Billing Models Offered

Oracle offers the following types of billing or subscription models:

  • Annual Universal Credits

  • Monthly Universal Credit (subject to Oracle approval)
  • Universal Credits, Pay As You Go

  • Bring Your Own License (BYOL)

  • Oracle Cloud at Customer

  • Government Subscriptions

Annual Universal Credits

  • You commit to an annual pool of funds.
  • You are billed in advance with a 12-month minimum and debited monthly based on your actual usage.
  • You must use the credits within the applicable 12-month credit period. Any unused amount or credits within that period are forfeited.

  • Customers can commit to an amount of Oracle Annual Universal Credits that can be applied towards the future usage of eligible Oracle IaaS and PaaS cloud services.
  • Enables you to have the flexibility to use any Oracle Cloud Infrastructure and platform services at any time, in any region, to deliver faster time to market.
  • Offers a significant savings across cloud services, combining cost reduction and a predictable monthly spend with a ramp up period as you onboard your workloads.
  • Offers flexibility of starting and stopping services based on your requirements, similar to an on-demand/pay-as-you-go model.
  • Any services used after the entire amount is consumed are charged based on your contractual service price. See Oracle Universal Credit Pricing.

  • You'll receive an activation email from Oracle. This email contains the account login information. The billing starts on the day you receive the activation email, unless your account has been contracted with delayed provisioning. See service description.

Monthly Universal Credit (subject to Oracle approval)

  • You commit to a monthly credit pool of funds.

  • You are billed in advance for the committed amount based on the payment terms of your contract.

  • The subscription term is for 12 months. The 12-month period begins on the day that you receive your welcome or activation email, unless otherwise specified in your order.

  • You can use all eligible Oracle Infrastructure and Platform Cloud (Oracle IaaS/PaaS) services.

  • Based on your monthly commitment and subscription duration, the service pricing may be discounted.

  • Credits from your monthly commitment are metered based on your usage and billed per the service rate card. Any usage above the monthly commitment is incurred as overage and billed monthly in arrears, per the rate card.

  • The monthly committed amount or credits must be used within the monthly commit period. Any unused amount or credits within that period are forfeited.

  • Any services used after the entire amount is consumed are charged based on either the list price or the rate card price, whichever is lower. See Oracle Universal Credit Pricing.

Universal Credits, Pay As You Go

  • Pay for only what you use. You can use all the eligible Oracle IaaS/PaaS offerings.

  • There are no up-front fees.

  • All charges are based on metered usage and calculated as per Oracle’s list price or rate card, whichever is lower.

  • Usage billed monthly in arrears is based on the payment terms in the agreement.

PAYG vs Annual Universal Credits Payment Plans

You opt for Pay As You Go (PAYG) when... You opt for Annual Universal Credits when...

You’re still in the process of determining all the Oracle Cloud services that you would use.

You know the services that you want to use and have an estimate of the usage.

You want the flexibility to pay per actual usage instead of paying upfront.

You want the benefit of lower pricing and are willing to make an upfront annual commitment.

You pay for your usage per the terms of your negotiated contract.

Based on your requirements and expected workload or usage, you decide on the annual commitment amount.

Bring Your Own License (BYOL)

Oracle offers BYOL as a billing option for some Oracle PaaS services, which enables you to leverage your existing Oracle software licenses on Oracle Cloud.

You continue your existing Oracle license support and contract for the cloud services as well. With BYOL, you can move to Oracle Cloud at a lower cost. You are responsible for paying the license support contract and Cloud service subscription. Licenses applied toward a BYOL version of a Cloud service are considered in use.

See About Bring Your Own License Subscriptions in Oracle Cloud Infrastructure documentation.

Oracle Cloud at Customer

A subscription to Oracle Cloud at Customer consists of both a hardware subscription and a software subscription. Both are required to run Oracle Cloud in your data center.

The Cloud at Customer hardware subscription consists of:
  • The hardware required to run the Oracle Cloud control plane, which is the base software stack required to run Oracle Cloud

  • The optional hardware required for additional compute nodes, object storage, or block storage

  • Optional hardware required if you are subscribing to Exadata Cloud at Customer or Big Data Cloud at Customer

To learn more about the rates and conditions for Oracle Cloud at Customer hardware subscriptions, contact Oracle Sales.

The Oracle Cloud at Customer software subscription is similar to Oracle Cloud. Starting with Oracle Cloud at Customer 18.1.4, all new Oracle Cloud at Customer subscriptions use Universal Credits.

With Universal Credits, you can apply your credits toward the metered use of any Oracle PaaS service available on Oracle Cloud at Customer. However, unlike Oracle Cloud, not all PaaS services are provisioned immediately after you sign up for Oracle Cloud at Customer. If services are not available when you first sign in to Oracle Cloud at Customer, then you can work with your Oracle representative to have those PaaS services provisioned.

For more information about Oracle Cloud at Customer, see the Oracle Cloud at Customer documentation on the Oracle Help Center.

Government Subscriptions

Oracle offers the Government purchase model, designed specifically for government customers. This purchase model allows government customers to buy resources for each service separately and access only those services they’ve purchased. A monthly amount (in USD or equivalent in local currency) is committed for each purchased service and the service usage is drawn down from that committed amount. The committed amount can’t be transferred between services. Refer to the service-specific details at Oracle Government Tech Cloud Service Descriptions.

For more information, contact your Oracle Sales representative.