Oracle SaaS Licensing
- Hosted Named User (HNU): Each user accessing Oracle SaaS needs a license.
- Hosted Employee Metric: All employees, including non-users, are covered.
- Bundles Available: Services like ERP and HCM are bundled to simplify licensing and reduce costs.
Oracle SaaS Licensing: Metrics and Service Offerings
Oracle Software as a Service (SaaS) has become a go-to choice for many organizations seeking efficient and scalable solutions for their enterprise needs. However, licensing Oracle SaaS products can be complex, especially with its diverse metrics and licensing options.
Understanding these metrics, particularly when evaluating services like Oracle ERP Cloud and Oracle HCM Cloud, is crucial to making informed decisions and optimizing costs. This article will explore key licensing metrics, the specifics of Oracle ERP Cloud and HCM Cloud licensing, and provide insights into other SaaS offerings available under similar or bundled licensing schemes.
Oracle SaaS Licensing Metrics
Oracle SaaS licensing operates on various metrics, which determine users’ pricing and level of access. Understanding these metrics helps businesses align their budget with the expected use of Oracle’s services. Let’s take a closer look at the most common licensing metrics:
- Hosted Named User (HNU): This metric determines the licensing requirements based on the number of individual users who access the software. Each named user must have a license, regardless of how often they use the system.
- Hosted Employee Metric: This metric is based on the number of employees in the organization. It covers all employees, including full-time, part-time, and temporary workers. This metric is commonly used in Oracle HCM Cloud since every employee must be accounted for, whether directly using the system or merely managing it.
- Usage-Based Metrics: In addition to user-based metrics, some Oracle SaaS products use transaction-based metrics, data usage metrics, or a combination of several factors to determine overall pricing and usage.
Licensing Metrics for Oracle ERP Cloud
Oracle ERP Cloud is one of Oracle’s flagship SaaS offerings. It provides integrated financial management, procurement, project management, and risk management solutions. The ERP Cloud is licensed through a combination of metrics that align with how users access and utilize various modules within the system.
- Hosted Named User: In the case of Oracle ERP Cloud, the Hosted Named User metric defines how many unique individuals need access to the system. Each person with a specific login credential requires a license, whether they are in finance, procurement, or project management roles.
- Employee Licensing for ERP Modules: For broader roles, Oracle offers a Hosted Employee Metric to license ERP functionalities required across an entire workforce. For example, employee-related modules like expense management or procurement, which require cross-department usage, can be licensed under this employee-based scheme. This ensures that costs are aligned with the total employee count rather than based solely on the number of system users. This makes it ideal for organizations where many employees need indirect system access.
- ERP Cloud Bundles: Oracle ERP Cloud also offers various bundles, where modules like Financials, Procurement, and Project Management are bundled into specific offerings. The bundles make licensing more straightforward and cost-effective for organizations with multiple department needs.
Licensing Metrics for Oracle HCM Cloud
Oracle HCM Cloud is another leading Oracle SaaS product. It provides a complete solution for human capital management, including payroll, talent management, workforce planning, and benefits administration.
Licensing for Oracle HCM Cloud is particularly tied to the Hosted Employee Metric, as the system must cover the entire workforce.
- Hosted Employee Metric: Since Oracle HCM Cloud handles everything from onboarding to payroll and employee benefits, the Hosted Employee Metric ensures that the system covers every employee. Whether an employee directly accesses Oracle HCM Cloud for self-service or is merely managed within the system (e.g., payroll processing), they must be accounted for under this metric.
- Talent Management and Additional Modules: Some modules of HCM Cloud, such as Talent Management or Workforce Compensation, may use additional metrics, like Hosted Named User, depending on the level of access required. For example, managerial-level users who need direct access to advanced analytics or workforce management tools may need a specific named user license.
- HCM Bundles: Similar to ERP, Oracle HCM Cloud offers bundles where multiple services, such as Payroll, Benefits, and Talent Management, are combined into a comprehensive offering. This bundling ensures that organizations can acquire all the necessary HR-related services without separately licensing each module, making it convenient and more economical for large-scale deployments.
Other Oracle SaaS Services and Licensing Metrics
Oracle offers various SaaS products across multiple domains, each with licensing metrics that suit different business needs. Below are some of the key Oracle SaaS services and the licensing metrics or bundles they use:
Oracle CX Cloud (Customer Experience Cloud)
Oracle CX Cloud includes solutions such as Sales Cloud, Marketing Cloud, and Service Cloud, providing comprehensive CRM capabilities. Licensing for Oracle CX Cloud generally uses a mix of Hosted Named User and Usage-Based Metrics.
- Hosted Named User: Sales representatives, customer service agents, and marketing professionals accessing the CX applications typically need a named user license. This metric covers every user managing customer relationships or accessing lead data.
- Usage-Based Metrics: In some cases, the Marketing Cloud, for example, may use usage metrics based on the number of campaigns or the volume of emails sent. This allows for scaling based on the volume of usage rather than individual users, which can benefit high-volume marketing operations.
Oracle SCM Cloud (Supply Chain Management Cloud)
Oracle SCM Cloud provides a range of applications for managing supply chains, including procurement, order management, and inventory management.
- Hosted Named User: Users responsible for managing various supply chain stages, such as procurement officers and supply chain managers, are typically licensed using the Hosted Named User metric.
- Hosted Employee Metric: Similar to ERP and HCM, SCM Cloud may use the Hosted Employee Metric when features such as inventory visibility are extended across a broader set of employees.
- SCM Bundles: SCM Cloud also offers bundles for integrated supply chain needs. These enable organizations to access different modules like Inventory Management and Order Management through a unified licensing model, which simplifies contract negotiation and reduces costs.
Oracle EPM Cloud (Enterprise Performance Management Cloud)
Oracle EPM Cloud helps organizations model and plan across finance, HR, and operations. The licensing metrics are typically Hosted Named User or Usage-Based.
- Hosted Named User: Financial planners, analysts, and executives who require detailed insight into organizational performance will need a named user license.
- Usage-Based Metrics: In some cases, EPM services that provide specific functions, such as planning cycles or operational forecasting, may use usage-based metrics to better align costs with actual service use.
Oracle Analytics Cloud
Oracle Analytics Cloud provides powerful business intelligence and analytics capabilities.
- Hosted Named User: The Hosted Named User metric generally covers users who require direct access to the analytics dashboards or the ability to create reports.
- Analytics Bundles: Oracle offers analytics bundles that include advanced analytics, visualization tools, and self-service capabilities for different user types within the organization. These bundles provide flexibility in licensing based on user roles, ensuring that executives, data scientists, and business analysts have access to the right set of tools.
Licensing Considerations and Best Practices
Navigating Oracle SaaS licensing can be complex due to the wide range of available metrics and options. Here are some best practices to help you make the best decisions:
Audit and Monitor Usage: Regularly auditing your usage helps ensure you are not over-licensed or under-licensed. Use Oracle’s built-in tools to monitor how many users actively use the services compared to the licenses you pay for.
Understand Your Workforce Needs: Determine whether you need to cover your entire workforce or just a segment of your employees. Hosted Employee Metrics are ideal for broader coverage, while Hosted Named User is best suited for specific roles.
Consider Bundles for Cost Savings: Oracle offers bundles for ERP, HCM, SCM, and Analytics. Leveraging these bundles can simplify licensing, reduce administrative complexity, and often offer significant cost savings.
Evaluate Usage Metrics: For services like Marketing Cloud and Analytics Cloud, usage-based metrics may more closely align with your business needs, especially if your usage fluctuates seasonally or requires flexibility.
Leverage Oracle Universal Cloud Credits: Oracle’s Universal Cloud Credits can be helpful if you use multiple SaaS offerings. They provide flexibility to switch between services without renegotiating your licensing agreement, allowing you to adapt to changing business requirements.
Engage in Contract Negotiation: Work closely with Oracle sales representatives to negotiate the best licensing options. This is especially important for large deployments with multiple products and services. Negotiating favorable terms for employee metrics or named users can lead to significant long-term savings.
FAQ: Oracle SaaS Licensing
What is Oracle SaaS Licensing?
Oracle SaaS Licensing provides licenses for cloud-based applications like ERP, HCM, and Analytics. It uses different metrics to determine costs, such as Hosted Named User and Hosted Employee.
How does Hosted Named User licensing work?
Hosted Named User (HNU) licensing is based on each individual user’s access to the Oracle application. Each named user requires a separate license, regardless of how often they access the system.
What is the Hosted Employee Metric?
The Hosted Employee Metric licenses Oracle applications based on the total number of employees within the organization. It covers all employees, even those who don’t directly use the system.
How is Oracle ERP Cloud licensed?
Oracle ERP Cloud is typically licensed using Hosted Named User and Hosted Employee metrics. Modules like Procurement or Financials may require licensing for each user or cover all employees.
Is Oracle HCM Cloud licensed differently from ERP Cloud?
Yes, Oracle HCM Cloud usually relies more on the Hosted Employee Metric, as it involves all employees for functions like payroll and benefits. Some modules may also require named user licensing.
Are there bundles available for Oracle SaaS services?
Yes, Oracle offers bundles that include various modules, such as ERP or HCM services. These bundles help simplify licensing and can reduce costs compared to licensing each module separately.
What’s the difference between Hosted Named User and Hosted Employee metrics?
Hosted Named User licenses individual users who access the system, while Hosted Employee covers all employees, even if they don’t use the application directly.
How can I save on Oracle SaaS licensing costs?
Consider using bundled services or Oracle Universal Cloud Credits, allowing flexibility in switching between cloud services. Bundles generally reduce overall licensing costs.
What metrics are used for Oracle CX Cloud?
Oracle CX Cloud typically uses Hosted Named User licensing for sales and customer service representatives. Depending on the volume, usage-based metrics may also apply to marketing campaigns.
How does licensing work for Oracle SCM Cloud?
Oracle SCM Cloud uses Hosted Named User and Hosted Employee metrics, depending on the specific modules. Bundles are available for integrated supply chain management needs.
What is Oracle Universal Cloud Credits?
Oracle Universal Cloud Credits allow customers to switch between different Oracle cloud services as needed without renegotiating licenses each time.
How can Oracle Analytics Cloud be licensed?
Oracle Analytics Cloud is generally licensed using Hosted Named User metrics for users who need direct access to analytics dashboards or reporting capabilities.
How does Oracle EPM Cloud licensing work?
Oracle EPM Cloud uses Hosted Named User metrics for financial planners and analysts. Some services may also use usage-based metrics for specific functions like forecasting.
Which licensing metric should I use for Oracle HCM?
The Hosted Employee Metric is generally preferred for Oracle HCM Cloud, as it covers all employees for functions like payroll, onboarding, and benefits management.
What’s the advantage of using Hosted Employee Metric?
The Hosted Employee Metric is ideal when many employees are involved but do not directly access the system. It simplifies licensing for HR and workforce-related modules, ensuring broad coverage.