Navigating Oracle Siebel licensing can be complex, but it’s crucial for optimizing your CRM investment. This article sheds light on the intricacies of Siebel licenses, offering strategies to help you manage costs while maximizing the benefits of this powerful platform.
- Siebel License Models
- Siebel licensing rules
- Key Considerations in Oracle Siebel Licensing
- Potential pitfalls to avoid include
- Siebel CRM – Partner Applications
- Siebel Licensing Definitions
- Siebel licensing – Most common Oracle compliance challenges
- How to audit Oracle Siebel?
- Need help to review Oracle Siebel Licensing?
Understanding Oracle Siebel Licensing
Oracle’s Siebel is a prominent Customer Relationship Management (CRM) software that was originally developed by Siebel Systems, which Oracle Corporation acquired in 2006. Siebel has since been a critical part of Oracle’s software offerings, providing robust and versatile CRM solutions to businesses across various industries.
Siebel CRM provides an array of features designed to enhance customer service, increase sales, and support marketing activities. Its primary functionalities include:
- Sales Force Automation: Siebel helps streamline and automate the sales process, allowing businesses to track customer interactions, manage accounts and opportunities, and forecast sales.
- Customer Service Management: Siebel’s customer service module enables businesses to handle customer inquiries, track service requests, manage contact history, and improve overall customer satisfaction.
- Marketing Automation: Siebel aids in planning, executing, and monitoring marketing campaigns. It can manage customer segments, execute targeted email marketing, track customer responses, and measure campaign performance.
- Partner Relationship Management: Siebel allows businesses to manage relationships with partners, including tracking of joint sales and marketing activities, lead management, and performance tracking.
- Business Analytics: Siebel provides robust reporting and analytics features, enabling businesses to make data-driven decisions. It offers a variety of pre-built and customizable reports and dashboards.
- Integration Capabilities: Siebel can be integrated with various other systems, providing a unified view of customer information across different platforms and departments.
Siebel CRM is highly customizable and can be tailored to meet the unique needs of each organization. It’s used by large enterprises, government organizations, and small and medium-sized businesses alike.
Siebel License Models
Oracle Siebel licensing how does it work? In this article we will cover the different Oracle Siebel license models and the top3 Siebel compliance issues we see in our Oracle license reviews. When you search on google there are no official documentation available from Oracle.
Lets make an introduction post about how Oracle Siebel works. In a standard installation of Siebel all the modules are unlocked, and you do not need to request additional serial keys from Oracle.
This means that an Oracle Siebel end user can use Siebel products that they are missing licenses for. Siebel comes in 2 different editions, Siebel Enterprise and Siebel SPE.
Overview of Oracle Siebel Licensing
Understanding the Oracle Siebel licensing model is critical to ensure your organization is compliant and cost-efficient. Siebel’s licensing model is primarily based on user licenses, which are categorized into different types depending on the access and functionalities provided.
- Named User Plus (NUP) Licenses: These licenses are assigned to a specific individual who can access the Siebel software. The individual does not necessarily need to be an employee and can be a business partner or a contractor, but the license is exclusive to the named user.
- Application User Licenses: These licenses are designed for users who need access to a specific Siebel application. They are usually more limited in scope compared to the NUP licenses.
- Processor Licenses: These licenses are based on the number of processors used to run the Siebel software. They’re often employed in situations where the exact number of users is difficult to determine or is likely to increase significantly over time.
- Enterprise Licenses: These licenses provide a comprehensive licensing solution, giving access to multiple Oracle products, including Siebel. They are typically used by large organizations that use a wide range of Oracle products.
Siebel Custom Application Bundle Licensing
The Siebel Custom Application Bundle is a specific licensing model offered by Oracle that caters to organizations looking for a more tailored solution. This model provides flexibility by allowing organizations to license only the specific Siebel applications they need, rather than the entire suite.
Here’s how it works:
- Selection of Applications: The Custom Application Bundle allows organizations to pick and choose the Siebel applications they wish to license. This can range from specific modules like Sales, Service, or Marketing to industry-specific solutions.
- User-Based Licensing: Like other Oracle licenses, the Custom Application Bundle is typically user-based, meaning the cost depends on the number of users who will have access to the selected applications. Each user is assigned a license, often referred to as a Named User Plus license.
- Support and Updates: The Custom Application Bundle license comes with Oracle’s standard support and updates for the licensed applications. This ensures that the applications remain up-to-date and that technical support is available when needed.
- Flexibility: One of the primary benefits of the Custom Application Bundle is the flexibility it offers. Organizations can adjust the bundle as their needs change, adding or removing applications as required. This allows for scalability and ensures that the organization only pays for what it needs.
- Compliance: It’s important to note that with the flexibility of the Custom Application Bundle comes the responsibility of ensuring compliance. Organizations must ensure that the use of the licensed applications adheres to the terms of the agreement.
The Siebel Custom Application Bundle is a valuable licensing option for organizations that need a more custom approach to their CRM solution, offering both flexibility and scalability.
Siebel licensing rules
- No Oracle technology products are shipped with Siebel, this means if you want to run an Oracle database this must be purchased seperately.
- Every Siebel customer must license, at a minimum, one Siebel CRM Base Application. Typically, each employee user of Siebel applications requires a base. Start by selecting the Siebel CRM Base for each Siebel user. All users requiring a base must license the Siebel CRM Base.
- Then, if the customer requires industry specific functionality, select the industry base option(s) that most appropriately meet customer needs–in addition to the CRM Base. Note that if the customer requires an industry solution, all users must have an industry base option and the Siebel CRM Base
Key Considerations in Oracle Siebel Licensing
When purchasing Oracle Siebel licenses, several critical factors should be taken into account to ensure your organization is making a cost-effective and strategic decision:
- Business Needs: The foremost consideration is the actual business requirements. Understand the features and functionalities your organization needs from Siebel to align your license purchase accordingly.
- Budget: Licensing costs can be substantial, so it’s crucial to budget accurately. Be sure to consider not just the upfront cost of licenses but also ongoing support and maintenance fees.
- Scalability: As your organization grows or changes, your licensing needs may evolve as well. Consider the scalability of the license model you choose; for instance, will you be able to add more licenses easily, or switch between different types of licenses as needed?
- Compliance: Oracle licensing policies can be complex, and non-compliance can result in significant penalties. It’s essential to have a thorough understanding of the terms and conditions attached to your licenses.
- Contract Terms: Pay close attention to the contract terms. Look for any potential restrictions, renewal terms, and conditions related to support and updates.
Potential pitfalls to avoid include
- Over Licensing: One common mistake is over licensing, where organizations purchase more licenses than they actually need. This often happens when organizations fail to accurately assess their requirements.
- Under Licensing: Conversely, under licensing can result in non-compliance with Oracle’s licensing policies, leading to financial penalties and the need for additional unplanned license purchases.
- Inadequate Management: Without a solid license management strategy, it’s easy to lose track of licenses, leading to both over and under licensing. Regular audits and using license management tools can help avoid this.
Siebel CRM – Partner Applications
For each Partner user, Siebel partner options must be licensed at the same level or less then the Siebel Partner Portal. For Example, if the customer licensed 100 Siebel Partner Portal then Siebel Partner Commerce must have a quantity of 100 or less. This rule applies only to options using the Registered User metric
Siebel CRM Web Channel pricing is designed for Siebel customers who desire to extend the usefulness of their Siebel deployment by providing additional users access to Siebel Business Objects with defined methods, events, and data and reuse Siebel Business Objects and project Siebel Data through an independent User Interface via
Built-in scripting of Siebel objects using Siebel VB, Siebel eScript, and Browser Script Component Object Model (COM) using the Siebel Web Client Automation Server, Siebel COM Data Control, Siebel COM Data Server, and Siebel Mobile/Dedicated Web Client Automation Server, Java or J2EE using Siebel Java Data Bean, JMS or JCA
All modules, except those in the “Applications Not Requiring CRM Base” section, require a Siebel CRM Base–see the price list supplement for detailed
requirements on each module. All Oracle customers can add CRM modules to their solution–including Industry users.
There are some modules that have an industry specific version. When licenses an industry base option check that industry module section for a replacement. n. (e.g. if the customer licenses the Communications, Media & Energy base option and they want contracts functionality, they should license Siebel CME Contracts not Siebel Contracts
Siebel Licensing Definitions
Application User: is defined as an individual authorized by you to use the applicable licensed application programs which are installed on a single server or on multiple servers regardless of whether the individual is actively using the programs at any given time. If you license the Oracle Self Service Work Request option in conjunction with Oracle Enterprise Asset Management, you are required to maintain licenses for the equivalent number of Application users licensed and you are granted unlimited access to initiate work requests, view work request status and view scheduled completion date for your entire employee population. For Order Management, application users are allowed to manually enter orders directly into the programs but any orders entered
electronically from other sources must be licensed separately by Electronic Order Line.
$M in Application Annual Revenue: is defined as one million U.S. dollars excluding taxes processed through the licensed program. For Oracle Self-Service E-Billing products, the Annual Revenue is equivalent to the total invoiced amount for all company accounts that have at least one enrolled user per billing period.
1,000 Claims: is defined as one thousand unique claims processed through the program during a 12 month period. A unique claim is defined as one of the following: OEM Claims entry, supplier claims entry, adjudication. Claims flow through to OPA for automated processing. You may not exceed the licensed number of transactions during a 12 month period unless you acquire additional transaction licenses from Oracle
Customer Record: is defined as each unique Customer Record (including contact records, prospect records and records in external data sources) that you may access using the program
Electronic Order Line: is defined as the total number of distinct electronic order lines entered electronically into the Oracle Order Management application from any source (not manually entered by licensed Order Management Users, Professional Users 2003, or Professional Users 2003 External) during a 12 month period. This includes order lines originating as external EDI/XML transactions and/or sourced from other Oracle and non-Oracle applications. You may not exceed the licensed number of order lines during any 12 month period
Employee: Enterprise Employee: is defined as (i) all of your full-time, part-time, temporary employees, and (ii) all of your agents, contractors and consultants who have access to, use, or are tracked by the Oracle Programs. The quantity of the licenses required is determined by the number of Enterprise Employees and not the actual number of users. In addition, if you elect to outsource any business function(s) to another company, all of the company’s full-time, part-time, temporary employees and agents, contractors and consultants that are providing the outsourcing services for you who have access to, use, or are tracked by the Oracle Programs must be counted for the purposes of determining the number of Enterprise Employees.
Named User Plus / Named User is defined as an individual authorized by you to use the programs which are installed on a single server or multiple servers, regardless of whether the individual is actively using the programs at any given time. All of the remaining provisions of this definition apply only with respect to Named User Plus licenses, and not to Named User licenses. A non human operated device will be counted as a named user plus in addition to all individuals authorized to use the programs, if such devices can access the programs. If multiplexing hardware or software (e.g., a TP monitor or a web server product) is used, this number must be measured at the multiplexing front end. Automated batching of data from computer to computer is permitted. You are responsible for ensuring that the named user plus per processor minimums are maintained for the programs contained in the user minimum table in the licensing rules section; the minimums table provides for the minimum number of named users plus required and all actual users must be licensed.
Partner Organization: is defined as an external third party business entity that provides value-added services in marketing and selling your products. Depending upon the type of industry, partner organizations play different roles and are recognized by different names such as reseller, distributor, agent, dealer or broker.
Registered User: is defined as an individual authorized by you to use the programs which are installed on a single server or multiple servers, regardless of whether the individual is actively using the programs at any given time. Registered Users shall be only your business partners and/or customers and shall not be your employees
Siebel licensing – Most common Oracle compliance challenges
Not end-dating users
Application User – This is a license model where you license every individual who are authorized to use Siebel. When we review Siebel using the same methodology and toolset as Oracle LMS. We identify that the client has more users accessing Siebel Modules, than they have licenses for. In most cases this is due to not end dating users who no longer require access to Siebel.
Mistakenly assigning responsibilities
As Siebel standard installation provides Oracle customers with all Siebel modules unlocked, no serial keys or pre-purchase is required. It is very easy for a Siebel administrator to use views that you do not have a license for.
If your company develops and use custom views in Siebel. You may unwittingly be using Siebel products and modules that you do not have a license for. You need to map each view to each specific Siebel product. <
How to audit Oracle Siebel?
- Run the Oracle Siebel Audit Scripts
- Analyze the results of all your users views
- Establish a license report
- Remediate mistaken views and privileges
- Re-run the Oracle Siebel audit script to make sure that you have reduced your financial risk
Need help to review Oracle Siebel Licensing?
Siebel Licensing Assessment
Our Siebel Licensing Assessment service provides a comprehensive analysis and optimization recommendations for your Siebel installations, enabling you to ensure compliance with licensing agreements, reduce unnecessary costs and optimize support resources. Our service includes:
Licensing Deployment Analysis
- Analysis of your Siebel installation and licensing deployment
- Identification of any license usage issues or discrepancies
- Comparison of your licensing deployment with your contractual obligations
- Review of your licensing inventory, including any historical licensing usage
- Analysis of your Siebel licensing contracts and agreements
- Identification of any licensing restrictions or limitations
- Comparison of your licensing entitlements with your actual usage
- Review of any potential risks or issues related to licensing compliance
- Identification of any non-compliance issues or gaps in licensing entitlements
- Recommendations for remediation of any compliance issues or gaps
- Assistance with license reallocation and redistribution, if needed
- Implementation of licensing changes to ensure compliance with contractual obligations
Advisory on Licensing Optimization and Support Reduction
- Review of your current licensing usage and entitlements
- Recommendations for optimization of licensing usage to reduce costs
- Identification of potential opportunities for reducing support costs
- Guidance on implementing licensing and support optimizations
Our Siebel Licensing Assessment service is designed to provide you with a clear understanding of your licensing obligations and entitlements, identify areas of risk and non-compliance, and offer recommendations for optimization and cost reduction. With our expert guidance, you can ensure compliance with your licensing agreements, optimize your licensing usage, and reduce unnecessary costs.
- About the Author
- Latest Posts
Fredrik Filipsson possesses 20 years of experience in Oracle license management. Having worked at Oracle for 9 years, he gained an additional 11 years of expertise in Oracle license consulting projects. Fredrik has provided assistance to over 150 organizations worldwide, ranging in size and tackling various Oracle licensing challenges, including Licensing Assessments, Oracle audits, Oracle ULAs, and more.