Oracle Siebel is licensed based on:
- User Licenses: Categorized into different types according to access and functionalities.
- Named User Plus (NUP) Licenses: These are assigned to specific individuals (employees, business partners, contractors).
- Application User Licenses: This is for users needing access to specific Siebel applications.
- Processor Licenses: Based on the number of processors running Siebel software.
- Enterprise Licenses: Comprehensive access to multiple Oracle products, including Siebel.
- Siebel CRM Base Application: Each Siebel customer must license at least one Siebel CRM Base Application. Industry-specific functionality requires additional industry-based options.
Introduction to Oracle Siebel Licensing
Oracle’s Siebel is a prominent Customer Relationship Management (CRM) software initially developed by Siebel Systems, which Oracle Corporation acquired in 2006.
Siebel has since been a critical part of Oracle’s software offerings, providing robust and versatile CRM solutions to businesses across various industries.
Siebel CRM provides various features to enhance customer service, increase sales, and support marketing activities. Its primary functionalities include:
- Sales Force Automation: Siebel helps streamline and automate the sales process, allowing businesses to track customer interactions, manage accounts and opportunities, and forecast sales.
- Customer Service Management: Siebel’s customer service module enables businesses to handle customer inquiries, track service requests, manage contact history, and improve overall customer satisfaction.
- Marketing Automation: Siebel helps plan, execute, and monitor marketing campaigns. It can manage customer segments, execute targeted email marketing, track customer responses, and measure campaign performance.
- Partner Relationship Management: Siebel allows businesses to manage relationships with partners, including tracking joint sales and marketing activities, lead management, and performance tracking.
- Business Analytics: Siebel provides robust reporting and analytics features, enabling businesses to make data-driven decisions. It offers a variety of pre-built and customizable reports and dashboards.
- Integration Capabilities: Siebel can be integrated with various other systems, providing a unified view of customer information across different platforms and departments.
Siebel CRM is highly customizable and can be tailored to meet each organization’s unique needs.
Large enterprises, government organizations, and small and medium-sized businesses use it.
Siebel License Models
In a standard Siebel installation, all the modules are unlocked, and you do not need to request additional serial keys from Oracle.
This means an Oracle Siebel end user can use Siebel products for which they lack licenses. Siebel comes in two editions: Siebel Enterprise and Siebel SPE.
Oracle Siebel’s licensing model is critical to ensure your organization is compliant and cost-efficient.
Siebel’s licensing model is primarily based on user licenses, categorized into different types depending on the access and functionalities provided.
- Named User Plus (NUP) Licenses: These licenses are assigned to a specific individual who can access the Siebel software. The individual does not necessarily need to be an employee and can be a business partner or a contractor, but the license is exclusive to the named user.
- Application User Licenses: These licenses are designed for users who need access to a specific Siebel application. They are usually more limited in scope than NUP licenses.
- Processor Licenses: These licenses are based on the number of processors used to run the Siebel software. They’re often employed when the exact number of users is complex to determine or is likely to increase significantly over time.
- Enterprise Licenses: These licenses provide a comprehensive licensing solution, giving access to multiple Oracle products, including Siebel. They are typically used by large organizations that use a wide range of Oracle products.
Siebel Custom Application Bundle Licensing
The Siebel Custom Application Bundle is a specific licensing model Oracle offers to organizations seeking a more tailored solution.
This model provides flexibility by allowing organizations to license only the specific Siebel applications they need rather than the entire suite.
Here’s how it works:
- Selection of Applications: The Custom Application Bundle allows organizations to license specific Siebel applications, such as Sales, Service, Marketing modules, or industry-specific solutions.
- User-Based Licensing: Like other Oracle licenses, the Custom Application Bundle is typically user-based. This means the cost depends on the number of users accessing the selected applications. Each user is assigned a license, often called a Named User Plus license.
- Support and Updates: The Custom Application Bundle license comes with Oracle’s standard support and updates for the licensed applications. This ensures that the applications remain up-to-date and that technical support is available.
- Flexibility: One of the primary benefits of the Custom Application Bundle is its flexibility. Organizations can adjust the bundle as their needs change, adding or removing applications as required. This allows for scalability and ensures that the organization only pays for its needs.
- Compliance: It’s important to note that with the flexibility of the Custom Application Bundle comes the responsibility of ensuring compliance. Organizations must ensure that the licensed applications are used according to the terms of the agreement.
The Siebel Custom Application Bundle is a licensing option for organizations needing a more custom approach to their CRM solution. It offers flexibility and scalability.
Oracle Siebel licensing can be complex, and understanding the details can help avoid costly mistakes. This article outlines the core Siebel licensing rules, key considerations when choosing licenses, and common pitfalls organizations should avoid.
Siebel Licensing Rules
No Bundled Oracle Technology Products:
Siebel is not bundled with Oracle technology products like Oracle Database. If you need to run a database alongside Siebel, purchase it separately.
Base Application Requirement:
Every Siebel customer must license at least one Siebel CRM Base Application. Typically, each employee user of Siebel applications will need a base license. You should start by selecting a Siebel CRM Base for each user accessing Siebel applications. All users who need a base must license the CRM Base accordingly.
Industry-Specific Functionality:
If your organization requires industry-specific features, you must license additional industry-based options in addition to the CRM Base. For every user needing access to these specialized functionalities, the industry-based option and the CRM Base must be licensed.
Considerations in Oracle Siebel Licensing
When purchasing Oracle Siebel licenses, several factors are important to ensure a strategic, cost-effective decision:
1. Assess Business Needs:
The foremost consideration is understanding your actual business requirements. Assess which features and functionalities your organization requires from Siebel and align your license purchase accordingly.
2. Budget Planning:
Licensing costs can be significant, so careful budgeting is essential. Consider both the upfront cost of licenses and the ongoing expenses for support and maintenance. Evaluate these costs accurately to avoid surprises.
3. Scalability:
Your licensing needs may evolve as your organization grows. It is important to choose a license model that can scale with your business. Consider whether you must easily add more licenses or switch between license types as your requirements change.
4. Compliance:
Oracle licensing policies can be complex, and non-compliance can lead to heavy penalties. Understand the terms and conditions of your licenses thoroughly to ensure compliance from the start.
5. Contract Terms:
Please carefully review the contract terms. Look for restrictions, renewal conditions, and clauses related to support and updates. Being well-informed about these details can help you avoid unexpected costs or limitations later.
Common Pitfalls in Siebel Licensing
Over-Licensing:
A frequent mistake is over-licensing, which occurs when an organization buys more licenses than they need. This often happens when business requirements are not assessed accurately. To avoid over-licensing, conduct a detailed analysis of your needs before purchasing.
Under-Licensing:
On the other hand, under-licensing can lead to non-compliance, with the risk of financial penalties and having to make unplanned license purchases. Match your licenses precisely with your needs to avoid costly fines.
Inadequate License Management:
Without a robust license management strategy, it can be easy to lose track of licenses, leading to over- and under-licensing. Implementing regular license audits and using license management tools can help you maintain accurate control over your license inventory.
Best Practices for Managing Siebel Licensing
- Regular License Audits: Conduct periodic audits to ensure your licenses align with your needs and usage.
- Align Licenses with Roles: Map user roles to the appropriate licenses. This helps avoid unnecessary costs and keeps compliance in check.
- Document Licensing Decisions: Keep detailed records of your license purchases, adjustments, and agreements. This can be helpful in case of an Oracle audit or when assessing changes in your business needs.
- Train Administrators: Ensure Siebel administrators are well-versed in licensing rules and compliance requirements. They should understand the implications of providing unauthorized access to users or modules.
By following these guidelines, organizations can more effectively manage Oracle Siebel licensing, reduce unnecessary expenditures, and ensure compliance with Oracle’s policies.
Siebel CRM – Partner Applications
Siebel partner options must be licensed at the same level or less than the Siebel Partner Portal for each partner user.
For example, if the customer licenses 100 Siebel Partner Portal, then Siebel Partner Commerce must have a quantity of 100 or less. This rule applies only to options using the Registered User metric
Siebel CRM Web Channel pricing is designed for Siebel customers who desire to extend the usefulness of their Siebel deployment by providing additional users access to Siebel Business Objects with defined methods, events, and data and reuse Siebel Business Objects and project Siebel Data through an independent User Interface via
Built-in scripting of Siebel objects using Siebel VB, Siebel eScript, and Browser Script Component Object Model (COM) using the Siebel Web Client Automation Server, Siebel COM Data Control, Siebel COM Data Server, and Siebel Mobile/Dedicated Web Client Automation Server, Java or J2EE using Siebel Java Data Bean, JMS or JCA
All modules, except those in the “Applications Not Requiring CRM Base” section, require a Siebel CRM Base–see the price list supplement for detailed
requirements on each module. All Oracle customers, including industry users, can add CRM modules to their solution.
Some modules have an industry-specific version. When licensing an industry-based option, check that industry module section for a replacement. n. (e.g., if the customer licenses the Communications, Media & Energy base option and they want contracts functionality, they should license Siebel CME Contracts, not Siebel Contracts
Siebel Licensing Definitions
Application User: is defined as an individual authorized by you to use the applicable licensed application programs installed on a single server or multiple servers regardless of whether the individual is actively using the programs at any given time.
Suppose you license the Oracle Self-Service Work Request option with Oracle Enterprise Asset Management. In that case, you are required to maintain licenses for the equivalent number of Application users licensed. You are granted unlimited access to initiate work requests, view work request status, and view scheduled completion dates for your entire employee population.
For Order Management, application users can manually enter orders directly into the programs, but any orders entered electronically from other sources must be licensed separately by the Electronic Order Line.
$M in Application Annual Revenue is one million U.S. dollars, excluding taxes processed through the licensed program. For Oracle Self-Service E-Billing products, the Annual Revenue is equivalent to the total invoiced amount for all company accounts with at least one enrolled user per billing period.
1,000 Claims: This is defined as one thousand unique claims processed through the program over 12 months. A unique claim is defined as one of the following: OEM Claims entry, supplier claims entry, and adjudication. Claims flow through to OPA for automated processing. You may not exceed the licensed number of transactions during 12 months unless you acquire additional licenses from Oracle.
Customer Record: is defined as each unique Customer Record (including contact records, prospect records, and records in external data sources) that you may access using the program
Electronic Order Line: is defined as the total number of distinct electronic order lines entered electronically into the Oracle Order Management application from any source (not manually entered by licensed Order Management Users, Professional Users 2003, or Professional Users 2003 External) during 12 months. This includes order lines originating as external EDI/XML transactions and/or sourced from other Oracle and non-Oracle applications. You may not exceed the licensed number of order lines during 12 months.
Employee: Enterprise Employee is defined as (i) all your full-time, part-time, temporary employees, and (ii) all of your agents, contractors, and consultants who have access to, use, or are tracked by the Oracle Programs. The number of licenses required is determined by the number of Enterprise Employees and not the actual number of users. In addition, if you elect to outsource any business function(s) to another company, all of the company’s full-time, part-time, temporary employees and agents, contractors, and consultants that are providing the outsourcing services for you who have access to, use, or are tracked by the Oracle Programs must be counted to determine the number of Enterprise Employees.
Named User Plus / Named User is defined as an individual authorized by you to use the programs installed on a single server or multiple servers, regardless of whether the individual is actively using the programs at any given time. All of the remaining provisions of this definition apply only to Named User Plus licenses and not to Named User licenses. A nonhuman-operated device will be counted as a named user, plus all individuals authorized to use the programs if such devices can access the programs. If multiplexing hardware or software (e.g., a TP monitor or a web server product) is used, this number must be measured at the multiplexing front end. Automated batching of data from computer to computer is permitted. You are responsible for ensuring that the named user plus per processor minimums are maintained for the programs in the minimum user table in the licensing rules section; the minimums table provides for the minimum number of named users plus required, and all actual users must be licensed.
Partner Organization is an external third-party business entity providing value-added services in marketing and selling your products. Depending upon the type of industry, partner organizations play different roles and are recognized by different names, such as resellers, distributors, agents, dealers, or brokers.
Registered User: is defined as an individual authorized by you to use the programs installed on a single server or multiple servers, regardless of whether the individual is actively using the programs at any given time. Registered Users shall be only your business partners and/or customers, not your employees.
Siebel – Compliance Risks
Managing Oracle Siebel licensing can be complex, and non-compliance can lead to costly issues. Below, we highlight some of the most common compliance risks and provide practical solutions to help you stay compliant.
1. Not End-Dating Users
License Model:
Siebel follows an Application User licensing model, which means every individual authorized to use Siebel requires a license, regardless of whether they actively use it.
Compliance Risk:
Many companies become non-compliant by not end-dating users who no longer need access to Siebel. This leads to more users appearing as “licensed” than the company needs, resulting in costly over-licensing issues.
Example:
Imagine a company with 300 Siebel users. Over time, 50 employees leave or change roles. If their access is not properly revoked, Siebel will still count them as licensed users, pushing the number of licenses beyond what is required.
How to Mitigate This Risk:
- Regular User Reviews: Conduct regular audits to identify and deactivate users without access.
- Automated Deactivation: Use tools that integrate with HR systems to automatically revoke access when an employee leaves.
- Quarterly Licensing Audits: Regularly compare active users with your licensed count to identify discrepancies early.
2. Access to Unlicensed Modules
How It Happens:
In Siebel, all modules are unlocked by default. No serial keys or pre-purchase validations are required, which makes it easy for administrators to unknowingly access modules for which the company doesn’t have a license.
Compliance Risk:
Siebel administrators can mistakenly grant access to modules other than those covered by the company’s license, which can lead to potential licensing violations.
Example:
Consider an administrator who grants access to the Siebel Marketing Module despite the company only holding licenses for the Sales and Service modules. Such unauthorized access could lead to unexpected compliance audits and fines.
How to Mitigate This Risk:
- Set Clear Access Controls: Restrict access to the modules your company has licensed by configuring role-based permissions.
- Regular Module Usage Reviews: Periodically audit the modules used to verify they match what has been purchased.
- Training for Administrators: Educate your Siebel admins on what modules are licensed and ensure they understand the compliance implications.
3. Use of Custom Views
Risk of Custom Views:
Developing and using custom views in Siebel can inadvertently lead to non-compliance if those views utilize Siebel products or modules for which you lack licenses.
Compliance Risk:
Custom views often pull data or functionality from modules other than those your organization has purchased. Without proper mapping, you may unknowingly leverage Oracle functionality outside your licensed scope.
Example:
Your development team creates a custom report that combines data from both Siebel Sales and Siebel Analytics modules. If your company only has a license for the Sales module, this could trigger a compliance breach.
How to Mitigate This Risk:
- Map Custom Views to Modules: Ensure each custom view is mapped to the specific Siebel products it utilizes.
- Documentation and Review: Thoroughly document all customizations and periodically review them to confirm they comply with licensing rules.
- Use Oracle LMS Tools: Leverage Oracle’s License Management Services (LMS) tools to validate that custom views are within the licensed boundaries.
Best Practices for Siebel Compliance
- Frequent User Audits: Regularly audit user access and end-date inactive users to avoid accumulating unnecessary licenses.
- Access Restriction: Limit access strictly to modules your organization has licensed.
- Admin Education: Train administrators on Siebel licensing requirements and conduct periodic compliance workshops.
- Custom View Documentation: Document customizations and ensure they adhere to licensed product boundaries.
By proactively addressing these risks, you can avoid compliance pitfalls, reduce unnecessary costs, and ensure the smooth operation of your Siebel deployment.
FAQs on Siebel Licensing
What are the main types of Oracle Siebel licenses?
Oracle Siebel licenses are categorized into Named User Plus (NUP), Application User, Processor, and Enterprise. Each type serves different purposes based on access requirements, the number of users, or the processing power needed.
How do Processor licenses work for Siebel?
Processor licenses are based on the number of processors running Siebel software. This model is often used when it’s challenging to determine the exact number of users or when user numbers may vary significantly. It provides a way to license Siebel based on system capacity rather than user count.
What are Enterprise licenses for Siebel?
Enterprise licenses provide broad access to multiple Oracle products, including Siebel. Large organizations generally use these licenses with a wide array of Oracle solutions.
What is the Siebel Custom Application Bundle?
The Siebel Custom Application Bundle is a licensing model that allows organizations to license only the specific Siebel applications they need rather than purchasing the entire suite. This model is particularly beneficial for companies that require a tailored licensing approach.
What are the compliance risks associated with not end-dating users in Siebel?
Not end-dating users who no longer need access can lead to over-licensing. Siebel counts all authorized users, and if inactive users are not deactivated, a higher number of licenses is required than necessary, which can be costly.
How do companies typically end up using unlicensed Siebel modules?
Siebel installations have all modules unlocked, and administrators can easily grant access without needing serial keys or pre-approval. This often leads to modules being accessed that the organization has not paid for, resulting in compliance risks.
What are custom views, and how do they impact Siebel licensing compliance?
Custom views in Siebel are tailored interfaces or reports created by the user. They can unintentionally draw upon modules or data the organization is not licensed for, leading to compliance issues. Each view needs to be mapped to ensure it only utilizes licensed modules.
What should be included in a regular Siebel licensing audit?
A regular Siebel licensing audit should include reviewing user access to ensure inactive users are end-dated, assessing which modules are being used, and verifying that all customizations (such as custom views) align with the licensed scope.
How can organizations avoid over-licensing with Siebel?
To avoid over-licensing, it’s crucial to regularly audit the actual number of active users and their access needs. Deactivating users who no longer need access, mapping roles appropriately, and ensuring licensing is matched to actual usage can help minimize unnecessary costs.
Why is it important to restrict access to Siebel modules?
Restricting access ensures that users interact only with the modules for which the organization has licenses. By limiting permissions to relevant modules, organizations can avoid compliance violations and unexpected licensing fees.
How do Processor licenses compare with User-based licenses in terms of scalability?
Processor licenses are often more scalable when the user count is expected to grow significantly or fluctuate. Unlike user-based licenses that require individual assignments, processor licenses are tied to the hardware capacity, making them suitable for dynamic environments.
What should Siebel administrators know about licensing?
Siebel administrators should know the licensing terms for each module, understand which modules the organization licenses, and recognize the compliance implications of granting access. Proper training and awareness are essential to avoid accidental compliance violations.
What are some common pitfalls in managing Siebel licenses?
Common pitfalls include over-licensing due to inactive users not being deactivated, under-licensing by granting access to unpurchased modules, and inadequate management of custom views that may use unlicensed functionalities. Regular audits and proper documentation are crucial for managing these risks.
Can Siebel licenses be adjusted as business needs change?
Yes, licenses can be adjusted depending on the license model. The Siebel Custom Application Bundle allows you to add or remove specific modules based on business requirements, offering flexibility and cost control as your organization’s needs evolve.
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