Introduction to Oracle Licensing Definition and Rules
Oracle, a global provider of enterprise software, has a complex licensing structure that can be challenging to navigate.
Here, we break down seven of the most common Oracle license definitions and rules to help you understand how they apply to your business.
Oracle Licensing Definition and Rules
I. Application User
Definition of Application User
An Application User is an individual authorized by you to use the licensed application Programs installed on single or multiple servers. This applies regardless of whether the individual is actively using the Programs at any given time.
Explanation of How Licensing Applies Regardless of Active Use
The key aspect of the Application User license is that it applies to individuals authorized to use the software, not just those actively using it. If you authorize a person to access the application, they must be counted as users in your licensing agreement, even if they rarely or never log in.
Application of This Metric to Both Technology and Application Products
This broad licensing metric applies to Oracle’s technology products, such as databases and middleware, and application products, such as ERP and CRM systems. For compliance, it is crucial to count all authorized users, not just active ones.
III. Employee
Definition of Employee in Oracle Licensing Terms
In Oracle licensing terms, an employee includes all full-time, part-time, and temporary employees, agents, contractors, and consultants who have access to, use, or are tracked by the Programs.
Inclusion of Full-Time, Part-Time, Temporary Employees, Agents, Contractors, and Consultants
This expansive definition covers not only permanent staff but also temporary and contract workers. For licensing purposes, anyone who can access or use the licensed Oracle software or whose activities are tracked by it must be included in the count.
Explanation That Licensing Is Based on the Total Number of Employees, Not Actual Users
The number of required licenses is determined by the total number of employees, not just the number of active users. This means you must account for all individuals who could potentially use or are managed by the software, ensuring your licensing accurately reflects the total user base.
Application to Both Java and Application Products
This licensing rule applies to both Java and other Oracle application products. For example, if you use Oracle’s Java products across your organization, you must license based on the total number of employees, regardless of how many use Java regularly.
IV. Named User Plus
Definition of Named User Plus A Named User Plus is an individual authorized by you to use the Programs installed on a single server or multiple servers, regardless of whether the individual is actively using the Programs at any given time.
Clarification That Authorization, Not Active Use, Determines the License Requirement
Like the Application User license, the Named User Plus license applies to all individuals authorized to use the software, not just those actively using it. Thus, each person given access to the software must be counted for licensing purposes.
Application to Both Technology and Application Products
The Named User Plus metric applies to Oracle’s technology products, such as databases and middleware, and its application products. It ensures that all authorized users are accounted for and maintains compliance across the board.
V. Processor
Definition of Processor Licensing
In Oracle terms, processor licensing refers to all processors where the Oracle Programs are installed and/or running. The metric determines the required licenses based on the hardware’s processing power.
Calculation of Licenses Based on Processor Cores and the Oracle Processor Core Factor Table
The required licenses are calculated by multiplying the processor’s total number of cores by a core processor licensing factor specified on the Oracle Processor Core Factor Table. This table assigns different core factors to different types of processors, reflecting their relative processing power.
Application to Technology and Some Application Products
Processor licensing is primarily used for Oracle’s technology products, such as databases and middleware, but it applies to certain application products. This ensures that the licensing cost reflects the hardware’s capability to run Oracle software effectively.
VI. Application Read-Only User
Definition of Application Read-Only User,
An Application Read-Only User is authorized to run only queries or reports against the application Program for which you have also acquired non-read-only licenses.
Explanation That This Metric Applies to Individuals Running Queries or Reports Only
This license type is specific to users who only need to access data through queries or reports without making any changes or modifications to the data or the application. It is a more limited and typically less expensive option than full-user licenses.
Application to Application Products
The Application Read-Only User metric is used exclusively for application products. It allows organizations to license users who need data access for reporting purposes without incurring the higher costs associated with full-access licenses.
VII. Enterprise Employee
Definition of Enterprise Employee
An Enterprise Employee is defined similarly to an Employee but with a focus on the number of enterprise-level employees. This metric determines the number of licenses required based on the organization’s total workforce at the enterprise level.
Licensing Based on the Total Number of Enterprise-Level Employees
The number of required licenses is determined by the total number of enterprise employees, regardless of how many use the Programs. This ensures that all potential users within the enterprise are covered under the licensing agreement.
Application to Application Products
The Enterprise Employee metric is used to license application products. It provides a way to license the entire workforce under a unified metric, simplifying compliance and ensuring comprehensive coverage.
VIII. Enterprise $M in Revenue
Definition of Enterprise $M in Revenue
Enterprise $M in Revenue is defined as one million U.S. Dollars (or the equivalent amount in the applicable local currency) in all income the organization generates during a fiscal year.
Calculation of Licenses Based on Total Revenue in Millions of U.S. Dollars
The number of required licenses is calculated based on the organization’s total revenue, measured in millions of U.S. Dollars. This method aligns the software’s cost with the organization’s financial scale.
Application to Application Products
The Enterprise $M in Revenue metric is used to license application products. It ties the licensing cost to the organization’s revenue, providing a scalable way to license software that grows with the business. This approach ensures that larger organizations contribute a proportionate amount towards their software usage based on their revenue.
FAQs
What is an Application User?
An Application User is an individual authorized by you to use the licensed application programs installed on one or multiple servers, regardless of whether the individual is actively using the programs at any given time.
How does Oracle define an Employee?
An Employee includes all full-time, part-time, and temporary employees, agents, contractors, and consultants who have access to, use, or are tracked by the programs. The license requirement is based on the total number of employees, not actual users.
What is a Named User Plus?
A Named User Plus is authorized to use the programs installed on a single server or multiple servers, regardless of whether the individual actively uses the programs at any given time.
How are Processor licenses calculated?
Processor licenses are determined by multiplying the total number of processor cores by a core processor licensing factor specified on the Oracle Processor Core Factor Table. This applies to technology and some application products.
Who qualifies as an Application Read-Only User?
An Application Read-Only User is authorized to run only queries or reports against the application program for which you have also acquired non-read-only licenses.
What defines an Enterprise Employee?
An Enterprise Employee is defined similarly to an Employee. Still, the number of licenses required is determined by the number of enterprise-level employees, regardless of how many use the programs.
What is Enterprise $M in Revenue?
Enterprise $M in Revenue is one million U.S. Dollars in all income generated during a fiscal year. The number of licenses required is based on the organization’s total revenue, measured in millions of U.S. Dollars.
Does an Application User license apply if the user is not actively using the program?
Yes, as long as the individual is authorized to use the licensed application programs, they are considered an Application User, regardless of active usage.
Are contractors and consultants included in the Employee definition?
Yes, Oracle’s definition of an Employee includes agents, contractors, and consultants who have access to or use the programs.
What is the difference between a Named User and a Named User Plus?
There is no difference; the terms are used interchangeably. Both refer to an individual authorized to use the programs installed on one or multiple servers, regardless of active usage.
How does Oracle’s Processor Core Factor Table affect licensing?
The Processor Core Factor Table assigns different core factors to different types of processors. This factor is multiplied by the total number of cores to determine the required licenses.
Can an Application Read-Only User perform any operations other than queries or reports?
No, an Application Read-Only User is only authorized to run queries or reports against the application program and cannot perform other operations.
Does the Enterprise Employee metric apply to all Oracle products?
The Enterprise Employee metric applies to application products and is used to license the total workforce at the enterprise level.
How is the license requirement calculated for Enterprise $M in Revenue?
The license requirement is calculated based on the organization’s total revenue in millions of U.S. Dollars during a fiscal year.
