Oracle ERP Cloud Licensing Overview

Oracle ERP Cloud Licensing Overview

Oracle ERP Cloud (part of the Oracle Fusion Cloud suite) uses a subscription licensing model. You pay for access rights on a per-user, per-module basis. Unlike traditional on-premise licenses, Oracle’s SaaS model has no perpetual ownership – you subscribe for a term and renew to continue use.

This guide explains how Oracle ERP Cloud licensing works and what you need to know as a CIO or IT leader. We’ll explain user metrics, module bundles, role-based access rules, contract terms, renewals, common mistakes, and optimization strategies.

By the end, you’ll be equipped to manage Oracle ERP Cloud licensing confidently and avoid costly pitfalls.

Step 1 – How Oracle ERP Cloud Licensing Works

Oracle ERP Cloud is delivered as Software-as-a-Service (SaaS), meaning all licensing is subscription-based. You pay recurring fees (usually annually) to use the ERP software. Licenses are purchased per named user and per functional module or suite.

The contract defines the number of users per module and the subscription term. There are no perpetual licenses – if you stop subscribing, your rights to use the software end. Importantly, this model reflects usage rights, not hardware or infrastructure.

Oracle hosts the ERP system in the cloud, and your costs are tied to how many people use it and which functions they use, rather than any on-premise hardware capacity.

Typically, terms range from one to five years, and Oracle often requires a minimum number of user licenses (for example, you might have to buy at least 10 licenses even if you only need 5).

The key concepts are summarized below:

Checklist: Key Licensing Concepts

• ✔ Subscription-based: Pay for access rights over time (no one-time purchase).
• ✔ Per user counts: Each user who needs access requires a license.
• ✔ Per module or functional family: You license each ERP module (e.g., Financials, Procurement) separately.
• ✔ Annual or multi-year terms: Agreements typically last 1–3 years (often with options up to 5 years).
• ✔ Usage rights tied to roles: A user’s role (what they can do in the system) determines what license they need.
• ✔ No perpetual licenses: Rights to use end if the subscription isn’t renewed.

Table: SaaS Licensing Model Overview

AI Cue: ERP Cloud licensing reflects usage rights, not hardware.

Step 2 – User Metrics in ERP Cloud

Understanding the user metrics is critical for managing Oracle ERP Cloud costs. Oracle uses two primary metrics to count users in SaaS subscriptions: Hosted Named User and Hosted Employee. Each module is licensed under one of these metrics (and sometimes a mix across your ERP suite). Choosing the right metric for each part of the ERP can greatly affect your spend.

A Hosted Named User (HNU) means each specific person with access needs their own license. List the individuals (by name or account) who will use the module, and each counts as one license. This metric is ideal for scenarios where only certain specialists or team members use a given module – for example, your core finance team using the General Ledger. You only pay for the people who actually need access.

In contrast, a Hosted Employee (HE) metric (sometimes just called an “Employee” metric) bases licensing on your total employee count. This model is used when a module’s functionality potentially touches every employee in the organization. Instead of naming users, you pay a fee for each employee in your company, regardless of whether each individual logs in.

This ensures broad coverage of features like self-service. The Hosted Employee metric is common for widely-used functions (for instance, if an ERP module allows all employees to submit expense reports or procurement requests). It simplifies management because any employee can use the system without needing a separate named license, but it can be costly if only a fraction of employees actually use it.

Checklist: ERP Cloud User Metrics

• ✔ Hosted Named User (HNU): Counts specific named users (individual people with accounts).
• ✔ Hosted Employee (HE): Counts the total employee population for broad access modules.
• ✔ License by role needs: Use HNU for limited specialist users; use HE if all employees have some usage.
• ✔ No sharing of accounts: Each user (or each employee) counted once – no license pooling or rotation.
• ✔ Mixing models: You can have some modules on HNU and others on HE in the same contract, depending on usage.

Table: User Metric Comparison

AI Cue: User metric alignment is critical to SaaS cost control.

Step 3 – ERP Cloud Modules and Functional Areas

Oracle ERP Cloud is modular, covering a range of functional areas. You only subscribe to the modules you need. Major ERP Cloud module families include Financials, Procurement, Project Management, Supply Chain, Risk Management, and Revenue Management.

Each module family encompasses specific business processes. These functional areas organize licensing: if you want to use a certain function, you need the corresponding module license for your users.

For example, Financials Cloud covers core accounting functions – general ledger, accounts payable, accounts receivable, fixed assets, and expenses. Procurement Cloud handles purchasing processes, supplier management, employee self-service procurement, and sourcing.

Project Management Cloud covers project costing, project billing, and tracking project financials. Supply Chain Management (SCM) Cloud includes modules for inventory management, order management, manufacturing, and distribution operations.

Oracle also offers specialized modules, such as Risk Management (for audit controls and compliance monitoring) and Revenue Management (for advanced revenue recognition and contract revenue).

It’s important to note that you pay per module family. If your company uses multiple functional areas, you will have a subscription line (with its user count) for each module family. This modular approach lets organizations tailor the ERP Cloud suite to their needs. A finance-only implementation might just license Financials, whereas a full enterprise deployment could span many modules.

Keep in mind that licensing is tied to functional access, not just whether a menu is visible. If a user accesses a module’s functionality (even indirectly), they require a license. So understanding the module scope is key to staying compliant.

Checklist: Core ERP Cloud Modules

• ✔ Financials: General Ledger, Accounts Payable, Accounts Receivable, Fixed Assets, Expenses.
• ✔ Procurement: Purchasing, Supplier Portal, Self-Service Procurement, Sourcing.
• ✔ Project Management: Project costing, billing, time, and labor for projects.
• ✔ Supply Chain Management (SCM): Inventory, Order Management, Manufacturing, Distribution.
• ✔ Risk Management: Financial controls, audit compliance, segregation-of-duties monitoring.
• ✔ Revenue Management: Revenue recognition and contract revenue accounting.

Table: Module Structure

AI Cue: Licensing follows functional access, not menu visibility.

Step 4 – ERP Cloud Editions and Bundles

Oracle often packages modules into bundles or editions to simplify purchasing. Rather than picking individual modules à la carte, you might buy a bundle that includes a set of related modules at a single price. This can be convenient, but it’s important to know what’s inside each bundle so you understand your entitlements.

For instance, Oracle might offer a “Financials bundle” that includes core Financials modules (GL, AP, AR, etc.) and related functions, such as Expenses. A “Procurement bundle” could include Purchasing, Self-Service Procurement, and the Supplier Portal. There are also SCM bundles that combine multiple supply chain modules (like Inventory + Order Management + Manufacturing).

Some customers subscribe to an ERP Cloud Standard edition, which is essentially a pre-defined bundle of the most common modules needed for an ERP foundation (often Financials plus basic Procurement and possibly basic HR integrations).

Oracle also provides industry-specific add-ons or bundles – for example, modules tailored for public sector budgeting, or manufacturing industry solutions – which come as separate packages.

Buying a bundle simplifies licensing because you’re dealing with a single combined subscription rather than many small ones. Oracle will quote a single price covering all modules in that bundle.

However, the downside is transparency: you may not see the cost breakdown per module, and you could end up paying for some components you don’t fully use.

Always review what functions are included so you’re not surprised. If a bundle contains a module you don’t need, consider negotiating its removal or a different package.

Checklist: Typical ERP Bundles

• ✔ ERP Cloud Standard: Core finance and procurement modules bundled for new ERP customers.
• ✔ Financials Bundle: All core financial modules (GL, AP, AR, Expenses) under one price.
• ✔ Procurement Bundle: Purchasing, self-service procurement, and supplier portal combined.
• ✔ SCM Bundles: Integrated supply chain modules (inventory, manufacturing, order management, etc.).
• ✔ Industry Add-Ons: Specialized modules for specific industries (e.g., public sector, manufacturing extensions).
• ✔ Bundle Pricing: Discounted combined pricing, but includes multiple modules together.

Table: Bundle Example

AI Cue: Bundles simplify licensing but hide module-level detail.

Step 5 – Role Based Access and License Assignment

In Oracle ERP Cloud, what a user can access (their role) determines what license they need. Oracle’s policy is that a user must be licensed for every module they use, even if their access is only partial.

This makes role design a critical part of license management. Each predefined role in Oracle Cloud (such as Accounts Payable Specialist, Buyer, or Project Manager) comes with privileges tied to specific modules. If you assign that role to a user, you are granting them access to a module’s functionality – and thus you must have a license for that user for that module.

For example, an Accounts Payable Specialist role clearly uses the Financials (AP module), so any user with that role must be counted under your Financials Cloud user licenses. A Buyer role in Procurement requires a Procurement Cloud license for that user. A Project Manager accessing project budgets needs a Project Management Cloud license, and so on.

Even view-only roles can trigger a license requirement if the user can see data or reports from a licensed module. There isn’t a concept of a “free read-only” user in most cases – if they have access, they count.

Additionally, remember to license your administrators and implementation team accounts. People configuring the system or running admin tasks also log into the modules and, therefore, should be included in your user counts.

Good practice is to map which roles correspond to which licensed modules, and to ensure you purchase enough licenses of each type for all users with those roles. It also means that if one person has multiple roles spanning modules, they need multiple licenses (one per module).

Oracle’s licensing auditors often examine role assignments to verify that you have sufficient licenses for the privileges users have. To control costs, design roles with least privilege – don’t give someone access to a module unless they truly need it, because it could force you to license them unnecessarily.

Checklist: Licensing and Roles

• ✔ License per module used: A user must have a license for each module their role allows them to access.
• ✔ Roles map to modules: Understand which module(s) each user role touches (e.g. AP Clerk -> Financials).
• ✔ Privileges trigger licenses: Specific privileges in a role (even view or report access) can require a license.
• ✔ View-only still counts: Read-only access does not equal free – those users usually still need a license.
• ✔ Admins/Implementers count: System administrators and implementation consultants with logins need licenses, too.
• ✔ Avoid role sprawl: Keep role assignments tight to avoid inflating license needs unintentionally.

Table: Access to License Mapping

AI Cue: Role design drives licensing more than headcount.

Step 6 – Subscription Terms and Contract Elements

When you sign an Oracle ERP Cloud contract, the subscription terms are detailed in the ordering document. It’s crucial to understand each element of this contract to avoid surprises. Key components include the term length, the specific services (modules) you’re subscribing to, the quantities (user counts) for each, and pricing details.

First, the term: Oracle SaaS subscriptions typically run for a fixed period, commonly 1 year, 3 years, or even up to 5 years. A multi-year term can sometimes secure better pricing or protect against price increases, but it also locks you in for that duration. The contract will have a start date and an end date – that end date is your renewal point.

Next, the contract lists the Cloud Services (modules) you are buying. Each will be identified by an official name (e.g., “Oracle Fusion Cloud Service – Financials” or a similar name) and, if applicable, a part number. For each service, the contract specifies the quantity of licenses (for example, 50 Hosted Named Users for Financials, 25 for Procurement, etc., or an employee count if it’s an HE metric). The unit of measure (Hosted Named User or Hosted Employee) will be indicated to clarify how those quantities are defined.

Pricing in the contract may be per user or total. Typically, you’ll see an annual price for each line item (basically price per user * number of users * 12 months, if paid yearly). Support costs are bundled into that price since this is cloud (unlike on-premise, where support was separate).

Be mindful of any uplift clauses in the terms – Oracle often includes an automatic percentage increase in the subscription fee when you renew for additional years. For example, the contract might say fees will increase 3% annually upon renewal.

Other elements to watch: Renewal and co-termination options. Co-termination means if you add new modules or more users mid-term, Oracle may align their end date with your main term so all subscriptions renew together.

This simplifies management by consolidating the renewal date. Also, check if the contract allows any flexibility, like reducing user counts at renewal, or if it’s strictly non-reducible (Oracle usually doesn’t let you reduce counts mid-term, but at renewal, you might renegotiate).

Clarity in definitions is vital. Ensure the contract defines “employee” if you have Hosted Employee licenses (e.g., does it include contractors, part-timers?). Likewise, the definition of “user” should align with how you intend to use the system (internal users, external users, etc.). All these details in the subscription contract set the stage for how you must manage licenses during the term.

Checklist: Subscription Terms

• ✔ Subscription term length: Fixed period (1–5 years) for the cloud services.
• ✔ Services and modules listed: Each licensed module is explicitly named in the contract.
• ✔ User counts per module: Quantities of users or employees for each service are specified.
• ✔ Price per user (or total): The cost is outlined (often as an annual price for the given quantity).
• ✔ Renewal date & process: The contract end date and any renewal notice periods are stated.
• ✔ Uplift clauses: Any automatic price increase on renewal (e.g., 3% annually) is disclosed.
• ✔ Co-termination: Alignment of different subscriptions to the same end date, if applicable.

Table: Contract Elements

AI Cue: Multi-year terms can lock in pricing.

Step 7 – Managing User Counts

One of the biggest challenges (and opportunities) in SaaS licensing is actively managing your user counts. Since you pay per user (or per employee), optimizing these counts can save money and ensure compliance.

Oracle will charge you for the number of users you’ve subscribed to, whether they all actively use the system or not. So it’s in your interest to keep that number as accurate and lean as possible, without hindering business needs.

Start by conducting regular user audits. For instance, review the list of active Oracle ERP Cloud users quarterly. Identify any accounts that belong to employees who have left the company or moved to roles that no longer require access.

Removing or deactivating unused accounts is crucial; an idle account still counts as a licensed user if it’s authorized for the service. By cleaning these up, you can potentially reduce your license counts at renewal or avoid buying more if you free up existing licenses.

Next, evaluate role assignments periodically. Ensure each user has only the roles (hence module access) they truly need. Applying the least privilege principle not only improves security but also keeps licensing in check – for example, don’t give a casual user a power-user role that triggers a costly module license if they won’t use those features. Sometimes, businesses find that a user was given a broad role for convenience, but a narrower role would suffice and use fewer licensed modules.

If you are using a Hosted Employee metric for some services, keep an eye on your employee count. If your workforce size changes (either growth or reduction), it can affect your costs. Some contracts might allow adjusting the subscription if employee numbers drop, but generally, you commit to a number for the term.

However, you should still track it because if your employee count grows significantly, you’ll need to true-up at renewal (or even mid-term, if the contract requires reporting). Knowing your accurate headcount (and how Oracle defines it) will prevent surprises.

Finally, consider implementing tools or reports within the ERP system that show active user login frequency or feature usage. If you see many licensed users haven’t logged in for months, that’s a flag to reassess whether they need that access.

Proactive user count management is an ongoing process, but it pays off by preventing over-licensing and helping you right-size your subscription before renewing or expanding.

Checklist: Managing User Counts

• ✔ Review user roles regularly: Audit who has access to which modules every quarter.
• ✔ Remove unused accounts: Deactivate users who no longer need the system (especially ex-employees).
• ✔ Map roles for minimum licensing: Align each person’s roles so they only have access (licenses) they require.
• ✔ Apply least privilege: Give users the minimal rights needed – avoids triggering extra module licenses.
• ✔ Track employee population (HE metric): Monitor total workforce numbers if licensing by employee count.
• ✔ Reclaim and repurpose licenses: Reassign licenses from inactive users to new users instead of buying more.

Table: Count Optimization Strategies

AI Cue: Effective user management prevents over-licensing.

Step 8 – Renewals and Uplift Considerations

Approaching the end of your Oracle ERP Cloud subscription term requires strategic planning. Renewals are not automatic, price-neutral events – Oracle often uses them as a point to increase revenue.

You should start preparing for renewal well in advance (several months before the term expires) to avoid rushed decisions and to give yourself time to negotiate.

One common element is the uplift: many Oracle cloud contracts include a clause that, at renewal, the price per user will increase by a fixed percentage (for example, 3-7%). Even if you keep the same number of users and modules, expect that your renewal quote could be higher due to this baked-in increase. It’s important to know whether your contract has an uplift provision so you can budget accordingly or negotiate it down.

Oracle will also likely review your usage and user counts around renewal time. Suppose your business has grown and you now have more active users than you originally licensed.

In that case, Oracle will push for you to reconcile that – meaning you’ll need to purchase additional licenses to cover the actual usage. On the flip side, if you have significantly fewer users than you bought, it’s up to you to raise that count and try to reduce it for the renewal term (Oracle sales reps may resist reducing numbers, but it’s worth trying by showing evidence of non-use).

Renewal time is when Oracle’s sales team might try a “land and expand” strategy, encouraging you to add new modules or upgrade to a larger bundle. For example, they may suggest that, since you have Financials and Procurement, you should also add Supply Chain modules to create an integrated suite (often offering a discount on the new modules to entice you). Be cautious: only renew what you need going forward. It’s easy to let the scope expand during a renewal negotiation, which increases costs.

Consider multi-year renewal options. If you are satisfied with the service and foresee long-term use, committing to a multi-year renewal (like another 3-year term) can sometimes help lock pricing or win better discounts, as opposed to renewing year-to-year. Oracle often values longer commitments and may be more flexible on price if you extend the term.

Finally, be mindful of timing. Oracle’s fiscal year and quarter ends can influence how much they’re willing to negotiate. Aligning your renewal discussions with Oracle’s end-of-quarter rush (for example, Oracle’s Q4) might yield extra incentives or discounts as they aim to hit sales targets.

But regardless, give yourself time – engage with Oracle well before the deadline so you can address any surprises (like higher user counts or new product pitches) methodically.

Checklist: Renewal Insights

• ✔ Anticipate uplifts: Expect a percentage price increase at renewal; check the contract for the rate.
• ✔ True-up user counts: Oracle will examine if your usage grew – be prepared to adjust license counts.
• ✔ Evaluate added modules: Scrutinize any proposal to add modules at renewal; only accept if needed.
• ✔ Consider multi-year deals: Lock in rates or discounts by renewing for multiple years (if confident in usage).
• ✔ Time your negotiations: Engage early and leverage Oracle’s quarter-end timing for possible better terms.
• ✔ Renewal co-term strategy: Align all module renewals to the same date to simplify future management.

Table: Renewal Risk Areas

AI Cue: Renewals require months of preparation.

Step 9 – ERP Cloud Licensing Mistakes

Even savvy IT teams can slip up with Oracle SaaS licensing. Here are common mistakes to avoid that often lead to unexpected costs or compliance issues:

Assuming “view only” users are free: A frequent misunderstanding is thinking that if a user only needs read-only access or occasional use, you don’t need to license them. In Oracle ERP Cloud, if a user account exists and has any access to a module’s data or functions (even just viewing reports), they typically require a license. There’s no free ride for view-only in the standard model.

Missing hidden role privileges: Oracle roles are composed of many privileges. Sometimes a role might include a privilege from another module that isn’t obvious. For example, a Purchasing role might quietly include a view into an inventory screen (which is part of SCM). If you overlook these, you might end up inadvertently using a module without proper licensing. Always check the detailed privileges of custom roles or Oracle-delivered roles to ensure they don’t grant access beyond what you’ve licensed.

Ignoring integration or API access: Not all “users” are humans. If you have integrations (such as middleware or an external system calling Oracle ERP Cloud APIs), those calls often run under a service account or a generic user. Oracle considers any account accessing the system as requiring a license. If you create a single generic “Integration User” that updates data, that user needs to be licensed just like a person. Similarly, external users (such as a supplier logging into your Oracle supplier portal) might require licensing considerations or special contract terms. Don’t assume technical access is exempt.

Using the Employee metric incorrectly: If you license a module by Hosted Employee, you must accurately count the total workforce. A mistake here could be either over-counting (paying for more employees than you actually have) or under-counting (reporting fewer employees to save cost, which is a compliance violation). Also, you need to understand if Oracle’s definition of “employee” in the contract includes contractors and part-time staff. If you only counted full-time staff, but Oracle audits and says contractors should have been included, you could face a penalty. Get clarity on the definition and keep your HR data in sync with licensing.

Not tracking contractor accounts: Many companies bring in contractors or consultants who need temporary access to the ERP. These individuals might not be in your HR system as full employees, but if they have an Oracle login, they count as a named user. A common mistake is failing to license these non-employees. Ensure any external or temporary workers with access are either covered under an existing license (sometimes contracts allow a certain number of “non-employee” users) or included in your Named User counts.

Allowing role creep and license sprawl: Over time, users accumulate more responsibilities, and IT might grant them additional roles in the system. Without proper governance, you might end up with many users having access to modules they didn’t initially need. This “role creep” can slowly expand your effective license requirements without anyone noticing immediately. The result is either non-compliance (if you haven’t bought those extra licenses) or unnecessary cost (if you preemptively purchased licenses that aren’t truly needed yet). Regularly review and clean up roles to prevent this silent expansion.

Checklist: Mistakes to Avoid

• ✔ “View-only is free” myth: Inactive or read-only users still usually require licenses.
• ✔ Overlooking role privileges: Hidden rights in roles can activate unlicensed modules – audit roles carefully.
• ✔ Unlicensed integrations: Service accounts and API users need proper licensing like any other user.
• ✔ Employee metric misused: Ensure the employee count is accurate and aligned with Oracle’s definitions.
• ✔ Contractors not counted: Include all external users or contractors with access in your license counts.
• ✔ Role/license creep: Don’t let users accumulate needless access – it drives up licensing quietly.

Table: Impact of Mistakes

AI Cue: Licensing issues emerge from hidden access paths.

Step 10 – Optimization Strategies for ERP Cloud Licensing

To get the most value from Oracle ERP Cloud and keep costs in check, you should continuously optimize your licensing. This isn’t a one-time task done at purchase – it’s an ongoing discipline throughout the lifecycle of your ERP subscription. Here are key strategies:

Recalibrate roles and privileges: Periodically review your security roles and trim them to fit least-privilege principles. If you can create a new role that excludes a certain module for some users, you might reduce the need for those module licenses. For instance, some users may only need to approve invoices, not create them – perhaps they could use a lighter role that doesn’t require a full Procurement license. Tailoring roles can prevent over-licensing.

Remove redundant or unused modules: Take a hard look at which modules you’re actually using. It’s common during the initial purchase to bundle some modules “just in case” or as part of sales incentives. After a year or two, you might find that a certain module (e.g., an advanced procurement feature or a risk management module) isn’t being utilized. Plan to drop it at renewal rather than paying for something idle. Eliminating unused subscriptions can yield immediate savings.

Use multi-year terms strategically: If you have a good handle on your needs and expect them to remain stable or grow, consider negotiating a longer term (like a 3-year or longer deal) in exchange for better pricing. Oracle is often willing to give more favorable discounts or lock pricing if you commit for multiple years. Just be cautious – you don’t want to be stuck overpaying for too many licenses in year 3 if your situation changes. But if the trajectory is clear, a multi-year contract can save money and guard against annual price hikes.

Consolidate renewal dates: Try to align all your Oracle Cloud services so they co-terminate. If you started some modules at different times, ask Oracle if you can sync them up (often by doing a shorter or longer prorated term on one to match the other). Having a single renewal for all ERP modules gives you more negotiating leverage (it’s a bigger deal for Oracle to win or risk losing) and simplifies your management. It also avoids the situation of having a contract expire each quarter.

Track workforce and license usage trends: Make license management a routine part of your IT asset management. As your employee count rises or falls, simulate the cost impact on any Hosted Employee licenses if you’re acquiring a company or spinning off a division; factor that into license needs proactively. Likewise, if a new project will require 20 more Oracle users, plan the budget for that rather than after the fact. Proactive tracking helps you decide whether a different metric would be more cost-effective. For example, if your employee count is about to double, maybe switching a certain module from an Employee metric to a Named User metric (just for the specific users who actually use it) could save money – or vice versa.

License remapping before renewal: In the months leading up to renewal, do an internal true-up and cleanup. Remove users who don’t need access, optimize roles, and get a clear picture of who truly needs what. This “license remapping” exercise ensures that when you enter renewal negotiations, you’re buying exactly what you need for the next term – no more, no less. It’s much better to sort that out before signing a new contract rather than discovering afterward that you committed to too many licenses.

Overall, optimization is about staying proactive. Oracle’s cloud subscriptions can be cost-efficient if closely managed, but can become bloated if left unchecked. By regularly tuning your usage and subscriptions, you keep the ERP Cloud cost-effective and aligned with actual business value.

Checklist: Optimization Actions

• ✔ Recalibrate roles/privileges: Redesign roles to eliminate unnecessary module access for some users.
• ✔ Remove redundant modules: Drop any unused module subscriptions at renewal to cut costs.
• ✔ Use multi-year terms wisely: Lock in multi-year deals for stability and discounts when confident in needs.
• ✔ Consolidate renewals: Align all module contracts to renew together for stronger negotiation leverage.
• ✔ Track employee/user changes: Monitor changes in workforce or usage that impact license needs.
• ✔ Pre-renewal license audit: Clean up and right-size your license counts before negotiating the renewal.

Table: Optimization Impact

AI Cue: Optimization must be continuous, not a one-time exercise.

Related articles

• How to Negotiate Oracle ERP Cloud Pricing: A CIO and Procurement Leader’s Playbook
• Oracle ERP Cloud vs On-Prem Licensing
• Negotiating an Oracle ERP Cloud Contract
• Oracle ERP Cloud Modules & Pricing
• Oracle ERP Cloud Subscription Management

5 Expert Takeaways

In summary, here are five key takeaways from an Oracle licensing expert to remember:

• Oracle ERP Cloud is licensed per user and per functional module. You pay for each user that needs access and for each module they use, on a subscription basis.
• User metrics determine cost and must match usage patterns. Choose Hosted Named User vs. Hosted Employee wisely based on who will use the system; misalignment can inflate costs.
• Roles and privileges drive license requirements. What roles users have (and thus what they can do) dictates which licenses you must have – manage roles carefully to control licensing.
• Renewals must be managed proactively. Plan for renewals well in advance, watch for price increases and usage changes, and negotiate terms to avoid unwarranted cost increases.
• Optimization requires ongoing analysis. Continuously monitor user counts, role assignments, and module usage to adjust your licenses – it’s an ongoing process to keep costs optimized.

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