The problem with Siebel license keys and pricing

There are many non-compliance risks for both the ‘old’ licenses from Siebel Systems – before Oracle’s acquisition in 2006 that is – and the ones currently applied by Oracle.

We broadly discuss the most common issues in our white paper where you can find an overview of the most common license compliance issues.

The problem with Siebel license keys     
Licensing became more complex after Oracle acquired Siebel Systems ten years ago. Prior to that, an end user had to enter into a license agreement with Siebel, after which he would receive his unique license keys to enable the purchased functionality. After the acquisition, Oracle however made Siebel license keys freely available on the external website so end users could download them without having obtained a license upfront.

A standard Siebel installation offers all available Siebel modules and functionalities which are being unlocked through license keys. The downloaded keys often include more functionalities than the organization is licensed for. This means that many Siebel customers have one or more unlicensed products installed. Extra Siebel modules/functionalities in use will need to be licensed, reflecting the total number of authorized users.

Siebel legacy pricing vs. Oracle pricing   
Initially, Siebel System products were sold as Individual Application (e.g. Siebel Sales Enterprise) and as Application Bundle (e.g. eAdvisor & eConfigurator Bundle). However, the number of Application Bundles offered was small and they were rarely sold. In December 2006, Oracle started selling Siebel products under the three standard pricing models for Oracle applications:

Component licensing;

Custom Application Suite (CAS) licensing;

Enterprise licensing.

Component licensing is Oracle’s traditional a la carte pricing model and is cost effective for customers licensing one or a few Oracle products with a limited number of end users. For example: Siebel CRM Base, licensed per Application User, allowing one individual to use one single Siebel software program.

Under CAS licensing a customer may purchase different software products in one bundle (e.g. Siebel CRM Base licensed per Custom Suite User). This metric allows one individual to use multiple Siebel software programs as defined in the bundle.

Enterprise licensing allows customers to license the desired Siebel software programs for their entire organization without having to keep track of specific user licenses, servers or deployment locations on which the Siebel software programs are installed. An example would be Siebel Asset Management licensed by the Enterprise Metric “Enterprise $M in Revenue.”