How Oracle Siebel CRM Licensing Works:
- License Complexity: Licensing became more complex post-Oracle acquisition. Users receive license keys to activate purchased functionalities. Oracle provides these keys on its website, allowing downloads without a license upfront.
- Siebel Legacy vs. Oracle Pricing:
- Component Licensing: Oracle’s a la carte model is cost-effective for a few end-users with one or two products.
- Custom Application Suite (CAS) Licensing: Bundles multiple Siebel programs for one user.
- Enterprise Licensing: This is for entire organizations without tracking specific user licenses or servers.
- License Keys Usage: Standard Siebel installations offer all modules; keys unlock applications. Keys often include more functionalities than are licensed for, requiring extra licensing based on authorized users.
Introduction to Siebel Licensing
Customer Relationship Management (CRM) is vital for businesses aiming to enhance profitability, increase revenue, and improve customer satisfaction.
With many CRM solutions available, such as Salesforce, SAP, Microsoft Dynamics, Zoho, Oracle Siebel, and Sugar CRM, choosing the right one for your organization can be daunting.
This article will focus on Oracle Siebel, a comprehensive and complex software solution originally developed by Siebel Systems Inc. and acquired by Oracle Corporation in 2006.
We will delve into the product suite, explore its licensing policies, and discuss compliance risks to help you make an informed decision.
Understanding these aspects, you can better navigate Oracle Siebel’s intricacies and ensure it aligns with your business needs.
For more information about Siebel licensing works, read our leading guide.
Horizontal, Vertical, and Analytics Applications in the Siebel Product Suite
The Siebel product suite encompasses three main types of applications: Horizontal, Vertical, and Analytics. Each serves distinct purposes and caters to different business needs.
Horizontal Applications
Horizontal applications are industry-independent solutions. They include core functionalities that can be utilized across various industries.
Examples:
- Siebel CRM Base: Provides essential CRM features for managing customer relationships.
- Siebel Contracts: Manages contracts and agreements with customers and partners.
Vertical Applications
Vertical applications are tailored for specific industries, offering specialized functionalities that address industry-specific requirements. These applications include all the modules from the horizontal applications but with added industry-specific features, making them more expensive.
Examples:
- Siebel Public CRM Base: Designed for public sector organizations to manage interactions with citizens and stakeholders.
- Siebel CME Contracts: Tailored for the communications, media, and entertainment industry, managing contracts and agreements within these sectors.
Analytics Applications
Analytics products provided advanced data analysis and reporting capabilities. Initially available as standalone editions, these products were integrated into the Oracle Business Intelligence (OBI) suite after version 7.8.
Examples:
- Siebel Sales Analytics: Offered insights into sales performance and customer behavior. Now part of the OBI suite, providing comprehensive business intelligence solutions.
Siebel Applications by User Type
Siebel applications can also be categorized based on the user type, ensuring that each segment of users has access to the tools they need.
Employee Applications: Designed for internal use by salespeople and service representatives.
- Example: Salespeople using Siebel Contracts to manage client agreements.
Customer Applications: Developed for an organization’s customers, these applications facilitate online purchases and self-service options.
- Example: Customers using a Siebel-powered portal to make purchases or manage their accounts.
Partner Applications: Created for an organization’s partners, these applications help manage and streamline partner interactions and transactions.
- Example: Partners using Siebel applications to access sales tools and resources, enhancing collaboration and efficiency.
Understanding the distinctions between horizontal, vertical, and analytics applications within the Siebel product suite, as well as the categorization by user type, helps businesses choose the right tools to meet their specific needs. This structured approach ensures that all users, from employees to customers to partners, have access to functionalities that enhance their interactions and operational efficiency.
The Siebel product suite offers three types of applications:
Horizontal.
Horizontal applications are industry-independent solutions, such as Siebel CRM Base and Siebel Contracts.
Vertical.
Vertical applications are industry-specific products, such as Siebel Public CRM Base and Siebel CME Contracts. Vertical Applications also include the entire set of modules from horizontal, which is more expensive.
Analytics.
Analytics products, such as Siebel Sales Analytics, were available as standalone editions until version 7.8, after which they were discontinued. Nowadays, the functionality of the Analytics products is bundled into the Oracle Business Intelligence product group.
Siebel applications may also be classified by user type: Employee Applications for employees such as salespeople using Siebel Contracts, Customer Applications for an organization’s customers designed for purchasing online, and Partner Applications for the organization’s partners.
Licensing: Breaking Down the Complexity of Siebel License Keys
Licensing for Siebel products has become more complex following Oracle’s acquisition. Previously, end-users would enter a license agreement with Siebel and receive unique license keys to activate the purchased functionalities.
However, Oracle now makes Siebel license keys freely available on its external website. This means end-users can download the keys without obtaining a license upfront.
All available modules and functionalities are included in a standard Siebel installation, and license keys unlock specific applications.
As a result, many Siebel customers may have installed and used one or more unlicensed products. This widespread access to license keys can lead to unintentional usage of modules without proper licensing.
The freely available license keys often include access to features the customer has not officially licensed, creating non-compliance risk. This situation necessitates careful management and regular audits to ensure that only properly licensed functionalities are used.
Key Points to Consider:
Understand the Licensing Agreement:
- Ensure you clearly and thoroughly understand the licensing agreement with Oracle.
- Only activate the functionalities that are included in your agreement.
Regular Audits:
- Conduct regular audits of your Siebel installations to identify any unlicensed products that may have been activated.
- Use tools and services provided by Oracle to verify compliance.
Proper Management:
- Develop a robust license management strategy to track which functionalities are licensed and which are not.
- Educate your IT and administrative teams about the importance of compliance and the potential risks of using unlicensed products.
Siebel Legacy Pricing vs. Oracle Pricing
Before Oracle’s acquisition, Siebel products were sold as Individual Applications (e.g., Siebel Sales Enterprise) and Application bundles (e.g., eAdvisor & eConfigurator Bundle).
However, the number of Application Bundles offered was small and rarely sold. In December 2006, Oracle started selling Siebel products under the three standard pricing models for Oracle applications: Component licensing, Custom Application Suite (CAS) licensing, and Enterprise licensing.
Component licensing.
Component licensing is Oracle’s traditional a la carte pricing model and a cost-effective option for customers licensing one or two Oracle products with a few end-users. For example, Siebel CRM Base, licensed per Application User, allows one individual to use a single Siebel software program.
CAS licensing.
Under CAS licensing, a customer may purchase different software products in one bundle (e.g., Siebel CRM Base licensed per Custom Suite User). This metric allows one individual to use multiple Siebel software programs as defined in the bundle.
Enterprise licensing.
Enterprise licensing allows customers to license the desired Siebel software programs for their entire organization without keeping track of specific user licenses, servers, or deployment locations. You can read about SPE and Siebel differences here.
Siebel Legacy Metrics vs. Oracle Metrics
Oracle’s current metric units for Siebel products remain largely consistent with the legacy metrics from the Siebel System. Historically, Siebel products were typically sold per user.
User-Based Metrics
Named User to Application User:
- Named User Metric: This legacy metric focused on the number of individuals authorized to use the software, irrespective of actual usage.
- Application User Metric: Today’s equivalent, also counting the number of authorized users, maintains the same principle that licensing is based on access rights, not active usage.
Registered User:
- This metric targets business partners authorized to use the software. It’s relevant for partner applications, ensuring business partner interactions are correctly licensed.
Non-User-Based Metrics
Server-Based Licensing:
- Beyond user-based metrics, Siebel products may also be licensed based on server capacity, transactions, or other non-user-based criteria. This method typically involves licensing based on the Siebel application’s computing resources.
Key Points to Understand:
Consistency in Metrics:
- The transition from Siebel to Oracle metrics has retained fundamental principles, ensuring continuity and clarity for long-time Siebel users.
Application User Licensing:
- Focuses on the number of users with access permissions. Companies must track these permissions diligently to ensure compliance, as licenses are required even if users do not actively use the software.
Registered User Licensing:
- This is particularly important for partner applications, where the number of business partners accessing the system must be accurately tracked and licensed.
Managing Licensing Metrics:
Regular Audits:
- Conduct regular audits to ensure the correct accounting for the number of named or application users. This helps maintain compliance and prevent unexpected licensing costs.
Accurate Tracking:
- Use tools to monitor and manage user access permissions. This ensures that only authorized users have access and that the organization stays within its licensed limits.
Understanding Non-User-Based Licensing:
- Monitor resource usage for server-based or transaction-based licenses. This helps optimize license usage and avoid overprovisioning.
Seek Oracle’s Guidance:
- Engage with Oracle’s support to clarify any uncertainties regarding metrics. They can provide insights and assistance in managing both user-based and non-user-based licenses.
Businesses can better manage their licensing requirements by understanding the similarities and differences between Siebel’s legacy metrics and Oracle’s current metrics. Proper tracking and regular audits are essential to maintaining compliance and optimizing the use of Siebel products.
Understanding Siebel Views and Their Impact on Licensing
How Siebel Views Work
In Oracle Siebel CRM, views represent the user interface elements that allow users to interact with various data and functionalities within the application.
Views are screens that display specific types of information, such as customer details, sales data, service requests, or marketing campaigns.
These views are organized into categories and can be customized to suit an organization’s specific needs.
Key Components of Siebel Views:
- Applets: Mini-applications within a view that display data from the database. Examples include form applets, list applets, and chart applets.
- Tabs: Used to navigate between different views within a Siebel application. Each tab corresponds to a different category of information.
- Menus: Provide additional options and functionalities within a view, such as filtering data, generating reports, or performing actions on records.
Customizing Views:
- Personalization: Users can personalize views to display the most relevant information for their roles. This includes rearranging applets, adding or removing fields, and setting up default filters.
- Configuration: Administrators can configure views at a more advanced level, creating custom views to meet specific business requirements. This might involve modifying the underlying data model, adding new applets, or integrating with external systems.
Impact on Licensing
The views that users can access significantly influence licensing in Siebel CRM. Since licensing is based on the functionalities available to a user rather than just their active use, the configuration and assignment of views are critical in determining compliance with Oracle’s licensing policies.
Key Licensing Considerations:
Access Rights:
- User Access: Each user with access to a view that falls under a licensed module must be properly licensed. This means that even if a user rarely uses a specific view, they still need a license if they can access it.
- Role-Based Access Control: Siebel uses roles to assign access to views. Ensuring that users only have access to views necessary for their roles can help manage licensing costs and compliance.
View Assignments:
- Regular Audits: Conduct regular audits to review which views users have access to. This helps identify any unnecessary access that could require additional licenses.
- Updating Permissions: Regularly update user permissions to reflect current roles and responsibilities, removing access to no longer needed views.
Custom Views:
- Customization and Licensing: The licensing plan must account for custom views that access data or functionalities from licensed modules. Ensure that customizations do not inadvertently increase licensing requirements.
Indirect Access:
- Integration Implications: When Siebel integrates with other systems, ensure that any indirect access to views is also licensed appropriately. Users accessing Siebel data through integrated systems may still require Siebel licenses.
Best Practices for Managing Licensing with Siebel Views
- Role Optimization: Carefully define user roles and the associated views to ensure that users have access only to the functionalities they need.
- Compliance Monitoring: Use tools and reports to monitor user access continuously and ensure compliance with the licensing agreement.
- User Education: Educate users and administrators about proper view assignment and licensing implications.
- Oracle Support: Work with Oracle support or certified partners to review your licensing status regularly and make necessary adjustments.
Understanding how Siebel views work and their impact on licensing can help organizations better manage their Siebel CRM environments, ensure compliance, and optimize licensing costs.
Regular audits, careful role management, and proper view configuration are essential for maintaining a compliant and cost-effective Siebel implementation.
Proper Cleanup and Compliance for Siebel CRM
One of the organizations’ most common mistakes is not properly cleaning up their production environments. This can lead to significant compliance issues with Oracle’s licensing requirements.
Common Pitfalls in User Deactivation
Organizations may deactivate users by changing logins or assume that anyone who left the company or changed roles doesn’t count as having access to the software anymore. However, Oracle requires organizations to license each person formally authorized to use the software, whether they are active users or not.
Key Issues:
- Deactivated Logins: Simply changing logins is not sufficient. Oracle requires proper deactivation at both the database and application levels.
- Role Changes: The licensing must account for users who change roles within the organization but still have access to Siebel.
Steps for Proper Cleanup and Compliance
Complete Deactivation Process:
- Database and Application Levels: Ensure deactivation occurs at both levels. This includes updating employee IDs, statuses, and views.
- Audit User Access: Regularly audit user access to identify inactive users with permissions.
- Remove Inactive Users: Properly remove access for users who have left the company or no longer need access due to role changes.
Extend Cleanup Beyond Production:
- Test/Development/Acceptance Environments: Include these environments in the cleanup process to ensure only authorized users can access all instances.
- Consistent Policies: Apply consistent user management policies across all environments to maintain compliance.
Validating User View Associations
Regular Reviews:
- User Views: Regularly review and update user views to ensure they align with current roles and access needs.
- Compliance Audits: Conduct compliance audits to verify that all users with access are properly licensed.
Benefits of Proper Cleanup:
- Avoid Compliance Risks: Mitigate the risk of non-compliance with Oracle’s licensing policies.
- Legal and Financial Protection: Protects the organization from potential legal and financial penalties associated with licensing violations.
- Optimal Use of Siebel CRM: Ensures the organization can fully leverage Siebel CRM’s capabilities without the risk of compliance issues.
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