oracle hcm licensing

Oracle HCM Cloud Licensing and Pricing Summary

Oracle HCM Cloud Licensing & Pricing – Summary

  • Oracle HCM cloud is licensed per module.
  • Each module has its own licensing metric that you need to be aware of.
  • The Oracle HCM base cloud service is mandatory, additional functionality can be added through HCM cloud service options as add-ons.
  • Additional costs may apply for the number of non-prod environments required.
  • Be aware of the different modules and their licensing metrics when considering Oracle HCM cloud.
  • Additional functionality can be added through add-on options.
  • Consider the number of non-prod environments needed and the cost associated with them.
  • The Oracle Fusion Human Capital Management Base Cloud service costs $15 per month.
  • A minimum purchase of 1,000 employee users is required to use the service.
  • The minimum contract term is three years
  • Most organizations miscalculate the number of licenses required because they misunderstand the “hosted employee license. ”
  • The license metric used is “Hosted Employee,” which includes:
    • All full-time, part-time, and temporary employees.
    • All agents, contractors and consultants who have access, use or are tracked by the Oracle HCM programs.
  • All employees and individuals tracked by the Oracle HCM programs must be licensed, regardless of usage.


Follow our guide to make sure you get your Oracle HCM cloud pricing and licensing correct.

Oracle HCM Cloud Licensing and Pricing

oracle hcm licensing

Products included in the Fusion Human Capital Management base cloud service

  • Oracle Fusion Global Human Resources
  • Oracle Fusion Global Absence Management
  • Oracle Fusion Benefits
  • Oracle Fusion Cash Management (restricted use)
  • Oracle Fusion HCM Journeys
  • Oracle Fusion Payroll Interface
  • Oracle Fusion Onboarding
  • Oracle Fusion Workforce Directory Management
  • Oracle Fusion Workforce Predictions
  • Oracle Fusion Work life Solutions
  • Oracle Fusion Transactional Business Intelligence for
    Human capital Management Cloud service.

Oracle HCM Cloud Licensing

Hosted Employee Oracle HCM Licensing Introduction

License metric – Hosted Employee 

Hosted Employee: is defined as (i) all of your full-time, part-time, temporary employees, and (ii) all of your agents, contractors and consultants where such agents, contractors and consultants have access to, use of, or are tracked by, the programs. The quantity of the licenses required is determined by the number of Hosted Employees and not the actual number of users. In addition, if you elect to outsource any business function(s) to another company, the following must be counted for purposes of determining the number of Hosted Employees: all of that other company’s full-time employees, parttime employees, temporary employees, agents, contractors and consultants that (i) are providing the outsourcing services and (ii) have access to, use of, or are tracked by, the programs.

hosted employee

This means that you need to license

All your full time, part time and temp employees.You also need to license all agents, contractors, consultants, or any individual who is tracked by the Oracle HCM programs regardless of if they use Oracle HCM or not.

Additional requirements and prerequisites

  • < 10,000 hosted employees are required to purchase at least 1 additional Test Environment for Oracle Fusion Cloud service.
  • 10-000-50 000 hosted employees are required to purchase at least (3) additional test environment for Oracle Fusion Cloud Service.
  • 50 000+ hosted employees must purchase at least 4 additional test environment for Oracle Fusion Cloud service.

Fusion Human Capital Management Cloud Service options do not have to match the number of users of the base service. You do not need to license the entire employee population.

How much does Oracle HCM Base cloud cost?

  • Oracle Fusion Human Capital Management Base Cloud service is $ 15 a month.
  • Minimum purchase is one thousand employee users and minimum contract term is 3 years.
    This means even if you only need two hundred employees, you need to purchase minimum one thousand.
oracle hcm price

Oracle Fusion Human Capital Management Cloud Service Options

oracle hcm licensing options

You do not need to have the same number of hosted employees on your service options, as you need on the base cloud service.

  • Fusion Advanced Human Capital Management Controls Cloud Service
  • Fusion Dynamic Skills Cloud Service
  • Fusion Human Resources Help Desk Cloud Service
  • Fusion Recruiting Cloud Service
  • Fusion Workforce Compensation Cloud Service
  • Policy Automation for Workers Cloud Service
  • Strategic Workforce Planning Cloud Service
  • Fusion Workforce Health and Safety Incidents Cloud Service
  • Fusion Talent Management Cloud Service
  • Fusion Time and Labor Cloud Service
  • Fusion Learning Cloud Service

Oracle HCM Cloud pricing calculator

oracle hcm pricing calculator

Fusion Dynamic Skill Cloud service is licensed, per hosted employee and a pre-requisite is that you also purchase a license for the HCM Base cloud service. The license price for Dynamic Skill is 3 USD per employee, and you need minimum one thousand hosted employees.

For example, if you want to implement Dynamic Skill Cloud service and calculate that you need 3000 hosted employees to cover your usage.

You will then need to purchase:

  • Oracle Fusion Human Capital Management Base Cloud service – 3000 hosted employees – list price $ 540 000 annually.
  • Fusion Dynamic Skill Cloud Service – 3000 hosted employees – list price is $ 108 000 annually.Before discounts you it will be $ 540 000 + 108 000 = $ 648 000

Oracle HCM Cloud Negotiation

Transition & Shelving of existing on premises software licenses.

Why:

When you migrate to Oracle Cloud there may be a period when you may need to pay for both the cloud services and maintenance for your on-premises software licenses. Oracle can allow during a transition period to not pay for your on-premises software maintenance. It is also important to keep your on-premises software licenses if you one day want to move away from Oracle Fusion.

Services delay

Why:

When negotiating with Oracle, Oracle want you to commit start your cloud services as early as possible. A common mistake I have seen is that companies have signed Fusion contracts for multiple years and only in yr2 gone live with their Fusion. It meant that they wasted up to 33-50% of their cloud contract value. You need to make sure that the cloud services match your go-live date.

oracle cloud negotiation fusion

Renewal Cap

Why:

Oracle includes this term in all their Fusion contracts, this is a cap for how much Oracle can increase the renewal price when your current Fusion contract is up for renewal. We of course want this % be as low as possible but pay attention that it is ONLY valid you keep the same number of users and services. If you reduce the numbers of cloud users, the renewal cap is not valid. That is why its important to not “over-buy” cloud users. It’s more wise to make a smaller purchase and then buy additional users over-time.

cloud price protection oracle

Successor Cloud Products

Why:

You want to prevent the vendor from bundling / discontinuing some Fusion cloud services during your contract period. Oracle has already done so in 2019, Oracle then decided to bundle multiple Fusion cloud services into a more expensive bundle. This resulted in a price-hike for some companies who simply wanted one specific service. But they were then told its part of a bigger bundle with multiple cloud services. This contract term is there to prevent this from happening in the future.

Rebalancing

Why:

Oracle can with this term provide flexibility in case you during the cloud contract, want to use the cloud services for another cloud service. For example, if you during your cloud period determine that one of the cloud services that you purchased will not adopted. Instead of wasting that commitment you may find value in a different Oracle cloud service. This provides a possibility to avoid wasting that commitment.

Price hold

Why:

If you want to have pre-negotiated discount levels for additional purchase. Oracle is often very willing to grant this. However, there are minor details that needs to be negotiated such as the length and the minimum purchase.

Cloud user definitions

Why:

Please review the cloud user definitions, such as hosted user and hosted employee. This is how you can be out of compliance with Fusion HCM, ERP and SCM. You should review your existing usage (see this article) if you have some usage that might not fall into Oracle standard cloud user category, this needs to be negotiated with Oracle before moving to Oracle Fusion Cloud

Oracle HCM Cloud FAQ

How much does Oracle HCM Cloud cost?

The Oracle HCM Base Cloud service costs $ 15 per month per employee and every company needs to license a minimum of 1000 employees regardless if you have less users. Additional costs depends on which modules you need. You will then also need to purchase additional services such as Oracle Universal Cloud Credits for technology and infrastructure cloud services.

Is Oracle HCM cloud only available as SaaS?

Yes, it is only available as a SaaS solution, which customers can choose to run onpremises in Oracle Cloud servers or in Oracle own cloud data centers.

How will i know which Oracle HCM cloud modules I need?

You need to review which roles and priveleges you need then match it with a Oracle HCM cloud license / service.

How do I keep track of my Oracle HCM usage?

You need to review the authorized vs subscribed metrics in the Oracle cloud dashboard portal.

Can I sign a 2 year Oracle HCM cloud contract?

No, minimum is 3 years and most customers enter a 5 year contract.

What will the prices be when I renew my Oracle HCM cloud contract?

You should negotiate a price cap for the renewal, so that Oracle cannot hike prices too much.

What should I consider when negotiating an Oracle HCM Cloud Contract?

  1. You should review your existing licenses if you are an Oracle EBS HCM customer and are transitioning to Oracle HCM cloud.
  2. Map the licenses that you need towards the Oracle HCM Cloud service.
  3. Remember to not over-purchase your Oracle HCM cloud services.
  4. Consider that implementing an Oracle HCM cloud solution usually takes 12-18 months.

Uncertain about your cloud license requirement?

If you are a current Fusion HCM, ERP or SCM customer and want to optimize your cloud spend and prepare for your cloud renewal.
We can help you understand your usage and allow you to start the negotiation fully informed of what cloud user licenses that you should renew.
Contact us to know more in detail how we can support you.

If you need further assistance, Redress can help you with

If you are under audit from Oracle we can help you with our Oracle Fusion SaaS usage. service

How our experts can help

Our Oracle HCM Cloud License Optimization Service will help you to:

  • Understand which Oracle HCM Cloud modules you need for your business
  • Calculate your licensing requirements and help you optimize them before purchasing
  • Design your cloud contract to minimize overspend
  • Negotiate with Oracle to ensure you get the best deal on your licensing
  • Provide ongoing support and guidance to help you manage your license costs effectively over time.

Our team of experts will work closely with you to understand your business needs and help you identify the most cost-effective solution for your organization. We will help you to evaluate your current and future requirements, so you can make informed decisions about your licensing needs. Our license optimization service will help you to minimize your costs while ensuring that you have the right modules and features to support your business. We’ll also provide ongoing support to help you manage your license costs effectively over time.