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
Oracle’s Application Specific Full Use (ASFU) is a specialized licensing model for Independent Software Vendors (ISVs) and solution providers. Under the ASFU model, Oracle software licenses are bundled with third-party applications, enabling ISVs to deliver Oracle products integrated within their software solutions.
Organizations using Oracle ASFU licenses must clearly understand licensing terms, compliance risks, benefits, limitations, and best practices to effectively manage these licenses and remain compliant.
This article provides a detailed, practical guide to Oracle ASFU licensing, clearly defining it, who can use it, how it works, and the licensing rules organizations must follow.
Read more about Oracle license models.
What is Oracle ASFU Licensing?
Oracle’s Application Specific Full Use (ASFU) license is a restricted, cost-effective licensing model allowing third-party software vendors (ISVs or OEMs) to include Oracle software products within their software applications. The license permits end-users to use Oracle products exclusively with the vendor’s specific bundled application, not as standalone software.
ASFU licensing is typically less expensive than standard Oracle full-use licenses but has strict limitations regarding usage and support.
Who Can Use Oracle ASFU Licenses?
ASFU licenses are available exclusively to Oracle-approved ISVs and solution providers who develop software solutions integrated with Oracle products. End customers cannot directly purchase these licenses without accompanying ISV applications.
End customers receive ASFU licenses bundled within the third-party software solution the ISV or OEM vendor provides. End users cannot purchase ASFU licenses separately from Oracle or use them independently outside the designated application.
How Oracle ASFU Licensing Works
Bundling Oracle Software
ISVs partner with Oracle to embed Oracle technology, such as Oracle Database or middleware, into their software products. Oracle software licenses granted through ASFU are exclusively for use with the specific ISV software product, meaning users cannot use Oracle software separately from the integrated solution.
ASFU Licensing Restrictions
- Oracle ASFU licenses cannot be used independently of the bundled ISV software.
- End-users cannot re-purpose ASFU licenses for internal or standalone applications.
- Oracle ASFU licenses cannot be combined or mixed with other standard Oracle licenses.
- Oracle ASFU licenses must only be deployed for the software solution they were bundled.
Licensing Models and Metrics under ASFU
Oracle ASFU licenses commonly use standard Oracle licensing metrics—primarily Processor licenses or Named User Plus licenses—depending on the ISV’s agreement with Oracle.
Processor Licensing for ASFU
Under processor licensing, the ISV software bundle includes Oracle licenses based on total processor cores on servers running the application.
- Licenses are calculated using Oracle’s Core Factor Table.
- Ideal for applications accessed by many users or public-facing solutions.
Example:
A healthcare ISV bundles Oracle Database ASFU licenses with its patient management software. If deployed on a server with 2 Intel Xeon CPUs (16 cores total), Oracle ASFU licensing would require:
16 cores × 0.5 core factor = 8 processor licenses bundled into the solution.
Named User Plus (NUP) Licensing for ASFU
User Plus ASFU licenses are based on the total number of individual users authorized to access the bundled ISV solution.
- Licenses each individual authorized user or device.
- Ideal for applications with clearly defined, limited user populations.
Example:
A financial software vendor includes Oracle ASFU Database licenses within its accounting software package, licensed for 100 named users. The end customer must adhere strictly to this licensed user limit.
Oracle ASFU Licensing Benefits
Lower Licensing Costs
ASFU licensing offers significantly lower costs than Oracle’s standard full-use licenses, making it highly attractive for ISVs and their customers, especially for smaller businesses or specific-use applications.
Simplified Licensing for End Customers
Because Oracle licenses are embedded within third-party applications, end-users enjoy simplified license management and straightforward compliance. The ISV typically manages license counts, renewals, and compliance documentation on behalf of their customers.
Enhanced Software Value for ISVs
ASFU licensing allows ISVs to deliver high-value Oracle technology at lower costs, enhancing their application offerings and competitiveness without burdening customers with separate license negotiations or management.
Limitations and Risks of Oracle ASFU Licensing
Usage Restrictions and Limitations
ASFU licenses strictly limit Oracle software use to the bundled ISV application only. Using Oracle software independently or with other internal applications violates licensing terms and creates compliance risks.
Example Pitfall:
A retail company purchases an ISV solution bundled with Oracle ASFU Database licenses for inventory management. Later, they install a separate internal application on the same Oracle database without additional licenses—causing licensing non-compliance.
License Transfer and Reassignment Restrictions
ASFU licenses cannot typically be reassigned or transferred independently of the bundled ISV solution. Moving ASFU licenses between internal projects or departments without the original ISV application is prohibited.
Compliance Risks and Common Mistakes with ASFU Licensing
Unauthorized Standalone Usage
A frequent compliance violation is using Oracle ASFU licenses independently from the original bundled ISV software application.
Example Scenario:
A company removes the original ISV application but continues using Oracle Database ASFU licenses for internal projects. Oracle audit identifies the violation, resulting in costly license penalties.
Hardware or Virtualization Changes
ASFU licenses are tied to hardware and configuration originally licensed by the ISV. Significant hardware or virtualization changes without adjusting ASFU licenses accordingly often trigger compliance issues.
Mixing ASFU and Standard Oracle Licenses
Organizations commonly make the mistake of mixing ASFU licenses with full-use Oracle licenses. Oracle strictly prohibits combining these license types, requiring separate management and compliance tracking.
ASFU Licensing Best Practices for Compliance
Document ASFU Licenses and Usage
- Maintain accurate, detailed documentation outlining exactly how Oracle ASFU licenses are used with the bundled ISV solution.
- Regularly update documentation reflecting hardware configurations, user counts, and deployments.
Conduct Regular License Compliance Reviews
- Perform internal audits to ensure ASFU licenses remain strictly within licensing terms and bundled applications.
- Immediately correct unauthorized uses identified during internal reviews.
Train IT Teams and Procurement Staff
- Educate teams on ASFU licensing terms and usage restrictions.
- Prevent accidental compliance breaches by clearly defining allowable usage scenarios.
Separate ASFU and Standard License Management
- Maintain clear separation and documentation between ASFU licenses and standard Oracle licenses.
- Use distinct tracking processes and license management systems to avoid accidental mixing or usage violations.
Practical ASFU Licensing Examples
Example 1: Processor-Based ASFU Licensing
- An ISV offers a supply chain solution bundled with Oracle Database ASFU licenses.
- End-user deploys the solution on servers with:
- 2 CPUs (Intel Xeon, 24 cores total).
- Core factor: 0.5
- ASFU Licenses required:
- 24 cores × 0.5 = 12 processor licenses embedded within the solution.
- Compliance Requirement: Oracle Database must only be used with the ISV’s supply chain solution.
Example 2: Named User Plus ASFU Licensing
- Financial software ISV licenses Oracle ASFU for its reporting solution for 250 Named Users.
- The customer must strictly license and document all 250 authorized users.
- Compliance Requirement: User counts exceeding 250 would require additional ASFU license purchases or upgraded licensing agreements.
Oracle ASFU Licensing Audit Considerations
Oracle actively audits organizations using ASFU licenses. Organizations must be prepared for these audits by regularly validating:
- ASFU licenses remain strictly bundled with the ISV application.
- Hardware and usage configurations remain compliant.
- License counts align accurately with actual deployments.
Final Recommendations for Managing Oracle ASFU Licensing
Organizations utilizing Oracle ASFU licensing must carefully manage these licenses to avoid costly compliance violations. Key recommendations include:
- Clearly understanding ASFU restrictions (no standalone use).
- Regular internal compliance audits and proactive documentation.
- Avoid mixing ASFU with standard Oracle licenses.
- Proactively engaging ISV partners to manage ASFU licensing clarity.
By following these best practices, organizations will successfully navigate Oracle ASFU licensing complexity, benefiting from lower costs while maintaining compliance and reducing audit risks.
FAQs
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 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.
