Recently I read some where that cost of Oracle enterprise edition costs $40,000 per processor. Does it mean that if there are 2 processors then a separate software is required which costs about $80,000? Please clarify.
There are a couple of different licensing models depending on what you need the software for. The license model you are talking about is for an environment where you can't measure the number of users that will be using the database. In this case, yes, it is 40K for EACH cpu.
However, keep in mind, that is the LIST price for the ENTERPRISE version. If you don't need the features of ENTERPRISE, don't buy it (You can always upgrade later). Also, when was the last time you paid sticker price for a car? Because of Oracle's current financial position, healthy discounts can be sought from your sales rep.