5 Oracle EBS licensing models – How to audit EBS

What is Oracle E-business Suite? Learn about the various Oracle EBS license model and licensing compliance. Find out how to audit your Oracle E-business Suite license. You might also be wondering whether you’re licensed for all the features. In this article, we’ll go over the basics. You can learn how to license Oracle E-business Suite so you can use it as efficiently as possible. If you’re considering licensing this program for your business, get the information you need to make an informed decision.

 

What is Oracle EBS Licensing

 

If you’re looking to implement a new software system in your business, you’ll want to know more about Oracle E-Business Suite. This enterprise resource planning (ERP) system is comprised of several Oracle enterprise applications that help you manage multiple business processes. This product helps you manage accounts receivable, accounts payable, customer relationship management, supply chain management, and more. It’s also the second most widely used business management software in the world, with over 130,000 users deployed across continents.

If you’re considering the cloud option for your business, you may be wondering if Oracle E-Business Suite is compatible with the Oracle Cloud. Thankfully, Oracle has provided an alternative. This cloud solution is managed by Oracle and will provide all of the same tools as an on-premise system. You can also use the cloud version if you have a limited budget. However, it’s important to make sure that the Oracle Cloud option you choose will allow you to host third-party applications on the platform.

 

Oracle EBS licensing model

 

Oracle E-business Suite pricing has changed slightly to attract new customers. It no longer offers multiple pricing models, but now you only need a single one to get all of the software you need. While the change is small, analysts reacted positively to the changes, noting that the changes should increase sales by attracting new customers. . Oracle has said that it’s committed to making its products more affordable, but some customers are worried that they’ll have to pay too much.

If you have several users, you’ll want to choose the best model for your company. Traditionally, licensing Oracle E-Business Suite by users is the most popular model. You can also buy Oracle E-business Suite by enterprise metrics or per application user.

If you’re a small organization, it may be more cost-effective to purchase an enterprise license. This licensing model allows you to license Oracle products for your entire organization, removing the need for tracking individual user licenses and deployment locations. You can also multiply the Enterprise Price List with the number of users and business transactions you expect to use the application. If you’re a large organization, this model may make the most sense for your business.

What’s great about Oracle E-Business Suite is its scalability. Previously known as Oracle Financials, it’s a collection of central accounting and financial management modules. It also includes asset management and purchase orders. It is often compared to JD Edwards EnterpriseOne. It is a popular choice among large enterprises.

 

Oracle EBS licensing & E-business Suite

 

Which Oracle EBS license models exist ? This is a video, aimed at providing you an overview over 5 different Oracle E-business suite license models. (Oracle EBS) Fredrik also provides tips on how to avoid being non compliant, how to read price lists, how to understand pre-reqs. If you are considering moving to Oracle Fusion cloud its essential that you perform an internal software license audit of your Oracle EBS environment and then map that to Oracle fusion cloud licenses.

00:00 What will you learn by watching the video?
00:17 EBS timeline and different licensing models
01:29 What is Concurrent users ?
02:35 Oracle EBS Professional user licenses
05:27 EBS Pricelist from 2005 and how to read it.
06:58 Component licensing (current license model)
08:08 Explaining Oracle pre-req and reviewing EBS Price list supplement.
09:18 Restricted use technology licenses with EBS is a trap and you are almost certainly out of compliance.
10:10 What is Customer Suite User (CAS licensing)
11:43 What is Enterprise Metrics for EBS?
12:40 What is your first step to review EBS licensing after watching this video?

 

Oracle EBS licensing

 

If you’re looking for ways to reduce the risks of non-compliance with Oracle E-Business Suite licenses, this article will provide some helpful insight. This software is licensed according to the number of users, Oracle EBS Application modules, and more. It’s essential to understand all the aspects of Oracle EBS license compliance and make sure that you’re not violating any of the terms. Listed below are three challenges that you may face when implementing Oracle E-business Suite:

First, you must determine which metric your company uses. This metric may be based on employee or revenue. For example, if the number of users in your company exceeds 1,000, you must purchase an additional metric of 2,000. In other words, if your company has ten employees, you must purchase ten additional licenses of that software.

When deciding how many users to install and use Oracle E-Business Suite, you can restrict the types of roles assigned to each user. You can assign multiple managers to each user and use one or several alternative managers to run jobs based on those profiles. Alternatively, you can disable the Standard Manager and install an alternative manager. Oracle E-Business Suite license compliance can be a tricky topic to manage. Fortunately, there are some solutions that make it easy.

 

Oracle EBS license audit

 

The process of an Oracle E-business Suite license audit is critical to avoiding financial loss due to misuse of the software. Oracle EBS users need to keep track of the application license usage in order to control costs and risks. This software is complex, with thousands of users, processes, and functions. These roles and responsibilities require continuous review of application usage. In this article, we’ll discuss the most common issues with Oracle EBS licensing.

Oracle routinely reviews EBS contracts and extracts data from as many as 25 tables. It also takes an ownership position in terms of software asset management. For example, mergers and acquisitions have made it more difficult to track software licenses and license renewals. In addition, user-name conventions have changed, and Oracle routinely audits contracts going back to the 1990s. Finding modules that don’t need to be used can save money.

When should an Oracle license audit occur? An audit typically begins with a notice letter. It lists legal entities and software programs used in a business. The letter is sent to the CIO or CFO and may also ask for the name of a single point of contact. The person who handles the audit should act as the central coordinator for the audit. Ultimately, the Oracle E-business Suite license audit can help your organization avoid non-compliance issues.

 

Oracle EBS license optimization

 

If you have several users using Oracle E-Business Suite, you can optimize your software licensing by using responsibilities. Responsibilities are logical groups within your software that allow users to access different functions, data, and windows. The responsibilities can also control which products are available in which navigation menus. For example, the Purchasing User’s navigation menu may not contain all the forms available for the Purchasing Superuser.

 

We are listing some of the most common compliance issues that we see with Oracle E-business suite licensing.

 

Oracle EBS licensing – Missing Full use Technology licenses

 

Oracle E-business suite licenses includes a restricted use Oracle Database Enterprise Edition and Oracle application server licenses.

However, the restrictions are such that we have yet to come across a single Oracle customer that can take advantage of the restricted use licenses and avoid licensing both database and application server with full use licenses.

 

You are not allowed to make any modifications

 

No Modifications: The customer is deploying the application without modifications. In this case, the customer receives a restricted-use license for the:

This restricted-use license may only be used to run with the licensed application(s); it cannot be used for any other purposes.

 

Modifications implemented as Java programs and/or modifications to Forms, Reports and/or Workbooks: These modifications include any creation or modification of reports, forms, and/or workbooks. In addition, modifications implemented as Java programs, which include Java that produces html interface or Java business logic fall under this category.

In these two scenarios, the customer receives a restricted-use license for the Oracle Database Enterprise Edition and a limited set of other products. This restricted-use license may only be used to run with the licensed application(s); it cannot be used for any other purposes. Additionally, the customer is required to purchase licenses for a limited set of products, including Oracle Internet Application Server Enterprise Edition for the total number of end-users or processors for which the modifications are deployed.

Modifications to the database: Examples of these modifications include adding and/or modifying the tables, columns, stored procedures and triggers, which are the part of Oracle E-Business Suite application schema.

In this situation, the customer is required to purchase licenses for the Oracle Database Enterprise Edition, as well as Oracle Internet Application Server Enterprise Edition for the total number of end-users or processors for which the modifications are deployed.

The customer receives a restricted-use license of a limited set of products. Additionally, a limited set of other products is required to be licensed as defined in the following table.

 

Oracle EBS licenses – Application User licenses

 

Not end-dating users that leave your company or are no longer requiring access to Oracle E-business suite is one of the most common compliance issues that we encounter when reviewing Oracle EBS licensing.

Remember, “Application user” licenses requires you to count all users even if they are not actively using Oracle EBS. Which is why its essential to end-date users who have left the company or are no longer utilizing Oracle E-business suite.

 

Oracle EBS licensing – Employee user 

 

If you are licensing Oracle EBS with “employee” you need to count the full employee population. Its quite common that your employee number has increased beyond your license grant.

 

Mistakenly granting access to Oracle EBS modules that you do not have a license for

 

This can be done both by using standard Oracle EBS modules or if you are building custom Oracle EBS applications that are using parts of EBS modules that you do not have a license for. An Oracle EBS licensing expert would review all the user names and which applications they are mapped to, to understand which licenses are required.

 

Oracle EBS licensing – Pre-requisite

 

Some Oracle EBS modules requires you to license another product, Oracle calls this pre-requisite licensing. For example, if you are using sourcing in Oracle EBS, you must also license Purchasing. Likewise if you are using Project Billing, you then need to license Project costing.

If you need help with reviewing licensing for Oracle EBS and/or other Oracle licenses we can help, contact us.

 

 

Read more on our blog

Oracle license compliance scripts
Oracle License Audit & Ultimate Guide
Oracle Fusion Enterprise Resource Cloud Service – How to build your service

 

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Thanks for reading, if you are an Oracle E-business suite customer and wants to review your Oracle EBS licensing either before upgrading to 12.2 or moving to Fusion or a public cloud. We can help, contact us to discuss in detail how we can make your Oracle ebs licensing model accurate before you make any changes to your Oracle e business suite licensing.