Hosted Named User – Oracle SaaS Licensing

Hosted Named User – Oracle SaaS Licensing

• User-Based Licensing: Licenses are assigned to specific, named individuals.
• Hosted Environment: Applies to Oracle SaaS services delivered via a hosted model.
• Non-Transferable: Licenses cannot be shared between users.
• Scalable: Licenses can be added as user needs grow.
• Compliance Focused: Requires accurate tracking of assigned users.

Hosted Named User is an Oracle SaaS licensing metric that can be complex, especially when determining the number of licenses your organization needs.

This guide aims to demystify this term and provide a practical example to help you calculate the number of licenses your organization may need; this metric applies to most Oracle cloud services, such as ERP Cloud, HCM Cloud, and Sales Cloud.

What is a Hosted Named User?

What is Oracle Hosted Named User Licensing?

The Hosted Named User (HNU) licensing model is designed for Oracle’s SaaS products and applies to named individuals who are provided access to specific modules of Oracle’s cloud services.

Each user assigned access to a module requires a license, regardless of whether they actively use the service. Oracle cloud licensing is not based on actual usage but rather on authorization.

Key Characteristics:

• Named User-Based: Each license is tied to an individual authorized to access a module.
• Authorization-Driven: Licenses are required for all individuals with access, whether or not they actively use the service.
• Role-Based Access: Licenses are often categorized by the roles and access levels required (e.g., HR admin, finance analyst).
• Scalable: Additional licenses can be purchased as the organization grows.
• Compliance Requirement: Organizations must ensure accurate tracking and assignment of licenses to remain compliant with Oracle’s licensing terms.
• Freeing Up Licenses: End customers should regularly end-date users who no longer require access to free up licenses and maintain cost control.

Oracle ERP Cloud and Hosted Named User Licensing

Oracle ERP Cloud is a comprehensive suite of enterprise resource planning tools that includes financial management, procurement, project management, and more.

Hosted Named User licensing applies to each individual accessing ERP Cloud services.

Key Use Cases:

1. Finance Departments: Accountants and financial analysts require dedicated HNU licenses to access modules like General Ledger and Accounts Payable.
2. Procurement Teams: Users managing supplier contracts or purchase orders need licenses for Procurement Cloud.
3. Project Managers: Individuals overseeing project portfolios require access to Project Management modules.

Considerations:

• Role-specific licenses may incur different costs depending on the level of functionality required.
• Ensure that only active users are assigned licenses to optimize costs.
• Periodically audit user access and end-date users who no longer require access.
• Control which users can access specific modules to avoid unnecessary licensing costs.

Oracle HCM Cloud and Hosted Named User Licensing

Oracle HCM Cloud offers a suite of tools for managing human capital, including recruitment, payroll, performance management, and employee engagement. To access HCM Cloud services, each individual requires a Hosted Named User license.

Key Use Cases:

1. HR Administrators: Access tools for payroll processing, compliance management, and benefits administration.
2. Recruiters: Use modules for talent acquisition, applicant tracking, and onboarding.
3. Employees: Access self-service portals for tasks like applying for leave or viewing payslips.

Considerations:

• Different roles, such as HR managers versus general employees, may require varying access levels and, thus, different licensing tiers.
• Self-service users typically require fewer functionalities and may fall under a lower-cost licensing model.
• Regularly review and end-date users without access to free-up licenses.
• Control access authorizations to manage compliance and cost-effectiveness.

Best Practices for Managing Oracle Hosted Named User Licensing

1. Regular Audits: Conduct periodic reviews of user assignments to ensure compliance and optimize costs.
2. Track Usage: Use Oracle’s reporting tools to monitor license utilization and identify inactive users.
3. End-Date Unused Licenses: End-date users no longer need access to free up licenses and avoid unnecessary costs.
4. Engage Experts: Consult with Oracle licensing specialists to avoid misinterpretation of terms.
5. Automate Assignments: Leverage automation to assign and revoke licenses based on employee lifecycle events (e.g., onboarding or offboarding).
6. Plan for Growth: Ensure your licensing strategy accommodates organizational expansion without incurring unexpected costs.

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