Conclusion
Oracle Fusion licensing can be a complex and challenging task for organizations. Understanding the different modules, pricing structures, and licensing metrics is crucial to avoid common pitfalls such as over-licensing and under-licensing. License Consulting’s team of advisors can provide valuable guidance and support to organizations, ensuring they make informed decisions and optimize their Oracle Fusion licensing investments.
Remember, when it comes to Oracle Fusion licensing, License Consulting has the best, impartial advisors who can help organizations navigate the complexities and avoid the pitfalls.
Oracle Fusion Licensing and the Pitfalls
Oracle Fusion is a comprehensive suite of enterprise resource planning (ERP) software that offers a wide range of functionalities to businesses. However, navigating the licensing options and understanding the associated costs can be a daunting task for organizations. In this article, we will explore the complexities of Oracle Fusion licensing and highlight some common pitfalls that businesses should be aware of.
The Complexity of Oracle Fusion Licensing
Oracle Fusion licensing is known for its complexity, with numerous options and variations available to customers. The licensing model is based on a combination of user-based and module-based metrics, making it challenging for organizations to accurately estimate their licensing requirements.
One of the key challenges with Oracle Fusion licensing is understanding the different modules and their associated costs. Oracle offers a wide range of modules, including financial management, supply chain management, human capital management, and customer experience. Each module has its own licensing requirements and pricing structure, which can vary based on factors such as the number of users and the level of functionality required.
Another complexity of Oracle Fusion licensing is the distinction between the different metrics. The top 3 Oracle Fusion Metrics (and when to use them and the corresponding risks) are:
Hosted Named User
Definition: Like Named User Plus, but specifically for Oracle’s hosted or cloud environments. For this you must count the number of users who are authorized to access the hosted services. If they do not use it, no matter the reason, but are authorized: license required.
Usage: Commonly used where you easily count the number of users.
Risk: Keeping your authorizations up to date. People that leave should be end-dated correctly to make the license available / not needed anymore.
Hosted Employee
Definition: This metric is based on the total number of employees within the organization, regardless of whether each employee uses the software. Also, all employees from your contractors, agents and consultants that have access, use of, or tracked by the program.
Usage: Ideal for organizations where the use of specific modules is well-defined, and they do not have a clue who is using what.
Risk: The discussion about contractors, agents and consultants. The wording in the metric makes it looks like you must count everyone from the consulting company. Which is not desirable.
Each
Definition: This metric is not defined by Oracle in their pricelist (date:19-June-2024) but if we have a look at the different programs it refers to specific items such as environments (test) or individuals or transactions.
Usage: Ideal for organizations who agree with ambiguous metrics.
Risk: The metric will be defined in the future in a way that is not favourable for you but is for other customers. And the discussion where “Each” is limited: how many extra individuals are allowed on a test environment before “Each” has become two “Each”-es? That’s something that is (deliberately) vague?
Understanding the usage patterns and determining the appropriate mix of named and concurrent user licenses can be a challenging task for businesses.
The Pitfalls of Oracle Fusion Licensing
On top of that Oracle Fusion licensing can lead to several pitfalls if not carefully managed. Here are some common pitfalls that organizations should be aware of:
1. Over-licensing:
One of the most significant pitfalls of Oracle Fusion licensing is over-licensing, where organizations end up purchasing more licenses than they actually need. This can result in unnecessary costs and can strain the organization’s budget. Conducting a thorough analysis of the organization’s requirements and usage patterns can help avoid over-licensing.
2. Under-licensing:
On the other hand, under-licensing can also be a problem. Under-licensing occurs when organizations do not purchase enough licenses to cover their actual usage. This can lead to compliance issues and potential penalties from Oracle. It is crucial for organizations to accurately assess their usage and ensure they have the appropriate number of licenses to avoid under-licensing.
3. Complex pricing structures:
The complex pricing structures of Oracle Fusion licensing can make it difficult for organizations to understand and compare costs. Different modules have different pricing structures, and additional costs may be incurred for add-ons and customizations. It is essential for organizations to carefully review the pricing structure and negotiate with Oracle to ensure they are getting the best value for their investment.
4. Lack of visibility and control:
Oracle Fusion licensing can sometimes result in a lack of visibility and control over software usage. Without proper monitoring and reporting mechanisms in place, organizations may struggle to track user activity and ensure compliance with licensing agreements. Implementing software asset management tools and processes can help organizations gain better visibility and control over their Oracle Fusion licenses.
How License Consulting Can Help
License Consulting is a leading provider of Oracle licensing advisory services. Our team of experienced consultants can help organizations navigate the complexities of Oracle Fusion licensing and avoid the pitfalls associated with it.
License Consulting’s advisors are impartial and have in-depth knowledge of Oracle’s licensing policies and practices. We can conduct a thorough analysis of an organization’s requirements and usage patterns to determine the most cost-effective licensing options.
License Consulting is also assisting organizations in negotiating with Oracle to ensure they are getting the best value for their investment. Our expertise in Oracle licensing can help organizations avoid over-licensing, under-licensing, and other compliance issues.
