Named User Plus Licensing vs. Processor Licensing:
- Named User Plus Licensing:
- Based on the number of users accessing the Oracle software.
- Suitable for environments with a countable number of users.
- Requires a minimum number of licenses per processor.
- Processor Licensing:
- Based on the number of processors used to run Oracle software.
- Ideal for environments with a high or uncountable number of users.
- Offers unlimited user access per licensed processor.
Each licensing option has specific cost-effectiveness scenarios. Choosing the right type depends on an organization’s user base and usage patterns.
Oracle Licensing – Named User Plus vs Processor Licensing
Oracle Licensing Metrics
Definition and Purpose of Licensing Metrics
Licensing metrics are the rules and guidelines governing the use of Oracle software. They define the rights and restrictions associated with the software and ensure that usage aligns with the purchased licenses.
Licensing metrics help organizations manage their software assets, control costs, and ensure compliance with Oracle’s licensing policies.
Explanation of the Processor Metric
The Processor metric is based on the number of processors used to run the Oracle software.
This metric is ideal for environments with numerous users, where counting individual users is impractical. Each processor license allows unlimited users to access the software, making it suitable for large organizations with high user counts.
Explanation of the Named User Plus Metric
The Named User Plus metric is based on the number of individuals authorized to use the Oracle software, regardless of whether they are actively using it.
This metric is suitable for environments where the number of users can be easily counted. Named User Plus licensing requires a minimum number of licenses per processor, ensuring that even environments with fewer users comply with Oracle’s licensing terms.
Comparison Between the Two Metrics
Main Differences in Counting Usage The primary difference between the Processor and Named User Plus metrics is how they count usage.
The Processor metric focuses on the number of processors running the software, allowing unlimited user access per licensed processor.
In contrast, the Named User Plus metric counts the number of individuals authorized to use the software, regardless of how many use it at any given time.
Processor Focus vs. User Focus: The Processor metric focuses on the software’s hardware, making it ideal for environments with high user counts or where user numbers are difficult to track.
This approach simplifies licensing for large organizations. Conversely, the Named User Plus metric is focused on individual users, making it suitable for smaller environments where the user base is easily countable and manageable.
Best Metric for Specific Business Scenarios
Processor Licensing:
- Best for large organizations with numerous or uncountable users, such as public-facing applications or large-scale enterprise systems.
- Suitable for high-volume environments where tracking individual users is impractical.
Named User Plus Licensing:
- Ideal for smaller organizations or specific departments within a larger company where the user base is countable and limited.
- More cost-effective in scenarios with fewer users.
- Suitable for non-production environments where only a few developers or testers need access to the software.
- Ideal for isolated applications with a low user count, such as internal tools or niche business applications.
- Effective for training environments where a limited number of users need temporary access.
Understanding these differences helps organizations select the most appropriate licensing metric for their specific needs, ensuring cost-effective and compliant use of Oracle software.
How to License Your Oracle Environment Efficiently
Understanding Usage Patterns and Licensing Metrics
Efficiently licensing your Oracle environment requires a thorough understanding of your usage patterns and the available licensing metrics.
Assess how and where Oracle software is used within your organization, the number of users, and the nature of their tasks. This will help determine whether Named User Plus or Processor Licensing is more suitable.
Factors to Consider When Choosing a Licensing Metric
User Base Size:
- Small, countable user base: Named User Plus licensing can be more cost-effective.
- Large or uncountable user base: Processor licensing may be more suitable.
Hardware Type:
- High-performance servers with multiple processors might benefit more from Processor licensing.
- Simpler hardware setups with fewer users can be efficiently managed with Named User Plus licenses.
Expected Growth:
- Rapidly growing user base: Processor licensing allows unlimited users, accommodating growth without additional costs.
- Stable or slowly growing user base: Named User Plus licensing can remain cost-effective.
Complexity of Counting Users:
- Easily countable users (e.g., a specific department): Named User Plus licensing is manageable.
- Difficulty counting users (e.g., public-facing applications): Processor licensing simplifies compliance and management.
Potential for Non-Compliance:
- Environments with stringent compliance requirements may benefit from the simplicity of Processor licensing.
- User Plus requires careful tracking and management to ensure compliance, especially as user numbers fluctuate.
Cost Comparison: Named User Plus vs Processor Licensing
Named User Plus Licensing Cost:
Calculation Example for a Server with Four Cores of Intel:
- Each Intel core has a core factor of 0.5.
- Four cores equate to 2 processors (4 cores * 0.5 core factor = 2 processors).
- Minimum requirement: 25 Named User Plus licenses per processor.
- For 2 processors: 2 * 25 Named User Plus licenses = 50 Named User Plus licenses.
Cost of 50 Named User Plus Licenses:
- Cost per Named User Plus license: $950.
- Total cost: 50 licenses * $950 = $47,500.
Processor Licensing Cost:
Calculation Example for the Same Server:
- Four cores equate to 2 processors.
- Cost per Processor license: $47,500.
Cost of Two Processor Licenses:
- Total cost: 2 processors * $47,500 = $95,000.
Situations Where Each Metric is More Cost-Effective:
Named User Plus for Small, Countable User Base:
- Named User Plus licensing is cost-effective for environments with a small number of users that can be easily counted. For example, a department with 30 users accessing the Oracle Database would require only the 50 Named User Plus licenses, costing $47,500, cheaper than the Processor licensing option.
Processor Licensing for Large, Uncountable User Base or Expected Growth:
- Processor licensing is more practical for environments with large or uncountable users. For instance, a public-facing application with thousands of users would benefit from Processor licensing. Even though the initial cost is higher ($95,000 for two Processor licenses), it covers unlimited users, making it more cost-effective in the long run.
Assumptions for Cost Calculation
- The cost of one Named User Plus license for Oracle Database Enterprise Edition is $950.
- The cost of one processor license for Oracle Database Enterprise Edition is $47,500.
- Oracle’s core factor for Intel processors: 0.5.
- Minimum Named User Plus licensing requirement: 25 users per Processor.
- Example scenario: Licensing for a server with four cores of Intel.
Scenarios Where Processor Licensing Makes Sense
Large Public-Facing Applications In environments where software is accessed by many users, such as a public website or a customer portal, counting individual users can be impractical. Processor licensing allows unlimited users per licensed processor, making it ideal for high-traffic applications.
Enterprise-wide systems Processor licensing simplifies management for large enterprises with multiple departments and thousands of employees accessing Oracle software. Instead of tracking individual users, the organization licenses based on processors, ensuring all employees have access without the need for meticulous user counting.
Cloud-Based Services with Variable Users Processor licensing offers flexibility in cloud environments where the number of users can vary significantly. For example, a SaaS application hosted on Oracle’s platform might have fluctuating user numbers due to scaling during peak times. Processor licensing ensures all users can access the software without additional licensing complexity.
Scenarios Where Named User Plus Makes Sense
Small Department or Team Use Named User Plus licensing is cost-effective for small departments or teams where the number of users is easily countable and stable. For instance, a finance department with 25 Oracle Financials employees can be licensed based on the number of users.
Non-Production Environments In non-production environments, such as development or testing setups, the number of users is typically low and countable. Named User Plus licensing allows businesses to license only those specific users, reducing costs compared to licensing processors.
Isolated Applications with Low User Count Named User Plus licensing is ideal for niche applications only used by a limited number of employees. For example, a specialized HR tool used by a small HR team within a larger organization can be licensed per user, ensuring cost savings while meeting compliance requirements.
Oracle Licensing – Named User Plus vs Processor Licensing FAQ
What is Named User Plus licensing? Named User Plus licensing is based on the number of individuals authorized to use the Oracle software, regardless of whether they are actively using it at any given time.
What is Processor licensing? Processor licensing is based on the number of processors running the Oracle software. It allows unlimited users to access the software without counting individual users.
When should a business choose Named User Plus licensing? Businesses should choose this option when they have a small, countable number of users. It is ideal for environments where user numbers are stable and easily managed.
When is Processor licensing more appropriate? Processor licensing is suitable for environments with a large or uncountable number of users. It’s ideal for public-facing applications or large-scale enterprise systems with high user counts.
How do you calculate the cost of Named User Plus licensing? To calculate the cost, multiply the required Named User Plus licenses by the cost per license. Ensure you meet the minimum license requirement per processor.
How do you calculate the cost of Processor licensing? Multiply the number of processors by the cost per Processor license. This covers unlimited users accessing the software.
What are the minimum requirements for Named User Plus licensing? Oracle requires a minimum of 25 licenses per processor, which ensures sufficient coverage even in environments with fewer users.
Can Named User Plus licensing be cost-effective for large organizations? It can, but typically only if the organization has a small number of users relative to the processing power of its hardware. For large user bases, Processor licensing is usually more cost-effective.
What factors influence the choice between Named User Plus and Processor licensing? Consider the size of your user base, hardware type, expected growth, complexity of counting users, and potential for non-compliance when choosing between the two licensing options.
How does Oracle’s core factor affect licensing? Oracle’s core factor determines how many cores are equivalent to one processor. For Intel processors, the core factor is 0.5, meaning two cores count as one processor.
What happens if user numbers increase in a Named User Plus environment? You may need to purchase additional Named User Plus licenses to remain compliant. Regular audits can help ensure compliance.
Is Processor licensing more flexible for growing businesses? Yes, Processor licensing allows unlimited users per processor, making it easier to accommodate user growth without additional licensing costs.
Are there any compliance risks with Named User Plus licensing? Compliance risks exist if the number of authorized users exceeds the number of licenses purchased. Regular monitoring and audits are essential.
What are the initial cost differences between Named User Plus and Processor licensing? Named User Plus licensing typically has lower initial costs for small user bases, while Processor licensing can be more expensive upfront but more cost-effective for large user bases.
Can non-production environments benefit from Named User Plus licensing? Yes, non-production environments with a low user count, such as development or testing environments, can benefit from the cost savings of Named User Plus licensing.
