Is Bring Your Own License (BYOL) supported?
In 2026, BYOL has expanded beyond just databases to include major transitions for VMware and Microsoft workloads.
Oracle uses a specific "multiplier" to translate your physical on-premises licenses into OCI units (OCPUs).
Oracle Database Enterprise Edition: 1 Processor License = 2 OCPUs on OCI.
Oracle Database Standard Edition (SE2): 1 Processor License = 4 OCPUs on OCI.
Named User Plus (NUP): You can also bring NUP licenses (e.g., 25 NUPs of Enterprise Edition = 2 OCPUs).
The "Dual Use" Rule: Oracle allows you to run the same license both on-premises and in OCI for up to 100 days to allow for a smooth migration.
A massive shift in 2026 involves the Oracle Cloud VMware Solution (OCVS).
The Change: As of March 2026, all new VMware deployments on OCI move to a BYOL-only model.
The Benefit: You now bring your own VMware Cloud Foundation (VCF) licenses. This allows you to negotiate your VMware pricing directly with Broadcom while simply renting the Bare Metal "nodes" from Oracle.
Legacy Support: If you have an existing "License Included" VMware setup, it remains supported through its current commitment, but new hosts must be BYOL.
In 2026, OCI fully supports Microsoft’s Flexible Virtualization Benefit.
No More Dedicated Hosts: You can now bring your own Windows Server and SQL Server licenses to shared OCI infrastructure.
The Requirement: You must have active Software Assurance (SA) or a subscription license.
Cost Impact: This can reduce the cost of running Windows VMs by nearly 50%, as you eliminate the "Windows rental fee" from your hourly bill.
| Feature | BYOL (Bring Your Own) | License Included (Rented) |
| Hourly Rate | ~70–90% Lower | Standard Rate |
| Upfront Cost | Uses existing assets | $0 |
| Management | You track compliance | Oracle handles compliance |
| Best For | Large Enterprises / Migrations | Startups / New Projects |
Oracle incentivizes BYOL by including features you might not even have on-premises:
Free Management Packs: If you BYOL Enterprise Edition to OCI, Oracle often includes the Diagnostics and Tuning Packs for free (which are paid options on-premises).
Autonomous Advantage: Bringing an EE license to the Autonomous Database gives you access to a fully self-driving platform on Exadata hardware for just the cost of compute and storage.
To use BYOL in 2026, your on-premises licenses must be under active support. You cannot "bring" a shelf-license that you stopped paying maintenance on. Additionally, OCI now provides a License Manager tool that automatically scans your instances and alerts you if you are using more OCPUs than your imported licenses allow.