Oracle HCM Cloud Licensing Intro

Navigating Oracle HCM Cloud licensing and pricing can be daunting, but fear not! This article will help demystify the process and ensure you get it right. Oracle Fusion Human Capital Management Base Cloud Service is the leading service that includes when purchasing Oracle HCM cloud. This base cloud service is a necessary starting point for Oracle HCM cloud. In this guide, we’ll cover what exactly is included in the base cloud service and provide you with the tools you need to properly understand Oracle HCM cloud pricing and licensing.

What is Oracle HCM Cloud?

Oracle HCM Cloud is a comprehensive Human Capital Management solution that helps HR professionals streamline and optimize every aspect of employee management, from attracting and hiring talent to managing payroll, benefits, and performance. This AI-powered platform integrates with financial, supply chain, and customer experience systems to align HR with business goals and offers extensibility through platform-as-a-service (PaaS) for custom application development. In short, Oracle HCM Cloud empowers HR leaders to make intelligent, efficient decisions and drive the organization’s success.

Oracle HCM Cloud – Components

Oracle HCM Cloud offers the following products:

• Global HR: a comprehensive solution that includes Core HR, Workforce Directory, Workforce Predictions, Workforce Modeling, HR help desk, and Workforce Health and Safety Incidents
• Talent Management: tools for talent acquisition, goal and performance management, career development, talent review, and succession planning
• Workforce Rewards: resources for compensation, benefits, payroll, and sales compensation
• Workforce Management: optimize time with Time and Labor and Absence Management
• Work-Life Solutions: engage employees with My Brand, My Wellness, My Volunteering, and My Competitions

Oracle HCM Cloud Benefits

1. Manage top talent in a new environment: Oracle HCM Cloud is designed to engage employees and track their expertise, certifications, compensation, and interests, as well as automated report conversion. With cloud-based solutions, HR teams can enhance real-time hiring efforts and assess internal talent based on business priorities.
2. Navigate changes in HR responsibilities: HR professionals are expected to deliver better data, be more strategic, and add more excellent business value. Oracle HCM Cloud enables HR to efficiently complete daily tasks, such as processing time-off requests, awarding promotions, facilitating management efforts, and negotiating benefits. It also provides the insights needed for HR to become involved in strategic business decisions.
3. Cost benefits: Cloud-based applications, such as Oracle HCM Cloud, can offer significant cost advantages, including scalability, efficiency, flexibility, and agility. These systems simplify IT and allow organizations to pay only for what they need, reducing reliance on IT departments.
4. Improve HR output: Oracle HCM Cloud provides a platform for BI tool migration and self-service opportunities that reduce labor, allowing HR to increase the value it delivers to the business. It also has tools to enhance recruitment processes on an international scale with analytics depth, enabling seamless talent sourcing through the data-driven attraction of top talent.

Comparing key features of Oracle and Workday HCM:

• Innovation: Oracle has strong AI and ML capabilities and is constantly adding new features to Oracle HCM Cloud. Workday is trying to integrate acquired applications to gain functionality that Oracle HCM Cloud already offers.
• Platform-as-a-Service (PaaS) capabilities: Oracle offers its cloud platform for building extensions, while Workday’sWorkday’s platform is limited in availability and requires third-party integration tools.
• Globalization and localization capabilities: Oracle HCM Cloud offers 100+ localizations with support in 190+ countries and experience with over 50% of the Global Fortune 500. At the same time, Workday has limited localized versions of its HCM and Payroll products with limited local support.
• Reporting and analytics: Oracle offers a powerful analytics tool with multisource analysis, while Workday’sWorkday’s proprietary analytics tool limits access by third-party software.
• Social collaboration: Oracle HCM Cloud includes embedded social collaboration capabilities, while Workday does not offer native social collaboration capabilities and must integrate with a third-party tool.

Why choose Oracle HCM Cloud over Workday?

1. Innovation: Oracle has a strong focus on innovation and is constantly adding new features to its HCM Cloud platform, including AI and ML capabilities such as digital assistants and in-built ML for end-users. On the other hand, Workday is trying to catch up with Oracle in supporting emerging technologies like adaptive intelligence, machine learning, and digital assistants.
2. Platform-as-a-Service (PaaS) capabilities: Oracle offers its cloud platform for building extensions, allowing customers to upgrade their SaaS environment without affecting extended functionality. Workday’sWorkday’s platform is limited in availability and requires third-party integration tools.
3. Globalization and localization capabilities: Oracle HCM Cloud offers 100+ localizations with support in 190+ countries and experience with over 50% of the Global Fortune 500. Oracle has a strong track record of supporting global organizations with localized versions and local support. Workday has limited localized versions of its HCM and Payroll products and limited local support.
4. Reporting and analytics: Oracle offers a powerful analytics tool with multisource analysis, providing advanced and predictive analytics to help HR professionals address critical challenges. Workday’sWorkday’s proprietary analytics tool is isolated in a proprietary format and stored in a proprietary system, limiting access by third-party software.
5. Social collaboration: Oracle HCM Cloud includes embedded social collaboration capabilities, which can increase employee engagement and improve business performance. Workday does not offer any native social collaboration capabilities and must rely on integration with a third-party tool.

Overall, customers may choose Oracle HCM Cloud for its strong focus on innovation, robust PaaS capabilities, comprehensive globalization, and localization support, powerful reporting and analytics tools, and in-built social collaboration features

Why choose Workday over Oracle HCM Cloud?

1. Simplicity: Workday has a simple and intuitive user interface, which makes it easy for employees to use and for HR professionals to manage. This can lead to higher adoption and more efficient processes.
2. Integration: Workday is designed to be a single source of truth for HR, finance, and planning data, with a single codebase and data model. This can make it easier to integrate with other systems and maintain a consistent view of data across the organization.
3. Customization: Workday allows for more customization of its HCM and payroll products, which can benefit organizations with unique requirements or processes.
4. Mobile capabilities: Workday has a strong focus on mobile, with native apps for iOS and Android that provide full functionality. This can be helpful for organizations with a distributed or mobile workforce.
5. Support: Workday’s dedicated customer support team provides personalized assistance and training. This can be beneficial for organizations that require a high level of support.

Customers may choose Workday for its simplicity, integration, customization, mobile capabilities, and firm support.

Oracle HCM Cloud License Models

Oracle uses two metrics in their price list for the Fusion HCM base cloud service and additional HCM options: Hosted Employee and Hosted Named User.

• A Hosted Employee is all full-time, part-time, temporary employees and all agents, contractors, and consultants who have access to, use, or are tracked by the programs.
• A Hosted Named User is an individual authorized to access the hosted service, regardless of whether they are actively accessing it at any given time. This may include business network administrators, endorsing trading partners, and participating trading partners.

Sometimes Oracle uses different terminology, such as FSE (Full-Service Equivalent), FTE (Full-Time Equivalent), or Number of Users, which can be confusing for customers. It is essential to understand whether the metric is counted at the enterprise level or on an individual user basis. For example, Hosted Employee, FSE, and FTE are enterprise metrics, meaning the entire number of employees must be counted for this metric. This is because solutions using this metric provide value in the whole enterprise, such as the Strategic Workforce Planning solution.

Hosted Named User counts to apply only to those users in the organization who have login rights to the solution, such as Time and Labor for time tracking. Understanding how Oracle defines and counts these metrics in your proposal is important to fully understand the financial implications and accurately compare them to other solutions. 

License metric – Hosted Employee User.

Hosted Employee: is defined as (i) all of your full-time, part-time, temporary employees, and (ii) all of your agents, contractors, and consultants where such agents, contractors, and consultants have access to, use, or are tracked by, the programs. The quantity of the licenses required is determined by the number of Hosted Employees and not the actual number of users. In addition, if you elect to outsource any business function(s) to another company, the following must be counted for purposes of determining the number of Hosted Employees: all of that other company’scompany’s full-time employees, part-time employees, temporary employees, agents, contractors and consultants that (i) are providing the outsourcing services and (ii) have access to, use of, or are tracked by, the programs.

Oracle Fusion Human Capital Base Cloud Service

The Fusion Human Capital Management base cloud service includes the following products:

1. Oracle Fusion Global Human Resources
2. Oracle Fusion Global Absence Management
3. Oracle Fusion Benefits
4. Oracle Fusion Cash Management (restricted use)
5. Oracle Fusion HCM Journeys
6. Oracle Fusion Payroll Interface
7. Oracle Fusion Onboarding
8. Oracle Fusion Workforce Directory Management
9. Oracle Fusion Workforce Predictions
10. Oracle Fusion Work Life Solutions
11. Oracle Fusion Transactional Business Intelligence for Human capital Management Cloud service.

The Human Capital Base Cloud Service is licensed per “hosted employee license metric, costing $ 15 per employee / month.

Important Licensing & Pricing 

• The number of Fusion Human Capital Management Cloud Service options does not need to match the number of users of the base service, and it is optional to license the entire employee population.
• The Oracle Fusion Human Capital Management Base Cloud service costs $15 per month.
• The minimum purchase is for 1,000 employee users, and the minimum contract term is three years. This means that even if you only need 200 employees, you must purchase a minimum of 1,000.

List of Oracle Fusion Human Capital Management Cloud Service Options:

1. Fusion Advanced Human Capital Management Controls Cloud Service
2. Fusion Dynamic Skills Cloud Service
3. Fusion Human Resources Help Desk Cloud Service
4. Fusion Recruiting Cloud Service
5. Fusion Workforce Compensation Cloud Service
6. Policy Automation for Workers Cloud Service
7. Strategic Workforce Planning Cloud Service
8. Fusion Workforce Health and Safety Incidents Cloud Service
9. Fusion Talent Management Cloud Service
10. Fusion Time and Labor Cloud Service
11. Fusion Learning Cloud Service

Oracle HCM Cloud Pricing Calculator (example)

How do you set up and build your Oracle HCM Cloud Service? Oracle HCM Cloud pricing calculator

Fusion Dynamic Skill Cloud service is licensed per hosted Employee and requires a separate license for the HCM Base cloud service. The license price for Dynamic Skill is $3 per Employee, with a minimum of 500 hosted employees.

For example, if you want to implement Dynamic Skill Cloud service and determine that you need 2500 hosted employees to meet your needs.

You will then need to purchase the following:

• Oracle Fusion Human Capital Management Base Cloud service – 2500 hosted employees – list price $450,000 annually.

• Fusion Dynamic Skill Cloud Service – 2500 hosted employees – list price is $75,000 annually. Before discounts, the total cost will be $450,000 + $75,000 = $525,000.

Users of the Oracle Fusion Advanced Human Capital Management Controls Cloud Service 

Are authorized to access the Advanced Human Capital Management Controls and Transparent Data Encryption modules. The service is licensed based on the number of Hosted Employees.

The Oracle Fusion Human Resource Help Desk Cloud Service

 It is licensed based on the number of Hosted Employees. Users of this service are authorized to access the following features:

• Capture, assign, and update service requests for employees
• Track activities (tasks, appointments) related to Human Resource Help Desk service requests
• Oracle Knowledge Management for HR
• Ability to integrate with Human Resource Help Desk service requests using public APIs and file-based import/export
• Transparent Data Encryption

The Oracle Fusion Recruiting Cloud Service 

It is licensed per hosted Employee and includes access to the Oracle Recruiting and Transparent Data Encryption modules. The applicable part number is B87675. This service allows users to access the specified modules as part of their subscriptions.

Users of the Oracle Fusion Time and Labor Cloud Service

Are authorized to access the Time and Labor Cloud Service and Transparent Data Encryption modules. The service is licensed based on the number of Hosted Named Users.

The Oracle Fusion Talent Management Cloud Service 

It is licensed based on the number of Hosted Named Users. Users of this service are authorized to access the following modules:

• Oracle Fusion Performance Management Cloud Service
• Oracle Fusion Goal Management Cloud Service
• Oracle Fusion Talent Review and Succession Planning Cloud Service
• Oracle Fusion Career Development Cloud Service

Oracle HCM Cloud Licensing Risks

Oracle HCM Cloud is a comprehensive human capital management solution that offers a range of services and modules to help organizations manage their HR processes. One of the key considerations when licensing Oracle HCM Cloud is the type of license metric used.

One of the metrics used by Oracle for HCM Cloud is the Hosted Employee license. This metric is based on the number of employees in an organization and applies to all full-time, part-time, and temporary employees, as well as agents, contractors, and consultants who have access to, use, or are tracked by the Oracle HCM programs.

One potential risk of using the Hosted Employee license metric is that it may result in organizations paying for more licenses than they actually need. For example, if an organization only needs 200 employees to have access to the Oracle HCM Cloud services, they would still need to purchase a minimum of 1,000 employee licenses. This can be a high cost for organizations, especially if they need to accurately estimate the number of employees who will need access to the HCM Cloud services.

Another risk of the Hosted Employee license metric is that it may need to accurately reflect the actual usage of the Oracle HCM Cloud services. For example, if an organization has 1,000 employees but only 500 of them use the HCM Cloud services regularly, they would still need to pay for all 1,000 employee licenses. This can result in organizations paying for unnecessary licenses and potentially overspending on their HCM Cloud licensing.

Overall, the risks of using the Hosted Employee license metric for Oracle HCM Cloud include the potential for overpayment and the inability to reflect actual usage accurately. Organizations should carefully consider their needs and usage patterns when licensing Oracle HCM Cloud to ensure they get the most value for their investment.

How much does Oracle HCM Cloud cost?

Let’s use this example: 

For a company with 20,000 employees that requires the Oracle Fusion Base Cloud Service and 2,000 users who need the Fusion Dynamic Skill Cloud Service, the total Oracle HCM licensing costs over a 5-year contract would be as follows:

• Oracle Fusion Base Cloud Service: 20,000 hosted employees x $540,000 annually = $10,800,000 total cost over 5 years
• Fusion Dynamic Skill Cloud Service: 2,000 hosted employees x $108,000 annually = $2,160,000 total cost over 5 years
• Total Oracle HCM licensing costs: $10,800,000 + $2,160,000 = $12,960,000 over 5 years

Frequently asked questions on Oracle HCM Cloud. 

1. What is Oracle HCM Cloud? Oracle HCM Cloud is a human capital management solution that enables HR leaders to manage every stage of the employee lifecycle, from attracting talent and onboarding to managing payroll, performance, and development. It integrates with financial, supply chain, and customer experience modules to align HR with business goals and offers platform-as-a-service (PaaS) extensibility for custom-built applications.
2. What is included in the Oracle Fusion Human Capital Management Base Cloud Service? The base cloud service consists of a suite of services such as Oracle Fusion Global Human Resources, Oracle Fusion Global Absence Management, Oracle Fusion Benefits, Oracle Fusion Cash Management, Oracle Fusion HCM Journeys, Oracle Fusion Payroll Interface, Oracle Fusion Onboarding, Oracle Fusion Workforce Directory Management, Oracle Fusion Workforce Predictions, Oracle Fusion Work Life Solutions, and Oracle Fusion Transactional Business Intelligence.
3. What is the cost of the Oracle Fusion Human Capital Management Base Cloud Service? The base cloud service costs $15 per month. The minimum purchase is for 1,000 employee users, and the minimum contract term is three years.
4. What are the options for Oracle Fusion Human Capital Management Cloud Service? The possibilities for Oracle Fusion Human Capital Management Cloud Service include Fusion Advanced Human Capital Management Controls Cloud Service, Fusion Dynamic Skills Cloud Service, Fusion Human Resources Help Desk Cloud Service, Fusion Recruiting Cloud Service, Fusion Workforce Compensation Cloud Service, Policy Automation for Workers Cloud Service, Strategic Workforce Planning Cloud Service, Fusion Workforce Health and Safety Incidents Cloud Service, Fusion Talent Management Cloud Service, and Fusion Time and Labor Cloud Service.
5. What is a Hosted Employee license? A Hosted Employee license is a metric used by Oracle to determine the number of employees that need to be licensed for certain HCM cloud services. It includes all full-time, part-time, and temporary employees, as well as all agents, contractors, and consultants who are tracked by the Oracle HCM programs, regardless of whether they use the HCM programs.
6. What is a Hosted Named User license? A Hosted Named User license is a metric used by Oracle to determine the number of individuals who are authorized to access the hosted HCM service. These users may include business network administrators, endorsing trading partners, and participating trading partners. It does not matter whether the user is actively accessing the service at any time.
7. Can I customize the Oracle HCM Cloud service? Yes, Oracle HCM Cloud offers platform-as-a-service (PaaS) extensibility, which allows you to build new capabilities outside of your core applications. This means you can upgrade your SaaS environment without affecting your extended functionality.
8. What is the minimum contract term for Oracle HCM Cloud? The minimum contract term for Oracle HCM Cloud is three years.
9. Is training provided for Oracle HCM Cloud? Yes, Oracle offers various training options for Oracle HCM Cloud, including instructor-led training, virtual training, and eLearning.
10. Does Oracle HCM Cloud support multiple languages? Yes, Oracle HCM Cloud offers more than 100 localizations with support across 190+ countries and local developers.

Our Oracle HCM Cloud License and Negotiation Service is designed to help you navigate the complex process of purchasing and managing Oracle HCM Cloud licenses. Our team of experts will work with you to understand your unique business needs and help map functionality toward suitable license options. We will also assist with license optimization to ensure that you only pay for what you need.

• Assist with license optimization to ensure you are only paying for what you need
• Offer ongoing contract design and negotiation support to align contracts with your business goals and negotiate with Oracle for the best terms.
• Help optimize your Oracle HCM Cloud licenses on an ongoing basis.
• Monitor usage and identify opportunities for license optimization
• Assist with the management of your Oracle HCM Cloud licenses to ensure compliance and optimize performance

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