A Comprehensive Guide to the Oracle Technology Price List

As you enjoy the capabilities of Oracle database technology to manage your data, understanding the Oracle license process helps you avoid non-compliance issues. To navigate the complexities of the licensing process, you need the Oracle global price list to break down the costs for Oracle’s technology products and services.

The Oracle license price list outlines the various licensing models, including Named User Plus (NUP) and Processor-based licensing, as well as costs and minimum requirements. By referencing this comprehensive post, you can estimate your licensing expenses, optimize costs, and make informed decisions when investing in Oracle technologies.

The Oracle global price list is regularly updated to reflect the latest product introductions, pricing changes, and promotional offers. Contact TekStream to stay updated on the newest price offerings and managed services for Oracle to help you maintain, secure, and optimize Oracle implementations.

Understanding Oracle’s Pricing Structure

Oracle provides two primary licensing models for its software: Named User Plus (NUP) and Processor Licensing. Each model serves different environments and user scenarios, impacting cost and compliance. Understanding Oracle licensing helps to ensure legal compliance, manage costs, and optimize the use of Oracle software within an organization.

Oracle’s Named User Plus (NUP) licensing model is ideal for organizations with countable users that must license software based on the number of individual (human) users or devices accessing the Oracle database.

Processor Licensing is ideal for organizations with many users. It is based on the number of processors used to run the Oracle software, calculated by multiplying the number of processors by the cost per processor license.

Knowing the difference between NUP and Processor Licensing helps you decide which model best meets your operational needs. Misunderstanding these terms can lead to under-licensing, which results in costly penalties during audits. It could also lead to over-licensing, which means you pay for more licenses than needed.

Within these models, you can choose between perpetual and subscription licenses. With a perpetual license, you pay a one-time fee to use the Oracle software indefinitely, with ongoing support and maintenance fees to support the software. Subscription licenses require you to pay usage fees monthly or yearly.

Key Factors That Affect Pricing

How much does Oracle cost, and what factors affect pricing?

  • License Type: Pricing is affected by the type of Oracle’s licensing models and the license you have opted for (perpetual or subscription). Perpetual licenses require a one-time fee for indefinite use, while subscriptions involve recurring payments with access to updates.
  • Product Editions: The differences between Standard Edition and Enterprise Edition also impact pricing. The SE is more cost-effective because it’s licensed per server, with a maximum of 4 processor cores. Enterprise Edition is licensed per processor core, with no core limit, making it suited to large-scale deployments with high processor core counts.
  • Support Costs: Oracle’s support fees are typically around 22% of the yearly license cost. These fees provide access to software updates, bug fixes, security patches, and technical support from Oracle.
  • Discounts: Oracle licensing discounts apply under various circumstances and are influenced by contract value, where larger purchases lead to more substantial discounts. Additionally, long-term contracts often yield discounts, as Oracle may provide better pricing in exchange for a commitment to a multi-year agreement.

Navigating the Oracle Technology Price List

Navigating the Oracle Technology Price List can be challenging without clarity on its structure and components. Explore the product categories below, including a wide range of individual products, services, licensing models, and detailed Oracle database costs.

Oracle Database Pricing

● Product Editions: Standard Edition 2 (SE2) is priced at $17,500(1) per processor socket and is ideal for smaller businesses with lower budgets and less complex needs. Enterprise Edition (EE) is priced at $47,500 per processor and is designed for larger organizations with complex requirements and high scalability needs.

● Licensing Metrics: Processor-based licensing for Oracle is calculated based on the number of processor cores.

○ To determine the required licenses, you multiply the total number of processor cores by Oracle’s assigned core licensing factor, which varies depending on the hardware type. For example, if a server has 16 cores and the core factor is 0.5, you’ll need eight processor licenses.

○ On the other hand, to calculate NUP licensing, you count every full-time or part-time user and device that accesses the Oracle database, regularly updating these counts to reflect any changes in user access.

● Simplified Pricing Guide: Here are some example calculations for different Oracle Database editions using the simplified pricing guide:

1. Oracle Database Standard Edition 2 – Processor-based licensing:

If a server has 8 processor cores:

a. Licensing cost = 8 cores x $17,500 per core = $140,000

b. NUP licensing: 50 named users

c. Licensing cost = 50 users x $600 per user = $30,000

2. Oracle Database Enterprise Edition – Processor-based licensing:

The server has 16 processor cores:

a. Licensing cost = 16 cores x $47,500 per core = $760,000

b. NUP licensing: 100 named users

c. Licensing cost = 100 users x $5,000 per user = $500,000

● Common Pitfalls: Oracle database license costs are complex, and it’s easy to fall into common traps. Over-licensing occurs when you purchase more licenses than necessary, leading to wasted resources. Conversely, you can overlook minimum requirements, exposing you to compliance risks and audits. To avoid over-licensing or under-licensing, ensure you understand Oracle’s models, monitor usage, and maintain detailed documentation.

Oracle Middleware Pricing

Oracle Middleware pricing includes products such as WebLogic Server and SOA Suite, each with distinct licensing structures. There are multiple editions for WebLogic Server: the Standard Edition costs $10,000 per processor, while the Enterprise Edition costs $25,000 per processor.

The most comprehensive option is the WebLogic Suite, priced at $45,000 per processor. Each of these editions can also be licensed under NUP metrics, which require a minimum number of users per processor.

The SOA Suite is another component of Oracle’s middleware offerings, designed for integrating and managing business processes. It is priced at $75,000 per processor for non-Oracle middleware environments. Additional options within the SOA Suite, such as the Integration Continuous Availability and Real-Time Integration Business Insight, are each priced at $25,000 per processor.

Licensing Models

Oracle Middleware licensing operates under a complex framework that includes various products and licensing models. It focuses on processor-based and NUP metrics.

This processor-based licensing model requires customers to license all the processor cores. Pricing for these processor-based licenses is usually tiered, with higher core counts having a lower per-core cost.

Some Oracle Middleware products, such as WebLogic Server, also offer an alternative NUP licensing model. Under this model, customers pay a per-user fee for each individual authorized to access the software, subject to a minimum of 25 named users.

For cloud-based deployments of Oracle Middleware, the licensing model is based on a subscription-based pricing structure that considers the number of users, compute resources, and storage consumption.

Cost Calculation

Here are step-by-step pricing examples for common Oracle Middleware products, specifically focusing on WebLogic Server, SOA Suite, and other key offerings:

Example 1: WebLogic Server Pricing

  1. Choose the Edition:
    1. Standard Edition: $10,000 per processor
    2. Enterprise Edition: $25,000 per processor
    3. WebLogic Suite: $45,000 per processor
  2. Calculate Processor Licenses: If you have a server with 4 processors and choose the Enterprise Edition:
    1. Total cost = 4 processors x $25,000 = $100,000
  3. Named User Plus (NUP) Option: If opting for NUP, with a minimum of 10 users per processor:
    1. Standard Edition: $200 per user
    2. Enterprise Edition: $500 per user
    3. WebLogic Suite: $900 per user
    4. For 40 users on the Enterprise Edition: Total cost = 40 users x $500 = $20,000

Example 2: SOA Suite Pricing

  1. Select the Product: SOA Suite for Non-Oracle Middleware: $75,000 per processor
  2. Determine Processor Licenses: If your setup has 2 processors:
    1. Total cost = 2 processors x $75,000 = $150,000
  3. Licensing Requirements: Note that you must also license the WebLogic Suite to use SOA Suite, which adds to the total cost:
    1. WebLogic Suite (2 processors): 2 x $45,000 = $90,000
    2. Combined total = $150,000 (SOA Suite) + $90,000 (WebLogic Suite) = $240,000

Example 3: Additional Middleware Products

  1. Select Other Middleware Options:
    1. BPEL Process Manager: $60,000 per processor
    2. WebLogic Coherence Grid Edition: $25,000 per processor
  2. Calculate Costs:
    1. For one processor of BPEL Process Manager:
      1. Total cost = 1 x $60,000 = $60,000
    2. For three processors of WebLogic Coherence:
      1. Total cost = 3 x $25,000 = $75,000

These examples illustrate how to navigate Oracle’s Middleware pricing based on selected products and licensing models.

Here are tips to help you maximize value and avoid common mistakes in Oracle middleware pricing:

  1. Understand current usage: Analyze how Middleware solutions identify inefficiencies by assessing your organization’s current and future Middleware needs.
  2. Consolidate licenses: Leverage Oracle’s license mobility and virtualization to reduce the number of physical processors that need to be licensed.
  3. Stay informed: Regularly review the Oracle Technology Price List for updates on licensing costs and requirements.
  4. Maintain documentation: Keep detailed records of all licenses and their usage for compliance and informed decision-making.
  5. Engage with Oracle sales and licensing experts: Work with your Oracle sales representatives and licensing experts to understand the available pricing models and options. Let them help you design your organization’s most cost-effective Middleware licensing strategy.

Oracle Applications Pricing

Oracle Applications pricing covers a variety of key offerings, including:

  • Oracle E-Business Suite
  • PeopleSoft
  • JD Edwards
  • Fusion Applications
  • Cloud Applications

The pricing models vary across these products. Some utilize user-based licensing, where customers purchase licenses for each user. Others follow a module-based approach, where the specific functional areas or licensed components determine the pricing.

Additionally, some Oracle Applications use a processor-based model, where the licensing is based on the number of processor cores on the server hosting the software.

User-based licensing, common in Oracle E-Business Suite, PeopleSoft, and JD Edwards, requires purchasing a license for each user who accesses the application. This model works well for organizations with a defined and relatively stable user base.

In contrast, module-based pricing, found in offerings like Oracle Fusion Applications and Cloud Applications, is based on the specific functional areas or components used, allowing for more flexibility in scaling usage.

Here are some simple pricing scenarios for popular Oracle Applications packages:

  1. Oracle E-Business Suite: An organization with 500 full-use employees and 200 self-service users must purchase 700 user licenses. The cost per full-use license might be $10,000, while the self-service license could be $2,000, resulting in a total cost of $7 million.
  2. PeopleSoft: A university with 2,000 faculty and staff users, plus 10,000 student self-service users, would require 12,000 user licenses. Assuming a full-use Oracle license cost of $5,000 and a self-service license of $1,000, the total cost would be $55 million.
  3. JD Edwards EnterpriseOne: A manufacturing company with 300 full-use licenses and 100 limited-use licenses might pay $8,000 per full-use license and $3,000 per limited-use license, totaling $2.8 million.
  4. Advanced Pricing Module: Price: A company with two processors, assuming approximately $10,000 per processor, would calculate the total cost as: Total Cost = 2 processors x $10,000 = $20,000. Annual support costs would be  = $20,000 x 0.22 = $4,400

Here are cost-saving tips to optimize application licensing for Oracle applications pricing:

  1. Understand current usage: Regularly analyze Oracle applications utilization within your organization to identify areas for consolidation.
  2. Consolidate licenses: Combine multiple licenses into fewer, more cost-effective ones to reduce overall licensing costs.
  3. Leverage license mobility: Use Oracle’s license mobility to optimize the use of existing licenses across different environments.
  4. Utilize virtualization: Implement virtualization to minimize the number of physical servers or processors that require licensing, which can lead to significant savings.
  5. Conduct regular audits: Perform audits of Oracle software usage to ensure compliance and identify unused or underused licenses that you can eliminate.

Oracle Cloud Services Pricing

The OCI price list is divided into four main models: Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and Data as a Service (DaaS), each with distinct subscription options.

  • SaaS offers applications hosted in the cloud, billed on a subscription basis per user or usage, allowing you to pay only for what you need.
  • PaaS provides a platform for developing, testing, and deploying applications. It often utilizes a Universal Credits model that allows customers to purchase credits they can apply across various services.
  • IaaS delivers virtualized computing resources over the internet. Pricing is based on the actual usage of resources such as computing, storage, and networking, often charged hourly or monthly.
  • DaaS allows organizations to access and manage data without the complexities of infrastructure. It is usually offered through subscription fees based on data volume or access frequency.

Here are some pricing samples for various Oracle Cloud services:

  1. Oracle Fusion ERP Cloud (SaaS): Pricing: $175 per User per Month for Enterprise Resource Planning (ERP) Cloud.
    1. Example: If your organization has 50 users who need access to the Oracle Fusion ERP Cloud, the monthly cost would be 50 Users x $175 per User = $8,750 per month.
  2. Oracle Autonomous Database (PaaS): Pricing: $0.306 per OCPU Hour (On-Demand)
    1. Example: If you need an Autonomous Database with 4 OCPUs (Oracle Cloud Platform Units) running for 100 hours per month, the monthly cost would be 4 OCPUs x $0.306 per OCPUHour x 100 hours = $122.40 per month.
  3. Oracle Cloud Infrastructure (IaaS): Pricing Model: Based on actual usage (hourly or monthly),
    1. Example: A company uses five instances at $0.10 per hour. The monthly cost calculation will be Daily Cost: 5 instances ×0.10 × 24 = 12, and the monthly cost will be 12 × 30= $360
  4. Oracle Data as a Service (DaaS): Pricing Model: Based on data volume.
    1. Example: Assume a company needs access to 1TB of data at $500 per month. The annual cost will be 500×12=$6,000

To avoid surprises in cloud pricing, begin by familiarizing yourself with the specific pricing structures of your cloud services. Regularly review your cloud bills to identify the source of charges and assess usage patterns. More importantly, consult with Oracle experts or partners to help you understand the pricing implications and find the most suitable cloud solutions for your business.

Oracle Engineered Systems Pricing

Oracle’s Engineered Systems, such as Exadata and Oracle Database Appliance, are priced based on hardware and software components. The pricing usually includes the cost of the physical hardware, including servers, storage, networking equipment, and the software licenses required to operate the system.

The pricing structure for Oracle’s Engineered Systems, such as Exadata and Oracle Database Appliance, consists of the following hardware costs:

  • Server nodes (CPU, memory, storage)
  • Storage enclosures and disks
  • Network switches and interconnects
  • Rack and cabling

Software costs include:

  • Oracle Database Enterprise Edition licenses
  • Oracle Real Application Clusters (RAC) licenses
  • Oracle Partitioning and other database options
  • Oracle Linux or Oracle Solaris operating system
  • Oracle Enterprise Manager for system management

Oracle offers simplified pricing for its Engineered Systems, designed to reduce IT complexity and total cost of ownership.

Exadata Database Machine:

  • Quarter Rack configuration is priced at approximately $465,774(1)
  • Includes built-in tools and APIs for simplified management and deployment

Oracle Database Appliance:

  • Model X10-S is priced at $21,579
  • Model X10-HA is priced at $97,723

Oracle SuperCluster:

  • T5-8 Full Rack configuration is priced at about $950,000

When considering the total cost of ownership for Oracle Engineered Systems, one common mistake is overlooking hidden costs, such as installation, configuration, and ongoing maintenance fees, which impact the overall budget. Additionally, organizations often fail to account for support and upgrade costs, which are necessary for maintaining optimal performance and security but can accumulate over time.

Another pitfall is failing to evaluate the system’s entire lifecycle, including potential costs related to decommissioning or transitioning to new technologies. Lastly, neglecting to negotiate contracts effectively can result in paying more than necessary, as many organizations do not fully understand the pricing structures or available discounts.

Oracle Support Pricing

Oracle offers different support tiers to cater to the varied needs of its customers:

  1. Basic Support: This entry-level support tier provides access to Oracle’s online resources, software updates, and limited technical support.
  2. Premier Support: The standard support tier includes full access to Oracle’s technical support team, software updates, and security patches. Pricing is typically 22% of the net license fees paid annually.
  3. Extended Support: An optional support tier for older product versions that provide additional support beyond the Premier Support duration. Pricing is higher, often 20% or more of the net license fees.

When choosing the right support level for Oracle products, assess your organization’s needs and operational requirements. Start by evaluating the complexity and criticality of your Oracle environment; for mission-critical applications, Premier Support is ideal due to its comprehensive maintenance, 24/7 technical assistance, and access to updates. If your systems are less critical or you have in-house expertise, consider Extended Support, which offers additional coverage at a lower cost. 

How to Calculate Oracle Pricing: A Step-by-Step Guide

To calculate Oracle pricing effectively, follow these steps:

Step 1: Identify Required Products

Determine which Oracle product you need, such as the Oracle Database, Oracle Cloud Services, or Oracle Applications. Each product has specific pricing structures. Evaluate your business requirements and priorities and identify the Oracle products that directly address those needs.

Step 2: Choose the Appropriate Licensing Model

Decide between NUP or Processor-based licensing options. For instance, the Oracle Database Enterprise Edition costs approximately $47,500 per processor, while the Standard Edition 2 is about $17,500 per processor. Decide between a one-time upfront payment for indefinite access to the software (perpetual license) or regular payments (monthly or annually) for continued access (subscription license).

Step 3: Calculate License Costs

Using Oracle’s price list, multiply the number of required licenses by the per-unit price to get the total software license cost. For example, if you need 10 NUP licenses for the Standard Edition:

  • Total License Cost = 10 users x $17,500 = $175,000. And if you need four processor licenses, total Software License Cost: 4 x $17,500 = $70,000

Step 4: Add Support and Maintenance Costs

When calculating license costs, you also have to factor in annual fees. Calculate by adding around 22% of the license cost. Using the previous example:

  • Annual Support Cost = $175,000 x 0.22 = $38,500.

To calculate the support and maintenance fees for Oracle products:

  1. Identify the Oracle products and licenses: List all the Oracle products and licenses your organization has purchased.
  2. Determine the support tiers: Decide on the appropriate support level for each product (Basic, Premier, or Extended). Understand the support percentage for each tier, typically ranging from 22% to 20% of the net license fees.
  3. Calculate the net license fees: Gather the original net license fees paid for each Oracle product. If you don’t have the exact net license fees, you can estimate them based on the current Oracle price list.
  4. Calculate the annual support cost for each product: Multiply the net license fee by the support percentage for the chosen support tier. For example, if the net license fee is $100,000 and the Premier Support tier is 22%, the annual support cost would be: $100,000 x 0.22 = $22,000
  5. Sum the support costs for all products: Add up the annual support costs for each Oracle product to get the total support and maintenance fee.

Step 5: Apply Potential Discounts and Negotiations

When negotiating discounts with Oracle, aggregate all Oracle product and service needs across departments and business units to qualify you for volume discounts. Build a strong business case demonstrating the value and return on investment of the Oracle solutions and negotiate aggressively.

To apply discounts to your final Oracle pricing calculation:

  • Determine the discount percentage negotiated for each product or service.
  • Multiply the original price by the discount percentage to calculate the discount amount.
  • Subtract the discount amount from the original price to arrive at the discounted price.
  • Repeat this process for each applicable product or service.
  • Add up the discounted prices to get the final total cost.

Step 6: Estimate Total Cost of Ownership (TCO)

Estimating the Total Cost of Ownership (TCO) for Oracle products involves combining costs associated with licensing, support, and additional expenses over the asset’s lifespan.

Start by calculating the initial license costs, then add annual support costs (typically around 22% of the license fee) to account for ongoing maintenance and updates. Additionally, consider the price of implementation and operational costs like hardware maintenance and potential downtime.

Common Licensing Pitfalls and Cost-Saving Tips

Here’s a list of licensing mistakes you should avoid:

  1. Over-licensing: Purchasing more licenses than necessary wastes resources and adds unnecessary expenses.
  2. Under-licensing: Not acquiring enough licenses to meet business needs results in compliance risks and potential penalties.
  3. Overlooking hidden costs: Ignoring additional expenses such as implementation, training, and ongoing maintenance fees. Failing to account for indirect costs, like productivity losses during system transitions or downtime.

Here are cost-saving strategies for negotiating discounts and optimizing licensing with Oracle:

  • Leverage NUP licenses: Use NUP licenses in non-production environments to reduce costs.
  • Utilize special licensing rights: Take advantage of reduced user minimums for test and development environments.
  • Review user access: Regularly assess user access to applications like Oracle EBS to eliminate unnecessary licenses and potentially reduce requirements.
  • Optimize hardware choices: Shift to hardware platforms that support hard partitioning or sub-capacity licensing to minimize required licenses.
  • Consider Oracle Cloud Migration: Move workloads to Oracle Cloud for more favorable licensing options on a virtual CPU basis compared to other platforms.

Start Your Oracle Digital Transformation Today – Schedule a Consultation

The Oracle technology price list covers many products and services, making it lengthy and detailed. Sifting through all the information to find the specific pricing details you need can be complex and confusing.

Despite these challenges, understanding the pricing details helps optimize investments in Oracle products and ensure compliance with licensing guidelines. You don’t have to do it alone. Our TekStream consultants understand Oracle technologies and will help you by monitoring your systems to find any issues.

Reach out at salesops@tekstream.com to get the most out of your Oracle implementation.

References

Oracle. (2024). Oracle Global Price List. Retrieved from https://www.oracle.com/a/ocom/docs/corporate/pricing/technology-price-list-070617.