- Processor: Based on the number of processor cores where the software is installed
- Named User Plus (NUP): Based on the number of authorized individuals
- Application User: Similar to NUP, used for Oracle Applications products
- Employee: Based on the total number of employees in the customer’s organization
- $M Cost of Goods Sold: Based on the customer’s cost of goods sold
- Others: Trainee, Subscriber, Stream, UPK Module, Expense Report
Oracle Licensing Metrics: Understanding the Fundamentals
Oracle offers various licensing metrics to accommodate different software deployments and usage scenarios.
Understanding which metric applies to each Oracle product is crucial for maintaining compliance and optimizing licensing costs.
This article will explore the most common Oracle licensing metrics, their definitions, and the products they are typically associated with.
Processor Metric
The Processor metric is one of the most widely used licensing metrics for Oracle products. It is based on the number of processor cores on the servers where the software is installed.
To determine the required number of licenses, each core is multiplied by a core processor licensing factor specified by Oracle.
Key products that are commonly licensed using the Processor metric include:
- Oracle Database Enterprise Edition
- Oracle WebLogic Server
- Oracle SOA Suite
- Oracle GoldenGate
It is important to note that all cores on multi-core chips must be counted.
The total number of cores is then multiplied by the applicable core processor licensing factor, which varies depending on the specific processor type and is determined by Oracle’s Processor Core Factor Table.
Named User Plus (NUP) Metric
The Named User Plus (NUP) metric allows Oracle software to be licensed based on the number of individuals authorized to use the programs, regardless of whether they are actively using the software at any given time.
This metric is commonly used for products where the number of users can be easily identified and tracked.
Products that are frequently licensed using the NUP metric include:
- Oracle Database Enterprise Edition
- Oracle Database Standard Edition 2
- Oracle WebLogic Server
Under the NUP metric, a named user is defined as an individual authorized to use the software. Each named user must be uniquely identified, and the licenses cannot be shared among multiple individuals.
It is important to note that minimum NUP requirements per processor vary depending on the specific product.
Application User Metric
The Application User metric is similar to the Named User Plus metric but is specifically used for Oracle Applications products.
It is defined as an individual authorized to use the application programs installed on a single server or multiple servers, regardless of whether the individual is actively using the programs at any given time.
Many Oracle Applications products, such as Oracle E-Business Suite and Oracle PeopleSoft, utilize the Application User metric.
Like the NUP metric, each Application User must be uniquely identified, and licenses cannot be shared among multiple individuals.
Employee Metric
The Employee metric is used for certain Oracle Applications products, and it is based on the number of employees within the customer’s organization.
It counts all of the customer’s full-time, part-time, and temporary employees, agents, contractors, and consultants who have access to, use, or are tracked by the programs.
Under the Employee metric, the number of licenses required is determined by the total number of employees, not the number of users accessing the software.
This metric is commonly used for applications widely deployed across an organization, such as Human Resources or Financials.
$M Cost of Goods Sold Metric
The $M Cost of Goods Sold metric is used for certain Oracle application products, particularly those related to supply chain management and manufacturing.
The number of licenses required is determined by the customer’s total cost of goods sold in the prior fiscal year, measured in millions of dollars.
For example, if a customer’s cost of goods sold for the previous fiscal year were $500 million, they would need to purchase 500 licenses under this metric.
Trainee Metric
The Trainee metric is used for Oracle Applications products related to learning and development. It is defined as an employee, contractor, student, or other person being recorded by the program.
The number of licenses required under the Trainee metric is based on the number of individuals being tracked or managed by the application, such as the number of employees enrolled in a learning management system.
Subscriber Metric
The Subscriber metric is primarily used for Oracle cloud services. It is defined as an individual authorized to access the hosted service program, regardless of whether they are actively accessing it at any given time.
This metric is similar to the Named User Plus and Application User metrics but is specifically designed for cloud-based offerings.
The number of licenses required is determined by the number of unique subscribers authorized to access the cloud service.
Stream Metric
The Stream metric is used for products like Oracle GoldenGate, which is designed for real-time data integration and replication.
A Stream is a data flow from a source endpoint to one or more target endpoints.
Under this metric, the number of licenses required is based on the total number of data streams being managed by the software. Each unique source and target endpoint combination constitutes a separate stream.
UPK Module Metric
The UPK Module metric is used specifically for the Oracle User Productivity Kit (UPK), a tool for creating and deploying software simulations, tutorials, and documentation.
A UPK Module is a packaged unit of a UPK product’s functionality.
Customers must purchase licenses for each UPK Module they wish to use, such as the Developer, Content, or Player Modules. The number of licenses required is determined by the specific modules and the number of individuals accessing them.
Expense Report Metric
The Expense Report metric is used for Oracle application products related to expense management, such as Oracle Expenses.
An Expense Report is defined as the total number of expense reports the program processes during 12 months.
Under this metric, customers must track and report the total expense reports processed annually and purchase licenses accordingly.
This metric is designed to align the licensing costs with the actual usage and value derived from the expense management application.
Frequently Asked Questions (FAQ)
Q: What is the difference between the Processor and Named User Plus (NUP) metrics?
A: The Processor metric is based on the number of processor cores where the software is installed, while the Named User Plus metric is based on the number of individuals authorized to use the software.
Processor licensing is typically used when the number of users is high or difficult to track. In contrast, NUP licensing is more suitable when the number of users is relatively small and can be easily identified.
Q: How does Oracle determine the core processor licensing factor for Processor metric licenses?
A: Oracle maintains a Processor Core Factor Table that specifies the core processor licensing factors for various processor types.
This table determines the number of licenses required based on the specific processors on which the software is installed. The core factor varies depending on the processor type and is multiplied by the total number of cores to calculate the required licenses.Q: Can Named User Plus licenses be shared among multiple individuals?
A: No, Named User Plus licenses cannot be shared among multiple individuals. Each named user must be uniquely identified, and the licenses are assigned to specific individuals. If a named user no longer requires access to the software, their license can be reassigned to another individual, but it cannot be shared concurrently.
Q: What is the difference between the Application User and Employee metrics?
A: The Application User metric is based on the number of individuals authorized to use specific Oracle Applications products, regardless of whether they are actively using the software.
On the other hand, the Employee metric is based on the total number of employees within the customer’s organization, including full-time, part-time, and temporary employees, as well as agents, contractors, and consultants who have access to or are tracked by the software.
Q: How is the $M Cost of Goods Sold metric calculated?
A: The $M Cost of Goods Sold metric is based on the total cost of goods sold by the customer, measured in millions of dollars, for the prior fiscal year. For example, if a customer’s cost of goods sold for the previous fiscal year were $750 million, they would need to purchase 750 licenses under this metric.
Q: What types of products typically use the Subscriber metric?
A: The Subscriber metric is primarily used for Oracle cloud services, where individuals are authorized to access the hosted service program. This metric is designed to align the licensing costs with the number of unique subscribers accessing the cloud-based offering.
Q: How does the Stream metric work for products like Oracle GoldenGate?
A: The Stream metric is used for products that focus on real-time data integration and replication, such as Oracle GoldenGate.
A Stream is a data flow from a source endpoint to one or more target endpoints. Customers must purchase licenses based on the total number of unique source and target endpoint combinations.
Q: Can customers mix and match different licensing metrics for the same product?
A: In most cases, customers cannot mix and match different licensing metrics for the same product. Each product is typically licensed under a specific metric; all licenses must use the same metric.
However, there may be some exceptions or special circumstances where multiple metrics are allowed, and it is best to consult with an Oracle licensing specialist or representative for guidance.
Q: How can customers ensure compliance with Oracle’s licensing metrics?
A: To ensure compliance with Oracle’s licensing metrics, customers should:
- Carefully review and understand the licensing metric definitions and requirements for each product they use.
- Maintain accurate inventory and usage records for all Oracle software deployments.
- Regularly conduct internal license audits to identify discrepancies between purchased licenses and usage.
- Work closely with Oracle representatives and licensing specialists to clarify questions or concerns.
- Stay up-to-date with any changes to Oracle’s licensing policies and metric definitions.
Customers can optimize their Oracle software investments by understanding and properly applying the appropriate licensing metrics while minimizing the risk of non-compliance and potential legal or financial consequences.
