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Oracle - License Costs

We wish to install Oracle to be used in our development environment, where changes will be made and tested by customers and will eventually be promoted to production.  My understanding is that the license for Oracle is free for development but not for an environment that will be used to support a production environment?  

Also, is Oracle licenses paid for yearly?  Or is it an outright purchase?

Should mention that Oracle XE won't do, due to table size restrictions.

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You can use oracle for a one man show development for free.

Apart from that you have to license the server after 30 days.

Named users (min 5) or cpu based.

Payment is per year.

Also note that you cannot license your testing stack with named users while using a cpu license for your productive environment.

All you are allowed to handle is the number of cpus you assign to which development stage.

1 for dev, 1 for testing, 2 for prod result in a 4 CPU license.

The trick is to use the standard edition for development and the enterprise edition (if needed at all) for productive environment.

A cpu license is needed if you cannot count the number of users on the application that use your oracle database. (Or when the cpu license gets cheaper than named users) So defining just 1 oracle users in your application with 1000 users in your application relying on metadata from oracle DB does count as 1000 named users)

More details here (also describing the different database types):


Software investment guide


grahamcorpAuthor Commented:
Couple of questions Tolo


a) should my client be paying a yearly Oracle License Cost regardless of what license they have purchased?

b) If the application always connects through the same Oracle user, regardless of the fact that there are 10 end users using the application, does this count as one Oracle user?


a) You should get an invoice from oracle (ask you oracle representative in that matter what to pay)

b) nope - this counts as 10 users (oracle wants to get rich ;-)
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For 10 users buying a 10 users license should be much cheaper than an cpu license (I think the break even is at about 200 users)
This is important about what to pay:

Perpetual vs. Term License
Oracle offers both term and perpetual licenses for all its products. A perpetual
license is a one-time license fee that allows continued use of the software program
for as long as the customer complies with all terms of the license agreement.
A term license is for a specific, limited period of time, during which the user is
allowed to access and use the software. At the end of the term, the user must stop
using the software or extend the term or purchase new licenses through an
agreement with the software vendor. Oracle offers annual term licenses for all its
products in 1-year, 2-year, 3-year, 4-year or 5-year terms. Term licenses are a
percentage of the perpetual license of a given Oracle product, and the term length
(i.e., 1 to 5 years) a customer chooses, determines the percentage amount.

not sure if a perpetual license covers maintenance costs. I think we got such a license still have to pay those "famous" 18% each year for maintenance and support.

Costs given in
is perpetual license cost or one year cost?

Is it includes support and maintenance cost ?

if $ 47500/- is perpetual cost then for five yrs howmuch i need to pay for Oracle Enterprice server license and for support ? Pls give details separately.


Naveen Chhibber
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