What is an Oracle Embedded License?
- Available only to Independent Software Vendors (ISVs)
- Requires becoming an Oracle Partner
- Offers a 90% discount on Oracle’s technology price list
- Does not require technical support
- Restricts ISVs from listing the Oracle database as a separate component when reselling
- Two models: standard licensing metrics with a discount or a royalty-based model.
Oracle Embedded License
The Oracle Embedded Software License (ESL) is available exclusively to Independent Software Vendors (ISVs) and requires the company to become an Oracle Partner. This license offers a significant discount, with Oracle providing a 90% reduction on their technology price list.
However, it comes with highly restrictive terms.
Key Points:
- Discount: Oracle provides a 90% discount on the technology price list for ESL.
- Technical Support: Unlike Oracle’s Full Use and Application Specific Full Use (ASFU) licenses, the ESL license does not require technical support.
- Reselling Restrictions: ISVs cannot list the Oracle database as a separate component when reselling an ESL license.
License Models Available:
- Standard Licensing Metrics:
- Based on Oracle’s standard licensing metrics.
- Includes a 90% discount on the technology price list.
- Royalty-Based Model:
- Oracle takes a percentage of the ISV’s price list.
- This model aligns the licensing cost with the ISV’s revenue.
By understanding these aspects, ISVs can better navigate the complexities of the Oracle Embedded Software License and choose the model that best fits their business needs.
How Does the Oracle Embedded License Work?
Specific Application Use:
- The ESL license is tied to a specific application package defined in the Application Package Registration Form (APRF) agreement.
- End users cannot access it directly.
Database Access Restrictions:
- The database cannot be accessed directly by any third-party application.
- It must be installed and run in silent mode, with no end-user configuration allowed.
Administrative Management:
- Administrative tasks such as startup, shutdown, and backup must be managed through the ISV application interface.
- Third-party tools cannot access the database, and Software Asset Management (SAM) tools cannot manage it.
License Conversion and Upgrade Restrictions:
- ESL licenses cannot be converted to Full Use or Application Specific Full Use (ASFU) licenses, even if an Oracle Unlimited License Agreement (ULA) is entered.
- ISVs are only allowed to access the database for technical maintenance.
Audit and Compliance:
- Oracle ESL licenses are not subject to end-customer license audits.
- Oracle may audit the ISV who resold the license, but end customers are not responsible for ensuring compliance with ESL licenses.
Virtualization and License Models:
- Oracle-embedded licensing is subject to Oracle’s rules on virtualization.
- The royalty-based license model avoids issues related to virtualization rules.
By adhering to these guidelines, ISVs can effectively manage their Oracle Embedded Software Licenses while ensuring compliance with Oracle’s policies.
Oracle ASFU vs. Oracle Embedded License
Oracle offers different licensing models to cater to independent software vendors’ (ISVs) needs. The Application Specific Full Use (ASFU) and Embedded Software License (ESL) are two models. Understanding the differences between these licenses helps ISVs choose the right one for their business requirements.
Oracle ASFU License
Definition: The Application Specific Full Use (ASFU) license is designed for ISVs who want to embed Oracle software within their applications and sell it to end customers as a complete solution.
Key Characteristics:
- Application-Specific: The ASFU license is tied to a specific application developed by the ISV.
- Full Use: This option allows end customers to use the Oracle software fully, but only within the context of the specific application.
- Technical Support: Typically requires purchasing Oracle technical support.
- Flexibility: Can be more flexible regarding application usage compared to the ESL.
Use Cases:
- ISVs develop and sell specialized software solutions for which Oracle technology is critical.
- Scenarios where end customers need more flexibility in using the embedded Oracle software.
Oracle Embedded Software License (ESL)
Definition: The Oracle Embedded Software License (ESL) allows ISVs to embed Oracle technology within their applications, with strict restrictions on how the software can be used and managed.
Key Characteristics:
- Highly Restrictive: The ESL is highly restrictive compared to ASFU licenses.
- Silent Mode: The database must run silently, without direct end-user configuration.
- No Third-Party Access: The database cannot be accessed directly by third-party applications or tools.
- Admin Control: Administrative tasks must be managed through the ISV’s application interface.
- Discounted Pricing: Oracle provides a significant discount (up to 90%) on their technology price list for ESL licenses.
- No Technical Support Required: Unlike ASFU, ESL licenses do not require the purchase of Oracle technical support.
Use Cases:
- ISVs developing SaaS applications where Oracle technology is used strictly as part of the ISV’s solution.
- Environments where end-user access to the underlying Oracle database must be tightly controlled and restricted.
Comparison
Flexibility:
- ASFU License: Offers more flexibility regarding application usage and end-user access.
- ESL License: More restrictive, with tight controls on how the database is used and accessed.
Technical Support:
- ASFU License: Generally requires the purchase of Oracle technical support.
- ESL License: Does not require technical support, reducing ongoing costs.
Pricing:
- ASFU License: Pricing varies and typically does not include the significant discounts seen with ESL.
- ESL License: Includes a substantial discount on Oracle technology, making it more cost-effective for specific use cases.
Administrative Control:
- ASFU License: Allows for more traditional database management practices.
- ESL License: Restricts administrative control to the ISV’s application interface, prohibiting the use of third-party tools.
Conversion and Upgrade:
- ASFU License: More straightforward in converting or upgrading to full-use licenses.
- ESL License: This cannot be upgraded to ASFU or full-use licenses and remains highly specific to the defined application.
By understanding these differences, ISVs can choose the licensing model that best aligns with their business goals, application needs, and customer requirements.
FAQ: Oracle Embedded License
What is an Oracle Embedded License?
The Oracle Embedded Software License (ESL) allows ISVs to use Oracle technology within a specific application package, provided they become Oracle Partners.
Who can use the Oracle ESL license?
The ESL license is available exclusively to Independent Software Vendors (ISVs).
What is required to obtain an ESL license?
ISVs must become Oracle Partners and define the application package in the Application Package Registration Form (APRF).
Can end users directly access the database with an ESL license?
End users cannot directly access the database under an ESL license.
Can third-party applications access the database?
No, the database cannot have direct access to any third-party application.
How must the database be installed and run?
The database must be installed and run in silent mode with no end-user configuration.
How are administrative tasks managed?
Administrative tasks like startup, shutdown, and backup must be managed through the ISV application interface.
Can the database be managed with third-party tools?
No, third-party tools cannot access the database or manage it with Software Asset Management (SAM) tools.
What happens if an Oracle ULA is entered?
ESL licenses will not be converted if an Oracle Unlimited License Agreement (ULA) is entered.
Can ESL licenses be upgraded to ASFU or Full Use licenses?
No, ESL licenses cannot be upgraded to Application Specific Full Use (ASFU) or Full Use licenses.
Who is responsible for ensuring compliance with ESL licenses?
Oracle end customers are not responsible for ensuring compliance with ESL licenses; the ISV is responsible.
Are ESL licenses subject to Oracle audits?
Oracle ESL licenses are not subject to end-customer audits but may be audited if Oracle decides to audit the ISV.
Can ISVs access the database for maintenance?
Yes, ISVs can access the database only for technical maintenance.
Are there any restrictions on virtualization with ESL licenses?
Oracle-embedded licensing is subject to Oracle’s rules on virtualization.
Does the royalty-based license model avoid virtualization issues?
Yes, it does, as it avoids issues related to Oracle’s virtualization rules.
