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Yep, you're exactly right. I was incorrect on that. I'd never looked at trying to license it on bare metal (or for use in another Cloud provider), but I looked it up and found you're correct! I had assumed it was following the same licensing model as AWS does with Amazon Linux.
Nobody runs AWS in their data center, but lots of people have a humongous and ancient oracle database or two running. Oracle Linux was forked from RHEL in the mid 2000s for this use-case.
I never had any interest in it because it didn't make sense to run Oracle Linux for the DB and some other distro on everything else, so we went with a more mainstream enterprise distro we could use for everything.
After they acquired Ksplice and ruined it for everyone else they have a better value proposition for it, since now they're the only ones who can patch kernel vulnerabilities without rebooting.