Licensing Oracle in the Cloud: The Rules for AWS, Azure, Google Cloud and OCI

Oracle Database runs on every major cloud, and you can take the licences you already own to most of them. What changes from one cloud to the next is how Oracle counts those licences. The same database can need twice as many licences on AWS as it did in your data centre, the same number on Oracle’s own cloud, and an open-ended number on a cloud Oracle has not authorised. Most of the expensive surprises we see in cloud migrations come from applying the on-premises arithmetic to the cloud.

This guide sets out how Oracle Database is licensed on each kind of cloud, as the rules stand in Oracle’s policy “Licensing Oracle Software in the Cloud Computing Environment” (in effect 4 September 2026).

In short

• Authorized clouds. AWS, Microsoft Azure and Google Cloud are Oracle’s Authorized Cloud Environments. You may bring your own licences, and Oracle counts vCPUs: two vCPUs are one processor licence when multi-threading is enabled. The core factor table does not apply.
• Oracle’s own cloud. On Oracle Cloud Infrastructure, one processor licence covers two OCPUs (an OCPU is one physical core with two threads on Intel and AMD), so the same workload needs half the licences it needs on AWS, Azure or Google Cloud.
• Standard Edition 2 counts one socket per four vCPUs on the authorized clouds and may only run on instances of up to eight vCPUs.
• Any other cloud falls outside the policy. Oracle’s standard rules apply, which count the physical cores of servers you cannot see or limit.
• Database@AWS, @Azure and @Google Cloud are Oracle’s own services inside those clouds, licensed on Oracle Cloud Infrastructure’s terms, not by the vCPU rule.

The two ways to license Oracle Database

Every option below uses one of Oracle’s two metrics. Processor licences count the processors where the database is installed or running, with “processor” defined differently on premises and in the cloud. Named User Plus licences count the people and devices that use the database, with a minimum per processor: 25 per processor for Enterprise Edition, 10 per server for Standard Edition 2 on premises. In the cloud the minimums are worked out from the cloud processor count, so a large instance carries a large minimum however few people use it.

On premises, a processor is the physical cores multiplied by the factor in Oracle’s core factor table: 0.5 for Intel Xeon and AMD EPYC. That table is where most cloud miscalculations start, because it stops applying the moment you move to a public cloud.

Amazon Web Services: EC2 and RDS

On Amazon EC2 you bring your own licences. Oracle counts the maximum vCPUs of the instance type: two vCPUs are one processor licence when multi-threading is enabled, one vCPU is one licence when it is not. An EC2 instance with 16 vCPUs therefore needs 8 Enterprise Edition processor licences. The same 8 physical Xeon cores in your own data centre needed 4.

Amazon RDS for Oracle offers two models. Enterprise Edition and Standard Edition 2 can run with your own licences, counted the same way as EC2. Standard Edition 2 is also sold licence-included, with Oracle’s licence in the hourly price. Standard Edition One is no longer offered: Oracle retired it in favour of Standard Edition 2. RDS does not run Real Application Clusters.

Microsoft Azure

Azure follows the same rule as AWS: two vCPUs per processor licence with multi-threading, and no core factor. Azure’s constrained-vCPU sizes, which keep the memory of a large machine with fewer active vCPUs, are often recommended for licensed databases. Oracle’s policy counts the maximum vCPUs of an instance type, so agree how Oracle will count your chosen size before you rely on it. Our guide to licensing Oracle Database on Microsoft Azure works through the numbers, including Standard Edition 2.

Google Cloud

Google Cloud is the third Authorized Cloud Environment, with the same vCPU rule as AWS and Azure for Compute Engine virtual machines. Google also offers Bare Metal Solution, which gives you dedicated physical servers in Google’s data centres. Because those are your own servers rather than virtual machines, their physical cores are counted the way they are on premises, with the core factor.

Standard Edition 2 on the authorized clouds

For products with “Standard Edition” in the name, Oracle counts sockets by instance size. An instance with four or fewer vCPUs is one socket. Above that, every four vCPUs, rounded up, is one socket. Standard Edition 2 may only be licensed on instances of up to eight vCPUs, so an 8-vCPU instance needs two Standard Edition 2 processor licences, and a 16-vCPU instance cannot run Standard Edition 2 under this policy at all.

Oracle Cloud Infrastructure

On Oracle Cloud Infrastructure, compute is sold in OCPUs. On Intel and AMD shapes, one OCPU is one physical core with two threads, and Oracle maps one processor licence to two OCPUs when you bring your own. The 16-vCPU workload that needs 8 licences on AWS runs on 8 OCPUs on OCI and needs 4 licences, the same as on your own servers. You can also buy database services licence-included, paid from Oracle’s Universal Credits.

Oracle’s managed database services, including Autonomous Database and Exadata Database Service, are now priced in ECPUs, Oracle’s newer compute unit. Both offer licence-included and bring-your-own-licence prices, and Oracle publishes how many ECPUs each processor licence covers. Check that conversion against what you own before choosing.

Oracle Database@AWS, @Azure and @Google Cloud

These run Oracle’s Exadata and Autonomous Database services inside the other clouds’ data centres, operated by Oracle and bought through each cloud’s marketplace. They are licensed on Oracle Cloud Infrastructure’s terms: licence-included, or your own licences on Oracle’s cloud metrics. The vCPU rule for AWS, Azure and Google Cloud virtual machines does not apply to them. Compare both models on your own workload: the cheaper one depends on database size, the options you use and whether you have licences to bring.

Exadata Cloud@Customer

Exadata Cloud@Customer puts Oracle’s Exadata hardware in your data centre, run by Oracle as a cloud service. You pay a subscription for the infrastructure and, for the database, either licence-included prices or your own licences on Oracle’s cloud metrics. It suits organisations that need data to stay on their premises but want Oracle’s cloud pricing.

Clouds Oracle has not authorised

The cloud policy covers only the environments it names. On any other public cloud, Oracle’s standard licensing rules apply: a processor is a physical core multiplied by the core factor, counted on every server where the database is installed or running. In a public cloud you cannot see those servers or stop your instance moving between them, so the requirement cannot be pinned down. Before running Oracle on a cloud outside the policy, get Oracle’s position in writing for your contract.

Private clouds and VMware

In your own private cloud, the on-premises rules apply. The question is which cores count. Oracle accepts a short list of hard partitioning technologies, such as IBM LPAR and Oracle Linux KVM with pinned CPUs, where only the assigned cores are licensed. For VMware and other soft partitioning, Oracle’s Partitioning Policy asks for every core of every host the virtual machine could run on. That policy is not part of your contract, but it is where an audit report starts, so design and document your clusters to contain Oracle workloads.

Licences from a ULA

Licences under an Unlimited License Agreement may be used on the authorized clouds, but deployments there cannot be counted when you certify at the end of the ULA. If you are in a ULA and migrating, every database you move before certification is one you will not own licences for afterwards. Plan the migration and the ULA certification together.

Questions we are asked about Oracle licensing in the cloud

Can I use my existing Oracle licences in the cloud?

Yes, on AWS, Azure and Google Cloud, which Oracle calls Authorized Cloud Environments, and on Oracle Cloud Infrastructure. On other public clouds the cloud policy does not apply.

Does the Oracle core factor apply on AWS, Azure or Google Cloud?

No. On the authorized clouds Oracle counts vCPUs: two vCPUs are one processor licence when multi-threading is enabled. The core factor still applies on premises and on dedicated bare-metal servers.

Why do I need more Oracle licences on AWS than on premises?

On premises, 8 Intel cores count as 8 × 0.5 = 4 processor licences. On AWS the same 8 cores appear as 16 vCPUs, which count as 8 licences. The cloud count is double for Intel and AMD.

Is Oracle cheaper to license on Oracle Cloud Infrastructure?

For bring-your-own-licence workloads, usually yes: one processor licence covers two OCPUs, and an OCPU is one core with two threads, so the count is half the AWS, Azure or Google Cloud count for the same compute.

Can I run Oracle Standard Edition 2 in the cloud?

Yes, on authorized cloud instances of up to eight vCPUs, counting one socket per four vCPUs. On Amazon RDS it is also available licence-included.

A migration is the best time to get Oracle licensing right, and the worst time to find out it is wrong. Before you move, book an hour with our Advisor on Call, or talk to us about a review of what you plan to run and what you own.