Oracle Enterprise licensing – this is how it works – whitepaper

If you use Oracle software on an Enterprise License basis then Enterprise metrics will rule the legal agreement. In principle, it all is very simple. The metrics are related to an organization’s size by considering for example: Enterprise Employee, Enterprise $Million in Revenue, and $Million Revenue under Management. These metrics are independent of the real number of software users or systems on which the Oracle software is installed and/or used.  Pretty straightforward, isn’t it? Well, in reality it definitely is not!

Many companies encounter various difficulties when fulfilling their annual reporting obligations in the context of Oracle’s Enterprise software licensing model. We address them at length in our new white paper ‘Oracle Enterprise Licensing – A Detailed overview of How It Works’.

Why you should take notice

Reducing the risk of not being compliant with Oracle’s policies and contractual rules or regulations requires a clear understanding of the rationale behind Enterprise licensing. Otherwise you may be caught by the unpleasant surprise of being exposed to substantial financial and operational risk.

You certainly don’t want to be surprised during an audit. When you became an Oracle customer you have typically signed up yourself to report on an annual basis your then current usage towards Oracle and you have granted Oracle the right to conduct software license audits, if and when there is a suspicion of non-compliance.

The software licensed on the Oracle Enterprise Licensing model can vary from PeopleSoft and JD Edwards to products such as Siebel, Hyperion, Agile, Demantra or eBusiness Suite (EBS). Addressing and discussing details and issues – as we do in our white paper – will reduce the risk of noncompliance. This greatly helps to educate organizations and enable them to manage their software licenses properly. Of course it all starts with a sound, up-to-date software license administration.

What to take notice of

Oracle customers who own software licenses based on Enterprise metrics should at least take good notice of these three key parameters:

the Customer definition, to know which legal entities are allowed to make use of the software;

the Metric definition, to know how the licenses need to be counted and which parameters should be taken into account (e.g. employees, contractors, agents);

the Expansion clause, to know when you need to report the usage and how much you need to pay in case of a growth of your organization.

Make sure you have the right expertise

In coming articles, we will expand on this as well as many other software compliance issues and complexities related to the Oracle Enterprise Licensing model. 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 04-03-2016