Oracle Cloud Pricing and Costs (2023)

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Oracle Cloud Infrastructure (OCI) offers uniform pricing across all global regions and Dedicated Region Cloud@Customer. Oracle’s approach simplifies cost management and eliminates billing surprises. Customers also get committed use discounts, software license portability, and rewards for OCI consumption.

Oracle Cloud Pricing and Costs (1)

8x8 saves 80% in network egress costs with OCI. (0:29)

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Cloud service pricing benefits

Compute: Better price-performance and flexible sizing

For workloads with odd core counts and nonstandard memory increments, such as three cores and 48 GB of RAM, Oracle Cloud Infrastructure offers fully flexible, perfectly-sized instances, while AWS requires you to choose a fixed instance size from a very long menu. The cost savings of adjusting the size exactly to your IT need comes on top of our price that is already more than 3X better price-performance than AWS.

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High-performance storage that makes it simple to save money

For the majority of workloads, our customers choose Oracle Cloud Infrastructure Block Volumes (balanced setting). Our block storage offers as much as 1.5X the IOPS performance for 81% less cost for 500 GB capacity compared to AWS. Oracle’s straightforward cloud storage pricing has no provisioning charges, complex pricing formulas, or pricing variances based on geography. In addition, it can automatically tune down the performance when appropriate to increase your savings.

Learn more about Cloud Storage

Delivering network efficiency that doesn’t hold your data hostage

Our networking infrastructure is fast, predictable, and inexpensive. Our networking benefits from off-box virtualization, offering nonblocking network connectivity across every host with industry-leading quality of service. Unlike AWS, which locks in your data with extremely high pricing for network egress, our approach is to give customers everyday low pricing for network egress and free ingress, making it easy and cost effective for you to deliver data out to end users or integrated systems, even for workloads with massive data transfer requirements.

Learn more about Cloud Networking

Cloud pricing examples


General purpose VM

AWS is 96% more expensive for 25% less performance





Block storage

OCI is 57.5% less expensive and offers as much as 20X more IOPS than AWS


100 GB

6000 IOPS

starting from



Private connectivity

Up to 97% savings for OCI FastConnect over AWS Direct Connect


10 Gbps FastConnect

starting from


Outbound data

Data egress

Up to 83% less expensive outbound data transfer costs compared to AWS



starting from

$0.0085 per GB/hour

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OCI is recognized as a Visionary in the 2022 Gartner® Magic Quadrant™ for Cloud Infrastructure and Platform Services.

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Pricing models for OCI services

Oracle offers simple pricing models and compelling savings programs to get you more value, faster.

For enterprises that want to expand in multiple geographies without constraints, OCI provides a consistent experience in every region, both in performance and cost. Customers can stay within their original budget and forecast cloud spending accurately, regardless of where applications are deployed. In contrast, AWS Reserved Instances cannot be moved to another region, and on-demand m5d large costs 29% more in Tokyo than in the US and 59% more in São Paulo; Azure D2_v3 costs 34% more in Tokyo and 66% in São Paolo; and Google Compute Engine e2-highmem-2 costs 9% more in Singapore and 41% more in São Paolo. In addition, OCI provides a series of controls for you to limit resource access, control your budget, tune down underused resources, and forecast your spending.


  • Grow and deploy your environment in new regions without pricing arbitrage considerations
  • Control your budget and eliminate billing surprises
  • Accurately forecast cloud spending

Low, everyday pricing allows you to quickly provision services and only pay for what you use. Your use of OCI services—IaaS and PaaS—is metered hourly, and you’re charged only for the resources you consume, with no hidden costs. You always have flexibility to switch services and cloud regions (data centers) at any time, with no notice needed.


  • Provision and scale cloud resources instantly
  • With Pay As You Go, you have no upfront commitment and no minimum service period
  • With global coverage, commercial and government regions have the same low pricing

Cloud price list

Oracle Universal Credits enable customers to use any OCI platform service in any region, including future cloud services. Credits are debited as you use OCI services over the course of a year, giving you the flexibility to ramp up your workloads. Purchase of a sufficient amount of Oracle Universal Credits entitles you to volume discounts.


  • Predictable bill
  • Paid in advance and debited monthly based on your actual usage
  • Use your Universal Credits with any OCI service in any region

Universal Credits Descriptions (PDF)

BYOL allows you to use your current on-premises Oracle software licenses to run those applications on high-performance Oracle Cloud Infrastructure, or to use highly automated managed versions of the software. Your current licenses can be used for corresponding Oracle services for 100% workload compatibility on Oracle Cloud or Oracle Cloud@Customer.


  • Recycle your on-premises licenses and use them in Oracle Cloud
  • Keep Oracle Support via your existing on-premises support contract
  • Accelerate your journey from on-premises to the cloud


(Video) Oracle Fusion SCM - Pricing Configurations | Setups | Scenarios | By Krishna Sir

With Oracle Support Rewards, Oracle customers get even more value when they move to Oracle Cloud. Every $1 spent on Oracle Cloud generates a 25¢ reduction in your Oracle technology license support bill (Unlimited License Agreement customers can save even more: 33¢ for every $1 spent on OCI).

  • Reduce your Oracle Support bill down to zero
  • Combine Support Rewards and Universal Credits volume discounts
  • Accelerate the return on investment of your move to Oracle Cloud

Learn more about Support Rewards

See how enterprises are scaling their deployments with OCI for greater cost effectiveness

Explore all OCI customer stories

Mazda cuts costs 50% and boosts performance 70% with Oracle Cloud

“We migrated a global inventory management system that tracks thousands of automotive repair parts and accessories from an on-premises system to Oracle Cloud Infrastructure.”
—Masahiko Tamura, General Manager, Supply Chain Systems Department, Mazda Motor Corporation

Read the Mazda story

Cisco delivers 60X better performance and 90% lower costs for its Tetration SaaS application

(Video) How to do Supply Chain Cost Accounting Transactions in Fusion Applications - Fully explained

“Customers can save up to 90 percent on total cost of ownership running Cisco Tetration on Oracle Cloud, compared to on site.”
—Navindra Yadav, Founder, Cisco Tetration

Read the Cisco story

NilsonGroup cuts infrastructure costs 30% with Oracle Cloud

“We already have lower costs and a much better analysis of what we consume in terms of hardware resources. It’s also easy to scale the solution up and down.”
—Johan Holmström, IT Operations Manager, NilsonGroup

Read the NilsonGroup story

Xactly lowers costs and ups performance with Oracle Cloud

“Adopting Oracle Cloud Infrastructure as our preferred platform empowers us to speed innovation and transform customer experiences. No other cloud provider delivers the cost and performance benefits we require.”
—Chris Cabrera, Founder and CEO, Xactly

Read the Xactly story

Entel expands using VMware apps running in Oracle Cloud and cuts costs by 50%

One of the best things about Oracle Cloud Infrastructure is that we can run all of our VMware workloads and other mission-critical applications for two companies, in two regions, on one cloud infrastructure.

Read the Entel story

Oracle Cloud Cost Estimator

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Oracle Cloud Pricing and Costs (12)

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Oracle Cloud Free Tier

Oracle offers a Free Tier with no time limits on the selection of services such as Autonomous Database, Compute, and Storage, as well as $300 in free credits to try additional cloud services. Get the details and sign up for your free account today.

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Which three are the various factors that impact pricing OCI? ›

Factors That Impact Pricing:
  • Resource size: If resources are more then cost should be high.
  • Data transfer: No incoming(ingress) cost / careful with outgoing(Egress) cost.
  • Resource: What type of resources are you using like VMs v/s BMs.
  • OCI regions have the same prices.
Apr 23, 2020

Which three pricing models are available for Oracle Cloud infrastructure? ›

Pricing models for OCI services
  • Consistent Global Pricing.
  • Pay As You Go.
  • Oracle Universal Credits.
  • Bring Your Own License (BYOL)
  • Oracle Support Rewards.

How much does it cost to implement Oracle Cloud? ›

Pricing based on feature set.

Oracle ERP Cloud can be purchased in three pricing plans, which are based on product features. A Financial Reporting plan comes for $175/month. Its Advanced Financial Controls plan for $80/user per month, while an Advance Access Control package is priced at $150/user per month.

Is Oracle Cloud really free? ›

Oracle Cloud Free Tier allows you to sign up for an Oracle Cloud account which provides a number of Always Free services and a Free Trial with US$300 of free credit to use on all eligible Oracle Cloud Infrastructure services for up to 30 days. The Always Free services are available for an unlimited period of time.

What are the three 3 basic approaches in pricing decisions? ›

The 3 Most Common Pricing Strategies
  • Cost-based or cost-plus pricing.
  • Market-based pricing.
  • Value-based pricing.
Oct 13, 2020

Which three lists are part of pricing strategy in Oracle? ›

3 Lists
  • Manage Cost Lists.
  • Cost Plus Pricing.
  • Set Price Periodicity to a Granular Level.

Which are costing methods in Oracle? ›

Cost Management supports four perpetual costing methods: Standard Costing, Average Costing, FIFO Costing, and LIFO Costing. You can use the Average Costing method for one organization and the Standard Costing method for another organization.

What is Oracle price list? ›

Price lists are used to derive selling prices automatically during on-line order entry. You can also attach payment terms, freight terms, and freight carriers to a price list so that you can default them on orders to which that list is assigned. Suggestion: You must designate a currency for each price list.

Is Oracle cloud cheaper than AWS? ›

With Oracle Cloud Infrastructure, you get low network outbound pricing which is over 80% less expensive than AWS in some regions.

How do you price a cloud service? ›

Pricing for Google Cloud storage services is based on what a customer uses, including the volume of data stored, how long the data is stored, the number of operations the customer performs on the data, as well as any network resources the customer uses to move or access the data.

Why AWS is better than Oracle Cloud? ›

Generally speaking, AWS is more affordable than Oracle Cloud. Amazon Web Services (AWS) offers a pay-as-you-go fee model giving customers the control over how much services to add as they grow. For services such as Amazon EC2 and RDS, users can save money when they reserve.

Why is Oracle Cloud not popular? ›

Oracle, quite simply, hasn't built a cloud product that the general market wants, and it hasn't built a culture that makes its dedicated database customers want to invest deeper with Oracle. It's a lose-lose proposition.”

What is the limitation of Oracle Cloud always free? ›

If you do not upgrade before your trial ends, your free account will be limited to 20 GB of combined Standard tier, Infrequent Access tier, and Archive tier data. If you are using more than the 20-GB limit when your Free Trial ends, all of your objects will be deleted.

How does Oracle Cloud make money? ›

Oracle revenue generation

Cloud services are either based on license and support or on-premise model. And the remaining lines of business (Hardware and Services), which represent a smaller part of the company's revenues. Oracle makes money by designing, manufacturing, and selling hardware and software products.

What are the 3 C's of pricing? ›

The 3 C's of Pricing Strategy

Setting prices for your brand depends on three factors: your cost to offer the product to consumers, competitors' products and pricing, and the perceived value that consumers place on your brand and product vis-a-vis the cost.

What are the 5 types of pricing? ›

The 5 most common pricing strategies
  • Cost-plus pricing. Calculate your costs and add a mark-up.
  • Competitive pricing. Set a price based on what the competition charges.
  • Price skimming. Set a high price and lower it as the market evolves.
  • Penetration pricing. ...
  • Value-based pricing.

What are the 6 types of pricing? ›

To help you make the right choice, below I've listed six pricing strategies in marketing to consider for your small business.
  • Price skimming. Best for: Businesses introducing brand new products or services. ...
  • Penetration pricing. ...
  • Competitive pricing. ...
  • Charm pricing. ...
  • Prestige pricing. ...
  • Loss-leader pricing.
May 27, 2021

What is the easiest pricing strategy? ›

Cost plus pricing is the simplest method of determining price, and embodies the basic idea behind doing business. You make something, sell it for more than you spent making it (because you've added value by providing the product), and buy something nice with the difference.

What is the simplest pricing method? ›

1. Cost-plus Pricing. It is the simplest pricing method. The firm calculates the cost of producing the good and adds on a percentage (profit) to that price to give the selling price.

What are the two basic pricing strategies? ›

There are three basic pricing strategies: skimming, neutral, and penetration. These pricing strategies represent the three ways in which a pricing manager or executive could look at pricing.

What is the most common pricing strategy? ›

There are different pricing strategies to choose from but some of the more common ones include: Value-based pricing. Competitive pricing. Price skimming.

What is the best type of pricing strategy? ›

Value pricing is perhaps the most important pricing strategy of all. This takes into account how beneficial, high-quality, and important your customers believe your products or services to be.

What are the 4 types of costs that are used to create your costing document? ›

Costs are broadly classified into four types: fixed cost, variable cost, direct cost, and indirect cost.

What are the different types of costing? ›

Types of costing
  • Absorption costing. Absorption costing, sometimes referred to as full costing, is used by a company to determine all costs that go into the manufacturing of a specific product. ...
  • Historical costing. ...
  • Marginal costing. ...
  • Standard costing. ...
  • Lean costing. ...
  • Activity-based costing.
Jan 13, 2021

What is Oracle cost structure? ›

Cost elements are defined as follows: Material. The raw material/component cost at the lowest level of the bill of material determined from the unit cost of the component item. Material Overhead. The overhead cost of material, calculated as a percentage of the total cost, or as a fixed charge per item, lot, or activity ...

What is the target price for Oracle? ›

Oracle Corp (NYSE:ORCL)

The 25 analysts offering 12-month price forecasts for Oracle Corp have a median target of 95.00, with a high estimate of 120.00 and a low estimate of 72.00. The median estimate represents a +10.02% increase from the last price of 86.35.

Is Oracle being sued? ›

Oracle Faces Class-Action Lawsuit for Collecting, Profiling, and Selling the Data of 5B Users. Oracle has admitted to collecting, profiling and selling the data of billions of people despite stating it “does not have a direct relationship” with these people.

What is standard costing in Oracle Apps? ›

Under standard costing, the value of inventory is determined using the material and material overhead standard costs of each inventory item. If you use Bills of Material, Inventory maintains the standard cost by cost element (material, material overhead, resource, outside processing, and overhead).

What is the weakness of Oracle Cloud? ›

Some of the cons of Oracle are that its integration with other tools it's not simple. This platform takes time to get used to because it is complicated to navigate. Oracle Cloud is also focused on high-end, so what it offers to low-end can be quite limited.

Which cloud service is cheapest? ›

Icedrive offers the cheapest 1TB of cloud storage at $4.17 per month when billed annually. That said, offers better value with its 2TB plan at $8 per month. If you consider online backup, then IDrive is the cheapest with 5TB for just $59.62 for the first year. What Is the Best and Cheapest Cloud Storage?

Which cloud is most cost effective? ›

Which Cloud Service Provider is Cheapest?
#Cloud Service ProviderCost per Month
1Alibaba Cloud$48.42
2Google Cloud Platform (GCP)$63.38
3Microsoft Azure$70.05
4Amazon Web Services (AWS)$71.47

What are the 3 key factors in defining cost on cloud storage? ›

Capacity, transactions, Networking are the three main key factors in defining cost on cloud storage.

What are the three 3 different cloud costing models strategies? ›

There are three cloud pricing strategies: value-based, fact-based, and market-based.

How do I reduce my cloud costs? ›

Here are key ways to quickly reduce those costs.
  1. 1) Identify idle compute resources.
  2. 2) Optimize purchasing strategies.
  3. 4) Release unneeded storage capacity.
  4. 5) Leverage storage tiering.
  5. 6) Align storage redundancy with requirements.
  6. 7) Reduce traffic across zones and regions.
  7. 8) Optimize network configurations.

Is Oracle losing market share? ›

But Oracle's influence is slowly fading. While it owned an estimated 27% of the database market in 2019, that fell to 24% in 2020, per Gartner. In the same time frame, Amazon went from 17% market share to almost 21%.

Is Oracle better than Azure? ›

Migrate Oracle workloads with confidence

Unlike Microsoft Azure, Oracle makes migrations easier. Oracle Cloud provides the best deployment options, highest performance, best availability, and lowest costs for Oracle databases and workloads.

How is Snowflake better than Oracle? ›

Snowflake automatically applies all upgrades, fixes, and security features, reducing your workload. Oracle, however, typically requires a database administrator of some kind, which can add to the cost of data warehousing in your organization.

When did Amazon stop using Oracle? ›

Amazon's consumer business shut down its last Oracle database three years ago, in October 2019. The team migrated 75 petabytes of data in nearly 7500 Oracle databases to multiple Amazon Web Services (AWS) database services over the course of several years.

Which is better Oracle or AWS? ›

Oracle relies its cloud on cutting-edge technologies, which makes it much faster and much more performant than its competitive solutions, especially when it comes to high-capacity apps. Some of its fans even consider that the Oracle Cloud is four to five times faster than AWS. Easy customization.

Does Netflix use Oracle Cloud? ›

In the Netflix data center, we primarily use Oracle to persist data. In parts of the movie recommendation infrastructure, we use MySQL. Both are relational databases. In our data center, we do not currently use key-value stores for persistent storage.

What are the disadvantages of using Oracle? ›

  • Extensive SQL knowledge and administrative experience in database management are a prerequisite for the local on-premises version of Oracle.
  • Oracle licenses are expensive (Standard Edition approx. 17,000 USD, Enterprise Edition approx. 40,000 USD)
  • High hardware requirements for local on-premises version.
Feb 16, 2022

What is the major limitations of cloud? ›

The biggest disadvantage of cloud computing is downtime because most of the business totally depends on the internet to access the data or cloud storage and your business gets affected negatively in a downtime situation. Downtime basically interrupts the workflow of business, your organization will not run smoothly.

Is Oracle cloud free for lifetime? ›

Always Free services are part of Oracle Cloud Free Tier. Always Free services are available for an unlimited time. Some limitations apply.

Why Oracle Cloud is the best? ›

Lower costs: Oracle Cloud Applications can dramatically reduce expenses, especially when it comes to hardware, maintenance, and IT. Agility: Oracle Cloud Applications give organizations the flexibility to respond quickly and easily to changing industry conditions, emerging technologies, and customer demands.

What is the top reason customers move to the Oracle Cloud? ›

Improved business value

Oracle customers leverage our HCM cloud application to drive business value through better user engagement and adoption, streamlined processes, improved productivity, and lower total cost of ownership.

Does Google use Oracle Cloud? ›

Oracle software is not authorized for Google Cloud environment (PDF) and Google Cloud Platform does not offer a managed Oracle Database service.

What are the 3 main factors to be considered in pricing? ›

Three important factors are whether the buyers perceive the product offers value, how many buyers there are, and how sensitive they are to changes in price. In addition to gathering data on the size of markets, companies must try to determine how price sensitive customers are.

Which are the 3 pricing fundamentals of the AWS cloud? ›

Understand the fundamentals of pricing

There are three fundamental drivers of cost with AWS: compute, storage, and outbound data transfer. These characteristics vary somewhat, depending on the AWS product and pricing model you choose.

What are the three key factors in defining cost on cloud? ›

Capacity, transactions, Networking are the three main key factors in defining cost on cloud storage.

Which are the three pillars of pricing? ›

The Three Pillars of Value-Based Pricing
  • Segmentation or differentiation based on the different products you offer.
  • Data-driven algorithms to help determine the optimum prices.
  • The value-selling process with tactics based on behavioral economy and psychology.
Aug 30, 2022

What are the 7 factors that affect price? ›

The main determinants that affect the price are:
  • Product Cost.
  • The Utility and Demand.
  • The extent of Competition in the market.
  • Government and Legal Regulations.
  • Pricing Objectives.
  • Marketing Methods used.

What are the two main types of pricing? ›

If pricing is how much you charge for your products, then product pricing strategy is how you determine what that amount should be. There are different pricing strategies to choose from but some of the more common ones include: Value-based pricing. Competitive pricing.

What are the cloud pricing models? ›

Cloud Computing Pricing models have been broadly classified as: Pay-as-Use, Subscription Based, Hybrid pricing model. But specifically various cloud computing providers have classified the pricing models differently. Like Amazon uses: On-Demand Instance, Spot Pricing Instances and Reserved Instances [11].

What are different cloud cost models? ›

Cloud cost models are dynamic given the erratic nature of supply and demand. These are auction-based, time-based, or cost-based, depending on various factors. There are three cloud pricing strategies: value-based, fact-based, and market-based.

What are the cloud cost models? ›

5 Cloud Cost Models
  • Prepaid/Fixed Subscriptions. In a subscription-based model, cloud customers pay for services upfront. ...
  • Reserved Instances. Reserved instances allow companies to commit to cloud resources for a long period of time, typically 1 or 3 years. ...
  • AWS Savings Plan. ...
  • First Party Tools. ...
  • Third Party Tools.

What are the 5 other pricing strategies? ›

Pricing strategies to attract customers to your business
  • Price skimming. ...
  • Market penetration pricing. ...
  • Premium pricing. ...
  • Economy pricing. ...
  • Bundle pricing. ...
  • Value-based pricing. ...
  • Dynamic pricing.
Nov 17, 2021

How can you save costs in cloud? ›

Cloud cost optimization: 10 ways to save
  1. Conduct performance analysis. In many cases, switching to dynamic or pay-as-you-go pricing will save money. ...
  2. Implement continuous monitoring. ...
  3. Invest in automation. ...
  4. Reduce excess storage. ...
  5. Identify overprovisioning. ...
  6. Correct inefficient code. ...
  7. Assign an inventory owner. ...
  8. Manage shadow IT.


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