- User vs. Enterprise Metrics: Oracle EBS on-premises licenses are typically either user-based (each named individual per module) or enterprise-based (tied to company size, such as revenue or employee count). Legacy metrics (e.g., concurrent or professional user licenses) are still present in older contracts but are no longer sold; therefore, their terms require careful interpretation.
- Custom Bundles: Oracle’s Custom Application Suite (CAS) licensing allows customers to bundle multiple EBS modules under a single agreement. This can reduce cost and simplify terms, but it demands upfront negotiation and locks you into a fixed set of modules (dropping one later isn’t easy).
- Shared Responsibilities: Effective EBS license management requires coordination between IT asset managers, EBS administrators, procurement, and business owners. Internal teams must track user access, enforce policies (such as no shared accounts and timely de-provisioning), and prepare for audits. Meanwhile, Oracle’s License Management Services (LMS) will conduct compliance audits if triggered.
- Key Modules & Prerequisites: Common EBS modules span Financials, Procurement, Supply Chain, HR, Projects, and CRM. Each module is licensed separately. Many have prerequisites – e.g., Sourcing and iProcurement both require Oracle Purchasing licenses – so you must license the full chain of dependent modules to comply.
- Contract “Gotchas”: Oracle’s EBS agreements include strict clauses favoring the vendor. The fine print imposes “all or nothing” rules (e.g., enterprise metrics must cover the entire organization, with no cost reduction if the scale drops) and restricted-use stipulations (the included database license is only for EBS data). Historical license terms can be traps if not understood correctly, so review legacy contracts carefully.
- Audit Preparation: Proactively audit EBS usage. Use Oracle’s scripts and reports to enumerate all users per module (including occasionally used and read-only accounts) and measure licensed transaction metrics. Regularly end-date unused accounts and confirm that required base modules are licensed. Be cautious during Oracle audits – provide accurate data but avoid disclosing unnecessary information, and verify Oracle’s findings against your own records.
Guide to Oracle EBS Licensing for ITAM Professionals
Note:
This advisory guide focuses on on-premises Oracle E-Business Suite (EBS) licensing.
It covers current and legacy licensing models, how custom module bundles work, roles and responsibilities in managing licenses, commonly licensed modules and their prerequisites, key contract implications, and methods to audit EBS usage.
The tone is independent and customer-focused, highlighting areas where Oracle’s terms may disadvantage customers.
Read Oracle Licensing Guide for CIOs and Procurement.
License Metrics for Oracle EBS
Oracle EBS has unique licensing metrics compared to Oracle’s technology products. Instead of processors or server-based metrics, EBS primarily uses user and enterprise metrics to measure usage.
Understanding these metrics is fundamental for IT Asset Management (ITAM) professionals to ensure compliance and optimize license spend.
Definition:
An Application User can use a specific EBS application module. In practice, this works like a named-user license for that module: every person with login access to a given EBS module needs a license.
It doesn’t matter if the user is actively using it at a given moment; authorization alone counts. Even read-only inquiry users or infrequent users must be counted if they have an account.
Per-Module Counting:
Crucially, licenses are per user, per module. By default, no blanket “EBS user” license covers all modules. If one employee needs access to three modules (say General Ledger, Purchasing, and Project Costing), you must have three licenses – one for that user for each module.
Oracle historically offered a “suite” or primary usage license that avoided double-counting across core modules, but modern agreements treat each module separately. Always plan licenses for each module a user will access.
Implications:
This model offers precision but requires diligent user management. ITAM teams should maintain an up-to-date list of EBS users by module. When someone leaves or changes roles, their EBS accounts for those modules should be promptly end-dated (deactivated) to free up that license capacity.
Also, no shared logins are allowed to reduce license counts; Oracle’s policies require each human user to have their license, even if multiple people share a single account (a security risk and a license violation).
Example:
If 50 employees use Oracle Financials modules and 20 also use Oracle Purchasing, you need 50 Financials user licenses and 20 Purchasing user licenses to cover everyone. Managers who only approve transactions in a module also count. It’s a one-to-one count of each unique person per module.
Read our Oracle EBS licensing FAQ.
Enterprise Metrics (Revenue & Employee-Based Licensing)
Oracle also offers enterprise-wide metrics that tie licensing to the organization’s size rather than individual users.
These are often presented for large deployments to provide unlimited usage within a defined scope:
- Revenue Metric (Per $ Million in Revenue): This model bases the license on the company’s gross revenue (often measured in $M). For example, an EBS license might be priced per $1 million of annual revenue. All users in the company can utilize the software under this metric – you no longer need to count individual users. Instead, the cost scales with your top-line revenue. If your revenue grows, you must report that growth and purchase additional licenses for the higher tier. Notably, if revenue decreases, there’s typically no provision for reducing license counts or cost – you remain committed to at least the initial revenue band. This one-way ratchet (pay more if you grow, but no refund if you shrink) is a vendor-favorable clause. In audits, Oracle may request financial statements to verify that actual revenue aligns with the licensed level.
- Employee Metric (Per Employee Count): Similar to the revenue metric, this model is based on your organization’s total number of employees. You pay for an EBS module based on headcount, typically counting all full-time equivalent internal employees. This is commonly used for Human Capital Management (HCM) modules or enterprise self-service applications, as all employees benefit from the system. For instance, Oracle HR or Self-Service HR might be licensed at a rate per employee. If you have 1,000 employees, you buy 1,000 employee licenses for that module. Every employee is entitled to use it (e.g., to view payslips or update details), and you don’t need to track named accounts. As with revenue, growth in employee numbers typically requires a purchase of additional licenses, while reductions won’t credit back what you’ve paid. Defining who counts as an “employee” in the contract is vital – usually all staff (and sometimes unique contractors) within the legal entity or enterprise scope. ITAM should liaise with HR to monitor headcount against the licensed number, because exceeding it (even unintentionally) puts you out of compliance.
Enterprise metrics eliminate the overhead of managing individual user licenses and can accommodate broad usage, but they shift the risk of growth to the customer.
These metrics make sense when tracking individual users is impractical (e.g., tens of thousands or highly dynamic user populations) or when Oracle EBS is used pervasively across a large enterprise.
Ensure that any enterprise metric deal clearly defines the scope (e.g., which subsidiaries or divisions are included) and has a mechanism to true-up growth.
If your company expands via acquisition, those new employees or revenue are usually expected to be counted and licensed, sometimes immediately triggering a contract expansion.
Read Oracle E-Business Suite – App User License Management.
Legacy Metrics (Concurrent, Professional, and Other Older Models
Earlier Oracle EBS licenses used some metrics that are no longer sold today, but may still appear in legacy contracts:
- Concurrent User: This metric capped the number of simultaneous users logged into the system at any given time, regardless of the total number of named users. For example, 50 Concurrent Users allowed any 50 people to be on EBS concurrently, even if 100 total had accounts. Oracle has largely retired this metric and moved to application user licensing. If you still have a Concurrent User license from the past, be aware that Oracle might push to convert it to modern metrics if you make changes. Managing compliance under concurrent use can be tricky (you’d need to monitor peak usage), and Oracle’s audit scripts can capture peak login counts. Still, new purchases on this metric are generally not possible.
- Named User “Professional” vs “Self-Service (Employee)”: In older EBS versions, Oracle distinguished Professional Users (full access users of core modules) and Employee Users (more limited, often self-service or HR-only users). A Professional User license was broader, covering multiple applications for an internal user, whereas an Employee User license applied to a subset of modules (e.g., just HR self-service functions). Notably, if a person qualified as both (using both full and self-service functionality), Oracle’s policy was to count them as a Professional User (the higher tier). These legacy definitions often confuse organizations – some assumed an Employee User license covered any use by employees, which was not the case; it only covered specified modules (such as internal HR apps) as per the contract. Today, Oracle no longer sells “Professional User” metrics for EBS, having standardized on Application User and enterprise metrics. However, you may still encounter these terms in contracts from the 2000s. If so, review the ordering document to determine which modules each type of user can access, thereby avoiding compliance gaps.
- Other Unit-Based Metrics: A few EBS modules have alternative licensing metrics tied to usage volume or business metrics, rather than user counts. For example, Oracle Internet Expenses (iExpenses) can be licensed based on the number of expense reports processed annually, rather than the number of users. Oracle Order Management (if feeding orders from external sources) can use an Order Lines metric (counting electronic order lines processed) for those external transactions. Similarly, some manufacturing modules have offered metrics, such as dollars of Cost of Goods Sold (COGS), for shop floor management in large enterprises. These are niche and negotiated options that tie cost to transaction volume or output, rather than headcount. They can be useful in specific scenarios (e.g., licensing iExpenses for 10,000 expense reports per year might be cheaper than licensing every employee if only a portion of employees file expenses). If you use such metrics, ensure that you can measure the actual usage (e.g., the number of expense reports submitted, the number of order lines processed) and stay within the licensed limits. Also, note that switching a module from a user-based metric to a transaction metric (or vice versa) usually requires a contract amendment or new purchase; Oracle won’t automatically adjust it if your usage pattern changes mid-stream.
In summary, most EBS on-premise licensing today involves counting users per module (Application User) or licensing the entire enterprise based on a size metric (such as revenue or employees), with few exceptions.
Legacy metrics from older agreements should be identified and carefully understood in their original terms – don’t assume their coverage without checking the contract fine print, as these older metrics often came with specific limitations.
Read about EBS Read-Only licensing.
Custom Application Bundles (Oracle’s Custom Application Suite)
Standard EBS licensing is module-by-module, but Oracle also allows custom bundling of multiple modules under a single license umbrella.
This is officially known as the Custom Application Suite (CAS) licensing, also referred to as an EBS custom bundle.
What Are Custom Bundles?
In a CAS agreement, a customer selects a set of EBS modules (often across different product families), and Oracle creates a unique bundled license SKU for that combination.
The bundle is assigned a custom name in your contract (for example, “ACME Corp EBS Suite” license) and typically comes with an aggregate price that covers all included modules. It packages multiple applications into a single, tailored suite license that fits the customer’s needs.
How Licensing Works:
Custom bundles are typically licensed by a high-level metric, such as an Application User or Enterprise metric, which is applied to the bundle. For instance, instead of buying 100 Financials user licenses and 100 Procurement user licenses separately, an organization might negotiate a bundle of Financials + Procurement modules for 100 Application Users each, under one line item.
The exact terms (such as which modules, the number of users, or the specific enterprise metric) are defined in the ordering document.
Importantly, a CAS bundle still requires you to count usage in whatever chosen metric – it’s not unlimited, just unified. Since you’re committing to a broader footprint, Oracle may offer a discount on bundled pricing compared to buying modules à la carte.
Advantages:
- Cost Efficiency: Bundling can come with volume discounts or more favorable pricing. If you require a comprehensive suite of modules (such as Financials, Supply Chain, and HR) across the enterprise, a custom suite may offer a more cost-effective solution than licensing each one separately.
- Simplified Management: A single bundle license encompasses a unified set of terms and a single metric to track for all included modules. Support renewal is also simplified to one line item. Handling one contract that covers multiple modules can be administratively easier than managing many small ones.
- Unified Terms: All modules in the bundle share the same conditions (metric, quantity, term), potentially reducing confusion. For example, if the bundle is enterprise-wide, you don’t have to worry about individual user counts for each module – any authorized user is covered across those bundled modules as long as the enterprise metric conditions are met.
Challenges and Risks:
- Complex Negotiation: Custom suites are negotiated deals, often requiring careful consideration of which modules to include and forecasting your needs. The upfront negotiation can be complex – you must clearly define your requirements and growth plans so the bundle is sized right. Oracle’s sales team may push for including more modules or higher metrics than you initially need, so you must advocate for what’s necessary.
- Rigidity: Once set, the bundle is inflexible. You generally can’t drop a module from the bundle halfway through or reduce the metric if one module becomes less used. For example, if your custom suite included Oracle Projects but your company later stops using Projects, you will still be charged for it as part of the bundle. Partial termination or reduction is usually not allowed until perhaps a renewal point, as the bundle is sold as a single, indivisible license.
- Audit Complexity: During an audit, Oracle will check that your usage of each included module doesn’t exceed the bundle’s licensed metric. If it’s a user-based bundle, you must ensure that the total number of users across all included modules stays within the licensed count (or as defined in the contract). Sometimes, bundles allow users to access all included modules freely (similar to a suite user concept), simplifying compliance. Still, you need to verify if that’s the case or if the metric applies per module within the bundle.
- Naming and Tracking: With a unique bundle name, internal teams must map that to actual modules in use. ITAM should document exactly which standard modules the custom license covers to avoid accidentally using something that is not included. Oracle will treat usage of any module not listed in the bundle as unlicensed, even if you assumed it was covered under a broad suite name.
When to Consider CAS:
Custom Application Suite licensing is best for organizations that plan to deploy multiple EBS modules extensively and want a consolidated deal. Suppose you have a stable, long-term roadmap for EBS (e.g., you know you’ll use Financials, Procurement, and HR for the foreseeable future across the enterprise).
In that case, bundling can lock in predictable costs and remove the hassle of incremental licensing every time a new department goes live. It’s also common in large Oracle EBS license negotiations where Oracle might propose an “enterprise agreement”.
CAS can be a component, essentially a fixed price for a broad usage grant. Approach these bundles cautiously: ensure the bundle includes only what you need and aligns with your organizational structure, and scrutinize the terms for any hidden restrictions.
Always review the fine print on custom deals. For instance, Oracle might include a clause that an automatic uplift kicks in if you exceed a certain threshold (users or employees). Understanding and documenting all such terms is critical.
Roles and Responsibilities in EBS Licensing and Audits
Managing Oracle EBS licenses is a cross-disciplinary effort. It’s not just an ITAM concern – it involves technical administrators, procurement, and legal, and sometimes executive oversight. Clarity in roles and responsibilities helps ensure nothing falls through the cracks, especially when preparing for or undergoing an Oracle audit.
IT Asset Manager / License Compliance Manager:
This role (likely you, the reader) is well-suited for tracking entitlements versus usage. Responsibilities include maintaining a central repository of Oracle EBS licenses owned (modules, metrics, quantities, contract numbers) and tracking actual usage data.
The ITAM manager should regularly reconcile the number of users, employees, or transactions against what’s licensed and flag any discrepancies early.
They also need to stay educated on Oracle’s licensing policies and any changes to the rules. In an audit, the ITAM or license manager typically coordinates the response, gathers required data, and serves as the primary interface with Oracle’s auditors. It’s their job to ensure the organization can defend its licensing position with evidence.
EBS System Administrator / DBA:
The E-Business Suite admin (and supporting DBAs) hold the keys to the usage data. They manage user accounts, responsibilities (role assignments), and can run the necessary reports or scripts to extract usage information.
They are responsible for implementing policies, such as end-dating user accounts that are no longer needed (to prevent dormant accounts from counting towards license usage).
They also need to ensure that any customizations or integrations in the EBS environment are made by license restrictions (for example, not creating custom schemas or integrations that violate the “restricted use” terms of the included database license—more on that later).
During an audit, the EBS administrator will likely be tasked with running Oracle’s License Management Services (LMS) collection scripts on the EBS system and databases; therefore, they should be familiar with this process and the data it produces.
Procurement and Legal Teams:
These teams are custodians of the contract. Procurement negotiates the purchase and must capture all the agreed terms in writing. They should ensure that any special conditions (such as a custom bundle or an exceptional metric definition) are properly documented.
A legal review of Oracle’s ordering documents and license agreements is crucial to identify onerous clauses before signing. Key considerations include audit rights, notice periods, and non-standard terms that should be thoroughly understood.
After purchase, procurement/contract managers should keep the contracts accessible and inform ITAM of any obligations (e.g., annual reporting requirements for enterprise metrics, or limits on transferability).
If Oracle initiates an audit, legal should review communications, assist in negotiating NDA terms for sharing data, and potentially push back on the audit scope if Oracle overreaches. Legal’s role is to ensure that Oracle adheres to the contract terms during audits and any discussions related to compliance or resolution.
Executive Sponsor / Business Owners:
High-level support is often needed to enforce compliance measures. For instance, end-dating user accounts or limiting access might require buy-in from business unit leaders.
An executive sponsor (like a CIO or CFO) can establish that software compliance is mandatory and empower the ITAM team to make necessary changes (such as denying unlicensed access requests). In an audit scenario, an executive may need to sign off on formal audit responses or settlement terms.
They should be briefed on the risks (financial and operational) of non-compliance. Additionally, business owners of the EBS modules (like the Finance director for Financial modules and the HR director for HCM modules) have a role:
They should periodically review who in their team needs access and approve removing those who don’t. They’re also key allies in identifying unused modules or opportunities to reduce license scope if certain functionality isn’t needed, which can save costs.
Oracle’s Role (LMS and Account Teams):
While not part of the customer’s organization, it’s essential to understand Oracle’s perspective on license management. Oracle License Management Services (now often referred to as GLAS – Global License Advisory Services) is the division responsible for conducting audits and license reviews.
They operate separately from Oracle sales, although findings often inform sales efforts. During an audit, LMS will request data (often by having you run scripts) and produce an audit report of compliance gaps.
They are effectively auditors on behalf of the vendor, so treat them professionally but cautiously. Oracle account managers may also propose “trust but verify” license reviews or offer to help you optimize licenses – remember, their goal is often to sell more or ensure you’re fully licensed, so any “optimization” advice might be angled toward Oracle’s benefit.
Always validate any Oracle-provided analysis with your own. If Oracle offers to assist with an internal review, you may consider involving a third-party advisor to ensure you receive an unbiased perspective.
In summary, assign clear responsibilities: ITAM tracks and reports, Sys Admin gathers data and enforces technical controls, Procurement/Legal guards the contract and handles negotiations, and management provides support and oversight.
When everyone knows their role, your organization can present a united front and well-prepared stance, whether it’s routine compliance maintenance or facing a formal audit.
Overview of Commonly Licensed EBS Modules
Oracle E-Business Suite is a broad ERP/CRM suite, comprising hundreds of modules. Most organizations license only the subset of modules relevant to their specific business needs.
It’s useful for ITAM professionals to know the major module families and any special licensing notes about them.
Below is an overview of the most commonly licensed EBS modules (grouped by function):
- Financials: This family includes General Ledger (GL), Accounts Payable (AP), Accounts Receivable (AR), Fixed Assets, and Cash Management, among others. These core finance modules (often collectively called “Oracle Financials”) manage accounting and financial processes. They are typically licensed per Application User – i.e., the finance and accounting team members who use them. If your company uses multiple Financials modules, note that each module might require its own user license count (unless you negotiated a bundled financials suite). Financial modules typically don’t employ unusual alternative metrics; instead, they utilize standard user or enterprise metrics. One thing to note: if you have managers or auditors who only occasionally run inquiries or reports in Financials, they still count as users, even if they do not use the system frequently. Best practice is to set up read-only inquiry responsibilities for auditors and remember that those accounts also require licenses.
- Procurement and Supply Chain: Key modules here include Oracle Purchasing (the base procurement module), Oracle iProcurement (self-service requisitioning), Oracle Sourcing (for RFx and supplier bids), Inventory, Order Management, Warehouse Management, and Advanced Supply Chain Planning, among others. Most of these are licensed by Application User (e.g., buyers for Purchasing, supply chain planners for Inventory and Order Management). However, note the special cases:
- Purchasing vs. Self-Service Modules: Modules such as iProcurement and Sourcing are essentially extensions of the core Purchasing system. Oracle’s policy is that you must license the prerequisite (Purchasing) if you license the add-on. For example, you cannot just buy iProcurement alone; you need a license for Purchasing because iProcurement relies on it for creating POs and using supplier data. The same applies to sourcing – it requires Purchasing as its foundation. If you deploy a self-service procurement module, the underlying purchasing module is licensed for at least as many users (typically, the employee self-service users might be covered under an employee metric, but the organization still needs a purchasing license).
- Order Management: Typically user-based (sales order entry staff). If orders also come in electronically (via EDI, web storefront, etc.), Oracle has an Electronic Order Lines metric to cover those non-user-driven order entries. For instance, 100,000 electronic order lines per year could be licensed separately. If your business model involves a high volume of web orders flowing into EBS, watch for this requirement – those transactions aren’t “free” just because no human typed them in, unless you have that licensed.
- Inventory & Warehouse Management: This is mostly user-based (inventory controllers, warehouse managers). There is no unique metric, though very large enterprises might consider a transaction metric if they deal with huge automated warehouses (this is rare).
- Supply Chain Planning: Modules such as Advanced Supply Chain Planning (ASCP) or Demantra Demand Management may require licensing core modules, including Inventory, Order Management, or Bills of Material. These modules are also user-based or sometimes processor-based (some planning engines were previously licensed by CPU, but user-based licensing is more common now).
- Human Capital Management (HCM): EBS encompasses Core HR (workforce administration), Payroll, Oracle Self-Service HR, Oracle Learning Management, iRecruitment, and other related systems. HCM modules often use the Employee metric because every employee’s data is in the system. For example, Oracle HR may be sold on a per-employee basis. Payroll may also be paid on a per-employee or hourly basis. Each employee performs self-service HR (where employees can update their info or benefits). If you are using these, ensure that you have defined an accurate scope for the employee count. If you have 5,000 employees but only 3,000 use the system, Oracle usually still charges for all 5,000 on the rationale that all employees benefit from HR systems. For some HR modules, Oracle might offer both metrics – e.g., per employee or user (for just the HR staff). Choose the one that makes sense: large companies often go per employee for broad modules, whereas smaller companies might just license the HR team as users if they directly use the software. Additionally, if you have non-employee external users (such as contractors accessing a self-service portal), clarify whether they need to be included in the count; typically, the “employee count” excludes identified contractors as defined in the contract.
- Project Portfolio Management: Modules such as Oracle Projects (Project Costing, Project Billing) and Project Management handle project accounting and tracking. These tend to be user-based (project managers, accountants managing project finances). There’s no special enterprise metric here; you count each person who needs to work with project records. A nuance: Sometimes companies license a limited number of project user licenses for the finance team, but then have a broad user base of employees charging time for projects. An employee metric or a timesheet volume metric could be invoked if time entry is done via a self-service module. It’s important to distinguish who needs full project module access (usually a smaller group) versus who just needs to submit time or expenses to projects (which might be handled via another module like iExpenses or Time and Labor – those have their metrics).
- Customer Relationship Management (CRM): EBS also has CRM modules (Oracle Sales, Oracle Field Service, Marketing, etc.), though these are less common nowadays since Oracle acquired Siebel and pushes its Fusion CRM. CRM modules are typically licensed per application user (sales reps and service agents counted per user) if they are in use. Some Oracle EBS CRM pieces (like iSupport self-service support portals) could have an external user element – for instance, allowing your customers to log support tickets. Oracle often permits external users, such as customers or suppliers, to access certain self-service modules without requiring a separate license for each external party. For example, the iSupplier Portal (a supplier-facing module) doesn’t require buying licenses for each supplier; it’s included as a benefit of licensing the internal users. Always verify these clauses – Oracle’s license definitions document usually lists which modules include external user access rights with your internal licenses.
The above are just highlights. Oracle EBS has hundreds of modules (Financials alone has sub-modules for different regions and industries).
As an ITAM professional, focus on your organization’s modules in its contract. Each module’s usage must align with entitlements. Maintain a simple table or spreadsheet of:
- Module Name (e.g., Oracle Accounts Payable)
- Module Family (Financials)
- Metric & Quantity (e.g., 50 Application Users or Enterprise 5,000 Employees)
- Prerequisites licensed (yes/no, list any required base module)
- Current usage (e.g., 45 active users, 4,800 active employees, etc.)
- Module Owner (business contact who can validate who needs it)
This inventory will be invaluable for compliance tracking and during audits.
(Common EBS module families include Financials, Human Resources, Supply Chain Management, Customer Relationship Management, and Project Management. Each focuses on specific business processes, and Oracle allows licensing them individually as needed rather than forcing purchase of the whole suite.)
Prerequisites: Technical and Commercial Pre-Conditions
One tricky aspect of Oracle EBS licensing is the web of prerequisites—both in terms of functionality (you need module A to use module B) and technology (the software stack underlying EBS has its own licensing rules).
Failing to account for these prerequisites can lead to non-compliance even if you have licenses for the main modules.
Functional Module Prerequisites
Oracle often requires that if you license an “add-on” module, you also license the base module on which it depends. The logic is simple: you can’t effectively use the add-on without the foundation, so the foundation must be licensed.
We’ve already mentioned some examples in Procurement: Oracle Sourcing and Oracle Services Procurement require Oracle Purchasing to be licensed.
Oracle iProcurement is a web self-service layer on purchasing that requires purchasing licenses. Oracle’s price list footnotes usually spell out these dependencies, but they can be easy to miss if you’re just looking at the product name.
Always check Oracle’s official licensing guide or footnotes for any module you plan to buy to see if there are prerequisites.
Other common prerequisites:
- Procurement Contracts (if part of EBS) typically require a Purchasing Department.
- Services Procurement (contingent labor module) requires the Purchasing department.
- Project Procurement (if using, likely requires both Projects and Purchasing).
- Advanced Supply Chain Planning (ASCP) requires the presence of core supply chain modules, such as Inventory and Order Management.
- A configurator (product configurator) might require Order Management.
- Incentive Compensation (if part of EBS CRM) might require Oracle Sales.
The general rule from Oracle: if Module B relies on data/functions of Module A, you are expected to license A as well. Using B without A would be considered misuse in an audit. This also applies if you try to use a technical component of EBS separately.
For example, Oracle Workflow or Oracle Application Object Library outside of the context of the EBS modules would not be allowed unless it’s part of the licensed suite.
Action for ITAM:
Keep track of which modules you have and ensure none secretly require another that you didn’t purchase. If a business unit requests a new module, verify its prerequisites and incorporate them into the cost and compliance considerations.
It’s safer to assume an add-on needs its base and verify accordingly than to be surprised later. Oracle’s contracts and ordering documents sometimes explicitly state that a prerequisite license is required; other times, it’s implied from policy documents. Ask Oracle (in writing) or consult the price list notes when in doubt.
Technical Prerequisites and “Restricted Use” Technology
Oracle EBS runs on Oracle technology: namely, an Oracle Database and a WebLogic application server (plus some additional components like Oracle Reports, Forms, etc.).
When you purchase EBS application licenses, Oracle includes a restricted-use license for the necessary tech stack (database and middleware) to run EBS, which is only applicable to the EBS environment.
This is a significant benefit – you typically do not need to purchase a separate full Oracle Database license to host the EBS database, as long as the database is only used for EBS data.
However, this inclusion comes with strict conditions:
- The database and other tech components can only support the licensed EBS applications. You cannot use the included Oracle Database to create and store additional non-Oracle E-Business Suite (EBS) schemas or applications. For example, you can’t say, “Well, we have an Oracle DB under EBS, so let’s also put a separate custom app’s schema on it,” which would violate the restricted use clause.
- Similarly, the WebLogic (Oracle Fusion Middleware) that comes with EBS can’t be used to deploy unrelated custom applications. It’s there just for the EBS forms, reports, and interfaces.
- If you do choose to significantly extend EBS, be careful. Minor customizations within the EBS schema (like custom reports or minor extensions that use Oracle’s provided extension framework) are fine under the included license. However, if your team builds a separate application and integrates it with EBS, or if you heavily modify EBS beyond its standard capabilities, you may trigger the need for full-use licenses of the underlying technology. Oracle’s policies state that if you “extend or customize beyond the standard,” the free ride ends, and you must license the database or middleware for full use. A classic example: a company added a custom module to EBS with its database tables for bespoke functionality. Oracle determined this went beyond EBS’s standard use; thus, the database now supporting both standard and custom schemas required a full DB license (which was a surprise cost).
- There is also typically a restriction that the included database license can only be used with the specific EBS modules you’ve licensed. If you start using an unlicensed module in that same database, you’re not only out of compliance with the module but arguably misusing the database license.
What about technical prerequisites, such as server OS or third-party software? Those are outside Oracle’s scope, but ensure you have proper licenses for any non-Oracle components EBS might use (like if you integrate with a third-party reporting tool or something, that’s on you to license separately).
Summary of Tech Pre-conditions:
Oracle gives you the infrastructure to run EBS, but with golden handcuffs. Stay within EBS’s lanes on that infrastructure. If you need to perform tasks outside of EBS’s provided functionality, consider installing a separate database (with a proper license) rather than repurposing the EBS database.
Keep the EBS environment dedicated to EBS usage. This way, Oracle LMS will find your tech usage aligned with the EBS license expectations during an audit.
They will specifically check for extra schemas or applications in the EBS database, so it’s wise to avoid that or get licensed if you must do it.
Commercial Pre-Conditions
Aside from functional and technical prerequisites, also be aware of any commercial constraints in your license agreement.
- Minimum License Quantities: Oracle may have minimum purchase requirements for specific modules or metrics. For example, a module might require a minimum of 10 user licenses, even if you only have eight users – you’d still have to buy 10 as a floor. An enterprise metric deal might require a minimum fee (e.g., an enterprise license for a company of up to X size, with a minimum fee of $Y). Check if your contract or Oracle’s ordering document mentions any such minimums.
- Territorial/Entity Scope: Ensure the license scope (including the legal entities and geographies) is clearly defined. If your EBS usage expands to a new subsidiary or data center in another country, confirm that’s allowed under your existing license or if you need to extend the license scope. Oracle licenses are typically enterprise-wide for the customer, but if you acquired a new company, that new entity’s usage may not automatically be covered until you formally transfer or include them in the license. The contract may require you to notify Oracle of acquisitions (this can be specified in the Terms and Conditions).
- Supported Metrics Only: Oracle might restrict mixing metrics for the same module. For instance, you can’t have half your Financials users on Application User licenses and another batch on an Employee metric for the same module – you must pick one metric per module. However, you could conceivably license different modules with different metrics (e.g., Financials by user, HR by employee count) if it makes sense, as long as each module only uses one metric at a time. Be cautious when trying to change metrics: Oracle typically requires purchasing a new license or a conversion to switch from one metric to another (they won’t simply allow you to count differently on a whim).
- Expiration/Term (if not perpetual): Most EBS licenses are sold as perpetual, but if you have any term-based licenses (for example, some old contracts or special deals might be 5-year term licenses or “hosted only” agreements), diary their end dates. A term license requires renewal or cessation of use after the term. It’s rare in EBS, but check your paperwork to ensure all licenses are perpetual unless stated otherwise.
- Bundling Terms: If you negotiated a custom bundle, be aware of any unique terms that may be included (for example, Oracle sometimes includes an “uplift clause” that triggers an automatic increase in license fees if you exceed a certain number of users or a revenue threshold).
- Third-Party Access: If you plan to have outsourcers or partners use your EBS system (say, you outsource some business process, and those contractor personnel will log into your EBS), ensure your license allows it. Oracle licenses are for internal use, and giving access to third parties (even contractors) is generally allowed only “for your internal business operations.” If a third party uses your EBS to provide services to another company, that’s not allowed without an Oracle “hosting” amendment or license. This usually isn’t an issue unless you’re an outsourcer or software provider. Still, it’s worth noting: if an external contractor operates your EBS system for you, it’s fine, but they can’t use it as a service platform for multiple clients under your license.
License Agreement Implications: Fine Print, Pitfalls, and Legacy Traps
Oracle’s license agreements are infamous for their dense fine print.
ITAM professionals should review the contract and understand how certain clauses have historically caused issues for customers.
Here are key license agreement implications and common pitfalls to watch:
- Unlimited but Not Really: Enterprise-wide metrics (such as revenue per employee) give the impression of unlimited usage, but the fine print enforces your commitments. As discussed, if you grow beyond the initial licensed metric (i.e., more revenue or headcount than you paid for), you are contractually obligated to true-up (i.e., buy more). Oracle often requires prompt notification of growth, which may occur annually. On the other hand, you’re stuck with the higher count even if you downsize. Oracle will not voluntarily reduce your fees if your company shrinks or if not all employees use the software. That initial number becomes a minimum. This is a vendor-favorable aspect: the risk of over-buying is on you, while Oracle protects its revenue. Plan carefully when entering an enterprise deal – err on the side of a realistic baseline and understand the growth triggers. Some contracts allow for a buffer or delayed true-up, but these must be negotiated. And always report accurately if required; Oracle can verify public financials to catch unreported growth.
- Legacy License Definitions: If you have old Oracle EBS licenses (from the 1990s or early 2000s), their terms are still supported, but the definitions may be outdated and arcane. For instance, a “Professional User” license from 2001 might list specific included modules. Don’t assume it covers new modules or everything in that category. Many customers have been misled into thinking that an old license entitled them to broader usage than it did. Always refer to the original ordering document. If it’s unclear, ask Oracle (or an independent expert) for an interpretation in writing. If they sense confusion, Oracle sales might try to upsell you, so come in armed with the exact contract language. Another trap: older “Concurrent Device” licenses (if you see that term) were tied to physical terminals or machines rather than users – clearly outdated now, but if still in use, make sure you limit access per the terms (practically, it might be impossible to enforce device-based limits in modern environments, which Oracle could flag in an audit).
- Non-Production Usage: Oracle’s contracts often delineate that the licenses you bought cover production use. Non-production environments (dev, test, staging) are generally permitted as long as they are used solely for your internal purposes with no additional charge. Oracle typically allows using the software on any number of test/dev instances as long as it’s for licensee’s internal use and not for disaster recovery/failover beyond what’s permitted. Be mindful of not accidentally using a “free” environment in ways not allowed (for example, using a test EBS environment for training external users, which might violate the internal use clause). Also ensure any DR (disaster recovery) environment use follows Oracle’s policies (Oracle often allows one failover instance for free if it’s truly cold standby and used less than 10 days a year, etc., although that policy is more documented for database licenses – for EBS, the same logic would require the DR EBS not be actively used except in an actual disaster or periodic test within limits).
- Upgrades and Updates: With a perpetual license, you have the right to receive new versions of EBS as long as you continue to pay for support. However, if you lapse support, you lose the right to updates (and the ability to upgrade to, for example, the latest 12.2 version). This isn’t a “compliance” issue per se (using old software is fine with a perpetual license), but being unable to apply patches or upgrade can become a security and support risk. Some companies try to save money by dropping support for EBS if they consider it “stable.” Still, Oracle imposes heavy penalties if you later want to reinstate support, typically back support fees plus a 50% penalty on top of what you skipped. Dropping support, expecting to rejoin later at a lower cost, is a trap. Suppose you don’t need Oracle’s support (e.g., EBS is being decommissioned soon). In that case, you can do it, but going without support means no legal updates or patches (including tax and regulatory updates for Financials and Payroll, which can be critical). Weigh the risks before ending support on any active EBS licenses.
- Audit Clause and Process: Oracle license agreements grant Oracle the right to audit your usage (usually with 45 days’ notice, though the exact notice period can vary), and you are obligated to cooperate and provide reasonable assistance/information. This clause is standard, but how it’s executed can catch you off guard. Oracle’s auditors (LMS) often ask you to run their scripts or provide data dumps. Note: if your contract is old, it likely doesn’t explicitly mention running Oracle’s scripts – it just says you’ll provide information to verify compliance. That means you have some leeway in how to provide the data. A common pitfall is blindly running whatever Oracle sends you on all your systems. Those scripts might collect more data than necessary or include info you’re not obliged to share (for example, hardware configurations unrelated to EBS user counts). It’s within your rights to clarify the scope and negotiate alternative methods (such as providing a list of users and responsibilities from your system, instead of raw database extracts). Always review the script output yourself before sending it to Oracle to ensure it’s accurate and complete, and nothing more. Engage your legal team to manage communications; they can help limit the scope to contractually required info and ensure an NDA is in place (Oracle LMS usually provides one, protecting sensitive data you share). The key is to cooperate, but on your terms as allowed. If Oracle requests something unusual (such as access to financial records for a revenue-based license audit), ensure that it’s truly required and within scope (for example, in an enterprise metric audit, it may be). If you are unsure, seek independent advice – once you submit data, you cannot retract it, and Oracle will interpret it to their advantage.
- Third-Party Use and Outsourcing Clauses: As mentioned earlier, using Oracle programs to benefit third parties (other than your wholly owned subsidiaries or internal use) is prohibited under standard terms. Suppose you are in a scenario where you provide services using EBS (such as a shared services center serving external clients). You’d need a specific contract amendment (like Oracle’s “Hosting” agreement or MSP licensing). Also, if you outsource your EBS operations to a third-party provider, ensure the contract allows that third party to access and use the software on your behalf. Oracle generally permits outsourcers to use your licenses to run your systems (since that’s still your internal use), but the responsibility for compliance remains with you. Ensure the outsourcer doesn’t use a single environment to serve multiple customers unless each customer has its dedicated license.
- Legacy Contract Language: Some older EBS contracts have non-standard terms Oracle agreed to (especially if you negotiated something unique). Examples could include grandfathered discounts for adding users, special usage rights, or clauses that tie maintenance fees to an index. Be aware of these – Oracle’s current representatives might not be aware of them unless you bring them up. One example of a legacy term trap: a 1990s EBS contract might have allowed a type of usage that Oracle wouldn’t allow today, but if it’s in your contract and still active, it’s your right. Conversely, Oracle might sunset certain products, such as a module that is renamed or replaced; ensure you know the modern equivalent if your contract lists an outdated product name. You could have rights to something even if the name has changed (Oracle should provide a migration path). Keep an archive of all Oracle communications about license changes (like if Oracle notified customers that “we will migrate your XYZ licenses to ABC licenses at no charge under support”).
Overall, scrutinize the fine print and document everything.
Oracle’s contracts are written to protect Oracle; any flexibility or exceptions you need must be explicitly negotiated and captured.
Common pitfalls, such as misinterpreting what you bought, allowing usage creep beyond contract terms, or mishandling audit cooperation, can be costly. Being forewarned is forearmed: Know your contract inside out, and don’t hesitate to seek clarification on any ambiguous clause. In disputes, the contract is the final word.
How to Audit Oracle EBS (Compliance Checking Techniques)
Regular internal audits of your Oracle EBS deployment are essential for maintaining compliance and minimizing the risk of surprises if Oracle conducts an audit.
Unlike some software, where licenses can be metered automatically, EBS licensing audits require analysis of users, configurations, and usage patterns.
Here, we outline how to audit EBS using Oracle’s tooling and some manual techniques—no third-party tools are required or mentioned.
Oracle’s LMS Collection Tool for EBS
Oracle provides official scripts (often collectively called the LMS Collection Tool or Oracle LMS Measurement Scripts) to gather E-Business Suite usage data. When Oracle initiates an audit, it will send you a script or a set of SQL queries to run on your EBS database.
These scripts extract data about users, responsibilities, assigned modules, and sometimes transactional counts from various tables.
A comprehensive EBS audit script may pull data from up to 20 or more database tables to create a comprehensive picture of your usage. Oracle LMS then uses that data to map against your entitlements.
Using the Tool Internally:
You can request these scripts from Oracle preemptively (Oracle sometimes makes them available through support channels or to customers who request them). Running them yourself (outside of a formal audit) can give you a preview of what Oracle might see.
However, ensure you understand the output—it often comes in the form of a set of CSV or HTML reports that require interpretation. They will list items such as the number of distinct users per module, any responsibilities that indicate the use of unlicensed modules, and the counts of transactions (if applicable, such as the number of order lines).
Interpreting Results: Look for:
- User Counts per Module: Does the number of users accessing each licensed module exceed your purchased licenses? This includes both active and inactive users who still have an assigned responsibility. You might find, for example, that you have 60 users with the Receivables responsibility, but you only own 50 licenses. That’s a red flag – you must remove some users or procure additional licenses. Use the principle of least privilege: if someone doesn’t truly need that module, revoke their responsibility to reduce the count.
- Unlicensed Modules Access: The script may indicate that some users have responsibilities for modules you were not aware were enabled. This can occur if, during implementation, someone is granted extensive responsibility or if an additional module is installed in the system without being formally licensed. If such usage is found, you should remove those responsibilities immediately and/or consider licensing the module if it’s genuinely needed. For instance, perhaps a DBA or developer was given access to a “Sysadmin” responsibility that technically allows them to view all modules – this could be considered the use of every module in Oracle’s eyes. Tighten such roles.
- External Usage: If you have modules like iSupplier or iStore, check if the script outputs any counts of external users or usage. Oracle’s definitions often exclude supplier logins from requiring licenses, but you want to ensure those are identified correctly (e.g., suppliers may have a specific naming convention for usernames). If the script doesn’t handle that, you may need to manually clarify the distinction between external and internal users. In an Oracle audit, you can typically exclude external users for certain self-service modules, provided you can demonstrate that they are indeed external.
- Transaction Counts: If using any transaction-based metrics (e.g., expense reports, order lines), the tool may output the count of those transactions from the last year. Compare that to your licensed volume. If you’re over, you need to follow up or switch to a different metric. This is something to watch annually.
- Technical Footprint: Some LMS collections also gather information, such as installed Oracle Database options or usage of specific features. While that’s more relevant to database licensing, be aware in an EBS context because, for example, if it detects Oracle Real Application Clusters (RAC) enabled on the EBS database, Oracle might question if you licensed RAC (RAC is not included in the standard EBS DB license and would need separate licensing). For an internal EBS audit, you should verify that you aren’t unknowingly using any database options or packs that aren’t covered. Generally, an EBS environment on a vanilla Oracle database shouldn’t use extra options unless specifically configured to do so. Still, it’s worth checking (the LMS script or the Oracle LMS DB tool can show you if options are in use).
Running Oracle’s tool internally benefits from seeing exactly what Oracle would see. Keep in mind, though, that your contract might not require you to run their specific script during audit time (unless explicitly stated).
You could supply equivalent data yourself. Regardless, having that granular data helps you understand your position.
Manual Auditing Techniques
Beyond running Oracle’s canned scripts, you can and should do some manual checks periodically:
- User Listing by Responsibility: Use Oracle EBS system administration features to pull a list of all user accounts and their assigned responsibilities (or use an SQL query on FND_USER and FND_USER_RESPONSIBILITY tables). Then map responsibilities to modules. For example, if a user has the “General Ledger Superuser” responsibility, it is tied to the General Ledger module (Financials). Count the number of users per module that this yields. This manual method provides a clear picture, allowing you to catch things that the script may aggregate differently. Also, you can identify shared accounts or generic accounts and eliminate them. Oracle counts by unique named user, so generic logins are strictly prohibited.
- Inactive User Cleanup: Check for users who haven’t logged in for X months or are no longer with the company but have active accounts. These should be end-dated. A common compliance issue is that companies fail to remove EBS access for departed employees – these accounts still count toward licenses. Establish a process with HR to notify ITAM/EBS administrators of employees who are leaving, allowing their accounts to be promptly deactivated.
- Module Usage Verification: Sometimes, having a responsibility doesn’t mean actual usage. Review audit logs or last login times to see if some users with access haven’t used a module. From Oracle’s perspective, they still need a license if the account is active. Knowing actual usage can inform decisions on whether to remove access or not renew certain licenses if usage is nil. EBS has some auditing capabilities (standard auditing can track when specific forms or functions are accessed). You might not need that depth unless you’re troubleshooting a discrepancy, but it’s good to know it exists.
- Reconcile to Entitlements: Maintain a simple compliance report that lists each licensed module and entitlements versus current usage. This could be a table like: “Oracle Purchasing – 30 User licenses purchased – 28 users currently assigned (OK)” or “Oracle Order Management – 20 User licenses purchased – 25 users assigned (5 overlicensed!).” This at-a-glance check is what Oracle will ultimately do in an audit report – they’ll list your licenses and your usage. Beat them to it so you can correct course beforehand.
- Check Customizations and Integrations: We touched on this in the prerequisites; verify that any custom components related to EBS are within the allowed usage. For example, if you have an interface that feeds data into EBS, ensure it’s using licensed Oracle APIs or proper interfacing methods. If you have built a custom extension module that runs on the EBS database, double-check to see if it might require additional licensing. It might be worth running Oracle’s Database LMS scripts on the EBS database to ensure no unexpected database options are used.
- Review Contractual Requirements: Some enterprise licenses require annual certification. For instance, an enterprise metric license may require you to certify your employee count or revenue to Oracle annually (or sometimes 90 days before support renewal). Ensure you complete these reports accurately and on time to avoid breaching the contract. Keep copies of what was reported.
- Simulate an Audit: For a thorough internal audit, simulate Oracle’s approach. Have one team member play the role of Oracle LMS: gather data, ask hard questions (“Why does this user have access to that module without a license?” etc.), and compile a compliance position. Then, have the team collaboratively address any gaps that may exist. This exercise can reveal process weaknesses—maybe one module was rolled out to more users than anticipated without informing ITAM. It’s better to catch that internally than during a real audit.
Read Choosing the Right Oracle EBS Licensing Model for Your Enterprise.
No Third-Party Tools?
The instructions do not mention third-party tools, but it’s worth noting that you can achieve a significant amount with the above methods alone.
Many organizations also use internal tools or scripts to continuously monitor EBS (like custom SQL reports or Asset Management software integrations).
Still, it’s not strictly necessary if you regularly perform the checks described.
The goal is to be proactive: don’t wait for Oracle’s audit to tell you you’re out of compliance. With EBS, self-auditing once or twice a year (especially before any major true-up or contract renewal) will pay off.
In an Oracle Audit Scenario:
If you get an official audit notice, you must formally repeat many of these steps under Oracle’s observation. Key additional advice:
- Always verify Oracle’s findings. If their script indicates you have 120 Financials users but you believe it’s only 100, investigate the discrepancy. It could be that Oracle’s script counted some service accounts, or there is duplication. You’re allowed to question and clarify the data.
- Negotiate findings: If Oracle identifies shortfalls, you don’t have to accept their quote at face value. You can often negotiate purchasing only the necessary licenses (and try to negotiate a discount or a wider deal – sometimes Oracle will push you into, say, an Unlimited License Agreement (ULA) or a cloud transition instead of a huge compliance penalty. Evaluate those offers carefully with a long-term perspective.
- Leverage time: An audit can take months. Use that time to your advantage. For example, if you plan to reduce users (say, 20 users will retire or a division using EBS is being spun off), and that could resolve part of the non-compliance, take action early and document the process. Oracle might try to count them anyway (“as of the audit period you had them”), but you have more footing to negotiate if you’ve already taken action to rectify.
Regularly auditing your EBS deployment and keeping meticulous records can transform an Oracle audit from a panic moment to a confirmatory exercise.
It puts you, the customer, in control and removes the element of surprise that Oracle relies on in audits. Remember, Oracle’s auditors work with broad assumptions and scripts that may not capture the full context. You’ll always understand your environment better than they do – use that knowledge to your advantage.
Read Oracle EBS Licensing Cost Optimization and Negotiation Strategies.
Recommendations
To conclude, here are specific best-practice recommendations for ITAM professionals managing Oracle EBS on-premise licensing:
- Maintain a Detailed License Inventory: Keep an updated list of all Oracle EBS modules you have licensed, including metric type and quantities. Map each module to the business units and users using it. This inventory is your source of truth during compliance checks and audits.
- Enforce Strict User Management: Implement a process with HR and IT to promptly create, update, or terminate EBS user accounts in response to personnel changes. Regularly end unused or unnecessary accounts. Never allow account sharing as a shortcut—each individual must use a unique login to stay compliant.
- Verify Prerequisites Before Deployment: Before enabling a new EBS module or feature, verify if it requires any other modules or additional licenses. Do not assume something is covered; cross-check with Oracle’s licensing guides or your contract. It’s easier to purchase a needed prerequisite upfront than to explain its absence in an audit.
- Review Contract Fine Print with a Critical Eye: Review your Oracle EBS license agreement and order documents line by line. Pay attention to any clauses on use restrictions, required notices, or special definitions. If anything is unclear – for example, the exact definition of “employee” for an Employee metric – get clarification in writing. Being crystal clear on your obligations (and Oracle’s obligations) prevents costly misunderstandings.
- Monitor Enterprise Metric Triggers: If you license based on revenue or employee count, establish an internal checkpoint (e.g., quarterly) to determine if you’re approaching a tier that requires a true-up. If growth pushes you over, address it proactively by budgeting for the increase or negotiating with Oracle in advance, rather than waiting for them to find out and send an unexpected bill.
- Regular Self-Audits: An internal EBS compliance audit is performed at least annually. Use Oracle’s LMS queries or your reporting to compile user counts and usage. Resolve issues (such as reducing access or purchasing additional licenses) before they escalate. Document these self-audits; they demonstrate due diligence and can be useful if negotiating with Oracle.
- Educate Stakeholders: Ensure all relevant stakeholders (IT, HR, procurement, business module owners) understand the basics of EBS licensing. Awareness can prevent mistakes, such as a team giving access to an unlicensed module or assuming an old license covers new usage. Small training sessions or internal wiki documentation can help disseminate this knowledge.
- Be Cautious and Prepared in Audits: If Oracle initiates an audit, engage your legal team and, if necessary, an independent licensing advisor early. Only provide the data requested and review it carefully first. Keep communications professional and don’t hesitate to ask Oracle to clarify their findings or methodology. Push back (politely, via contractual terms) on any audit request beyond what you’re obligated to provide. Throughout the process, maintain a cooperative tone while protecting your organization’s interests – you can be both compliant and assertive about your rights.
By following these recommendations, ITAM professionals will foster an “always audit-ready” posture for Oracle E-Business Suite.
This minimizes compliance risk and unbudgeted costs and strengthens your hand in future license negotiations with Oracle.
An informed customer with good internal controls is in the best position to manage Oracle licensing effectively rather than being managed by it.
Read Oracle EBS License Management and Compliance Best Practices.
FAQ on Oracle EBS Licensing
What is Oracle EBS Licensing?
Oracle EBS Licensing determines the licenses required to use the Oracle E-Business Suite (EBS) software. Two primary licensing models exist: Application User Licensing and Enterprise Wide Licensing. Application User Licensing requires organizations to identify all individuals with permission to use the EBS programs.
At the same time, enterprise-wide licensing is based on an organization’s size, such as the number of employees or revenue.
What are the common compliance risks associated with EBS licensing?
Some of the most common compliance risks include failing to terminate users who no longer require access to the software, mistakenly granting access to EBS modules for which an organization is not licensed, and failing to properly approve prerequisite products.
How can organizations review their EBS licensing to ensure compliance?
Organizations can review their EBS licensing by performing regular data cleanups of their EBS instances and end-dating individuals who no longer need to use the software.
They can also optimize their software licensing by utilizing responsibilities and logical groups within the software, which allow users to access different functions, data, and windows.
Additionally, organizations can work with an EBS licensing expert to review user names and determine which licenses are required.
What are some tips for avoiding non-compliance with EBS licensing?
To avoid non-compliance with EBS licensing, it is essential to clearly understand the licensing model being used and to actively manage the user population by identifying new users who need access and removing users who no longer require it.
Properly licensing pre-requisite products and working with an EBS licensing expert to ensure compliance is also essential.
What is the importance of data cleanups in EBS licensing?
Data cleanups are necessary for EBS licensing because they help organizations identify users who no longer require access to the software and terminate their access accordingly.
Even if users no longer actively use the software, they may still be authorized to do so and, therefore, require a license. By performing data cleanups, organizations can ensure that they are not paying for unnecessary licenses and can avoid non-compliance with Oracle policies and contractual rules.
What are some tips for managing EBS licenses effectively?
To manage EBS licenses effectively, organizations should regularly review their license agreements and stay up-to-date on any changes to licensing policies or models.
They should also document their licensing agreements and keep track of license keys and usage metrics. Additionally, organizations should work with an EBS licensing expert to ensure compliance and optimize their software licensing.
What are the different types of EBS licenses?
Several types of EBS licenses exist, including Application User, Employee User, and Enterprise-Wide licenses. Legacy licensing metrics, such as Concurrent and Professional User licenses, are no longer available for sale.
What is end-dating in EBS licensing?
End-dating is the process of deactivating user accounts in EBS for individuals who no longer require access to the software.
This is important for compliance with Oracle licensing policies, as organizations must license every authorized individual to use the software on a single or multiple servers.
End-dating users who no longer require access can help organizations avoid paying for unnecessary licenses and reduce the risk of non-compliance.
What is a pre-requisite license in EBS licensing?
A pre-requisite license is a license that is required to use a specific EBS module or product. For example, suppose an organization uses sourcing in EBS.
In that case, they must also license Purchasing. Failing to license pre-requisite products properly can lead to non-compliance with Oracle policies and contractual rules.
How to audit Oracle EBS Licensing?
We recommend using Oracle’s LMS Collection Tool, an audit method. Firms like Redress Compliance have the expertise to analyze the outputs of the scripts.
What is an Oracle EBS Bundle?
Oracle EBS Bundle is a Custom Application Suite that allows you to add different EBS modules to a customized license based on the end customer’s requirements. The customer then receives a “unique” license name.
