Licensing, Oracle,

How much does an Oracle license cost?

Short Answer

An Oracle license is about $21,000 for every two server cores, or 65% off one (1) Processor of Enterprise Database with Diagnostics and Tuning Packs.

In-Depth Answer

Oracle publishes its list price US Oracle Technology Commercial Price List (PDF) in which the unit list price for a Processor of Enterprise Database is $47,500. No one should pay list price, though; more on that later. Furthermore, it is rare that Enterprise Database is used without the extra-cost tools to troubleshoot it, i.e., Diagnostics and Tuning Packs, which are $7,500 and $5,000 per Processor, respectively.

The Processor metric is derived by multiplying totals cores by a core factor, per the public-facing Oracle Processor Core Factor Table. Point 5 (0.5) is the most common core factor given x86 is the most common chip in enterprise computing.

For example, if your server has a total of 24 AMD cores, then multiply by 0.5, by $60,000, by 65% off, to get a $252,000 net license fee. Annual support is calculated as 22% of net license. In this case, $55,440, which grows by 4% per year due to Oracle’s inflationary adjustment.

Named User Plus (NUP)–the other most common metric–is derived by first calculating the Processors and then multiplying by the per-Processor minimum of 25. The example above calculated for NUPs is 24 times 0.5 times 25, totaling 300. Enterprise Database, Diagnostics and Tuning Packs, are $950, $150, and $100 per NUP, respectively. Apply the same 65% discount and the net license is $126,000 with annual support calculated by the same 22% of net, or $27,720.

Why assume 65% off?

Oracle’s list pricing has no meaningful connection to its technological benefit. Rather, Oracle discounts deeply off of high list pricing to ensure its repricing policy remains effective at locking customers into paying annual support for decades.

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