Why GCP is authorised.
Google Cloud Platform is one of the public clouds named in Oracle's Authorized Cloud Environment policy. The policy permits Oracle software to be deployed on GCP under the licensing rules published by Oracle for the authorised cloud environments. The policy is a unilateral Oracle position and is updated periodically. The current policy applies to Amazon Web Services, Microsoft Azure, and Google Cloud Platform. Oracle Cloud Infrastructure is not subject to the same policy because the licensing rules for OCI are defined in the customer's OCI subscription rather than in the authorised cloud policy.
The conversion ratio.
The conversion ratio for Oracle software on GCP is two vCPUs to one Oracle processor license for compute instances with hyper threading enabled. The ratio is one vCPU to one Oracle processor license for compute instances without hyper threading. The ratio is documented in Oracle's published authorised cloud policy. The buyer side discipline is to document the hyper threading status of every GCP compute instance hosting Oracle software. The documentation supports the licensing position at audit and at certification.
The instance types that count.
The instance types that count for Oracle licensing on GCP include the standard compute instances, the high memory instances, and the high CPU instances. The Bare Metal Solution instances are treated differently because they run on dedicated hardware that more closely resembles the on premises Oracle licensing model. The buyer side discipline is to identify every GCP instance type hosting Oracle software and to apply the appropriate licensing rule for each type. The categorisation produces the compliance position.
GCP Oracle compliance checklist
- Inventory of all GCP compute instances hosting Oracle software.
- Documentation of the hyper threading status for each instance.
- Application of the two vCPUs to one processor conversion ratio.
- Categorisation of instance types under the authorised cloud policy.
- Documentation of Bare Metal Solution deployments under the dedicated hardware rules.
- Reconciliation of the GCP deployment against the Oracle entitlement.
- Documentation of the policy version in force at the deployment date.
The licensing products that apply.
The licensing products that apply on GCP include Oracle Database Enterprise Edition, the database options and packs, WebLogic Server, and the Oracle Java SE subscription. Each product has its own licensing position on GCP. Database Enterprise Edition is licensed by processor under the authorised cloud conversion. Options and packs are licensed on the same processor footprint as the underlying database. WebLogic is licensed by processor or by named user. Java SE is licensed under the universal subscription that is independent of the deployment location. The buyer side discipline is to apply the correct licensing rule for each product.
The policy version question.
The policy version question is the most important contractual question on GCP deployments. Oracle's authorised cloud policy is a unilateral Oracle position that Oracle can update at any time. The policy version in force at the date of deployment is the version that should apply to that deployment. The buyer side discipline at contract execution is to fix the policy version in the contract so that subsequent policy changes do not apply to the existing deployment. The fix is a buyer side negotiation. Oracle's default position is that the current policy version applies to all deployments regardless of when they were made.
The licensing models.
The licensing models that apply on GCP include Bring Your Own License and the Oracle Database Service for Azure model. BYOL is the most common model and applies the customer's existing Oracle licenses to the GCP deployment. The licensed quantity must be sufficient to cover the GCP deployment under the conversion ratio. The Oracle Database Service for Azure model does not apply on GCP because the service is specific to the Azure partnership. The buyer side discipline is to confirm the licensing model in advance of the deployment and to document the model in the contract.
The audit exposure.
The audit exposure on GCP is concentrated in the same areas as on premises. Options and packs usage is the most common finding. WebLogic deployments on GCP that exceed the licensed processor footprint are the second most common finding. Java SE deployments on GCP that are not covered by an active subscription are the third most common finding. The buyer side defence on each finding follows the standard audit defence methodology. We cover the broader audit defence framework in our audit defence pillar guide.
The negotiation opportunity.
The negotiation opportunity on GCP licensing is the conversion ratio improvement. The Oracle position is the published two vCPUs to one processor ratio. The buyer side position is that the ratio can be improved through documented commercial negotiation, particularly at ULA entry or at significant license purchase events. Improved ratios reduce the licensing footprint and reduce the audit exposure. The negotiation is a contract drafting exercise and requires buyer side legal review of the resulting contract language.
Related resources.
- Licensing Compliance pillar guide
- Cloud Migration Advisory service
- Audit Defense service
- BYOL deal type page
- Oracle Database product page
- Oracle Audit Defense Handbook 52 page reference paper.
- Database Options and Pack Compliance related sub article.