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7 Most Common Oracle Licensing Definition and Rules

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.

1. Application User

An Application User is an individual authorized by you to use the licensed application Programs installed on single or multiple servers, regardless of whether the individual is actively using the Programs at any given time. This metric applies to both technology and application products.

This means that even if an individual is not actively using the application, as long as they are authorized to use it, they are considered an Application User.

2. Employee

An Employee is defined as all of your full-time, part-time, and temporary employees and all of your agents, contractors, and consultants who have access to, use, or are tracked by the Programs. The number of licenses required is determined by the number of Employees, not the actual number of users. This metric applies to both Java and application products.

This means that the license requirement is based on the total number of your employees, regardless of how many are using the Programs.

3. 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. This metric applies to both technology and applications products.

This means that each individual who has been given authorization to use the Programs, regardless of their usage, is considered a Named User Plus.

4. Processor

A Processor is all processor where the Oracle Programs are installed and/or running. The number of required licenses is determined by multiplying the total number of cores of the processor by a core processor licensing factor specified on the Oracle Processor Core Factor Table. This product applies to technology, but also some applications products.

This means the license requirement is calculated based on the number of processor cores where the Oracle Programs are installed or running.

5. Application Read-Only User

An Application Read-Only User is an individual authorized by you to run only queries or reports against the application Program for which you have also acquired non-read-only licenses. This metric applies to application products.

This means that individuals who are only authorized to run queries or reports and not perform other operations are considered Application Read-Only Users.

6. Enterprise Employee

An Enterprise Employee is defined similarly to an Employee, but the number of Enterprise Employees determines the quantity of the licenses required. The number of Enterprise Employees determines the value of these Program licenses. This metric applies to application products.

This means the license requirement is based on the total number of enterprise-level employees, regardless of how many are using the Programs.

7. 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 you generate during a fiscal year. The value of these Program licenses is determined by the amount of Enterprise $M in Revenue. This metric applies to application products.

This means the license requirement is calculated based on your total revenue in millions of U.S. Dollars.

Understanding these definitions and rules is crucial for maintaining compliance with Oracle’s licensing agreements.

Reviewing your Oracle licensing agreement to understand whether you need a license for your deployment of Oracle Programs is recommended.

Author

  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.

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