EBS

Managing Oracle EBS Concurrent Licensing

Oracle EBS Concurrent Licensing:

  • Historical Context: From 1994 to 1998, Oracle sold E-Business Suite applications using concurrent device or user license metrics​​.
  • License Requirements: This model requires licensing the maximum number of simultaneous (concurrent) users or devices​​.
  • Cost-Effectiveness: Concurrent licensing was cost-effective, allowing shared software use, thus reducing the total number of licenses needed​​.
  • Current Application: Although not sold, organizations with these licenses can still use them under the original terms​​.
  • Management Necessity: Requires active management to ensure compliance and avoid exceeding the licensed user/device amount, preventing legal and financial consequences​

Managing Oracle EBS Concurrent Licensing in Your Organization

Oracle EBS Concurrent Licensing

From 1994 to 1998, Oracle sold its E-Business Suite applications on concurrent devices or user license metrics.

This licensing model required organizations to license the maximum number of users or devices using the software simultaneously (concurrently).

Although Oracle does not sell software this way anymore, organizations owning such licenses are still allowed to use the applications under the original terms. Concurrent licensing is cost-effective and provides a feeling of paying for “fair usage.”

Concurrent Device or Concurrent User licenses often provide a lot of value to organizations, but especially since they are no longer sold, “concurrent” usage should be actively managed.

Not managing the concurrent usage of the software typically means that in a license audit, you cannot prove your compliance position.

Consequently, an organization must migrate Concurrent licenses to the less favorable Application or Named User licenses.

In most cases, this requires additional Application or Named User licenses to be purchased since the whole authorized user population needs to be licensed.

This article will discuss the importance of managing concurrent usage, how to do it effectively, and the benefits it provides to organizations.

Why is Managing Your Organizations Concurrent Usage Important?

Concurrent usage refers to the number of users or devices using the software simultaneously.

Concurrent Device or Concurrent User licenses allow organizations to use the software on a shared basis, reducing the number of licenses needed and, thus, saving money.

However, this licensing model requires organizations to monitor concurrent usage and ensure that the maximum number of users or devices does not exceed the licensed amount.

Failure to do so can lead to compliance issues, unnecessary expenses, and legal consequences.

To avoid these issues, organizations need to actively manage concurrent usage. By monitoring and allocating the Concurrent available licenses to the heaviest user population, organizations can ensure they are not exceeding the licensed amount, maintain compliance, and avoid unnecessary expenses.

How to Manage Concurrent Usage Effectively for Your Organization

Managing concurrent usage can be challenging, but ensuring compliance and maximizing the benefits of Concurrent Device or Concurrent User licenses is essential.

Here are some tips on how to manage concurrent usage effectively:

  1. Determine the Heaviest User Population.
    First, determine which user population is the heaviest, i.e., which users or devices use the software most frequently. This can be done by analyzing usage reports, monitoring usage patterns, and conducting surveys.
  2. Allocate Licenses Based on Usage.
    Once the heaviest user population has been identified, allocate the Concurrent available licenses to them. This ensures that the maximum number of users or devices using the software simultaneously does not exceed the licensed amount.
  3. Regularly Monitor Concurrent Usage.
    Monitoring concurrent usage regularly is critical to ensure compliance and avoid unnecessary expenses. By doing so, organizations can identify usage patterns, adjust license allocations, and purchase additional licenses if needed.
  4. Consider a License Management Tool.
    Using a license management tool can simplify the process of managing concurrent usage. These tools can provide real-time usage data, automate license allocation, and generate reports, making it easier to ensure compliance.

What are the Benefits of Managing Concurrent Usage in Your Organization?

Managing concurrent usage provides several benefits to organizations.

These include:

  1. Cost Savings.
    Concurrent Device or Concurrent User licenses are cost-effective and can save organizations money. By managing concurrent usage, organizations can maximize the benefits of these licenses and reduce unnecessary expenses.
  2. Compliance.
    Managing concurrent usage ensures compliance with licensing agreements, reducing the risk of legal consequences and penalties.
  3. Improved Resource Allocation.
    By monitoring usage patterns, organizations can identify areas where resources can be allocated appropriately and improve overall resource allocation, ensuring the software is used effectively.
  4. Opportunity to Mix Licenses.
    Managing concurrent usage allows organizations to mix older, more favorable licenses with new licenses, which may be needed due to the natural growth of the user population. This can help organizations save money and ensure the software is used efficiently.

Concurrent User License FAQs:

Can an organization still use Concurrent Device or Concurrent User licenses?

Although Oracle does not sell software this way anymore, organizations owning such licenses are still allowed to use the applications under the original terms.

What happens if an organization exceeds the maximum number of users or devices licensed for concurrent usage?

If an organization exceeds the maximum number of users or devices licensed for concurrent usage, it may face compliance issues, unnecessary expenses, and legal consequences.

How can an organization manage concurrent usage effectively?

Organizations should determine the heaviest user population to manage concurrent usage effectively, allocate licenses based on usage, regularly monitor concurrent usage, and consider using a license management tool.

Managing concurrent usage is essential to ensure compliance, avoid unnecessary expenses, and maximize the benefits of Concurrent Device or Concurrent User licenses.

By monitoring concurrent usage regularly and allocating licenses based on usage, organizations can save money, improve resource allocation, and ensure the software is used efficiently.

Therefore, it is crucial for organizations to actively manage concurrent usage and use the available tools and strategies to do so effectively.

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Author

  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, enhancing organizational efficiency.