Oracle Licensing

What is the difference between Oracle ESL and ASFU?

Difference between Oracle ESL and ASFU:

  • ESL (Embedded Software License):
    • Highly restrictive.
    • For ISVs embedding Oracle in applications.
    • End users can’t directly access Oracle software.
  • ASFU (Application Specific Full Use):
    • Less restrictive than ESL.
    • Specific to particular applications.
    • More flexibility in software access and use.

What is the Oracle ESL License

What is the Oracle ESL License

Oracle ESL (Embedded Software License) is a specialized license designed for independent software vendors (ISVs) who incorporate Oracle software components into their applications.

This highly restrictive license allows ISVs to package and resell Oracle software with their solutions.

The primary features of Oracle ESL include:

  • Packaging and Reselling: ISVs can bundle and resell Oracle software with their applications.
  • Restrictions: The software can only be used with the specific application package and not third-party applications.
  • No Direct Access: End users cannot directly access or modify the Oracle software.
  • No Maintenance Requirement: Unlike other Oracle licenses, there’s no obligation to maintain technical support for Oracle ESL licenses.

Differences between Oracle ESL and ASFU License

  • Usage: While both are for embedding Oracle software, ESL is more restrictive than ASFU.
  • Maintenance: ESL licenses do not require maintenance of Oracle technical support, whereas ASFU might.
  • Access: End users cannot directly access Oracle software under ESL, while ASFU might have different terms.

Deciding Between Oracle ISV Models

Deciding Between Oracle ISV Models

Independent Software Vendors (ISVs) planning to incorporate Oracle software into their applications must choose the right licensing model for operational success and cost efficiency.

Oracle offers two primary licensing models tailored to ISVs: the Embedded Software License (ESL) and the Application Specific Full Use (ASFU) license.

Understanding the nuances of each can help ISVs make informed decisions that align with their application needs, business goals, and customer requirements.

Embedded Software License (ESL)

The Embedded Software License is designed for ISVs looking to integrate Oracle software directly into their applications, making it invisible and inaccessible to the end user.

Oracle software operates as a component of the ISV’s application, providing functionality without being exposed as a standalone product.

  • Key Considerations:
    • Deep Integration is ideal for scenarios where Oracle software needs to be tightly integrated into the ISV’s application. It provides essential functionality without requiring users to know the underlying Oracle components.
    • Cost-Effectiveness: ESL typically offers significant discounts on Oracle software, making it a cost-effective option for ISVs that require extensive use of Oracle technology within their solutions.
    • End-User Transparency: The end user does not interact directly with the Oracle software and is not required to be aware of its presence within the application.

Application Specific Full Use License (ASFU)

The ASFU license offers more flexibility than the ESL. It allows ISVs to bundle Oracle software with their applications, giving end users access to the software’s full functionality.

This model suits applications that complement Oracle’s offerings or require the end user to interact with Oracle software directly.

  • Key Considerations:
    • Flexibility: ASFU is beneficial for ISVs that require flexibility in deploying and using Oracle software alongside their applications. It accommodates scenarios where end users might directly access or interact with the Oracle software.
    • Less Restrictive: Unlike ESL, ASFU does not restrict the visibility of Oracle software to the end user, allowing for a broader range of application scenarios and user experiences.
    • Cost: While ASFU may not offer the same discounts as ESL, it provides a clear and straightforward licensing model for ISVs requiring their users to access Oracle software directly.

FAQs

What is the primary purpose of the Oracle ESL license?
The Oracle Embedded Software License (ESL) is designed for Independent Software Vendors (ISVs) to integrate Oracle software directly into their applications. Oracle software can operate as an invisible component within the ISV’s product without end-user interaction.

How does the Oracle ASFU license differ from the ESL license?
ASFU (Application Specific Full Use) licenses are less restrictive than ESL licenses. While ESL restricts end-user access to Oracle software, ASFU allows users to interact with Oracle components directly, making it more flexible for specific application scenarios.

Who typically uses the Oracle ESL license?
ISVs embedding Oracle technology into their applications use the ESL license when the Oracle software is deeply integrated and not intended to be accessed or modified by end users.

What are the main restrictions of the Oracle ESL license?

  • End users cannot directly access or modify Oracle software.
  • Oracle software must be used exclusively within the ISV’s application package.
  • It cannot be repurposed for third-party applications or standalone use.

Why might an ISV choose the Oracle ASFU license over ESL?
ISVs might opt for the ASFU license when their applications require users to interact with Oracle software or when they need a more flexible licensing model for their solutions.

Does the Oracle ESL license require maintenance or technical support?
ESL licenses do not obligate ISVs or end users to maintain Oracle technical support, offering a cost-effective option for deeply integrated solutions.

Can end users modify Oracle software under the ASFU license?
Yes, the ASFU license permits end users to interact with and access Oracle software as part of their application experience, provided it adheres to the terms specified by the ISV.

Which license offers more cost savings, ESL or ASFU?
The ESL license often provides significant discounts compared to ASFU, making it a more cost-effective choice for ISVs that do not require end-user interaction with Oracle software.

What kind of applications benefit most from the ESL license?
The ESL license benefits applications that require deep integration of Oracle software, where end users neither see nor interact with the Oracle components.

Are there scenarios where ESL and ASFU licenses overlap?
While both licenses serve ISVs embedding Oracle software, ESL is better for invisible integration, whereas ASFU is better for applications where end users need direct access to Oracle software. Due to their distinct functionalities, their use cases rarely overlap.

Does ASFU provide any flexibility for ISVs?
Yes, ASFU allows ISVs to deploy Oracle software alongside their applications, enabling a broader range of use cases and scenarios where end users interact with Oracle’s functionality.

What should ISVs consider when choosing between ESL and ASFU?
ISVs should assess the following:

  • Whether end users will interact with Oracle software.
  • Budget constraints, as ESL is more cost-effective.
  • Application requirements for flexibility or invisibility of Oracle components.

Is there a maintenance difference between ESL and ASFU?
Yes, ESL licenses do not require ongoing Oracle technical support, while ASFU licenses might, depending on the agreement terms, involve maintenance obligations.

Which license is better for ISVs with global applications?
It depends on the application’s complexity and user interaction. ESL suits globally deployed solutions needing invisible Oracle integration, while ASFU is better for applications where user interaction with Oracle software is critical.

What are the risks of choosing the wrong license type?
Using the wrong license could lead to non-compliance, limited application functionality, or higher costs. ISVs must carefully evaluate their requirements and consult Oracle licensing experts to ensure proper alignment.

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Author
  • 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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