Oracle simplifies Cloud licensing at last

Oracle simplifies Cloud Licensing with Universal credits

Oracle simplifies Cloud Licensing with Universal Credits

At a live event on September 19th as a precursor to Oracle Open World 2017, Larry Ellison announced the new Universal Credits for Cloud Licensing. Aimed at simplifying the confusion around the current IaaS and PaaS licensing models and providing more flexibility.

universal credits

What are Universal Credits?

Oracle clearly wants to increase adoption of their Cloud platform and has come up with a couple of initiatives to make the move from On-premises systems to the Cloud a little easier. Previously customers can consume Oracle Cloud in one or more of three ways. Software as a Service (Oracle's applications in the Cloud), Platform as a Service (Database, Middleware and related tools) or Infrastructure as a Service (Storage and compute). Each would require a different contract and different licensing options. You then paid for these services in a 'pay as you go' or subscription model. Known as Metered and Unmetered, respectively.

Universal Credits make the adoption of Oracle Cloud easier  @oralicencepro #oracle licensing #fun #cloud #database

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Oracle is now introducing Universal Credits, so customers will  have one simple contract that provides unlimited access to all current and future Oracle PaaS and IaaS services, whether on-prem via Cloud machines or in Oracle Public Cloud.  Customers gain on-demand access to all services plus the benefit of the lower cost of pre-paid services. Additionally, they have the flexibility to upgrade, expand or move services across datacenters based on their requirements. With Universal Credits, customers gain the ability to switch the PaaS or IaaS services they are using without having to notify Oracle. Customers also benefit from using new services with their existing set of Cloud credits when made available. Credits are then used to buy Oracle IaaS or PaaS services either as Pay as you go, Annual credits or Monthly credits. Each have pros and cons; more flexibility, higher costs, more discount for a 12 month commitment etc.


We are completely transforming the way all companies buy and use Cloud by providing flexibility and choice - Larry Ellison, Oracle Chairman and CTO

This is definitely a step in the right direction. With further news expected around "bring your own" (BYO) licensing to the Cloud for existing customers soon, we would expect that more customers start to convert their on-prem licence support costs to Universal Credits, at least initially for Non production environments. As customers fully depreciate hardware and look to review hardware options, this could be a good initiative. Providing flexibility between the different Cloud models IaaS and PaaS is a good thing and may help accelerate further adoption. Consumption of the licenses is another thing and we are yet to fully grasp the burn down rate and whether using Oracle Cloud is as cost effective as Larry Ellison believes.

Oracle’s new Universal Credit and Bring Your Own License to PaaS are available now.  These programmes span Oracle Cloud and Oracle Cloud at Customer.

If you want the actual service descriptions, you can download them from here. Pricing information is here.