---
last_verified: 2025-09-11
source: https://www.oracle.com/cloud/price-list/
description: OCI pricing models and discount structures.
---

models:
  payg:
    name: "Pay As You Go"
    commitment: none
    discount: none
    billing: "Per second (compute), per hour (database), per month (storage)"
    when_to_use:
      - "Variable/unpredictable workloads"
      - "Short-term projects"
      - "Dev/test environments"
      - "Initial cloud adoption (before committing)"

  monthly_flex:
    name: "Monthly Flex (Universal Credits)"
    commitment: "Minimum $1,000/month or custom commitment"
    discount: "Volume discounts on committed spend"
    billing: "Committed credits consumed by usage"
    when_to_use:
      - "Steady-state production workloads"
      - "Known baseline consumption"
      - "Multiple services across OCI"
    discount_tiers:
      - spend: "$1K-$10K/month"
        discount: "~5-10%"
      - spend: "$10K-$50K/month"
        discount: "~10-20%"
      - spend: "$50K+/month"
        discount: "~20-30% (negotiated)"

  annual_flex:
    name: "Annual Flex (Committed)"
    commitment: "1-year or 3-year commitment"
    discount: "Deeper discounts than monthly flex"
    when_to_use:
      - "Established production workloads with predictable spend"
      - "Organizations committed to OCI long-term"

  byol:
    name: "Bring Your Own License"
    discount: "~50% on database OCPU costs"
    eligible:
      - "Oracle Database Enterprise Edition"
      - "Oracle Database Standard Edition 2"
      - "Oracle WebLogic"
      - "Oracle Java SE"
    conversion: "1 processor license = 2 OCPUs"
    when_to_use:
      - "Existing Oracle on-prem licenses with active support"
      - "Licenses not being used elsewhere"
    when_NOT_to_use:
      - "No existing licenses"
      - "Licenses still needed for on-prem during migration"
      - "Standard Edition workloads on ADB (requires EE)"

  reserved_capacity:
    name: "Reserved Capacity"
    commitment: "1-year or 3-year for specific shapes"
    discount:
      1_year: "~35% off on-demand"
      3_year: "~55% off on-demand"
    when_to_use:
      - "Known compute shapes running 24/7"
      - "Predictable database capacity"
    notes: "Shape-specific, less flexible than Universal Credits"

estimation_approach:
  step_1: "Calculate PAYG cost first (baseline)"
  step_2: "Apply BYOL if customer has eligible licenses"
  step_3: "Show savings with Monthly Flex / Annual Flex for steady-state"
  step_4: "Compare total annual cost vs current on-prem spending"
  step_5: "Include migration costs in year 1"
  assumptions_to_state:
    - "Hours per month (730 for 24/7)"
    - "Auto-scaling hours per day (estimate)"
    - "Data transfer volumes"
    - "Backup retention"
    - "Support tier"