Oracle Custom Application Suite (CAS) Licensing for Oracle E-Business Suite (EBS)
Oracle Custom Application Suite (CAS) Licensing provides a flexible, consolidated licensing option tailored specifically for organizations that use multiple modules within Oracle E-Business Suite (EBS). Instead of purchasing separate licenses for each EBS module, businesses negotiate a customized license agreement that bundles multiple EBS modules into a single licensing package.
Key aspects of CAS licensing for Oracle EBS:
- Customized Bundling: Combine various EBS modules (Financials, Supply Chain, HR, Procurement) into a single suite license.
- Unified License Metric: Typically uses the Custom Suite User metric, allowing each user to access all modules within the suite.
- Simplified Administration: Reduces administrative overhead by having one license count for multiple modules.
- Flexible Pricing: Negotiated pricing typically includes volume discounts based on the bundled modules and number of users.
Example: A manufacturing firm uses Oracle EBS Financials, Procurement, and Supply Chain Management. Rather than separately licensing users for each module, the company opts for a CAS agreement licensing 500 Custom Suite Users who can access all three modules under one simplified license structure.
How Oracle EBS Custom Application Suite Licensing Works
Selecting Modules for the Suite
The CAS licensing model enables organizations to select and combine multiple Oracle EBS modules into a single unified agreement. Common modules bundled under CAS for EBS include:
- Financial Management (General Ledger, Accounts Payable, Accounts Receivable)
- Supply Chain Management (Inventory, Order Management, Purchasing)
- Human Capital Management (Payroll, HR, Self-Service HR)
- Project Portfolio Management (Projects, Grants, Contracts)
These modules form a customized suite tailored to your organization’s business needs and operational requirements.
Example Scenario:
A global services company wants to license financials, HR, and Project modules for its 1,000 employees. Rather than individual module licenses, the company negotiates a CAS license agreement covering all three EBS areas with a single user-based metric.
Single Unified Metric: Custom Suite User
CAS for Oracle EBS utilizes the Custom Suite User metric, which operates similarly to a named-user license but covers all EBS modules included in the suite.
Key characteristics:
- Each licensed Custom Suite User can access all EBS modules within the CAS agreement.
- Licenses cover usage across multiple environments (production, test, development) without additional fees per environment.
- Users must be individually named—licenses cannot be shared or rotated among multiple people.
Example:
If an organization licenses 250 Custom Suite Users, each named individual may use the Financials, HR, and Procurement modules simultaneously. One Custom Suite User license covers all the modules within the custom suite, greatly simplifying user and license management.
Negotiating a CAS Agreement for Oracle EBS: Essential Considerations
CAS licensing agreements for Oracle EBS are highly customizable. Key negotiation factors include:
Minimum User Commitments
Oracle typically requires minimum license commitments to ensure revenue predictability:
- Oracle might mandate a minimum number of Custom Suite Users (e.g., at least 100 users).
- Commitments often include minimum spending thresholds, particularly if seeking favorable pricing.
Clearly Defined Module Scope
Ensure the CAS agreement explicitly defines all Oracle EBS modules included, such as:
- Specific EBS modules listed (e.g., General Ledger, Payroll, Inventory).
- Clarify any restrictions or exclusions to prevent accidental use of non-licensed modules.
Flexible Pricing and Discounting
CAS deals commonly result in volume-based discounts:
- Large-scale bundling often leads to favorable pricing compared to separate module licensing.
- Pre-negotiating incremental pricing for adding additional modules or users simplifies future growth.
Negotiation Example:
A retailer licenses 400 Custom Suite Users covering Oracle EBS Financials and Supply Chain Management. Due to the bundle size and user commitment, Oracle provides a discounted rate. The contract specifies included modules and defines incremental user and module addition costs, ensuring predictable budgeting.
Read Oracle EBS Employee Metric Licensing.
Advantages and Flexibility of CAS Licensing for Oracle EBS
Comprehensive Module Access
- Each Custom Suite User has access rights to all licensed EBS modules without individual module licenses.
- Promotes broader adoption of Oracle EBS across the organization without additional licensing complexity.
Simplified License Administration
- A single unified license count simplifies user tracking and compliance management.
- Reduces the administrative burden compared to managing multiple licenses with separate metrics.
Cost Efficiency and Predictable Budgeting
- CAS agreements typically offer substantial discounts compared to individual module licensing.
- Simplified user growth management and predictable pricing facilitate accurate budgeting and cost planning.
Scalable for Growth
- Easily scale usage by adding users or modules at pre-negotiated incremental pricing.
- Quickly adapted Oracle EBS module deployment to meet changing organizational requirements without extensive renegotiation.
Example of Flexibility:
A healthcare provider initially licenses 150 Custom Suite Users covering the Financials and HR modules. As their organization expands, they will later need to activate EBS Procurement. Because they included Procurement within their CAS agreement, activating this module requires no new negotiations—just internal deployment to existing licensed users.
Compliance Considerations and Risk Management for Oracle EBS CAS Licensing
While CAS simplifies management, it introduces unique compliance considerations:
Accurate User Tracking
Organizations must carefully manage user counts:
- Maintain current records of named Custom Suite Users.
- Deactivate licenses promptly when employees leave or no longer require access.
Adherence to Agreed Module Scope
Monitor module usage strictly within CAS boundaries:
- Regularly verify that only licensed EBS modules are deployed and used.
- Immediately address any accidental deployments of unlicensed EBS modules to avoid compliance issues.
Monitoring Minimum Commitments
Oracle enforces minimum user commitments:
- Annual support fees remain tied to the original agreed minimums even if actual usage decreases.
- Maintain clear alignment among IT, finance, and contract management teams to track compliance.
Audit Preparation
Organizations should proactively document:
- Up-to-date lists of active Custom Suite Users.
- Clear records showing deployed EBS modules align with the CAS license scope.
Example of Compliance Risk:
A company licenses EBS Financials and Procurement under CAS. Later, an IT department unintentionally deploys EBS HR modules. An Oracle audit identifies this unauthorized deployment. Regular internal license audits would have caught this discrepancy early, enabling proactive resolution and avoiding penalties.
Best Practices for Managing an Oracle EBS CAS License Agreement
To optimize the value and compliance of CAS licensing for Oracle EBS, consider these best practices:
- Clearly Define Licensed Modules:
Specify which EBS modules are included in the CAS agreement, explicitly noting any exclusions or restrictions. - Implement Active User Management:
Conduct periodic audits of user accounts, removing inactive or unnecessary licenses promptly. - Establish Robust Internal Controls:
Ensure IT teams verify module deployments against CAS contract terms to avoid accidental compliance breaches. - Pre-Negotiate Growth Terms:
Include incremental user and module expansion pricing within the initial agreement, simplifying future scaling efforts. - Schedule Regular Compliance Reviews:
Conduct routine internal audits to validate license usage, user counts, and module compliance, addressing discrepancies immediately.
Practical Example:
A logistics company licenses 800 Custom Suite Users for Oracle EBS Financials, Procurement, and Inventory. The IT and HR departments review user licenses quarterly, update active user lists, and reconcile module deployments to the CAS agreement terms. Their contract also defines clear incremental pricing, making future expansions straightforward.
Strategic Insights and Conclusion for Oracle EBS CAS Licensing
Oracle Custom Application Suite Licensing for Oracle E-Business Suite (EBS) offers significant operational flexibility, reduced administrative overhead, and optimized licensing costs. Organizations simplify management and enhance deployment flexibility by bundling multiple Oracle EBS modules into a unified licensing model.
Successfully implementing a CAS licensing strategy for Oracle EBS involves careful upfront negotiation and diligent ongoing user and module management. However, with structured administration and proactive compliance, CAS licensing provides substantial strategic benefits—simplifying user management, promoting broader EBS adoption, and delivering predictable, scalable license costs.ng administrative burdens, optimizing Oracle license investments, and enhancing overall operational flexibility.
