oracle DBaaS, Oracle DB Schema, Amazon RDS and Azure Amazon RDS available for DBSE1 and DBSE2 only Azure version includes DBEE + most extra cost options ( Popular and Advanced ) Oracle DBaaS no BYOL Offers DBSE, DBEE + extra cost options ( High and Extreme Performance) Available metered (pay as you go) or unmetered (pay regardless) Expensive TCO 11

BYOL: Polices for Oracle Licensing All environments including development / test need to be licensed OTN Development license risk VMware hard to license for Oracle? Disaster Recovery needs to be fully licensed. The 10 day rule does NOT cover DR! Named User Plus metric requires careful management Accurate measurement of product / option usage Oracle standard Processor definition (also applies to NUP): Processor: shall be defined as all processors where the Oracle programs are installed and/or running. Physical resources; no consideration of virtual cores or virtualisation etc. 12

BYOL: Oracle s Cloud Policy Oracle policy document for cloud licensing Intention during audits Document shows authorised cloud environments: AWS Azure No Oracle?! This document shows the right to count vcpu / cores of processors in authorised cloud environments Some Oracle products excluded from this policy 13

BYOL: Oracle s Cloud Policy (2) Different editions can be used All based on VM processor specification DBSE1 and DBSE2 DBSE1/2 limited to 8 vcpu (2 sockets/processors) DBSE limited to 16 vcpu (4 sockets/processors) Named User Plus can be used subject to usual minimums Multi-Availability Zones; subject to usual rules Servers, cores, used products 14

Policy changed Q1 2017 Oracle policy states BYOL: AWS / Azure Two vcpu (=one physical core) =one Processor Assuming HT Core factor Suppose we want to use a T2 General Purpose environment, e.g. t2.large --- this has 2 vcpu Each two vcpu allocated requires one Processor license AWS: 2 vcpu = 1 physical core = 1 Processor license On-premises: 2 vcpu = 1 physical core, core factor 0.5 = 0.5 Processor Cost of licensing Oracle in AWS/Azure now doubled 15

BYOL: Oracle s Cloud Policy ULA Specific ULA exclusion ULA can be used to cover software deployed in authorised cloud environments but cannot be included in the certification Immediate non-compliance?! Compliant Compliant Non-compliant (-60) Cloud Usage 60 (variable) 60 (fixed) Non-Cloud Usage 40 (variable) 40 (fixed) 40 (fixed) Unlimited Deployment Period Certification Period Fixed Entitlement 16

Non-contractual document Cloud Policy Document This document is for educational purposes only It may not be incorporated into any contract and does not constitute a contract or a commitment to any specific terms (Policy) Disregard? For the purposes of counting the number of processors which require licensing, a multicore chip with "n" processor cores shall be counted as "n" processors. (Contractual) Other standard policies not considered; clustering, virtualisation Consider timing Rights to change compliance position Core 1 Core 2 Core 3 Core 4 Core 5 Core 6 Core 7 Core 8 Core 9 Core 10 M3.2xlarge instance Instance has 8 vcpu (=4 physical cores) Intel E5-2670 v2; 10 cores

BYOL: Oracle Cloud Buy hosting agreement + (buy or supply) normal software license Buy service by OCPU OCPU includes 1 Intel core with 2 threads and 7.5 Gigabytes of memory OCPU = physical core License software on this basis as well (apply core factor) Same as on-premises Service descriptions 18

Oracle Ordering Document and Schedule C Specific addition to Oracle Master Agreement Includes terms relevant to cloud contracts Of interest: Auto Renewal of service Audit of Service (not programs); no notification period Oracle may use scripts for managing Oracle s product and service portfolio Note that some products have exceptions, e.g. Database Backup Service includes components of Advanced Compression and Advanced Security 19

Non-Approved Providers / Private Cloud Treat as though on premise Dedicated Flexibility Visibility Count and control of infrastructure Responsibility of customer What onus does the vendor have, how accountable are they? 20

Case Study 1 Oracle Fusion, DB and middleware Assurances of hard partitioning and licensing being a non-issue Vendor was providing database in IaaS on Oracle VM No visibility of CPU pinning details WebLogic Suite + SOA + WebCenter Portal + OBI Foundation Suite List price of 330k per Processor Deployed on VMware Very hard to get deployment information from vendor Vendor s licensing expert 21

Summary Comparison Between Environments On Premise AWS/Azure Oracle BYOL Other Cloud 4 Proc DBEE 8 Proc DBEE m4. 4xlarge 4 Proc DBEE 16 OCPU Service? 8 physical cores 16 vcpu 8 physical cores 8 OCPU / 16 vcpu 8 physical cores? 16 vcpu 8 physical cores 22

Cloud Basic Principles License costs far outstrip the cost of the virtual machines Don t forget the familiar rules HA clustering Disaster Recovery Processor / Named User Plus metrics Determination of product deployment / usage Not all cloud environments are created equally Scale up / down requires very careful license management 23

Cloud Behaviours Ease of deployment and provisioning More flexibility, more risk Many offerings offer one click DB/host creation and cloning Availability of images Clarity between offering types Ensure controls and privileges are in place Like other virtualisation technologies but easier to do your own thing No concern for available kit / data centre space 24

Example: RDS Instance Creation 25

Example: RDS Instance Creation 26

Example: RDS Instance Creation 27

Case Study 2 Customer with large AWS deployment Developers had ability to create their own test environments Each developer with multiple test environments Each test environment was a full sized copy of production Fully loaded 20 developers, 5 test environments, 20 cores each 2,000 Processors of DBEE, Partitioning, AC 28

CLOUD BUILD-AHEAD ENVIRONMENT ON-PREMISE Migrating to the Cloud 4 Proc 100 NUP Decomm. 100 NUP Continued service during build-ahead Create new compute shape Install Oracle binaries Migrate data/test Cut-over Pool of perpetual or term NUP licenses 100 NUP 100 NUP 4 Proc 29

LICENSE BYOL and Flexing in the Cloud Elastic environment static license 140 120 100 80 60 40 20 0 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 MONTH Usage License 30

Inclusion in a SAM Process Same challenges as existing Oracle SAM plus additional considerations Dashboard access Verification of processor allocation/ocpu Scaling / flexing of services Understanding the different models available! Ensuring clarity between your organisation and cloud service provider regarding environment / configuration / technology Oracle SAM on steroids Tools to interrogate / discover deployments in the cloud limited AWS T&Cs 31

Case Study 3 Customer with large AWS deployment Massive flexing of environments Large pool of license Regular reporting of all assets Compliance position known, assets recycled 10s of millions saved 32

Summary Cloud Offerings; infrastructure visibility still complex and vary wildly between suppliers Oracle licensing falls into two camps License included: simple but expensive relative to BYOL BYOL: not ideal, nothing changes except increased complexity AWS / Azure rules now punitive OCPU = physical core Apply core factor? Very easy to end up in significant situations For SAM, increased scrutiny on management, controls and keeping up 33