Recently, while answering a question, I came across what appeared to be a change to the rules for licensing Oracle Standard Edition — a change that appears to be subtle on the surface, but one that could have significant and surprising repercussions.

It was with considerable fanfare that Oracle announced, several years ago, the last major change to the licensing rules for Standard Edition — that multi-core processors would be counted as a single CPU for the purposes of licensing Standard Edition products. (For Enterprise Edition, Oracle continued to count each core as a separate “processor”, but then provided price discounts, presumably in recognition that a 2- 4- or 8-core CPU rarely provides equivalent performance to an equivalent number of single-core processors running at the same clock rate).

The revised licensing rule went like this (I have highlighted the relevant text in bold):

Processor: shall be defined as all processors where the Oracle programs are installed and/or running. Programs licensed on a processor basis may be accessed by your internal users (including agents and contractors) and by your third party users. For the purpose of counting the number of processors which require licensing for a Sun UltraSPARC T1 processor with 4, 6 or 8 cores at 1.0 gigahertz or 8 cores at 1.2 gigahertz for only those servers specified on the Sun Server Table which can be accessed at http://oracle.com/contracts , “n” cores shall be determined by multiplying the total number of cores by a factor of .25. For the purposes of counting the number of processors which require licensing for AMD and Intel multicore chips, “n” cores shall be determined by multiplying the total number of cores by a factor of .50. For the purposes of counting the number of processors which require licensing for all hardware platforms not otherwise specified in this section, a multicore chip with “n” cores shall be determined by multiplying “n” cores by a factor of .75. All cores on all multicore chips for each licensed program for each factor listed below are to be aggregated before multiplying by the appropriate factor and all fractions of a number are to be rounded up to the next whole number. When licensing Oracle programs with Standard Edition One or Standard Edition in the product name, a processor is counted equivalent to a socket.

This is exactly the definition you will find today today in Oracle’s online store, for example here.¹ In fact, being lazy and not having access to a two-year-old copy of the OLSA, that is exactly where I got the text above.

Now, that little bit of bold text was a pretty big deal. As I understood it, and everybody I could find seemed to agree, this affected both the licensing cost and the eligibility rules. These 23 simple words now meant that Oracle Standard Edition was limited to computers with a maximum capacity of four (4) CPU sockets, not four processor cores. Although multi-core processors were — at the time, several years ago — relatively new, at least in the “commodity hardware” space, we all new that Intel and AMD had near-term plans for 4-core and eventually event 6- and 8-core processors. Suddenly, we could build an Oracle database server with 16 processors (cores) and 16GB of RAM or more, for less than $200,000. (Prior to this change, you would pay $640,000 — list price — just for the Enterprise Edition database licenses.)

But now, it seems, all of this is changing again, only this time, not for the better.

So what exactly has changed? (more…)