How does Siebel licensing work?
- Named User: Licenses for individuals authorized to use the software.
- Application User: Allows individuals to use the software across various servers.
- Custom Application Suite (CAS): Bundles multiple software products for one user.
- Enterprise: Licenses for entire organizations without tracking individual users or servers.
What is Oracle Siebel CRM?
This article will teach you about Oracle Siebel Licensing – Customer Relationship Management (CRM) software is designed to improve profitability, revenue, and customer satisfaction.
Various CRM solutions are available, such as:
- Salesforce CRM
- SAP CRM
- Microsoft Dynamics CRM
- Zoho
- Oracle Siebel
- Sugar CRM
This article focuses on Oracle Siebel, developed by Siebel Systems Inc. and acquired by Oracle Corporation in 2006.
Siebel CRM is a complex software solution that allows organizations to:
- Manage customer information
- Process orders
- Handle service requests
- Manage payments
Siebel products are available in:
- Horizontal Applications: Industry-independent solutions.
- Vertical Applications: Industry-specific products containing modules from horizontal and vertical applications.
- Analytics Applications: These were available as standalone editions until version 7.8, after which their functionality was bundled into the Oracle Business Intelligence product group.
Siebel applications can also be classified by user type:
- Employee
- Customer
- Partner
Siebel Licensing policies may differ depending on the type of Siebel products. However, after Oracle’s acquisition, licensing became more complex.
Important Note: End-users could download Siebel license keys without obtaining a license upfront.
Siebel Pricing
Before Oracle acquired Siebel, the company sold its products as:
- Individual applications: such as Siebel Sales Enterprise.
- Application bundles: such as eAdvisor and eConfigurator Bundle.
Note: Siebel offered limited application bundles, and they were not frequently sold.
After Oracle’s acquisition, Siebel products began to be sold under three standard pricing models for Oracle applications:
- Component Licensing
- Custom Application Suite (CAS) Licensing
- Enterprise Licensing
Component Licensing:
- Customers can license one or a few Oracle products with limited end users.
- Example: Siebel CRM Base can be licensed per Application User, allowing one individual to use one Siebel software program.
Custom Application Suite (CAS) Licensing:
- Customers can purchase different software products in one bundle.
- Example: Siebel CRM Base licensed per Custom Suite User, which allows one individual to use multiple Siebel software programs as defined in the bundle.
Enterprise Licensing:
- Customers can license the desired Siebel software programs for their entire organization.
- No need to keep track of specific user licenses, servers, or deployment locations.
- Example: Siebel Asset Management can be licensed by the Enterprise Metric “Enterprise $M in Revenue”.
Siebel Licensing, Including Legacy License Metrics
The metrics used by Oracle for Siebel products are similar to the legacy metrics used by Siebel Systems.
Common Metrics
- Named User: One of the most common user-based metrics, now migrated to the Application User metric.
- Focuses on the number of individuals authorized to use the software, regardless of active use.
- The current Siebel product price list includes Named User and Application User metrics definitions.
- Application User:
- Authorized to use licensed application programs installed on one or multiple servers.
- Active use is not required.
- Example: If licensing the Oracle Self Service Work Request option with Oracle Enterprise Asset Management, licenses for the equivalent number of Application Users must be maintained.
- For Order Management, manually entered orders require licensing by the Application User, while electronically entered orders need separate licensing by the Electronic Order Line.
- Registered User:
- It focuses on the number of business partners and individuals authorized to use the software.
- Typically used for Partner Applications.
Non-User-Based Licenses
- Processor, Physical Server, and Computer:
- Count usage based on the hardware on which the Siebel software programs are deployed.
- Computer licenses, similar to legacy Physical Server licenses, often have limitations such as the number of CPUs on the machine or the number of records stored in the database.
- End users must meet these limitations or purchase additional licenses to avoid breaches.
Post-Acquisition Metrics
- Metrics such as Custom Suite User, Enterprise, and Concurrent Users only became available for Siebel Products after Oracle’s acquisition.
Key Points:
- Named User and Application User metrics focus on the number of authorized individuals.
- Non-user-based licenses depend on the hardware specifications.
- Additional licenses may be required if limitations are breached.
Individuals Authorized vs. Individuals Using the Software
- The most common Siebel license types are user-based, such as Named User, Application User, or Registered User.
- These metric definitions require the total number of licenses to be determined by the number of distinct individuals authorized to use the software, regardless of whether they are actively using it.
- One of the common mistakes organizations make is to only license active users, even if their contract requires every authorized user to be licensed, including those who may no longer be actively using the software.
- A proper cleanup process is necessary for production environments and test/development/acceptance environments to remove unnecessary authorizations.
- After Oracle acquires Siebel, test, development, and acceptance instances must also be licensed.
- Per Oracle’s methodology, inactive users with access to the software still need to be licensed.
- Proper cleanup involves performing a complete user deactivation process, updating employee IDs, statuses, and responsibilities, and making other changes at the database and application levels.
- Many organizations fail to comply with Oracle’s methodology for measuring usage in a Siebel environment, and a complete deactivation methodology is usually lacking.
Siebel Views
Users gain access to Siebel products by being assigned a Viewlist that contains one or more views associated with a Siebel product.
- Responsibility Assignment:
- All users assigned a Responsibility are automatically authorized to use the corresponding views and products.
- Users may access parts of these views and products, even if they only use a part of them.
- Compliance Risks:
- Some additional views included in the assigned Responsibility may provide access to other Siebel modules or functionalities.
- This can lead to non-compliance if the organization doesn’t have licenses for those modules or functionalities.
- Administrative Challenges:
- Siebel administrators often assign users responsibilities without knowing which views are behind those responsibilities.
- This lack of awareness can lead to unauthorized access to Siebel products.
Key Recommendation:
- Properly cleaning and validating the user responsibility association process is crucial.
- Ensure that only licensed products are being accessed.
- Regularly, Siebel License reviews and updates user responsibilities to maintain compliance.
What is Siebel SPE?
The Siebel CRM Professional Edition (SPE) is a less complex, scaled-down version of the Siebel Enterprise Edition developed for small and medium-sized businesses.
Limitations
- Lack of Vertical Siebel Products: Available in the Enterprise Edition, not in SPE.
- This limitation can impact licensing.
- Many SPE customers unknowingly use Enterprise functionality due to incorrect keys or accessing more functionality than needed.
Licensing Considerations
- External-Facing Applications:
- Organizations should purchase licenses based on a metric for external users.
- External-facing licensing metrics are often cheaper due to the smaller user base.
- License Compliance:
- If a customer exceeds their current license grant, they must migrate old license metrics to current ones and purchase additional licenses, which can be costly.
- Keeping track of the changing user population helps organizations avoid non-compliance and associated costs.
External Users Lacking Licenses
Siebel product offerings include:
- Employee Products
- Customer Products
- Partner Products
- Analytics
Licensing Types:
- Internal Siebel Products: Employee Products.
- External Siebel Products: Developed for customers and partners.
Key Points
- External-Facing Applications:
- Organizations should buy licenses for external (non-employee) users.
- External-facing licensing metrics are usually cheaper.
- Compliance Issues:
- Many organizations provide external users access to internal applications without an external license.
- Compliance can only be determined using internal license metrics (Named User, Application User, Concurrent User).
- This often results in large non-compliance situations and associated costs.
Siebel Custom Views – Common Compliance Issues
Many organizations create custom views in their Siebel installation to meet specific needs. These custom views often constitute the majority of Siebel usage in these organizations.
Key Compliance Considerations
- Module and Functionality Mapping:
- Pay close attention to which Siebel modules and functionalities the custom views are based on.
- A custom view mapped to an unlicensed application can lead to significant compliance and financial risks.
- User Access and Licensing:
- Oracle will eventually allocate users with access to custom views to licensed or unlicensed Siebel products.
- Many Siebel CRM customers are unaware of this allocation process.
Common Issues
- Unlicensed Functionality:
- Custom views may inadvertently provide access to unlicensed Siebel functionalities.
- This can lead to non-compliance, resulting in fines or additional licensing costs.
- Lack of Awareness:
- Organizations often do not realize the compliance implications of their custom views.
- Oracle’s allocation of users to licensed or unlicensed products can catch organizations off guard.
Recommendations
- Regular Audits:
- Conduct regular audits of custom views to ensure they are mapped only to licensed Siebel modules and functionalities.
- Maintain detailed records of which views are based on which modules.
- Training and Awareness:
- Educate Siebel administrators and users about the compliance risks associated with custom views.
- Ensure all stakeholders understand the importance of adhering to licensing agreements.
- Oracle Communication:
- Maintain open communication with Oracle to stay informed about any licensing policy or practice changes.
- Proactively address any potential compliance issues before they escalate.
Additional Tips
- Mapping Reviews:
- Regularly review the mapping of custom views to ensure compliance.
- Implement a process for updating mappings as licenses or functionalities change.
- Compliance Tools:
- Utilize compliance tools or software to monitor and manage Siebel usage.
- These tools can help identify potential compliance issues before they become serious problems.
By following these recommendations and maintaining vigilance, organizations can mitigate compliance risks associated with Siebel’s custom views.
Siebel CRM Licensing FAQ
What is Siebel CRM Professional Edition (SPE)?
The Siebel CRM Professional Edition (SPE) is a simplified version of the Siebel Enterprise Edition designed for small and medium-sized businesses. It lacks some advanced features that are available in the Enterprise Edition.
How does Oracle’s acquisition affect Siebel licensing?
After Oracle acquired Siebel, licensing became more complex, with different pricing models like components, custom application suites (CAS), and enterprise licensing.
What are the main types of Siebel licenses?
Siebel licenses include Named User, Application User, Custom Suite User, and Enterprise. Each type has specific terms regarding user access and functionality.
What is the difference between Named User and Application User licenses?
Named User licenses are for individuals authorized to use the software on one or multiple servers. Application User licenses allow individuals to use the software across various servers without requiring active use.
Why is it important to manage Siebel custom views carefully?
Custom views must be mapped to licensed modules and functionalities. Unlicensed custom views can lead to compliance issues and financial penalties.
How can organizations ensure compliance with Siebel licenses?
Organizations should conduct regular audits, train staff on licensing policies, and maintain open communication with Oracle to stay updated on any changes.
What are the risks of not tracking user responsibilities properly in Siebel?
Improperly assigned responsibilities can grant access to unlicensed modules, leading to compliance violations and potential fines.
What should be considered when using external-facing Siebel applications?
Licenses should be purchased based on metrics for external users, which are often cheaper. Internal applications accessed by external users without proper licenses can result in non-compliance.
What is Siebel component licensing?
Component licensing allows customers to license specific Oracle products for a limited number of end users. This model is suitable for smaller implementations.
What is Custom Application Suite (CAS) licensing in Siebel?
CAS licensing lets customers buy a bundle of different software products, allowing one user to access multiple Siebel programs as defined in the bundle.
What is enterprise licensing for Siebel?
Enterprise licensing enables organizations to license Siebel software for the entire organization without tracking individual user licenses, servers, or deployment locations.
How do legacy license metrics affect current Siebel licensing?
Legacy metrics like Named User have evolved into current metrics like Application User. Understanding these changes is crucial to maintain compliance.
Why might organizations unintentionally use Siebel Enterprise functionality?
Due to incorrect keys or accessing more functionality than needed, SPE customers might unknowingly use features of the Enterprise Edition, leading to compliance issues.
What should organizations do if they exceed their current Siebel license grant?
They must migrate to current license metrics and purchase additional licenses to cover the excess usage, which can be expensive.
How can proper tracking of Siebel licenses help avoid non-compliance?
Keeping detailed records of user access and regularly reviewing responsibilities can help organizations stay compliant and avoid unexpected costs.
