Oracle SaaS Licensing Overview:

• Hosted Named User (HNU): Per unique user accessing the system.
• Employee: Based on total employees.
• Application User: Specific to the number of users per application.
• Enterprise: Covers the entire organization.
• Records: Licenses are based on data records that are managed.
• Transactions: Count of transactions processed.

How Exactly Does Oracle SaaS Licensing Work?

Oracle SaaS (Software as a Service) licensing is designed to offer flexibility and scalability. It allows organizations to pay for their needs while ensuring compliance with Oracle cloud licensing policies.

Understanding the mechanics of Oracle SaaS licensing is crucial for optimizing costs and avoiding potential compliance issues.

Licensing Metrics

Oracle SaaS products are typically licensed using various metrics that align with the software used within an organization.

The most common licensing metrics include:

• Hosted Named User (HNU):
  • This metric is based on the number of Oracle SaaS application users. Each user must be uniquely identified, and the license is non-transferable between users.
  • Example: If you have 100 employees accessing Oracle Fusion Cloud ERP, you would need 100 Hosted Named User licenses.
• Hosted Employee Metric:
  • This licensing model is based on the total number of employees within the organization, regardless of whether each employee uses the software. It is commonly used in applications deployed across the workforce, such as Oracle HCM Cloud.
  • Example: If your company has 500 employees, you must license all 500 under the Hosted Employee metric, even if only 300 actively use the application.
• Hosted Subscription Metric:
  • Some Oracle SaaS products are licensed based on a subscription model, where the organization pays a fixed fee for a set number of users or features over a defined period.
• Concurrent User Licensing:
  • In some cases, Oracle SaaS products may be licensed based on the number of users accessing the software simultaneously. This differs from Hosted Named User licensing, where users must have their license regardless of concurrent usage.
• Employee Self-Service (ESS):
  • ESS licenses are designed for applications that provide limited, self-service functionality to a broad base of users, often used in HR applications.

Test and Development Environments

Licensing for test and development environments is another key consideration:

• Non-Production Environments:
  • Oracle typically requires separate licensing for test, development, and staging environments. However, depending on the use case and Oracle’s licensing policies, these environments often require the same level of licensing as production environments.
• Licensing Models:
  • Named User Plus and Processor-based licensing models can be applied to non-production environments. The choice depends on the scale and nature of the testing or development activities.

Overview of Oracle SaaS Products

1. Oracle Fusion Cloud ERP

• Functionality Overview: Oracle Fusion Cloud ERP provides a full suite of enterprise resource planning tools, including financial management, project management, procurement, and risk management.
• License Metrics:
  • Hosted Named User (HNU): This metric licenses based on the number of named users who access the service.
  • Employee Metric: Covers all employees, even those not directly using the software.

2. Oracle Fusion Cloud HCM (Human Capital Management)

• Functionality Overview: Oracle Fusion Cloud HCM is a comprehensive HR solution that includes modules for recruitment, onboarding, payroll, and talent management.
• License Metrics:
  • Hosted Employee: This metric licenses based on the total number of employees within the organization, including full-time, part-time, and contractors.

3. Oracle Fusion Cloud SCM (Supply Chain Management)

• Functionality Overview: Oracle Fusion Cloud SCM manages the entire supply chain process, from procurement and manufacturing to logistics and order fulfillment.
• License Metrics:
  • Hosted Named User (HNU): Licensed per user involved in supply chain operations.
  • Processor-Based Licensing: This metric may apply based on the deployment, particularly in high automation settings.

4. Oracle Fusion Cloud CX (Customer Experience)

• Functionality Overview: Oracle Fusion Cloud CX offers a suite of applications for managing customer interactions, including sales, marketing, and customer service.
• License Metrics:
  • Hosted Named User (HNU): Licenses are required for each user accessing the sales, marketing, or service modules.
  • Concurrent User Licensing: Some modules may use this model, where licenses are based on the maximum number of users accessing the system simultaneously.

5. Oracle NetSuite

• Functionality Overview: Oracle NetSuite is a cloud-based ERP system for small—to medium-sized businesses. It provides financials, CRM, e-commerce, and more.
• License Metrics:
  • Per User Licensing: Typically licensed on a per-user basis, with varying tiers depending on the functionality.
  • Module-Based Licensing: Additional features may require separate module-specific licenses.

6. Oracle E-Business Suite (Cloud)

• Functionality Overview: Oracle E-Business Suite offers a comprehensive set of applications, including ERP, HCM, and CRM, primarily for large enterprises.
• License Metrics:
  • Hosted Named User (HNU): Licenses are based on the number of named users accessing the suite.
  • Processor-Based Licensing: Used in large deployments where significant processing power is required.

7. Oracle Sales Cloud

• Functionality Overview: Oracle Sales Cloud focuses on sales automation, customer data management, and analytics to help drive sales performance.
• License Metrics:
  • Hosted Named User (HNU): Each sales representative using the system requires a license.
  • Employee Metric: This metric may be used depending on the scope of usage within the organization.

8. Oracle Marketing Cloud

• Functionality Overview: Oracle Marketing Cloud provides digital marketing tools, including campaign management, content marketing, and lead generation.
• License Metrics:
  • Hosted Named User (HNU): Marketing professionals who use the system need licenses.
  • Subscription-Based Licensing: Some modules may be licensed based on marketing activity or spending.

9. Oracle Service Cloud

• Functionality Overview: Oracle Service Cloud manages customer service operations, including contact centers and self-service portals.
• License Metrics:
  • Hosted Named User (HNU): Customer service agents need licenses to use the system.
  • Concurrent User Licensing: This model may apply in environments with varying traffic levels.

10. Oracle Commerce Cloud

• Functionality Overview: Oracle Commerce Cloud is a platform for managing e-commerce operations, including product catalogs, pricing, and customer experience.
• License Metrics:
  • Hosted Named User (HNU): Licenses are required for users managing the platform.
  • Revenue-Based Licensing: Some instances may be licensed based on transaction volumes or revenue generated.

11. Oracle Procurement Cloud

• Functionality Overview: Oracle Procurement Cloud streamlines procurement processes, from supplier management to purchase orders and invoicing.
• License Metrics:
  • Hosted Named User (HNU): Licenses are required for each user involved in procurement activities.
  • Employee Metric: This metric may apply to modules that involve broader employee engagement.

12. Oracle Financials Cloud

• Functionality Overview: Oracle Financials Cloud provides a robust financial management system that covers the general ledger, accounts payable, and accounts receivable.
• License Metrics:
  • Hosted Named User (HNU): Licenses are required for financial professionals using the system.
  • Employee Metric: This metric may cover all employees if the module affects them broadly, such as payroll processing.

13. Oracle Talent Management Cloud

• Functionality Overview: Oracle Talent Management Cloud supports the entire talent lifecycle, including recruiting, performance management, and succession planning.
• License Metrics:
  • Hosted Named User (HNU): Required for HR professionals and managers involved in talent management.
  • Employee Metric: This may apply broadly across the organization.

14. Oracle Planning and Budgeting Cloud Service (PBCS)

• Functionality Overview: Oracle PBCS is a financial planning and budgeting solution that helps organizations manage and streamline their budgeting processes.
• License Metrics:
  • Hosted Named User (HNU): Required for users involved in planning and budgeting activities.
  • Concurrent User Licensing: This metric may apply in environments with variable access needs.

15. Oracle Transportation Management Cloud

• Functionality Overview: Oracle Transportation Management Cloud handles logistics, including planning, execution, and freight payment.
• License Metrics:
  • Hosted Named User (HNU): Licenses are required for logistics professionals.
  • Processor-Based Licensing: This may apply to large-scale operations.

16. Oracle Field Service Cloud

• Functionality Overview: Oracle Field Service Cloud is a field service management solution that optimizes scheduling and routing for field technicians.
• License Metrics:
  • Hosted Named User (HNU): Required for field service technicians and coordinators.
  • Employee Metric: This may be used if the module affects the entire workforce.

17. Oracle Fusion Analytics Warehouse

• Functionality Overview: Oracle Fusion Analytics Warehouse provides pre-built analytics for Oracle Cloud applications, enabling data-driven decision-making.
• License Metrics:
  • Hosted Named User (HNU): Required for analysts and decision-makers.
  • Processor-Based Licensing: This may apply to extensive data processing needs.

18. Oracle IoT Cloud Applications

• Functionality Overview: Oracle IoT Cloud Applications connect devices to the cloud to monitor and manage real-time operations.
• License Metrics:
  • Hosted Named User (HNU): Licenses may be required for users managing IoT devices.
  • Device-Based Licensing: Specific to the number of IoT devices connected.

19. Oracle Blockchain Applications Cloud

• Functionality Overview: Oracle Blockchain Applications Cloud provides pre-built blockchain applications that improve transparency and traceability in business processes.
• License Metrics:
  • Hosted Named User (HNU): Required for users interacting with blockchain applications.
  • Transaction-Based Licensing: Based on the number of blockchain transactions.

20. Oracle Student Cloud

• Functionality Overview: Oracle Student Cloud offers a modern student information system for managing student enrollment, billing, and financial aid.
• License Metrics:
  • Hosted FTE Student: Licenses are based on full-time equivalent students.
  • Hosted Named User (HNU): Required for administrative staff and educators.

21. Oracle Learning Cloud

• Functionality Overview: Oracle Learning Cloud provides training and skill development tools for employee development.
• License Metrics:
  • Hosted Named User (HNU): Required for learners and administrators.
  • Employee Metric: This metric may be applied organization-wide for access.

22. Oracle Cloud EPM (Enterprise Performance Management)

• Functionality Overview: Oracle Cloud EPM offers tools for enterprise performance management, including financial close, planning, and profitability analysis.
• License Metrics:
  • Hosted Named User (HNU): Required for finance professionals and executives.
  • Processor-Based Licensing: This may be necessary for large-scale deployments.

23. Oracle Social Cloud

• Functionality Overview: Oracle Social Cloud manages and analyzes social media interactions for marketing and customer service purposes.
• License Metrics:
  • Hosted Named User (HNU): Licenses required for social media managers.
  • API-Based Licensing: Depending on the volume of social media interactions.

24. Oracle Cloud Infrastructure (OCI) Monitoring for SaaS

• Functionality Overview: Oracle OCI Monitoring for SaaS provides tools for monitoring the health and performance of Oracle Cloud applications.
• License Metrics:
  • Hosted Named User (HNU): Licenses required for IT staff and administrators.
  • Processor-Based Licensing: This may apply based on the monitoring scale.

Oracle SaaS Licensing Metrics

1. Hosted Named User (HNU)
   • Description: This metric is based on the number of unique users who access the Oracle SaaS application. Each user who logs into the system requires a separate license.
   • Example: A company with 100 employees who access Oracle Fusion Cloud ERP must purchase 100 Hosted Named User licenses.
2. Employee
   • Description: The Employee metric counts the total number of employees within the organization. This metric is typically used for Human Capital Management (HCM) applications.
   • Example: Under this metric for Oracle HCM Cloud, a company with 500 employees must purchase 500 licenses.
3. Application User
   • Description: This metric is specific to the number of users accessing a particular application within the Oracle SaaS suite.
   • Example: For Oracle Sales Cloud, if 50 salespeople are using the application, 50 Application User licenses are needed.
4. Enterprise
   • Description: This metric applies to the entire organization, regardless of the number of users or employees. It is typically used for comprehensive applications like Oracle Fusion Analytics Warehouse.
   • Example: A large enterprise implementing Oracle Fusion Analytics Warehouse might license it based on this metric, covering the entire organization under a single enterprise license.
5. Hosted Employee
   • Description: Similar to the Employee metric, but specifically for applications hosted by Oracle. It measures the total number of employees in the organization.
   • Example: If a company with 1,000 employees uses Oracle Fusion HCM in a hosted environment, it must license 1,000 Hosted Employee metrics.
6. Records
   • Description: Used for applications where data records are a key component, such as Oracle Talent Management Cloud. This metric counts the number of records managed by the system.
   • Example: A company managing 10,000 employee records in Oracle Talent Management Cloud must purchase licenses for each record.
7. Transactions
   • Description: This metric counts the number of transactions the system processes, common in applications like Oracle Financials Cloud.
   • Example: A business processing 200,000 financial transactions per year must purchase licenses based on the Transactions metric.
8. Hosted Named Entity
   • Description: Using the application, this metric applies to a named entity, such as a specific department or business unit.
   • Example: A company with different departments using Oracle Procurement Cloud might need to license each department individually as a Hosted Named Entity.
9. Sessions
   • Description: Based on the number of active sessions in an application. It’s useful for applications where user sessions are frequent and numerous.
   • Example: If an organization’s call center uses Oracle Service Cloud, they might license based on the number of sessions users initiate.
10. Hosted Virtual Account
    • Description: This metric is used when the application serves multiple virtual accounts within the organization, typically in SaaS models where each virtual account represents a different client or division.
    • Example: If an organization has five different divisions using Oracle Marketing Cloud, each operating as a separate virtual account, they would need licenses for each Hosted Virtual Account.

FAQs

What is Oracle SaaS licensing?
Oracle SaaS licensing refers to the models and metrics used to determine how customers pay for and access Oracle’s cloud-based software applications. These models include options based on users, transactions, and enterprise-wide agreements.

How is Oracle SaaS different from traditional software licensing?
Oracle SaaS is subscription-based, meaning you pay a regular fee to use the software. Traditional licensing usually involves a one-time purchase with additional maintenance fees.

What is a Hosted Named User in Oracle SaaS licensing?
A Hosted Named User (HNU) license is assigned to a specific individual who accesses the Oracle SaaS application. Each user must have their license, regardless of the number of sessions or devices used.

Can I adjust the number of licenses I have as my business grows?
Oracle SaaS allows you to scale your licensing based on your needs. You can add more licenses as your organization grows or reduce them if necessary.

What is the employee metric for Oracle SaaS licensing?
The Employee metric is based on your organization’s total number of employees. It’s used when the software is available to all employees, not just specific users.

Are there different licensing options for specific Oracle SaaS applications?
Yes, Oracle offers various licensing metrics depending on the application, such as per transaction, per user, or enterprise-wide licenses. It’s important to choose the one that aligns with your usage.

How does Oracle SaaS licensing handle different user types?
Licenses can be tailored to different user roles within your organization, such as administrative users versus general users, with pricing reflecting their level of access and usage.

Can I switch my licensing model if my business needs to change?
Yes, Oracle SaaS licensing is flexible. You can often switch models during your contract term, though this may require renegotiating your agreement.

What is an Enterprise license in Oracle SaaS?
An Enterprise license covers the entire organization, allowing all employees to access the software without needing individual licenses. This is often used in large organizations.

How are transactions measured in Oracle SaaS licensing?
Transaction-based licensing is charged based on the number of transactions processed by the software, which is common in financial and supply chain applications.

What are some common compliance issues with Oracle SaaS licensing?
Common issues include under-licensing, where not all users or usage scenarios are covered, and over-licensing, where more licenses are purchased than needed. Regular audits can help prevent these.

How does Oracle handle the overuse of SaaS licenses?
If Oracle finds that your usage exceeds your licensing agreement, you may be required to purchase additional licenses to cover the overuse, often with backdated costs.

Are test environments included in Oracle SaaS licenses?
Depending on your agreement, test environments often require separate licensing. It’s important to clarify this during the contract negotiation.