Oracle Middleware Licensing

How Are Oracle Identity Management Products (OID, OAM, OIM, etc.) Licensed?

How Are Oracle Identity Management Products (OID, OAM, OIM, etc.) Licensed

How Are Oracle Identity Management Products (OID, OAM, OIM, etc.) Licensed

Oracle Identity and Access Management (IAM) productsโ€”such as Oracle Internet Directory (OID), Oracle Access Manager (OAM), Oracle Identity Manager (OIM), and Oracle Directory Servicesโ€”use similar licensing metrics: Processor or Named User Plus (NUP). Understanding how each model applies helps you choose the most cost-effective licensing option based on your deployment size and user base.

Below is a detailed overview of how these products are licensed, practical considerations, and recommendations for selecting the appropriate model.

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Licensing Models Overview

Oracle IAM products offer two primary licensing metrics:

1. Processor Licensing

  • Due to unlimited user coverage, processor licensing is often ideal for larger environments or externally facing systems.
  • You count processor cores on servers running Oracle IAM products.
  • Apply Oracleโ€™s core factor table to determine the license count.

Example:
If an Oracle Access Manager (OAM) server has 8 Intel cores, the licensing requirement is calculated as:

  • 8 cores ร— 0.5 core factor = 4 Processor licenses

Processor licensing typically works best for deployments with many users (e.g., large corporate Single Sign-On deployments or customer-facing websites).

2. Named User Plus (NUP) Licensing

  • NUP licensing involves counting all users or devices authorized to use the IAM software.
  • Oracle IAM products enforce a minimum of 10 Named User Plus licenses per processor (after applying the core factor).
  • This model suits smaller, well-defined user populations or specific administrative use cases.

Example:
If Oracle Identity Manager (OIM) runs on a single-processor server, you must purchase at least 10 NUP licenses, even if only five administrators access the system.


Practical Licensing Scenarios by Product

Oracle Internet Directory (OID)

  • Typically used internally as an LDAP directory, often accessed by internal employees or devices.
  • Small-scale deployments:
    • Can use NUP licenses if a small number of users or systems access the directory.
    • The minimum 10 NUP per processor rule applies.
  • Large-scale deployments (e.g., company-wide LDAP):
    • Processor licensing is usually more cost-effective due to the potentially large or undefined number of users.

Oracle Access Manager (OAM)

  • Frequently used for Single Sign-On (SSO) across large populations (employees, partners, or customers).
  • Typically licensed by Processor, as counting each user individually can be impractical.
  • Ideal for enterprise-wide or external-facing SSO systems where the number of users is very high or unknown.

Oracle Identity Manager (OIM)

  • Often used internally by administrators for identity provisioning and management.
  • NUP licensing is practical for limited administrator usage (e.g., fewer than 50 administrators).
  • Processor licensing is beneficial if user counts are large or uncertain.

Read How Does Licensing Work for Oracle Middleware in Virtualized Environments


Counting Users and Devices (NUP Licensing)

When using Named User Plus licensing, Oracle counts both human users and non-human devices accessing the system. Each distinct user or device must have a license.

  • For example, 15 administrators and five automated integration systems accessing an Oracle Identity Manager instance require at least 20 NUP licenses.
  • Even if fewer than 10 users access the software, Oracleโ€™s 10-NUP-per-processor minimum applies.

Licensing External-Facing IAM Systems

If you deploy Oracle IAM products externallyโ€”such as customer portals using Oracle Access Managerโ€”counting Named Users can become impossible.

  • In this scenario, Oracleโ€™s licensing guidelines typically mandate Processor licensing.
  • Anonymous or externally facing users cannot realistically be counted individually, so Processor licensing is the only viable option.

Oracle Identity Management Suites and Bundles

Oracle offers bundled licenses (e.g., Oracle Identity Management Suite Plus) that package multiple IAM components together:

  • Components Included: OAM, OIM, OID, Oracle Directory Services, and others.
  • When purchasing the suite, you license it as a single product per Processor or NUP.
  • This covers the usage of all bundled products on licensed servers.
  • Buying individual products separately requires separate licensing for each product, increasing complexity and cost.

Practical Licensing Example

Consider a scenario where:

  • You deploy Oracle Access Manager (OAM) for company-wide Single Sign-On to serve 5,000 employees.
  • You also use Oracle Identity Manager (OIM) exclusively for provisioning accounts, used by only 10 IT administrators.

Licensing recommendation:

  • OAM deployment (5,000 employees):
    • Best licensed using Processor licenses due to high user count.
    • For example, a server with 8 Intel cores (8 cores ร— 0.5 core factor) requires 4 Processor licenses.
  • OIM deployment (10 administrators):
    • NUP licensing seems appropriate for just 10 administrators.
    • However, Oracle enforces a minimum of 10 NUP licenses per processor.
    • If the OIM server is also an 8-core Intel server (4 processor licenses), you must buy at least 40 NUP licenses (10 per processor ร— 4 processors).
    • Due to this high NUP minimum, processor licensing might be simpler and more cost-effective for OIM.

In cases where multiple Oracle IAM products run on separate servers, you can choose different licensing metrics for each product (Processor for OAM and NUP for OIM), depending on cost-effectiveness. Just remember that each product must meet its minimum licensing criteria independently.

Read Can Oracle BI Publisher Be Licensed Standalone, and How Does It Differ from OBIEE Licensing.


Key Considerations and Recommendations

  • Small, Defined User Groups:
    • Use Named User Plus licensing (with a minimum of 10 users) for internal admin scenarios, small directories, or IAM setups.
  • Large, Company-Wide, or External-Facing:
    • Processor licensing is typically mandatory or significantly more cost-effective.
  • IAM Suites (Multiple Products):
    • Evaluate bundled IAM suites, which license multiple products under one cost. Itโ€™s simpler and typically cheaper than licensing individually.

Summary Table: IAM Licensing Recommendations

IAM ProductTypical UsageRecommended Licensing Model
Oracle Internet Directory (OID)Internal LDAP directoriesProcessor or NUP (small scale)
Oracle Access Manager (OAM)SSO, large user populationsProcessor (typically mandatory)
Oracle Identity Manager (OIM)Internal admin provisioningNUP (small admin teams) or Processor
IAM Suite BundlesMultiple IAM products integratedProcessor licensing recommended

Conclusion

Oracle Identity Management products (OID, OAM, OIM, etc.) primarily use Processor or Named User Plus licensing metrics. Carefully evaluate your user base size, deployment scenario (internal or external), and Oracleโ€™s minimum licensing requirements.

Processor licensing is almost always necessary for large or external deployments. User Plus licensing is viable for smaller, controlled user environments, but always adhere to Oracleโ€™s strict minimum license counts. For streamlined licensing, consider Oracle IAM suites, which bundle products into one license, simplifying compliance and potentially reducing costs.

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Author
  • Fredrik Filipsson has 20 years of experience in Oracle license management, including nine years working at Oracle and 11 years as a consultant, assisting major global clients with complex Oracle licensing issues. Before his work in Oracle licensing, he gained valuable expertise in IBM, SAP, and Salesforce licensing through his time at IBM. In addition, Fredrik has played a leading role in AI initiatives and is a successful entrepreneur, co-founding Redress Compliance and several other companies.

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