Oracle Enterprise Licensing – taking it from the start

For many large companies Enterprise Licensing is a normal way of dealing with software licensing. There are multiple reasons for this. Although details differ between organizations, benefits of Oracle Enterprise Licensing may:

allow your organization to increase the use of Oracle software at no additional cost;

offer Oracle application software products at a higher discount;

employ centralized authorization, ordering and payment, which enables accurate software usage figures and better forecasting of licensing costs;

enable robust IT asset management that controls future costs and prevents over-buying;

consolidate existing software maintenance agreements at a fixed price.

On the end-user side such Enterprise Licensing benefits should of course be met with a clear understanding, throughout the organization, of the consequences and complexities. Failing to do so may cost you dearly. Our white paper ‘Oracle Enterprise Licensing – A Detailed Overview of How It Works’ helps you avoid problems by explaining what to look for and be aware of.

First and foremost, you should know what licensing means. In many companies, even key persons fail to understand what a software license implies exactly. Often, it is assumed that the organization actually owns a software product from the moment a license was purchased. This sometimes leads to ignoring the Oracle invitation when time has come for a usage review, a recurring procedure that has been agreed upon when signing contracts. Refusing to cooperate represents a breach of agreement which might escalate to the level of paying penalties to Oracle.

Enterprise metrics and the Expansion Clause

Enterprise Licensing means that an end-user has the right of using Oracle software measured on the total number of employees in the company, on the company’s revenue or the company’s budget instead of hardware related (e.g. processor, server) or usage related metrics (e.g. Named User Plus, Application User). Enterprise metrics can be finance related (such as Enterprise Revenue, Freight Under Management) or non-financial (such as Employee Count, Student Count or Enterprise Employee).

The Ordering Document for Oracle software products licensed on Enterprise metrics contains clauses that specify how product usage is measured, how and when the end-user should report the current quantities (e.g. number of employees, reported revenue) and what fees need to be paid in case additional licenses will be required. The latter is known as the ‘Expansion Clause’ which will be the topic of our next article is this series. A proper understanding of this Expansion Clause constitutes the foundation of controlling costs and being compliant with the terms of your agreement. A sound Enterprise License management practice, which helps you minimize financial risks, starts here!

Make sure you have the right expertise

You can of course invest in staff and building knowledge completely on your own. But you might also want to consider enrolling in a fully operational license management program. This can be done in less than three months and will be tailored to the specific demands of your company.

This article was published on 17-03-2016