Oracle to eliminate on-premise term licenses

Effective September 1, 2020, Oracle will no longer offer on-premise term licenses (1- to 5-year terms), except for key Oracle Technology products that will retain purchasable 1-year term licenses. End users will no longer have the option to buy a 2- to 5-year term license for these programs.

With customers’ focus directed toward the cloud, and the on-premise customers moving more toward perpetual licenses, Oracle made a strategic decision to eliminate on-premise term licenses, providing slimmer product and licensing selections when placing on-premise orders.

However, perpetual licenses are not affected by this announcement. Also, existing customers paying support on their term licenses will remain supported through the end of their term. Furthermore, Oracle Application Specific Full Use (ASFU) term licenses distributed in August 2020 can be reported until September 20, 2020.

What impact is there on license migrations?

  • Term upgrades to longer term licenses are discontinued (e.g., migrating a 2-year term to a 5-year term).
  • Term upgrades to perpetual licenses remain (e.g., migrating from a 4-year term license to a perpetual license). However, migrations from 1-year term to perpetual license are discontinued.

Please contact us for further details.

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