Oracle ASFU License – Common Isv License Type

What is an Oracle ASFU License?

• Allows ISVs to build and sell solutions using Oracle technology.
• The end customer is the license owner.
• Requires Oracle Partner Network membership.
• Must sign specific distribution agreements.
• It can only be used with the specified third-party application.
• Third-party applications must be commercially available.
• ISVs provide technical support for Oracle software.

Oracle ASFU License

The Oracle Application Specific Full Use (ASFU) license allows Independent Software Vendor (ISV) partners to build solutions or applications using Oracle technology. These partners can then sell the license to the end customer, who will be listed as the owner of the ASFU license.

Key Features:

• Technology Access: Allows the use of all Oracle technology software, including the Oracle database and Oracle middleware products such as WebLogic.
• Ownership: The end customer is listed as the owner of the ASFU license.

Requirements:

• Oracle Partner Network Membership: Organizations must be Oracle Partner Network (OPN) members.
• Agreements:
  • Sign the Oracle Partner Network Master Distribution Agreement.
  • Sign the Application Specific Full Use Program Distribution Agreement.
• Application Package Registration: Each “application package” must be registered separately, specifying the details of the application.

Usage Restrictions:

• Specific Application Use: The Oracle software obtained through ASFU can only be used with the specified third-party application.
• No Separate Use: It must not be used separately without additional licensing.
• Commercial Availability: The third-party application must be commercially available to multiple end-users and have end-user documentation.

Responsibilities:

• Third-Party Application Owner:
  • Obtain the ASFU license from Oracle.
  • Use the Oracle software only with the specified application.
  • Provide technical support for the Oracle software.
• End-User Agreement:
  • Include clauses about Oracle program usage restrictions and intellectual property rights.

By adhering to these guidelines, ISVs can effectively utilize the Oracle ASFU license to deliver robust, Oracle-powered solutions to their customers.

Important Facts about Oracle ASFU Licenses

Usage Restrictions:

• The ASFU license can only be used for the specific solution or application defined in the agreement.

Technical Support:

• End customers cannot contact Oracle technical support directly; they must go through the ISV/OEM partner.
• Oracle technical support for ASFU licenses is provided at a rate of 19% for the ISV.

Discount and Pricing:

• The ASFU license is a 60% discount off the Oracle price list.

License Migration and Upgrade:

• End customers can pay a fee to migrate or upgrade their ASFU licenses to full-use licenses, which allow them to use other applications.

Licensing Models:

• ASFU licenses may use a royalty license model where the ISV resells Oracle licenses, and Oracle receives a percentage of the ISV’s price.
• ASFU licenses do not always follow standard naming or processor-based licensing rules.

Unlimited License Agreement:

• If an organization enters an Oracle Unlimited License Agreement (ULA), it must migrate and include any existing ASFU licenses.

Allowed and Not Allowed with an Oracle ASFU License

Allowed:

• Non-ASFU applications can read data from the database using methods such as ODBC.

Not Allowed:

• Using an ASFU license to store third-party data in the Oracle database.
• Build customized code or applications and use them with an Oracle database license under ASFU.
• Non-ASFU applications write data directly to the database using methods such as ODBC.

License Models for ASFU

Oracle offers two primary models for the Application Specific Full Use (ASFU) license, each designed to cater to different needs and business structures of Independent Software Vendors (ISVs).

Standard Oracle License Metric

• Named User Plus (NUP): Licenses are based on the number of users accessing the Oracle software.
• Processor Licenses: Licenses are based on the number of processors on which the Oracle software is installed and running.
• Usage Restrictions: ASFU licenses in this model must be used like normal full-use licenses but with the specific requirement that they can only be used with the designated application.
• Benefits: This model is straightforward and familiar to many ISVs, allowing them to leverage Oracle’s powerful technology within defined parameters.

Royalty License Model

• Revenue-Based Payment: In this model, the ISV pays Oracle a percentage of its revenue based on the number of Oracle licenses it sells.
• Flexibility: This model can be advantageous for ISVs who want to align their licensing costs with their sales revenue, providing a variable cost structure that scales with their business growth.
• Application Specificity: Similar to the standard model, the Oracle software can only be used with the specified third-party application.

Comparison with ESL-Embedded License

ESL-Embedded License:

• Discount: Offers a substantial 90% discount on Oracle’s technology price list, making it a cost-effective option for ISVs.
• Usage: The ESL license is highly restrictive and intended to embed Oracle technology within an ISV’s solution.
• Restrictions: The database must run in silent mode, and administrative tasks must be managed through the ISV’s application interface. Direct access by end users or third-party applications is not allowed.
• Technical Support: Unlike ASFU licenses, ESL licenses do not require purchasing Oracle technical support, which can further reduce costs.

Key Considerations for Choosing the Right Model

Business Model Alignment:

• Standard License Metric: Suitable for ISVs who prefer predictable licensing costs based on user or processor metrics.
• Royalty License Model: Ideal for ISVs looking to align their licensing expenses with their sales performance, offering a flexible cost structure.

Cost Management:

• ESL-Embedded License: It provides significant upfront cost savings with its high discount rate but with more restrictive usage terms.

Technical Support Needs:

• ASFU Licenses: Require technical support, ensuring ISVs can access Oracle’s resources for troubleshooting and updates.
• ESL Licenses: Do not require technical support, which might suit ISVs with robust in-house technical capabilities.

Usage Restrictions:

• ASFU Licenses: These must be used exclusively with the specified third-party application to ensure compliance with Oracle’s licensing terms.
• ESL Licenses: Highly restrictive regarding direct access and administrative control, suitable for tightly controlled environments.

By understanding these license models and their respective benefits and restrictions, ISVs can make informed decisions on which Oracle license best suits their business needs and growth strategy.

Oracle ASFU vs. Full Use License Model

Independent Software Vendors (ISVs) and businesses often compare the Application Specific Full Use (ASFU) license with the full-use license when choosing the right licensing model for Oracle software.

Understanding the differences between these two models is crucial for selecting the one that best fits your operational needs and business goals.

Oracle ASFU License

Purpose and Usage:

• Application-Specific: The ASFU license is designed for use with a specific third-party application developed by the ISV.
• Restricted Usage: It can only be used within the context of the designated application and not for any other purposes.

Cost and Discounts:

• Discounted Pricing: ASFU licenses are typically discounted compared to Full Use licenses, making them more cost-effective for ISVs focused on specific applications.

Support and Maintenance:

• ISV Responsibility: The ISV provides technical support and maintenance for the Oracle software embedded in their application.
• Oracle Support: While technical support is available, it is generally not required unless specified in the agreement.

Licensing Models:

• Standard Metrics: Includes Named User Plus (NUP) and Processor licensing models.
• Royalty-Based Model: ISVs pay Oracle a percentage of their revenue based on the number of licenses sold.

Full Use License

Purpose and Usage:

• Broad Usage: Full Use licenses allow Oracle software for any purpose within the organization, not just a specific application.
• Flexibility: Provides the freedom to use Oracle technology across multiple applications and business functions.

Cost and Discounts:

• Higher Cost: Full-use licenses generally have a higher price point than ASFU licenses due to their broader applicability and fewer restrictions.

Support and Maintenance:

• Oracle Support Required: Full-use licenses typically require technical support, ensuring access to Oracle’s extensive support resources and regular updates.

Licensing Models:

• Standard Metrics: This includes the Named User Plus (NUP) and Processor licensing models, which are similar to ASFU but with broader applicability.

Key Differences

Scope of Use:

• ASFU License: Limited to a specific application; cannot be used for other purposes or applications.
• Full Use License: This can be used across the entire organization for any application or purpose.

Cost:

• ASFU License: Generally more cost-effective with discounted pricing tailored to ISVs.
• Full Use License: Higher cost due to broader usage rights and included support.

Support Structure:

• ASFU License: ISVs provide primary support; Oracle support is optional.
• Full Use License: Oracle support is mandatory, providing comprehensive technical assistance and updates.

Flexibility:

• ASFU License: Restricted to the specified third-party application, limiting flexibility.
• Full Use License: Offers maximum flexibility across various applications and business needs.

Choosing the Right Model

When to Choose ASFU License:

• Ideal for ISVs developing and selling specific applications that incorporate Oracle technology.
• Suitable for businesses that need a cost-effective solution tailored to a particular use case.
• This is best for scenarios where the ISV can manage technical support independently.

When to Choose Full Use License:

• Suitable for organizations that require the flexibility to use Oracle technology across multiple applications and functions.
• Best for businesses that prefer comprehensive support directly from Oracle.
• Ideal for enterprises that need unrestricted access to Oracle software for diverse and evolving business needs.

By understanding the differences between the Oracle ASFU and Full Use license models, ISVs and businesses can make informed decisions that align with their specific requirements, budget constraints, and support needs.

FAQ: Oracle ASFU License

What is an Oracle ASFU license?

An Oracle ASFU (Application Specific Full Use) license allows ISVs to embed Oracle software within a specific third-party application and sell it to end customers.

Who can obtain an Oracle ASFU license?

Independent Software Vendors (ISVs) who are members of the Oracle Partner Network can obtain ASFU licenses.

What are the requirements for using an ASFU license?

ISVs must be Oracle Partner Network members, agree to the Oracle Partner Network Master Distribution Agreement, and register each application package separately.

Can end customers directly contact Oracle for support with ASFU licenses?

End customers must go through the ISV/OEM partner for technical support.

Is Oracle technical support mandatory for ASFU licenses?

No, Oracle technical support is not mandatory for ASFU licenses, but ISVs typically handle support responsibilities.

What kind of discount is available for ASFU licenses?

ASFU licenses are typically offered at a 60% discount off the Oracle price list.

Can ASFU licenses be used for hosting?

Yes, if it is for one end user only, not to multiple. If you have multiple end users, you should have a PAH license.

Are there options to migrate or upgrade ASFU licenses?

Yes, end customers can pay a fee to migrate or upgrade ASFU licenses to full-use licenses, which allow them to be used for other applications.

What licensing models are available for ASFU licenses?

There are two models: standard Oracle licensing metrics (Named User Plus and Processor licenses) and a royalty-based model.

What is the royalty-based model for ASFU licenses?

In the royalty-based model, the ISV pays Oracle a percentage of its revenue based on the number of Oracle licenses it sells.

Can ASFU licenses be included in an Oracle Unlimited License Agreement (ULA)?

Yes, if an organization enters an Oracle ULA, it will need to migrate and include any ASFU licenses.

Can non-ASFU applications read data from the database under an ASFU license?

Non-ASFU applications can read data from the database using methods such as ODBC.

Can ASFU licenses be used to store third-party data?

No, using an ASFU license to store third-party data in the Oracle database is prohibited.

Can customized code or applications be used with an Oracle database under an ASFU license?

No, customized code or applications cannot be used with an Oracle database license under ASFU.

Are ASFU licenses subject to Oracle audits?

Oracle ASFU licenses are not subject to end-customer license audits, but Oracle may audit the ISV who resold the license.