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ARTICLE · 24 MAY 2017

Licensing Oracle Software In A Third Party's Cloud

Scott & Scott LLP
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Many companies would like to know whether and to what extent their existing Oracle software product licenses entitle them to use that software in a third-party cloud-hosting environment ...

United StatesAccounting and Audit
Christopher Barnett
Christopher Barnett
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Many companies would like to know whether and to what extent their existing Oracle software product licenses entitle them to use that software in a third-party cloud-hosting environment – such as Amazon Web Services' (AWS's) Elastic Compute Cloud (EC2) environment – and, if so, whether that usage would be subject to different license metrics or other restrictions that would not apply to the use of that software in their own datacenters.

Oracle's standard license agreements typically do allow licensees to use their software licenses to support deployments of that software on a third-party's servers. Standard contract language typically includes something like the following:

You may allow Your agents and contractors (including, without limitation, outsourcers) to use the Programs and deliverables for Your internal business operations and You are responsible for their compliance with the General Terms and this Schedule P in such use.

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