What is Oracle PAH license ?

The Oracle PAH License, also known as the Oracle Proprietary Application hosting license, is a licensing option offered specifically to Oracle Independent Software Vendors (ISVs). It enables these ISVs to use all Oracle technology software, including databases and middleware such as WebLogic, in hosting environments to build and run their intellectual property as software-as-a-service (SaaS). This licensing model replaced generic hosting licenses that Oracle offered for use between the early 2000s and 2010s.

Full-use licenses, on the other hand, are purchased by Oracle end customers and allow them to use Oracle software licenses for internal business operations without any restrictions on the applications they can be used for. These licenses grant limited rights to use the programs and receive any ordered services solely for internal business operations, as outlined in the Oracle OMA agreement.

Oracle PAH licenses, on the other hand, are available only to Oracle ISVs and enable the use of all Oracle technology software in hosting environments to build and run their own intellectual property as SaaS.

There are several limitations to Oracle PAH license:

• The Oracle ISV owns the license; end customers do not sign any licensing agreements.
• Oracle PAH licenses can only be used if the ISV owns the intellectual property utilizing Oracle software.
• Oracle PAH licenses cannot be used for third-party applications.
• Oracle PAH licenses must be used for environments with one or more end customers, not for 1:1 hosting.
• The Oracle PAH license model is restricted to a specific solution/application, as defined in the Oracle licensing agreement between Oracle and the ISV. This agreement includes an Oracle APRF document.
• The solution based on Oracle PAH licenses must be commercially available to multiple end customers.

If an end customer is considering purchasing new PAH licenses to replace old internal use licenses, it is important to ensure compliance before purchasing.

Oracle license expert advice:

• Test and development environments do not need to be licensed for prototyping and testing applications, but must be licensed once the application is in production
• Once proprietary hosting application is in production, test and development environments must be licensed
• Oracle hosting license use is defined in the Application Package Registration Form (APRF)
• It is in the ISV’s best interest to keep the APRF vague to allow flexibility in future updates
• If the customer signed a PAH agreement and is using it for their own internal use rather than for multiple end customers, there is a financial risk if Oracle audits them
• Licensing metrics for Oracle hosting licenses are the same as standard Oracle licensing metrics
• Oracle proprietary hosting Unlimited License Agreements (ULAs) have more restrictions and a difficult exit process
• Oracle hosting licenses can be used in AWS or Azure, but Oracle may insist on an amendment

Oracle ISV Licensing Service

Our service is designed for organizations that are considering creating a software-as-a-service (SaaS) offering and need Oracle PAH licenses. The Oracle PAH License, also known as the Oracle Proprietary Application hosting license, is a licensing option offered specifically to Oracle Independent Software Vendors (ISVs). It enables these ISVs to use all Oracle technology software, including databases and middleware such as WebLogic, in hosting environments to build and run their intellectual property as SaaS.

Our team of experts will assist you in the process of obtaining Oracle PAH licenses and provide guidance on the limitations of this licensing model. We will help you complete the necessary paperwork, including the Application Package Registration Form (APRF), and negotiate the terms of the licensing agreement with Oracle.

We will also advise you on how to ensure compliance with the Oracle PAH license terms and assist you in reporting your usage to Oracle on a regular basis. Additionally, we will provide support in the event of an Oracle audit and help you navigate any issues that may arise.

Overall, our service aims to make the process of obtaining Oracle PAH licenses as smooth and hassle-free as possible, allowing you to focus on building and growing your SaaS offering.