Oracle ERP Cloud is priced based on the following factors:
- Subscription Basis: The pricing is structured on a subscription model, typically with a 3-5-year commitment.
- Per User Pricing: Costs are calculated per user.
- Minimum User Requirement: A minimum number of users is required for purchase, which affects the base cost.
- Contract Duration: The total cost is calculated based on the duration of the contract.
- Additional Services: Additional add-on services may be required, not included in the base pricing.
- What is Oracle ERP Cloud?
- Understanding Oracle Fusion Cloud Services Licensing
- Understanding Oracle ERP Cloud Pricing
- What is Oracle Fusion?
- How much is Oracle ERP Cloud Pricing?
- Oracle Fusion Enterprise Resource Planning (ERP) Cloud Service includes the following products:
- Oracle Fusion Enterprise Resource Planning for Self-Service Cloud
- Oracle Cloud ERP Pricing Calculator
- Step-By-Step Guide for Building your Oracle ERP Cloud Service
- Negotiating Oracle ERP Cloud
- Common mistakes organizations make when migrating to Oracle ERP Cloud
- FAQs on Oracle ERP Cloud Licensing and Pricing
- How Redress Compliance Can Help
What is Oracle ERP Cloud?
Understanding Oracle Fusion Cloud Services Licensing
When it comes to Oracle Fusion Cloud Services, it’s essential to grasp the following key points:
- Base Service Purchase: You start by purchasing a base service for all Oracle Fusion Cloud Services. This is typically licensed with a ‘hosted named user’ for ERP.
- Understanding Hosted Users: Comprehending what constitutes a ‘hosted user.’ Additionally, you should identify any add-on modules or privileges they may require access to.
- Additional Services: Alongside the base cloud service, you may need to purchase service add-on services.
Understanding Oracle ERP Cloud Pricing
Oracle ERP Cloud pricing is determined by the number of users and the specific cloud services required. Additionally, specific “prerequisites” must be purchased based on your needs.
Here’s a breakdown:
- Base Pricing: Oracle’s Enterprise Resource Planning (ERP) Cloud service costs $625 per month or $7,500 per year.
- Minimum User Requirement: A minimum of ten users is required for purchase, even if you only need five. This means a base cost of $75,000 per year.
- Contract Duration: A 3-year contract is mandatory, bringing the total cost for the minimum ten users to $225,000 over three years.
- Additional Services: This pricing does not include any additional services that may be needed.
Let’s consider a larger-scale example:
Cost for 1000 users for five years of Oracle’s ERP Cloud service:
- Without any discount: The cost would be $3,125,000. This is calculated by multiplying the monthly cost of $625 by the number of users (1000) and then by the number of years (5) in the contract.
- With a 40% discount, 1000 users for five years would cost $1,875,000. This is calculated by applying a 40% discount to the total cost of $3,125,000.
Remember, this pricing does not include additional add-on services you may need. Always consider your specific requirements when calculating the cost of Oracle’s ERP Cloud service.
What is Oracle Fusion?
Oracle Fusion is a set of cloud-based applications from Oracle Corporation that combines various enterprise software products, including enterprise resource planning (ERP), customer relationship management (CRM), and human capital management (HCM) solutions.
Oracle Fusion ERP provides a comprehensive suite of financial management, supply chain management, and project portfolio management capabilities.
- Oracle Fusion HCM is a cloud-based solution that provides tools for managing human resources, including recruiting, onboarding, benefits administration, and performance management.
- Oracle Fusion SCM (Supply Chain Management) is a cloud-based solution that provides tools for managing the entire supply chain process, from sourcing and procurement to manufacturing and logistics.
- Oracle Fusion PPM (Project Portfolio Management) is a cloud-based solution that provides project management tools, including project planning, tracking, and reporting.
- Oracle Fusion CRM (Customer Relationship Management) is a cloud-based solution that provides tools for managing customer interactions, including marketing, sales, and customer service.
- Oracle Fusion Governance, Risk, and Compliance (GRC) is a cloud-based solution that helps organizations manage their governance, risk, and compliance activities.
- Oracle Fusion Financials is a cloud-based solution for managing financial processes, such as accounting, financial planning, and analysis.
- Oracle Fusion Procurement is a cloud-based solution for managing the procurement process, from sourcing to invoice processing.
- Oracle Fusion Project Management is a cloud-based solution for managing projects and resources, time and expense tracking, and portfolio management.
- Oracle Fusion Manufacturing is a cloud-based solution for managing the entire manufacturing process, from design and engineering to production and quality control.
How much is Oracle ERP Cloud Pricing?
Oracle Fusion Enterprise Resource Planning (ERP) Cloud Service includes the following products:
- Financials Cloud Service
- Fusion Financial Reports Center Cloud Service
- Advanced Collections Cloud Service
- Revenue Management Cloud Service
- Grants Management Cloud Service
The service also includes several project-related services:
- Project Contract Billing Cloud Service
- Project Financials Cloud Service
- Project Management Cloud Service
Additional services include:
- Automated Invoice Processing: Please note this requires the purchase of the WebCenter Forms Recognition Service (hosted 1000 records).
- Fusion Transactional Business Intelligence Cloud Service: This is limited to this service only.
Oracle ERP Cloud Licensed – Hosted Named User
Hosted Named User: is defined as an individual authorized by you to access the hosted service, regardless of whether the individual is actively accessing the hosted service at any given time. Hosted Named Users may include Business Network Administrators, Endorsing Trading Partners, and Participating Trading Partners.
This means that you need to license
- You need to license any individual who has access to Oracle ERP cloud service; not only active users but users who may no longer use it but still have access will require a license.
- Avoid granting users the right to Cloud ERP if they do not need access.
Oracle Cloud ERP Pricing – A Cloud Pricing Example
The Oracle Fusion Enterprise Resource Planning (ERP) Cloud Service has the following pricing structure:
- Monthly Cost: The service costs $625 per month. This translates to an annual price of $7,500.
- Minimum Purchase: Oracle requires a minimum purchase of 10 users. This is the case even if you only have five users. Therefore, the minimum annual cost for ten users is 10 x $7,500 = $75,000.
- Contract Duration: Oracle requires a 3-year contract. This means the total cost over the three years is 3 x $75,000 = $225,000.
Please note this pricing only covers the ERP Cloud Service. Any add-on services that you might need would be additional costs.
Oracle Fusion Enterprise Resource Planning for self-service and other ERP services?
Oracle Fusion Enterprise Resource Planning cloud service is the base service you must license to use other cloud services. For example, The self-service cloud service.
Oracle Fusion Enterprise Resource Planning for Self-Service Cloud
The Oracle Fusion Enterprise Resource Planning for Self-Service Cloud includes the following features:
- Bill Management: This feature is included in the package.
- Fusion Expenses Cloud Service: This service is part of the Self-Service Cloud.
- Fusion Project Resource Management Cloud Service: This service is included for managing project resources.
- Restricted Use Talent Management Base Cloud Service: This is a restricted-use service for talent management.
- Fusion Task Management Cloud Service: This service is included in task management.
- Fusion Time and Labor for Project Cloud Service: This service is included for time and labor management in projects.
However, it’s important to note that the Self-Service Cloud Service cannot be purchased as a standalone product. You must also buy the Planning Cloud Service.
Please note that the Fusion Time and Labor functionality does not include the HCM time and labor functionality.
Oracle Cloud ERP Pricing Calculator
You have sixty users who need the Oracle Fusion Enterprise Planning cloud service and ten who need the self-service cloud service.
You will then need to purchase the following ERP cloud service licenses:
- 60x Fusion Enterprise Planning Cloud service – 60 x 7500 = $ 450 000 (1 year cloud service)
- 10x Self Service Cloud Service 10 x 240 = 2400 (1 year cloud service)
- Remember that Oracle’s contract length is three years.
You can read more about pricing in the Oracle Fusion price list.
Step-By-Step Guide for Building your Oracle ERP Cloud Service
Building an Oracle ERP cloud service can be complex, but following these steps can ensure a smooth and successful implementation.
- Identify business requirements. Determining your business requirements is the first step in building an Oracle ERP cloud service. Understand the functionality you need and map it to the appropriate cloud service Oracle offers. This will help you select the right solution for your organization and ensure you have the necessary features and capabilities to support your business operations.
- Study Oracle cloud licensing. Once you have identified the appropriate cloud service, it is vital to understand its licensing requirements. Oracle has specific definitions for what constitutes a license, and it is crucial to understand these definitions to purchase the correct number of licenses.
- Before implementing your chosen cloud service, you must check if additional cloud services are required as prerequisites. This will ensure you have all the components to run the cloud service smoothly.
- Determine the number of non-prod environments. Another important consideration is the number of non-production environments included with your chosen cloud service. Determine how many of these environments you will need to comply with your organization’s policies and procedures.
- Negotiate the cloud contract. Finally, it is crucial to negotiate the cloud contract to ensure that you minimize spend and avoid overpaying. Review the contract in detail and arrange any necessary changes before signing.
Negotiating Oracle ERP Cloud
Step-by-step guide for negotiating Oracle Cloud ERP contracts:
- Determine your specific business requirements independently of Oracle. Understand the functionality you need and map it to the appropriate cloud service Oracle offers. This will help you select the right solution for your organization and ensure you have the necessary features and capabilities to support your business operations.
- Research pricing and licensing options for Oracle ERP Cloud. Familiarize yourself with the pricing model and licensing requirements to understand what you will pay.
- Avoid sharing too much information with Oracle. Sharing too much information about your organization’s requirements and budget can limit your ability to negotiate competitive pricing. Be prepared to negotiate with Oracle using market research and other competitive scenarios.
- Review the contract in detail. Ensure you understand all the contract terms and conditions before signing. Ask questions and seek clarification on any areas that are unclear or vague.
- Negotiate any necessary changes to the contract. If you identify areas of concern or if there are clauses in the contract that you would like to negotiate, be prepared to discuss these with your Oracle representative.
- Be prepared to walk away. If you cannot reach a mutually beneficial agreement with Oracle, be prepared to walk away. Negotiating a better deal with a different vendor or exploring alternative solutions that better meet your needs may be possible.
- Look for discounts and promotions. Oracle may offer discounts and promotions for volume purchases or longer contract commitments. It’s important to discuss pricing options with an Oracle representative to determine if any discounts are available.
- Consider working with a third-party negotiator. If you are uncomfortable negotiating with Oracle, consider working with a third-party negotiator who can help you navigate the negotiation process and ensure you get the best deal possible.
Common mistakes organizations make when migrating to Oracle ERP Cloud
We have helped hundreds of companies worldwide with Oracle Cloud ERP licensing and contract negotiations.
Our expertise in this area can help organizations avoid common mistakes and get the best pricing and licensing agreement.
Here is the list of common mistakes that organizations make.
- Buying services they don’t need: One common mistake is for organizations to purchase cloud services they won’t need or implement until much later. This can lead to unnecessary expenses and lower or remove pre-approved discounts when terminating unused services.
- Purchasing unused cloud services: Another common mistake is purchasing cloud services that won’t be used. This can lead to wasted resources and higher costs.
- Not understanding the hidden costs: Organizations may overlook hidden costs in non-production environments and data transfers. This can lead to unexpected expenses and negatively impact the budget.
- Failing to negotiate the contract: Organizations may not fully understand the licensing model and fail to negotiate the contract effectively. This can lead to paying more than they need and limit their ability to negotiate better pricing.
FAQs on Oracle ERP Cloud Licensing and Pricing
What is Oracle ERP Cloud?
Oracle ERP Cloud is a cloud-based enterprise resource planning (ERP) application suite that combines financial management, supply chain management, project management, and other capabilities.
How is Oracle ERP Cloud priced?
Oracle ERP Cloud is priced based on the number of cloud services you need and any additional add-on services. The pricing model includes a minimum purchase of licenses, typically for a 3-5 year commitment.
How do I determine the number of licenses needed for Oracle ERP Cloud?
The licenses needed for Oracle ERP Cloud depend on the number of users accessing the service. Oracle defines a Hosted Named User as an individual authorized to access the service, whether or not they are actively using it.
Can I purchase Oracle ERP Cloud services as standalone products?
Oracle ERP Cloud services can only be purchased as part of a volume purchase of licenses and a minimum commitment of 3-5 years.
What is included in Oracle ERP Cloud licensing?
Oracle ERP Cloud licensing includes the base service, the Oracle Fusion Enterprise Resource Planning Cloud Service. Other cloud services, such as Self Service Cloud Service, may also be purchased as add-ons.
Can I negotiate Oracle ERP Cloud pricing?
Yes, it is possible to negotiate Oracle ERP Cloud pricing. Reviewing the contract in detail and negotiating any necessary changes before signing is essential.
What are the prerequisites for implementing Oracle ERP Cloud?
Before implementing Oracle ERP Cloud, it is essential to check for any additional cloud services required as prerequisites. These services will ensure all necessary components are in place to run the cloud service smoothly.
How do I determine the number of non-production environments needed for Oracle ERP Cloud?
The number of non-production environments needed for Oracle ERP Cloud will depend on your organization’s policies and procedures. Determining the number of non-production environments required to be compliant is essential.
What types of cloud services are included in Oracle ERP Cloud?
Oracle ERP Cloud includes several cloud services, including financial management, supply chain management, project management, human capital management, customer relationship management, and governance, risk, and compliance.
What is the difference between Oracle ERP Cloud and Oracle E-Business Suite?
Oracle ERP Cloud is a cloud-based solution, whereas Oracle E-Business Suite is an on-premise solution. Oracle ERP Cloud also offers additional cloud services and features, such as self-service and mobile capabilities, that are unavailable in the E-Business Suite.
Can I integrate Oracle ERP Cloud with other systems?
Oracle ERP Cloud can be integrated with other systems using application programming interfaces (APIs) and integration tools.
How does Oracle ERP Cloud work?
The technology behind Oracle ERP Cloud’s work combines different technologies and machine learning.
How Redress Compliance Can Help
Oracle ERP Cloud Optimization Service
- Licensing review: Our team can review your current licensing agreements and identify opportunities for optimizing or negotiating better terms. We have in-depth knowledge of Oracle SaaS licensing and can advise on the best options for your business.
- Optimization: Once you are on the Oracle Fusion ERP Cloud, we can help you optimize your usage to maximize the value of your investment. This may involve reducing the required licenses or finding more cost-effective solutions.
- Negotiation assistance: If you enter a new licensing agreement with Oracle, we can support you in the negotiation process. We can help you understand the terms and conditions of the contract and secure the best deal possible. We aim to help your business fully benefit from the Oracle Fusion ERP Cloud by providing expert guidance and support throughout the migration and licensing process.
Contact us today for more information.