A Novice Guide for Oracle On-Premise Licenses

Oracle Inc., USA has multiple ERP product offerings in multiple formats. The different products are:

  1. Oracle PeopleSoft
  2. Oracle JD Edwards
  3. Oracle E-Business Suite
  4. Oracle ERP Cloud- Fusion
  5. Oracle NetSuite ERP

All of these products have different pricing matrices. Oracle has a published price list for all of the above products in all of the format such as:

  • On Premise License
  • SaaS Offering
  • PaaS Offering
  • Only Cloud Hosting 

License for Oracle E-Business Suite:

Oracle E-Business Suite is primarily driven by On-Premise licenses, however there are different licensing options which exist in the on-premise licenses. The type of license matrix which are used in oracle price list are:

1. Application User: A registered user in the application & authorized to use the license is called as Application user

2. $ M Cost of Goods Sold: $ Cost of Good Sold by the whole organization irrespective of number of users. Some of the modules are licensed based on this matrix.

3. $ M freight Under Mgmt

4. $ M Revenue

5. Employee: License is based on the per employee

6. Trainee: per Trainee

7. No: Of Expense reports per month 

8. Processor: based on the no: of processor on which application is running.

9. Electronic Order Line

10. Computer: Per Computer where application is being used

 Important point to note here is that all of the above matrices have a minimum number clause listed in the price list. After License matrix next thing come is options, some of the prominent licensing options are:

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Component Licenses: This is the perpetual license which allows users to use the Licensed Application component per named user (The definition of Named User is the User Created in the Oracle Application) as per license matrix.

CAS Bundle License: This is again perpetual license where 2-3 application components are combined together to create a bundle license and authorized (Licensed) number of users can use any of the components of the bundle license. Some of the examples are:

Bundle (Oracle Finance +Oracle Purchasing+ Oracle Inventory), No: of License: 5

So, 5 named users can use all three components listed in the bundle.

Enterprise License: Here the number of licenses is not as per named users, but the cost of the licenses is linked to the revenue of the company. Organizations as many as users can use licensed application modules however every year a declaration has to be given to oracle on the revenue.

BPO License: This license is for the Business Process Outsourcing companies where they want to use the application for their end clients and do not wish to carry the burden of perpetual license. Oracle charges the license cost per month per license matrix.

Apart from the use of application license organization is licensed to use Application Specific Oracle Database & Oracle Middleware licenses. However, any changes to the database such creating stored procedures or tables will lead to the license obligation for middleware & database.

Also all of the license cost is subjected to the negotiated price and Licensed Organization has to pay per annum 22% of licensed price Annual Technical Support fees which consist of Support + Upgrades. 

License for Oracle ERP Cloud -Fusion

Primarily the license structure remains the same as mentioned above, however in cloud it includes all the hosting components hence all the license is per hosted. For example, Hosted Employees, Hosted Application users etc. 

All cloud licenses are contracted for the monthly subscription for a time duration. 

All of this information is gathered based on the writer’s rich experience in the Oracle Licensing and the information available on the internet. Some of the information is fetched from Oracle Price List. Hope this will work as a guide for you to understand the Oracle E-Business Suite Licensing in a better way. 

The published information can be changed time to time by Oracle. We do not take any responsibility for such changes.