Oracle ASFU License – OEM Licensing explained

What is Oracle ASFU License?

The Oracle ASFU License (Application Specific Full Use) allows Oracle ISV (Independent Software Vendor) partners to build solutions or applications using Oracle technology. These partners can then sell the license to the end customer, who will be listed as the owner of the ASFU license. The ASFU license allows for the use of all Oracle technology software, including the Oracle database and Oracle middleware products such as WebLogic. Oracle also offers the ESL-embedded license, which has a 90% discount and is popular among ISVs or partners who want to use Oracle software in their solution.

Requirements for ASFU license

To use the Oracle ASFU license model, organizations must:

  • Be a member of the Oracle Partner Network.
  • Agree to the Oracle Partner Network Master Distribution Agreement and the Application Specific Full Use Program Distribution agreement
  • Register each “application package” separately, specifying the details of the application

The Oracle software obtained through ASFU can only be used with the specified third-party application and must not be used separately without additional licensing. To qualify for ASFU Oracle licensing, the third-party application must be commercially available to multiple end-users and have end-user documentation. The third-party application owner is responsible for obtaining the ASFU license from Oracle and using it only with the specified application. The third party is also responsible for providing technical support for the Oracle software. The end-user agreement with the application owner must include clauses about the Oracle program usage restrictions and intellectual property rights.

The Oracle ASFU (Application Specific Full Use) license is a type of license that allows Oracle ISV (Independent Software Vendor) partners to build solutions or applications using Oracle technology, which can then be sold to the end customer who becomes the owner of the ASFU license. The license allows for the use of all Oracle technology software, including the database and middleware products like WebLogic. The ASFU license is restricted to a specific ISV/OEM application/solution and is defined in a contract between Oracle and the Oracle ISV. Non-Oracle applications can be integrated with the solution using Oracle ASFU licenses but must be connected through an ISV-provided API. Direct connections between Oracle software and third-party software are not allowed.

Here are some additional facts about Oracle ASFU licenses:

  • The ASFU license can only be used for the specific solution or application defined in the agreement.
  • End customers of the ASFU license cannot contact Oracle technical support directly and must go through the ISV/OEM partner.
  • Oracle technical support for ASFU licenses is 19% for the ISV.
  • The ASFU license is discounted at 60% off the Oracle price list.
  • Oracle ASFU end customers have the option to pay a fee to migrate or upgrade their licenses to full-use licenses, allowing them to be used for other applications.
  • Oracle ASFU licenses do not always follow the standard naming or processor-based licensing rules and may instead use a royalty license model where the ISV resells Oracle licenses, and Oracle receives a percentage of the ISV price.
  • If an organization enters an Oracle Unlimited license agreement, it will need to migrate and include any ASFU licenses.

Allowed and not allowed with ASFU license

Here’s a list of what is and is not allowed with an Oracle ASFU license:

  • Allowed: Non-ASFU applications can read data from the database using methods such as ODBC
  • Not allowed: Using an ASFU license to store third-party data in the Oracle database
  • Not allowed: Building customized code or applications and using them with an Oracle database license under ASFU
  • Not allowed: Non-ASFU applications writing data directly to the database using methods such as ODBC

There are two different models for the Oracle ASFU license: the standard Oracle license metric (named user plus and processor licenses) and the royalty license model. In the standard model, ASFU licenses must be purchased and used like normal full-use licenses, but with the added restriction of being used only in conjunction with the specified application. In the royalty model, the ISV provides Oracle with its current price list and agrees to pay a percentage of all sales in exchange for the ability to resell ASFU licenses without considering the number of users or processors.

If you are an Oracle ISV considering an ASFU agreement, it may be wise to leave the APRF (Application Package Registration Form) vague in order to avoid needing to renegotiate for small changes or upgrades. If you are an end customer with an ASFU license, it is important to understand who is liable in the event of an Oracle audit of the ISV. Responsibility should be clearly defined between you and the reselling application vendor to avoid potential penalty fees. An Oracle license expert can provide additional guidance on these matters.

Our company specializes in helping Oracle ISVs (Independent Software Vendors) license, build ASFU (Application Specific Full Use) agreements, and negotiate with Oracle. We understand the complexities of navigating Oracle’s licensing and agreements, and our team of experts has years of experience in successfully working with Oracle on behalf of ISVs.

Our services include:

  • Licensing assistance: We can help you determine the best Oracle licenses for your needs and guide you through the process of obtaining them.
  • ASFU agreement building: We can help you create a customized ASFU agreement that meets the specific needs of your business and solution.
  • Negotiation support: Our team has a track record of successful negotiations with Oracle, and we can provide support and guidance during the negotiation process.

Our goal is to help you smoothly and successfully navigate the Oracle licensing and agreement process, so you can focus on building and growing your business. Contact us to learn more about how we can assist you.