Oracle ASFU license is short for Oracle Application Specific Full use license. This is an Oracle ISV license model that can only be sold by Oracle ISV/OEM partners who have built solutions or applications that utilizes Oracle technology. Oracle Application Specific Full use license model can utilize all Oracle technology software, including Oracle database and Oracle middleware products such as WebLogic. The ISV purchases the license from Oracle and then resells the license to the end customer and the end customer will be listed as the owner of the ASFU licenses. Oracle has 2 different license models available for ISVs or partners who wants to use Oracle software in their solutions. The other very popular license model is the ESL-embedded license with a 90% discount.
Below is a screenshot from an ASFU Oracle license terms (Oracle Distribution agreement) you can find copies of this publically available:
Oracle Application Specific Full use end customers can for a fee migrate/upgrade the licenses to full use licenses and re-use the licenses for other applications.
Oracle ASFU vs Oracle PAH, we see that for different sales compensation packages Oracle positions the incorrect license model to its ISV/partners. The main difference is that Oracle PAH licenses are to be used for many end customers. Application specific full use license model is for 1:1 companies. If you are an Oracle ISV its very important to understand the differences in license models to avoid costly license fees if Oracle audits your business.
There are 2 different license models that the App Specific FU license is available under. The most common 95%+ is the standard Oracle license metric, named user plus and processor licenses. If you have that license model you need to license the Application Specific Full Use licenses the same way as you would for normal full use licenses but with the application package restrictions. The second ASFU Oracle license model, which is rare but exists in the royalty license model. In this model the ISV provices Oracle with its current price list and they agree on providing Oracle a % of all sales. In return the ISV can resell App Specific FU licenses without any consideration of the number of users and processors.
Oracle ASFU Pros
Oracle Application Specific Full use – Cons
If you are an Oracle ISV and are considering entering an App specific FU Oracle agreement, you should first determine which license model that fits your company and solution. Remember that you can have different license models for different solutions. One solution where you may have one agreement, you can license with Named User Plus and Processor and if you have another solution that doesnt require you to use the same license model, you may preferr the royalty based model. It is also very wise to leave the APRF very vague, as you want to not box your into too many details describing your application package. In case you make smaller changes or upgrades you may want to avoid renegotiating the APRF agreement with Oracle. If you are an end customer and have an Application specific full use license, our expert advice is to make sure you understand who is liable if Oracle audits the ISV and indirectly you. If you have deployed the ISV environment in a way that is not according to the ASFU license terms, can the ISV claim you for the penalty fees? Oracle will not claim you for those fees, but it is important to have the responsibility clear between you and the reselling application vendor.
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Are you an ISV interested in signing an ASFU agreement with Oracle? Or end customer who wants help with Oracle licensing? We are independent Oracle licensing consultants who are helping companies globally with Oracle licensing and cloud challenges. Schedule an consultation to find out more about our services that are designed to help ISV who wants to negotiate ASFU Oracle license models but also end customers who needs support.