Oracle ERP Cloud Licensing Costs

What is Oracle ERP Cloud

It is very important review Oracle ERP cloud licensing because the costs reflect not always what you are using, but what your users have access to. But lets talk about what is Oracle ERP Cloud? – Oracle ERP Cloud is a comprehensive enterprise resource planning (ERP) software solution that helps organizations automate and streamline their core business processes. It is a cloud-based platform that offers a range of modules to support various business functions, including financial management, project management, procurement, risk management, and more.

One of the key benefits of Oracle ERP Cloud is its ability to provide real-time visibility into an organization’s financial and operational performance. This enables decision-makers to make informed, data-driven decisions that can help improve efficiency and drive growth.

Oracle ERP Cloud is designed to be flexible and scalable, allowing organizations to tailor the solution to their specific needs and business processes. It is also built on a modern, cloud-based architecture that allows for rapid deployment and easy maintenance.

Here is a list of the modules that are part of Oracle ERP Cloud:

1. Financial Management: This module includes tools for managing financial operations, including general ledger, accounts payable, accounts receivable, cash management, and tax management.
2. Project Portfolio Management: This module helps organizations plan, execute, and monitor projects, including project budgeting, resource planning, and project performance tracking.
3. Procurement: This module includes tools for managing the procurement process, including requisitioning, sourcing, and supplier management.
4. Risk Management: This module helps organizations identify, assess, and mitigate risks, including financial risks, regulatory compliance risks, and operational risks.
5. Human Capital Management: This module includes tools for managing human resources, including workforce planning, employee development, and performance management.
6. Customer Relationship Management: This module helps organizations manage customer relationships, including customer data management, marketing automation, and sales force automation.
7. Supply Chain Management: This module includes tools for managing the flow of goods and services, including demand planning, inventory management, and logistics.
8. Governance, Risk, and Compliance: This module helps organizations manage regulatory compliance and mitigate risk, including tools for risk assessment, policy management, and incident management.

Oracle ERP Cloud Services

In summary, Oracle ERP Cloud is a comprehensive, cloud-based ERP solution that offers a range of modules to support various business functions. Its real-time visibility and data-driven decision-making capabilities can help organizations streamline their operations, improve efficiency, and drive growth. Oracle Fusion Enterprise Resource Planning Cloud Service – Hosted Named User allows users to access the following services:

• Financials Cloud Service
• Fusion Financial Reports Center Cloud Service
• Advanced Collections Cloud Service
• Revenue Management Cloud Service
• Grants Management Cloud Service
• Project Contract Billing Cloud Service
• Project Financials Cloud Service
• Project Management Cloud Service
• Automated Invoice Processing (requires the purchase of Oracle Fusion Document Recognition Cloud Service – Hosted 1,000 Records)
• Joint Venture Management
• Fusion Transactional Business Intelligence Cloud Service
• Transparent Data Encryption
• Conversational user interface functionality, including the ability to perform limited configuration and extension to the delivered skills (such as adding synonyms and list values to existing entities and configuring supported channels)
• Note: further configuration and extension require the purchase of the Oracle Digital Assistant Platform.

Oracle ERP Cloud Licensing Metrics

Hosted Employee

Hosted Employee: is defined as (i) all of your full-time, part-time, temporary employees, and (ii) all of your agents, contractors, and consultants where such agents, contractors, and consultants have access to, use of, or are tracked by, the programs. The quantity of the licenses required is determined by the number of Hosted Employees and not the actual number of users. In addition, if you elect to outsource any business function(s) to another company, the following must be counted for purposes of determining the number of Hosted Employees: all of that other company’s full-time employees, part-time employees, temporary employees, agents, contractors and consultants that (i) are providing the outsourcing services and (ii) have access to, use of, or are tracked by, the programs. 

Hosted Environment:

Hosted Environment: is the combination of systems and supporting resources to which Oracle grants you access as part of the Oracle Cloud Services ordered by you, that is (i) configured for the Oracle Programs operating on it and for specific uses as part of the Oracle Public Cloud Services, and (ii) used by Oracle to perform the Oracle Cloud Services. The Hosted Environment consists of the Production Environment and any non-Production Environment(s), as referenced in the applicable Ordering Document and services policies

Hosted Named User

Hosted Named User: is defined as an individual authorized by you to access the hosted service, regardless of whether the individual is actively accessing the hosted service at any given time. Hosted Named Users may include Business Network Administrators, Endorsing Trading Partners, and Participating Trading Partners. For the purposes of Talent Review & Succession Management Cloud Service, Talent Review & Succession Management for Midsize Cloud Service, Fusion Talent Management for Coexistence Cloud Service, Workforce Compensation Cloud Service, Workforce Compensation for Midsize Cloud Service, and Fusion Talent Management and Workforce Compensation Cloud Service, Hosted Named User is calculated on a 12-month rolling basis.

Oracle ERP Cloud – Test env.

Test Environment: is defined as a single test environment provided to You as part of the Cloud Services. A test environment is used for testing and validating changes prior to promotion to the production environment, as well as for recreating events and duplicating issues occurring in the production environment for the purposes of troubleshooting and facilitating incident resolution. 

For the following services: Financial Consolidation and Close Cloud Service, Account Reconciliation Cloud Service, Tax Reporting Cloud Service, Enterprise Planning and Budgeting Cloud Service, Planning and Budgeting Cloud Service, Enterprise Performance Reporting Cloud Service, Oracle Profitability and Cost Management Cloud Service or Enterprise Data Management Cloud Service, the Additional Environment option will provide either (a) two additional non-production environments for use with the associated Cloud Service or (b) two additional standby environments for use with the associated Cloud Service for use during service disruption only.

An Oracle ERP Cloud Test environment costs $ 75,000 annually.

The usage of Oracle Fusion Enterprise Resource Planning Cloud Service – Hosted Named User is limited based on the following factors:

• Maximum number of authorized users (hosted named users)
• Oracle will provide two environments for this cloud service, one for production use and one for non-production use (such as staging). Additional environments can be purchased for an additional fee.
• The license price is $ 650 per named User.

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

• Self-Service ERP Reporting Access: view access to reports generated from Oracle Transactional Business Intelligence, Business Intelligence Publisher, and Financial Reporting Web Studio; access to the corresponding transaction and inquiry screens through natively supported drill-down paths from the above report types; ability to retrieve reports through channels such as Financial Reporting Center, email, and Digital Assistant
• Self-Service Approval for ERP transactions and workflows: view access to corresponding transactions and workflows through natively supported drill-down paths from email and worklist approvals
• Self-Service ERP Transactions: ability to enter and approve expenses, view and pay invoices, capture and approve project-related time entries, view and manage project tasks and deliverables, track and manage resource availability and skills, and maintain non-available time.
• Transparent Data Encryption
• Access to and ability to use conversational user interface functionality, with limited configuration and extension options (e.g., adding synonyms and list values to existing entities, configuring supported channels, enabling/disabling skills). Further configuration and extension require the purchase of the Oracle Digital Assistant Platform.
• The license price is $ 20 per named User.

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

• Has usage limits based on the maximum number of authorized users (Hosted Named User)? 
• Oracle will provide two environments for this service, one for production use and the other for non-production use (e.g., staging). 
• It is possible to purchase additional environments for an additional fee.

Oracle Fusion Risk Management Cloud Service -Hosted Named Users 

• Which includes Fusion Advanced Access Controls Cloud Service
• Fusion Advanced Financial Controls Cloud Service. 
• Ten users of Fusion Financial Reporting Compliance Cloud Service, as well as Transparent Data Encryption. 
• The license price is $ 180 per named User.

The service is subject to usage limits based on the maximum number of authorized users (Hosted Named User) and comes with two environments, one for production and the other for non-production use (e.g., staging). 

It is possible to purchase additional environments for an additional fee. The required subscription quantity for this cloud service is the total of the subscription quantities for Oracle Fusion Enterprise Resource Planning (or Financials) Cloud Service and Oracle Fusion Procurement (or Purchasing) Cloud Service.

Users who have Oracle Fusion Financial Reporting Compliance Cloud Service – Hosted Named User. 

• Fusion Financial Reporting Compliance – Hosted Named User module and Transparent Data Encryption. 
• The service is subject to usage limits based on the maximum number of authorized users (Hosted Named User) and comes with two environments, one for production and the other for non-production use (e.g., staging). 
• It is possible to purchase additional environments for an additional fee.
• The license price is $ 175 per named User.

Oracle Fusion Procurement Cloud Service – Hosted Named User 

• Users of this service are authorized to access the following 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
• The license price is $ 625 per named User.

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

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

• Users of this service are authorized to access the following 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
• The license price is $ 8 per named User.

• Usage Limits:

• The service is subject to usage limits based on the maximum number of authorized users (Hosted Named User)
• Comes with two environments, one for production and the other for non-production use (e.g., staging)
• Additional environments may be purchased for an additional fee

Oracle ERP Cloud Licensing Considerations

Any individual who has access to Oracle ERP cloud service, including inactive users, must be licensed. It is important to only grant access to Cloud ERP to users who actually need it in order to avoid unnecessary licensing.

Hosted employees, you need to take a very broad view in calculating the right number of licenses that you require. Study the definition.

FAQ about licensing Oracle ERP cloud:

Q: Who needs to be licensed for Oracle ERP cloud? 

A: Any individual who has access to the Oracle ERP cloud service, including inactive users, must be licensed.

Q: Do I need to license users who no longer use the service but still have access? 

A: Yes, any user who has access to Oracle ERP cloud, even if they are no longer using the service, must be licensed.

Q: Can I grant access to Oracle ERP cloud to users who don’t need it? 

A: It is important to only grant access to users who actually need it in order to avoid unnecessary licensing.

Q: What happens if I don’t license all users who have access to Oracle ERP cloud? 

A: Failing to license all users who have access to the service may result in non-compliance with your licensing agreement and could lead to penalties or fines.