Oracle ERP Cloud Licensing Costs

How does Oracle ERP Cloud licensing work?

• Hosted Named User: License based on authorized users, not just active users.
• Minimum Purchase: Requires a minimum of 20 users.
• Cost: $625 per user per month, $7,500 per user annually.
• Contract Duration: 3-year minimum contract.
• Environments: Includes one production and one non-production environment.
• Additional Costs: Extra environments and services incur additional fees.

What is Oracle ERP Cloud?

Reviewing Oracle ERP Cloud licensing is crucial because costs are based on user access, not just usage.

Oracle ERP Cloud is a comprehensive enterprise resource planning (ERP) solution that automates and optimizes core business processes. This cloud-based platform includes modules for various business functions such as financial management, project management, procurement, and risk management.

Key Benefits:

• Real-time Visibility: Provides up-to-date financial and operational performance insights for informed decision-making.
• Flexibility and Scalability: Tailors to specific business needs and processes with easy deployment and maintenance.

Oracle ERP Cloud Modules:

• Financial Management: General ledger, accounts payable/receivable, cash and tax management.
• Project Portfolio Management: Project budgeting, resource planning, and performance tracking.
• Procurement: Requisitioning, sourcing, supplier management.
• Risk Management: Identifying, assessing, and mitigating financial, compliance, and operational risks.
• Human Capital Management: Workforce planning, employee development, performance management.
• Customer Relationship Management: Customer data management, marketing, and sales automation.
• Supply Chain Management: Demand planning, inventory management, logistics.
• Governance, Risk, and Compliance: Regulatory compliance, risk assessment, policy management, incident management.

Oracle ERP Cloud’s modular, scalable architecture supports organizations in making data-driven decisions, enhancing operational efficiency, and driving growth.

Oracle ERP Cloud Services

Oracle ERP Cloud is a robust, cloud-based ERP solution that supports various business functions with real-time visibility and data-driven decision-making.

This capability helps organizations streamline operations, improve efficiency, and drive growth.

Services Provided:

• Financials Cloud Service: Comprehensive financial management.
• Fusion Financial Reports Center Cloud Service: Advanced financial reporting.
• Advanced Collections Cloud Service: Efficient collections management.
• Revenue Management Cloud Service: Revenue recognition and management.
• Grants Management Cloud Service: Management of grant funding.
• Project Contract Billing and Financials Cloud Services: Project financial management and billing.
• Project Management Cloud Service: End-to-end project management.
• Automated Invoice Processing: Requires Oracle Fusion Document Recognition Cloud Service for invoice automation.
• Joint Venture Management: Manages joint venture operations.
• Fusion Transactional Business Intelligence Cloud Service: Real-time analytics and reporting.
• Transparent Data Encryption: Enhances data security.
• Conversational User Interface: Limited configuration for user interaction; further customization requires Oracle Digital Assistant Platform.

Oracle ERP Cloud provides a comprehensive suite of tools to help organizations manage their core business processes efficiently and securely.

Oracle ERP Cloud Licensing Metrics

Hosted Employee: Hosted Employee includes all full-time, part-time, and temporary employees, agents, contractors, and consultants who have access to, use, or are tracked by Oracle programs. The required licenses are based on the total number of these employees, not just active users. Outsourced employees from other companies must also be counted if they access or are tracked by the programs.

Hosted Environment: The Hosted Environment refers to the combination of systems and resources configured for Oracle programs within the Oracle Public Cloud Services. This includes the Production Environment and any non-Production Environments specified in the Ordering Document and service policies.

Hosted Named User: A Hosted Named User is authorized to access the hosted service, regardless of actual usage. This includes Business Network Administrators, Endorsing Trading Partners, and Participating Trading Partners. For specific services like Talent Management, the count of Hosted Named Users is calculated on a 12-month rolling basis.

Oracle ERP Cloud – Test Environment

Test Environment: A Test Environment in Oracle ERP Cloud is a single environment provided as part of the Cloud Services for testing and validating changes before promoting them to production. It also helps recreate events and issues from the production environment for troubleshooting and incident resolution.

Additional Environment Options: For services like Financial Consolidation and Close, Account Reconciliation, Tax Reporting, and more, the Additional Environment option offers either:

• Two additional non-production environments.
• Two additional standby environments are available for use during the service disruption.

Cost and Usage:

• An Oracle ERP Cloud Test environment costs $75,000 annually.
• Usage is limited by the number of authorized users (hosted named users).
• Oracle provides two environments (one production, one non-production) by default, with additional environments available for a fee.

Oracle Fusion Enterprise Resource Planning Cloud Service – Hosted Named User

Usage Limitations: The maximum number of authorized users defines the usage of Oracle Fusion Enterprise Resource Planning Cloud Service—Hosted Named User. Hosted named users include individuals authorized to access the service, regardless of active use.

Environment Provision: Oracle provides two environments for this service:

1. Production Environment: For live, operational use.
2. Non-Production Environment: For staging, testing, and development purposes.

Additional Environments: Organizations can purchase extra environments if needed. These additional environments can be used for various purposes, such as further development, testing, or as standby environments during service disruptions.

Pricing:

• License Cost: $650 per named user annually.
• Additional Costs: Additional environments incur extra fees based on organizational needs.

This structure ensures that organizations can effectively manage and test their Oracle ERP Cloud deployments, providing flexibility for both production and development activities. Companies can better plan their resource allocation and budget for Oracle ERP Cloud services by understanding these limitations and provisions.

Oracle Fusion Enterprise Resource Planning for Self-Service Cloud Service – Hosted Named User

Self-Service ERP Reporting Access:

• Report Viewing: Access reports from Oracle Transactional Business Intelligence, Business Intelligence Publisher, and Financial Reporting Web Studio.
• Drill-Down Paths: View corresponding transaction and inquiry screens through supported drill-down paths.
• Report Retrieval: Retrieve reports via the Financial Reporting Center, email, and Digital Assistant.

Self-Service Approval for ERP Transactions and Workflows:

• Transaction Access: View and approve transactions and workflows through email and worklist approvals.

Self-Service ERP Transactions:

• Expense Management: Enter and approve expenses.
• Invoice Management: View and pay invoices.
• Project Management: Capture and approve project-related time entries, manage project tasks and deliverables, and track resource availability and skills.

Security:

• Transparent Data Encryption: Ensures data security.

Conversational User Interface:

• Functionality: Access and use conversational interfaces with limited configuration and extension options.
• Extended Configuration: Further customization is required on the Oracle Digital Assistant Platform.

Pricing:

• License Cost: $20 per named user annually.

This service offers robust self-service capabilities for ERP users. It provides essential tools for reporting, approvals, and transaction management while ensuring data security and user-friendly interfaces.

Oracle Fusion Enterprise Resource Planning for Self-Service Cloud Service – Hosted Named User

Usage Limits:

• Authorized Users: Limited by the maximum number of hosted named users.
• Environments: Includes two environments—one for production use and one for non-production (e.g., staging).
• Additional Environments: Can be purchased for an additional fee.

Oracle Fusion Risk Management Cloud Service – Hosted Named Users

Included Services:

• Fusion Advanced Access Controls Cloud Service
• Fusion Advanced Financial Controls Cloud Service
• Ten users for Fusion Financial Reporting Compliance Cloud Service
• Transparent Data Encryption

Usage Limits:

• Authorized Users: Limited by the maximum number of hosted named users.
• Environments: Includes two environments—one for production use and one for non-production (e.g., staging).
• Additional Environments: Can be purchased for an additional fee.

Pricing:

• License Cost: $180 per named user annually.
• Subscription Quantity: The total subscription quantities for Oracle Fusion Enterprise Resource Planning (or Financials) must match.

Oracle Fusion Financial Reporting Compliance Cloud Service – Hosted Named User

Included Services:

• Fusion Financial Reporting Compliance – Hosted Named User
• Transparent Data Encryption

Usage Limits:

• Authorized Users: Limited by the maximum number of hosted named users.
• Environments: Includes two environments—one for production use and one for non-production (e.g., staging).
• Additional Environments: Can be purchased for an additional fee.

Pricing:

• License Cost: $175 per named user annually.

Oracle Fusion Procurement Cloud Service – Hosted Named User

Included Components:

• Fusion Purchasing Cloud Service
• Fusion Procurement Contracts Cloud Service
• Fusion Sourcing Cloud Service
• Fusion Supplier Portal Cloud Service
• Fusion Supplier Qualification Management Cloud Service
• Fusion Transactional Business Intelligence Cloud Service
• Transparent Data Encryption

Pricing:

• License Cost: $625 per named user annually.

The usage of Oracle Fusion Procurement Cloud Service—Hosted Named User is limited by the maximum number of authorized users (Hosted Named User). It comes with two environments, one for production and the other for non-production use (e.g., staging). Additional environments can be purchased for an additional fee.

Oracle Fusion Procurement for Self-Service Cloud Service – Hosted Named User

Included Components:

• Fusion Self-Service Procurement Cloud Service
• Fusion Enterprise Contracts Essential User Cloud Service (Read-only access and deliverables management for all contract types)
• Transparent Data Encryption

Usage Limits:

• Authorized Users: Limited by the maximum number of hosted named users.
• Environments: Includes two environments—one for production use and one for non-production (e.g., staging).
• Additional Environments: Can be purchased for an additional fee.

Pricing:

• License Cost: $8 per named user annually.

Oracle Fusion Cloud Services Licensing

When it comes to Oracle Fusion Cloud Services, it’s essential to grasp the following key points:

Base Service Purchase: You start by purchasing a base service for all Oracle Fusion Cloud Services. This is typically licensed with a ‘hosted named user’ for ERP.

Understanding Hosted Users: Comprehending what constitutes a ‘hosted user.’ Additionally, identify any add-on modules or privileges they may require access to.

Additional Services: Alongside the base cloud service, you may need to purchase additional service add-ons.

Oracle ERP Cloud Pricing

Oracle ERP Cloud pricing is determined by the number of users and the specific cloud services required. Additionally, specific “prerequisites” must be purchased based on your needs.

Here’s a breakdown:

• Base Pricing: Oracle’s ERP Cloud service costs $625 per month or $7,500 per year per user.
• Minimum User Requirement: Ten users are required, equating to a base cost of $75,000 annually.
• Contract Duration: A 3-year contract is mandatory, bringing the total cost for the minimum ten users to $225,000 over three years.
• Additional Services: This pricing does not include any additional services that may be needed.

Larger-Scale Example:

• Cost for 1000 Users for Five Years: Without any discount, the cost would be $3,125,000 (calculated by multiplying the monthly cost of $625 by 1000 users and then by 60 months).
• With a 40% Discount: The cost would be $1,875,000, achieved by applying a 40% discount to the total cost of $3,125,000.

Remember, this pricing does not include additional add-on services you may need. Always consider your specific requirements when calculating the cost of Oracle’s ERP Cloud service.

Oracle ERP Cloud Licensed – Hosted Named User

Hosted Named User: A Hosted Named User is authorized to access the hosted service, regardless of actual usage. This includes Business Network Administrators, Endorsing Trading Partners, and Participating Trading Partners.

Licensing Requirements: You need to license every individual with access to the Oracle ERP Cloud service, including users who no longer actively use the service but still have access. Avoid granting unnecessary access to optimize costs.

Oracle Cloud ERP Pricing – A Cloud Pricing Example

Pricing Structure:

• Monthly Cost: $625 per user.
• Annual Cost: $7,500 per user.

Minimum Purchase:

• Oracle requires a minimum purchase of 20 users, even if you only have 15. Thus, the minimum annual cost for 20 users is 20 x $7,500 = $150,000.

Contract Duration:

• Oracle mandates a 3-year contract. The total cost over three years is 3 x $150,000 = $450,000.

Additional Costs:

• This pricing covers only the ERP Cloud Service. Any additional services required will incur extra costs.

By understanding and managing these licensing and pricing structures, you can ensure the effective and cost-efficient use of Oracle ERP Cloud services.

FAQ about licensing Oracle ERP cloud:

What is a Hosted Named User in Oracle ERP Cloud?

A Hosted Named User is authorized to access the hosted service, regardless of whether they are actively using it.

Do inactive users need a license?

Yes, even users who are not actively using the service but have access require a license.

How can I optimize licensing costs?

Avoid granting access to users who do not need it to minimize unnecessary licenses.

What is the monthly cost for Oracle ERP Cloud Service?

The service costs $625 per user per month.

How much does Oracle ERP Cloud Service cost annually per user?

The annual cost per user is $7,500.

Is there a minimum user requirement for Oracle ERP Cloud Service?

Yes, Oracle requires a minimum purchase of 20 users.

What is the annual cost for the minimum number of users?

The minimum annual cost for 20 users is $150,000.

How long is the mandatory contract duration for Oracle ERP Cloud Service?

Oracle requires a 3-year contract.

What is the total cost for 20 users over the 3-year contract period?

The total cost for 20 users over three years is $450,000.

Does the pricing include add-on services?

No, the pricing only covers the ERP Cloud Service. Additional services will incur extra costs.

Can I purchase additional environments for Oracle ERP Cloud Service?

Yes, additional environments can be purchased for an extra fee.

What environments are provided by default with Oracle ERP Cloud Service?

Oracle provides two environments: one for production use and one for non-production (e.g., staging).

What should I consider when licensing Oracle ERP Cloud Service?

Ensure you account for all users with access, not just active users, to stay compliant.

Is there a discount available for larger user numbers?

Discounts may be available for larger numbers of users, but specific details would depend on negotiations with Oracle.

What happens if my user count changes?

To stay compliant and optimize costs, you would need to adjust your licensing to reflect the actual number of users with access.