Oracle EBS Licensing: Professional User vs. Employee User


Oracle EBS Licensing: Professional User vs. Employee User

Oracle EBS Licensing: Professional User vs. Employee User

Professional User:

  • Stronger metric
  • Covers multiple EBS applications
  • Includes internal and external user options
  • Individuals counted under this if authorized for both metrics

Employee User:

  • Limited to a subset of EBS applications (e.g., HR, Self-Service)
  • Individuals are only counted under this if they are not authorized as Professional Users.

Oracle EBS Licensing: Professional User vs. Employee User

ebs Professional Users vs. Employee User

From February 2002 to March 2003, Oracle utilized two distinct EBS license metrics for its E-Business Suite (EBS) applications: Professional User and Employee User.

These metrics granted rights to various applications like Financials and Purchasing.

However, the rights under both metrics were limited to the applications listed in the Ordering Document or an exhibit, often leading to misconceptions about entitlements to all E-Business Suite applications.

License Rights and Limitations

Timeframe of Use: Oracle used these metrics from February 2002 to March 2003. During this period, individuals were granted rights to use several E-Business Suite applications based on the terms outlined in the Ordering Document or an exhibit. Contrary to common misconceptions, the rights were not universal across all E-Business Suite applications.

Professional User Metric: This metric is considered the stronger of the two. Individuals authorized under the Professional and Employee User metrics are counted under the Professional User metric.

This means that people with access rights under both categories are primarily classified under the Professional User metric.

Internal vs. External Users in Professional User Licensing

Professional Users vs. Employee Users license metrics

The Professional User licensing model offered two options:

  1. Internal Users: Licenses that grant individuals within an organization the right to use E-Business Suite programs.
  2. External Users: Licenses that allow individuals from external organizations to use E-Business Suite programs. External User licenses require all external users to be identified within the software, often by applying a naming convention or adding the company email address of the individual with access to the programs.

Initially, enterprise software supported internal business processes. Over time, the need arose to support business processes between organizations and external entities, leading to the distinction between internal and external users.

External User licenses were typically less expensive but required specific identification measures within the software.

Misunderstandings and Compliance Issues

Organizations often misunderstand the limitations of their EBS licenses. Many assume that having a license entitles them to use all E-Business Suite applications, but this is untrue.

Additionally, individuals authorized to use both Professional User and Employee User bundles will be counted under the Professional User metric, which is the stronger.

Challenges with User Identification: Business Application Managers may not fully understand these licenses’ contractual terms and conditions.

Even if they do, they might lack the time or resources to manage user profiles and authorizations properly. This often results in organizations losing track of which users are internal and which are external. During an Oracle License Audit, this can lead to all users being counted as internal, posing a significant financial risk.

Professional Users vs. Employee Users Metrics

Professional User Metric: Grants rights to use several E-Business Suite applications as specified in the Ordering Document or an exhibit. It is the stronger of the two metrics, meaning individuals authorized under both Professional and Employee User metrics are counted under the Professional User metric.

Employee User Metric: This metric grants rights to use a subset of E-Business Suite applications, such as HR and Self-Service. It is more limited than the Professional User metric.

Importance of Understanding Oracle License Metrics

Understanding these license metrics is crucial for organizations to comply with their software licensing agreements. Many organizations mistakenly assume they can use all E-Business Suite application programs, leading to non-compliance.

Furthermore, organizations that cannot distinguish between internal and external users risk over-licensing during an Oracle License Audit, which can result in significant financial penalties and potential damage to their reputation.

Best Practices for Managing E-Business Suite License Metrics

Best Practices for Managing Your Organizations Oracle licensing

To avoid compliance issues and financial penalties, organizations should implement proper software license management practices. Here are some best practices:

  1. Understand Licensing Terms:
    • Familiarize yourself with the terms and conditions of your software licensing agreement, especially the limitations and restrictions of the Professional User and Employee User metrics.
  2. Track Internal and External Users:
    • Maintain accurate records of internal and external users. Ensure that external users are properly identified within the software.
  3. Regularly Review and Update User Profiles:
    • Conduct periodic reviews and updates of user profiles and authorizations to ensure they are current and accurate.
  4. Conduct Regular Software License Compliance Audits:
    • Proactively identify and address any compliance issues through regular audits.

By following these best practices, organizations can remain compliant with their E-Business Suite licensing agreements and avoid the risks associated with improper license management.

Understanding and managing these metrics effectively is crucial for mitigating financial risk and maintaining organizational integrity.

FAQ on Oracle EBS Licensing: Professional User vs. Employee User

What is the difference between Professional User and Employee User licenses? Professional User licenses cover multiple EBS applications and include internal and external users, while Employee User licenses are limited to specific applications like HR and Self-Service.

Why is the Professional User metric considered stronger? The Professional User metric counts individuals authorized for both Professional and Employee User metrics under the Professional User category, which covers more applications.

What applications are typically included under the Professional User license? Professional User licenses generally include applications like Financials, Purchasing, and other core business modules.

Are there different types of Professional User licenses? There are two types: licenses for internal users within an organization and licenses for external users from other organizations.

What is required for external user licenses? External user licenses require identifying all external users within the software, often using naming conventions or company email addresses.

Can an organization use all EBS applications with a Professional User license? No, usage is limited to the applications listed in the Ordering Document or an exhibit.

Why do organizations often misunderstand their EBS license entitlements? Many assume their license covers all EBS applications, not realizing it is limited to those specified in the Ordering Document.

What risks are associated with improper user identification? Misidentifying users during an Oracle license audit can lead to over-licensing and financial penalties.

How can organizations manage their EBS licenses effectively? Understanding licensing terms, keeping accurate user records, regularly updating user profiles, and conducting compliance audits are essential practices.

What happens if an organization cannot distinguish between internal and external users? All users may be considered internal during an audit, leading to potential over-licensing and financial risks.

Are Employee User licenses cheaper than Professional User licenses? Employee User licenses typically cover fewer applications and are generally less expensive than Professional User licenses.

What are common misconceptions about Oracle EBS licenses? Many believe their license grants access to all EBS applications and fail to recognize the specific limitations outlined in the Ordering Document.

How often should organizations review their user profiles and authorizations? Regular reviews and updates are recommended to ensure accuracy and compliance with licensing agreements.

What steps should be taken during a software license compliance audit? Identify and address any issues proactively by reviewing user profiles, ensuring proper identification of external users, and verifying compliance with licensing terms.

Why is it important to understand Oracle’s EBS license metrics? Proper understanding helps avoid compliance issues and financial penalties and ensures the organization maximizes its use of licensed applications within the agreed-upon terms.

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  • 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, improving organizational efficiency.

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