Oracle EBS Custom Application Suite (CAS) Licensing
- Allows tailored bundles of selected Oracle EBS modules.
- Reduces licensing costs by avoiding unnecessary modules.
- Licensing metrics: Named User Plus (individual users) or Enterprise metrics (employee count, revenue).
- Requires licensing of all direct and indirect (multiplexed) users.
- Simplifies license management, but regular compliance audits and internal tracking are essential.
Oracle EBS Custom Application Suite (CAS) Licensing
Oracle’s Custom Application Suite (CAS) licensing allows organizations to create tailored bundles of Oracle E-Business Suite (EBS) applications.
Unlike standard EBS licensing—where customers license the entire suite or individual modules separately—CAS enables organizations to license only the specific combination of modules they need. This targeted approach can significantly reduce licensing complexity and overall costs.
What is Oracle EBS CAS Licensing?
Oracle Custom Application Suite allows customers to license a customized group of Oracle EBS modules that match their operational requirements. Instead of buying licenses separately or committing to the full suite, organizations select only necessary components such as Financials, HRMS, Procurement, or Inventory, forming their personalized suite.
The CAS model simplifies license administration, optimizes costs, and ensures alignment between business needs and licensing expenditures.
Key Features of Oracle CAS Licensing
Flexible Module Selection
Organizations can pick specific Oracle EBS modules needed for their business operations, including:
- Oracle Financials (General Ledger, Accounts Payable, Accounts Receivable)
- Oracle Human Resources Management System (HRMS)
- Oracle Supply Chain Management (Inventory, Order Management)
- Oracle Procurement (Purchasing, Supplier Management)
- Oracle Projects (Costing, Billing)
- Oracle CRM Modules (Service Contracts, Customer Management)
Simplified Licensing Structure
CAS licensing simplifies administration by clearly defining licensed modules, authorized users, and applicable metrics in a single custom license agreement rather than multiple separate agreements.
Customizable Licensing Metrics
Organizations can negotiate CAS licenses based on either:
- Enterprise Metrics: Licensing based on company size, employee counts, annual revenue, or other measurable business attributes.
Benefits of Oracle CAS Licensing
Reduced Licensing Costs
Licensing only needed modules avoids unnecessary spending on unused EBS components. Organizations can substantially reduce license and support fees by paying only for functionality required by their business operations.
Streamlined Compliance Management
Customized suites simplify compliance management. Clear definitions of module entitlements and usage limits reduce the risk of accidental non-compliance or unintended license activation.
Improved License Management Efficiency
Managing fewer modules under a single custom agreement significantly simplifies internal licensing administration, saving administrative resources and reducing overhead.
Flexibility to Support Business Growth
Organizations can adjust or expand their custom suite over time by adding or removing modules as business requirements evolve without renegotiating entire licensing agreements.
Oracle CAS Licensing Metric
Enterprise Metric Licensing
Enterprise metrics are tailored specifically to organizational size or business measures, typically covering all users within a defined metric (e.g., total employees, annual revenue).
Common enterprise metrics include:
- Employee Count: Ideal for HRMS and payroll modules.
- Annual Revenue or Operating Budget: Common for financials or procurement modules.
Example Scenario:
A manufacturing company licenses a CAS bundle (Financials, Procurement, Inventory) based on an enterprise metric tied to its annual revenue of $500M, aligning the licensing cost to its business size.
Practical Examples of Oracle CAS Licensing
Example 1: Tailored Financial and Procurement Suite
A mid-sized retail company requires:
- Oracle Financials (General Ledger, Accounts Payable, Receivables)
- Oracle Procurement
They negotiate a CAS license based on Named User Plus, licensing 300 named users who access both modules. By not licensing HRMS or CRM, they save considerably compared to licensing the entire EBS suite.
Example 2: Comprehensive HR and Financial Suite
A university licenses Oracle HRMS and Financial modules based on an enterprise metric: total employee count (3,500 employees). This CAS approach simplifies license management, aligning their licensing with the institution’s size and ensuring compliance.
Common Pitfalls in Oracle CAS Licensing
Choosing the Wrong Licensing Metric
Selecting an inappropriate licensing metric—Named User Plus versus enterprise metrics—can create compliance risks and unexpected licensing costs.
Example Pitfall:
An organization licensing CAS by named users later discovers significant indirect user access via middleware applications, causing unexpected user count increases and cost escalations.
Overly Limited Module Selection
Excessively narrowing the custom suite may force expensive additions later. Organizations sometimes underestimate their future needs, resulting in costly separate module licensing after initial CAS agreements.
Oracle CAS Licensing Compliance Risks
Indirect and Multiplexed User Licensing
Oracle requires licensing indirect users accessing EBS modules via middleware or custom-built applications. Many organizations overlook indirect user licensing, causing major compliance gaps.
Example Scenario:
An organization has 100 direct users licensed via CAS. However, another 200 users indirectly access Oracle Financials data through a custom reporting tool. Oracle licensing rules require licensing all 300 users, not just the direct 100, creating unexpected compliance costs.
Regular Compliance and Audit Requirements
Oracle routinely audits CAS licensing compliance. Organizations must conduct internal audits regularly to verify licensed module usage.
