EBS

Professional User vs. Employee User – Legacy EBS Licensing

Oracle EBS Licensing – Professional User vs. Employee User:

  • Timeframe of Use: From February 2002 to March 2003, Oracle used these metrics for E-Business Suite applications, granting rights for several applications like Financials and Purchasing​​.
  • License Rights Limitation: Rights under both metrics were limited to the applications listed in the Ordering Document or an exhibit. This often led to misconceptions about entitlements to all E-Business Suite applications​​.
  • Professional User Metric: This is the “stronger” of the two metrics. Individuals who are authorized under both Professional and Employee User metrics are counted under the Professional User metric​​.
  • Two Options in Professional User Licensing: Includes licenses for internal and external organizations to use E-Business Suite programs. External User licenses require identifying all external users in the software.​​​

Professional Users vs. Employee Users – Legacy EBS Licensing Systems

ebs professional user


From February 2002 until March 2003, Oracle sold its E-Business Suite applications on the license metrics “Professional User” and “Employee User,” which granted individuals the right to use several E-Business Suite applications, such as Financials and Purchasing, as listed in an exhibit to the Ordering Document.

This licensing model followed the “Primary Usage” model before December 2006.

Although the Professional User and Employee User metrics allowed a bundle of E-Business Suite applications, the rights were limited to the application programs in the Ordering Document or an extra exhibit.

Many organizations don’t realize that and wrongly assume being entitled to use all E-Business Suite application programs.

In addition, organizations typically fail to realize that individuals authorized to use both bundles (Professional User and Employee User) will be counted under the Professional User metric, being the “stronger” of the two.

EBS Professional Users – Internal vs. External Users

ebs professional user internal

The Professional User licensing model has two options: licenses that grant individuals from their organization the use of E-Business Suite programs and licenses that grant individuals from external organizations the use of E-Business Suite programs.

“External User” licenses require all external users to be identified in the software.

Initially, enterprise software was used to support an organization’s internal business processes. Over time, organizations also wanted the software to support all business processes between themselves and “external” organizations in a B2B relationship.

Oracle began to use this distinction when the company introduced two options in its Professional User licensing model: licenses that grant individuals from their organization the use of E-Business Suite programs and licenses that grant individuals from external organizations to use E-Business Suite programs.

“External User” licenses were typically less expensive than “Internal User” ones but required all external users to be identified in the software.

For example, by applying a naming convention in the user and access management functionality with a description of the employer or by adding the company email address of the individual with access to the E-Business Suite program(s).

Business Application Managers often don’t understand such contractually agreed terms and conditions correctly.

If they know them, they often don’t have the time and/or resources to create and manage user profiles and authorizations appropriately.

Consequently, organizations tend to lose track of which users are internal and which are external. Being unable to distinguish internal from external users clearly means that all will be counted as internal when an Oracle License Auditor License Review is performed.

This is another example of how the lack of proper software license management can easily cause financial risk.

Professional Users vs. Employee Users Metrics

ebs professional vs employee

The Professional User and Employee User metrics are license metrics used by Oracle for its E-Business Suite applications.

The metrics grant individuals the right to use several E-Business Suite applications, such as Financials and Purchasing, as listed in an exhibit to the Ordering Document.

However, the rights are limited to the application programs in the Ordering Document or an extra exhibit. Many organizations wrongly assume they can use all E-Business Suite application programs.

The Professional User metric is the “stronger” of the two metrics. Individuals authorized to use both bundles (Professional User and Employee User) will be counted under the Professional User metric.

The Employee User metric only grants the right to use a subset of E-Business Suite applications, such as HR and Self-Service.

Why Is It Important to Understand These Oracle License Metrics?

Understanding Oracle’s E-Business Suite license metrics is essential for organizations to ensure they comply with their software licensing agreements.

Many organizations fail to realize the limits and restrictions of the Professional User and Employee User metrics and incorrectly assume they may use all E-Business Suite application programs.

In addition, organizations that cannot distinguish between internal and external users will be at risk of over-licensing when an Oracle License Auditor License Review is performed. This can result in significant financial penalties and damage a company’s reputation.

Best Practices for Managing Your Organizations Oracle’s E-Business Suite License Metrics

oracle ebs legacy licensing


Organizations must implement proper software license management practices to avoid compliance issues and financial penalties. Here are some best practices for managing Oracle’s E-Business Suite license metrics:

  1. Understand the terms and conditions of your software licensing agreement, particularly the limits and restrictions of the Professional User and Employee User metrics.
  2. Keep track of internal and external users and ensure that external users are identified in the software.
  3. Regularly review and update user profiles and authorizations to ensure they are accurate and up-to-date.
  4. Conduct regular software license compliance audits to identify and address any issues proactively.

Understanding Oracle’s E-Business Suite license metrics is critical for organizations to avoid compliance issues and financial penalties.

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Author

  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, enhancing organizational efficiency.