JD Edwards Licensing: The Pros and Cons You Need to Know

Oracle JD Edwards Licensing

  • Named User License: Licensed per individual user.
  • Concurrent User License: Based on the number of simultaneous users.
  • Processor License: Based on the number of processors used.
  • Enterprise License: Covers unlimited users for broader organizational needs.
  • Metered License: Usage-based, measured by specific metrics.

Introduction to JD Edwards Licensing

Understanding Oracle JD Edwards Licensing

Why is JD Edwards Licensing Important?

Proper licensing is crucial to ensuring compliance, optimizing costs, and making the most of the JD Edwards suite. Mismanagement of licenses can lead to significant financial risks, including unexpected fines and audits. Understanding JD Edwards licensing helps organizations avoid these pitfalls and allocate resources effectively.

Types of JD Edwards Licenses

Named User License

A named user license is assigned to specific users authorized to access the software. Each named user requires a separate license, making it essential to manage and track these users accurately.

Concurrent User License

Concurrent user licenses are based on the number of users accessing the software simultaneously. This model allows multiple users to share a pool of licenses, which can be more cost-effective for organizations with fluctuating usage patterns.

Processor License

Processor licenses are based on the number of processors used by the servers where the software is installed. This model is typically used for large deployments and offers flexibility and scalability.

Enterprise License

The enterprise license model covers larger organizational needs, allowing for unlimited users. This model can be beneficial for large organizations with extensive JD Edwards usage.

Metered License

Metered licenses are usage-based, typically measuring specific metrics such as the number of transactions or amount of data processed. This model provides flexibility and cost-effectiveness for organizations with variable usage patterns.

JD Edwards Pricing Models

Historical Pricing Models

Server Model-Based

Before October 1993, this model calculated license fees based on the capacity of an organization’s IBM AS/400 servers. It did not include user counts, allowing as many users as the server could support.

Concurrent User-Based

Between November 1993 and November 1996, this model licensed products based on the number of concurrent users. The software license agreements listed by OneWorld and World Products were based on this model.

Suite-Based

From November 1993 to February 2002, suite-based pricing allowed companies to purchase licenses for additional users and products. The software license fees were calculated based on a collection of products (the “suite”) and user fees.

Solution-Based Pricing

Launched in February 2002, solution-based pricing allowed end-users to purchase specific components. This evolved into PeopleSoft’s solution pricing model, making it more detailed and component-specific.

Current Pricing Models

Enterprise Licensing

Enterprise licensing permits unlimited users and allows end-users to purchase individual products as needed. This model is based on three metrics: $M revenue, $M cost of goods sold, or employee count.

JD Edwards Licensing Models

Effective JD Edwards Licensing Management

Licensing for Components

Oracle’s “a la carte” pricing model is called Component Pricing. Most products are priced according to Application Users, but some use different metrics. For example:

  • HR/Payroll products vary based on the number of employees.
  • Supply chain products are priced based on the $M cost of goods sold.
  • Expense Management licenses are based on the number of expense reports processed annually.

Custom Application Suite (CAS) Pricing

The CAS pricing model allows products to be sold in a custom-made “suite” for a certain number of users (Custom Suite Users). Some products cannot be purchased under CAS but combined with component-based licenses.

How to Audit JD Edwards Licenses

Using Oracle LMS Scripts

Organizations can use a version of Oracle LMS Scripts to measure license compliance. These scripts help track and audit the usage of JD Edwards licenses, ensuring compliance and identifying areas for optimization.

Best Practices for JD Edwards License Management

Best Practices for JD Edwards Licensing

Regular License Reviews

Conduct regular reviews of your JD Edwards licenses to identify opportunities for optimization and cost savings. This may involve consolidating databases, standardizing on a single platform, or using virtualization to reduce the number of physical servers needed.

Accurate User and Processor Counts

Maintain accurate records of the number of users and processors to ensure proper licensing. This helps determine the correct number of licenses needed and avoids over- or under-licensing.

Understanding Usage Patterns

To determine the most cost-effective licensing model, develop a clear understanding of your organization’s usage patterns. This includes tracking the number of concurrent users, named users, and processors.

Engaging Licensing Consultants

Work with Oracle licensing consultants to navigate the complexities of JD Edwards licensing. These professionals can provide expert guidance, assess your current license needs, and negotiate more favorable terms.

Benefits of Proper JD Edwards License Management

Cost Reduction

Proper license management helps reduce costs by ensuring that you are not overpaying for unnecessary licenses and by identifying optimization opportunities.

Increased Efficiency

By ensuring that the necessary licenses are in place and used efficiently, organizations can improve the performance and efficiency of their JD Edwards systems.

Improved Compliance

Effective license management helps organizations avoid noncompliance with Oracle’s licensing policies, avoiding costly fines and penalties.

Better Budget Forecasting

Understanding your license needs and clearly viewing your current and future requirements allows for better budget forecasting and resource allocation.

Avoidance of Software Audits

Proper license management reduces the risk of software audits, which can be time-consuming and costly.

Improved Relationships with Oracle

Organizations that manage their licenses effectively and comply with Oracle’s policies may enjoy better relationships with Oracle and potentially receive more favorable terms on future agreements.

JD Edwards License Types in Detail

Concurrent User

Concurrent users have full access to all products, modules, and features. The maximum number of concurrent users is determined by the number of users who can access the software simultaneously.

Named User

Named users are also full-use users. One license is assigned to one individual, meaning one user per license.

Moderate User

Moderate user licenses have limited functionality. Each moderate user is assigned a license, with one license per user.

Inquiry or Casual User

Inquiry users can only view data and are not permitted to perform transactions. Each inquiry user is assigned a license, with one license per user.

Licensing for Components and Custom Suites

Component Pricing

Component pricing is an “a la carte” model where most products are priced based on application users. Some products, however, use different metrics, such as the number of employees or the cost of goods sold.

Custom Application Suite (CAS)

The CAS model allows for the creation of custom suites tailored to specific organizational needs. These suites bundle products for a specified number of users, providing flexibility in license management.

Enterprise Licensing for JD Edwards

Overview

Enterprise licensing provides a comprehensive solution for large organizations, covering the entire enterprise. This model is based on metrics such as $M revenue, $M cost of goods sold, or employee count, offering flexibility and scalability.

Benefits of Enterprise Licensing

  • Unlimited Users: Supports unlimited users across the organization.
  • Flexibility: Allows for the addition of individual products as needed.
  • Scalability: Easily scales with the growth of the organization.

Conclusion

Oracle JD Edwards licensing is a complex but critical aspect of managing your ERP applications. By understanding the various licensing models, keeping accurate records, and regularly reviewing your licenses, you can ensure compliance, optimize costs, and make the most of your JD Edwards investment.

Engaging with experienced Oracle licensing consultants can further help you navigate the complexities and maximize the value of your JD Edwards deployment. Effective JD Edwards license management can lead to significant benefits and a more efficient operation, whether you are a small business or a large enterprise.

Author

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  • Fredrik Filipsson

    Fredrik Filipsson is an Oracle licensing expert with over 20 years of experience in Oracle license management. He spent 10 years working for Oracle corporation and then 10 years at a consultant leading engagements on Oracle license assessments, audits, ULAs. He is a public speaker and author

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