Oracle Middleware Licensing

How is Oracle Business Intelligence Enterprise Edition (OBIEE) Licensed (Processor vs. Named User Plus)?

How is Oracle Business Intelligence Enterprise Edition (OBIEE) Licensed (Processor vs. Named User Plus)

How is Oracle Business Intelligence Enterprise Edition (OBIEE) Licensed (Processor vs. Named User Plus)?

Oracle Business Intelligence Enterprise Edition (OBIEE) provides organizations with advanced analytics, dashboards, reporting, and data visualization capabilities. As with most Oracle middleware and technology products, OBIEE licensing follows two primary metrics:

  • Processor licensing
  • Named User Plus (NUP) licensing

Choosing between these licensing models depends on your organization’s user population, usage scenarios, and cost considerations.

Here’s how each licensing option works and when each makes sense.

Read Oracle middleware FAQs.


Processor Licensing for OBIEE

Processor licensing is suitable when OBIEE serves:

  • Large user populations
  • External or public users
  • Unpredictable or unlimited user scenarios

Under Processor licensing, the cost is calculated based on the total number of CPU cores in servers running OBIEE software, applying Oracle’s Core Factor Table.

Licensing Calculation Example:

  • Suppose your OBIEE deployment runs on a server with 8 Intel CPU cores.
  • Oracle’s core factor for Intel CPUs is typically 0.5.
  • Licensing math: 8 cores × 0.5 core factor = 4 Processor licenses

Processor licensing allows unlimited users—employees, external users, or customers—to access OBIEE without tracking individual user licenses. Organizations frequently select this option to simplify licensing management for enterprise-wide BI deployments.


Named User Plus (NUP) Licensing for OBIEE

User Plus licensing is a user-based metric where you license each individual or device that accesses OBIEE. This option is typically beneficial when you have a:

  • Known, limited user group
  • Internal departmental deployment
  • Small-to-medium-sized user base

Key Points for NUP Licensing:

  • Oracle enforces a minimum requirement of 10 Named User Plus licenses per processor.
  • You must license the minimum required users or your actual users—whichever is higher.

Licensing Calculation Example:

  • Suppose your OBIEE server counts as two processors (after applying the core factor).
  • Minimum NUP required: 2 processors × 10 NUP minimum = 20 NUP licenses.
  • If your user count exceeds 20, you must still buy at least 20 NUP licenses.
  • If your user count exceeds 20, license the number of users.

Practical Scenario:

  • A departmental OBIEE installation serves 30 business analysts on a 2-processor server. You’d need 30 NUP licenses (as it’s greater than the minimum of 20 required).
  • If the user count were smaller (e.g., five users), you would still need at least the 20-license minimum.

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


Choosing the Right Licensing Model

When deciding between Processor and Named User Plus licensing, consider these factors:

FactorProcessor LicensingNUP Licensing
User population sizeLarge or unlimitedSmall or fixed
Type of usersExternal or mixedInternal only
Usage growth predictabilityUnpredictableStable or limited
Licensing management overheadLowModerate (tracking required)
Cost-effectiveness threshold>50 users per processor<50 users per processor

General Guideline:

  • Historically, the cost of around 50 NUP licenses roughly equals one Processor license.
  • Processor licensing typically becomes more cost-effective if your user base per processor exceeds this number.
  • Below this threshold, NUP licensing can provide savings, particularly for stable, departmental use cases.

Example Scenario Comparison

Scenario: Your organization deploys OBIEE to serve 100 internal users. OBIEE is deployed on a server equivalent to 2 processor licenses:

  • Named User Plus:
    100 users required × (approx. $2,000/NUP) = ~$200,000 (illustrative pricing).
  • Processor Licenses:
    2 processor licenses × (approx. $100,000/processor) = ~$200,000 (illustrative pricing).

At exactly 100 users, both models are similar in cost. However, consider:

  • If user numbers grow beyond 100, processor licensing will remain fixed, becoming more economical as more users are added.
  • If your user numbers decrease significantly, NUP licensing could become cheaper, assuming you can adjust licensed user counts at renewal.

Due to the convenience and simplicity of Processor licensing, many companies choose Processor licenses for OBIEE if user growth or fluctuation is anticipated.


Key Recommendations for OBIEE Licensing

  • Enterprise-wide deployments usually favor Processor licensing for simplicity and unlimited users.
  • Smaller, departmental BI solutions may find Named User Plus licensing cost-effective.
  • Carefully track user counts in NUP licensing to ensure compliance, especially if user numbers fluctuate.

Ultimately, aligning your licensing strategy with your usage patterns, projected growth, and budget management approach ensures compliance and cost optimization.

Read How is Oracle WebCenter Portal Licensed, and Does it Require WebLogic.


Conclusion

Oracle Business Intelligence Enterprise Edition (OBIEE) licensing provides flexibility through Processor and Named User Plus options. Organizations with large, dynamic user bases typically select Processor licenses to simplify compliance and management.

Smaller or departmental scenarios with known user populations may find Named User Plus licenses more economical. Evaluate your current and projected BI user counts carefully to choose the most suitable licensing model, ensuring compliance and cost efficiency.

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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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