Oracle Agile PLM Licensing

Oracle Agile PLM Licensing Overview

  • Named User Plus (NUP): Each authorized user requires a license.
  • Module Licensing: Each module is licensed separately based on needs.
  • Base and Support Costs: Initial fees plus annual support fees.
  • Cloud Option: Subscription-based pricing includes infrastructure.

Oracle Agile Product Lifecycle Management (PLM) is a leading solution to help organizations manage product development, compliance, quality, and portfolio processes.

Effectively licensing Oracle Agile PLM requires understanding its core metrics, module structure, and various cost components. This guide provides a clear overview of the Agile PLM licensing options and explains how to best manage these licensing needs based on your business requirements.

What Is Oracle Agile PLM?

Oracle Agile PLM is a comprehensive solution for managing every aspect of the product lifecycle.

This includes:

  • Product Development: Keeping track of design changes and progress.
  • Quality Management: Ensuring products meet regulatory standards.
  • Cost Management: Controlling the costs of design, production, and more.
  • Collaboration: Facilitating communication between various teams, like engineering, marketing, and manufacturing.

If you work with complex product lines or in industries like manufacturing, high-tech, or pharmaceuticals, Oracle Agile PLM is likely a great fit for managing your product lifecycle.

Core License Metrics Explained

Types of Oracle Agile PLM Licenses

Oracle Agile PLM uses a Named User Plus (NUP) metric, applied to each individual authorized to access the PLM environment, whether internal employees or external collaborators.

Here’s what you need to know:

  • Named User Plus (NUP) Licensing:
    • Authorized Access: Each individual authorized to access Agile PLM must have a license, regardless of how often they use the system. This includes both employees and external collaborators, such as suppliers or partners.
    • Licensing Consistency: The license applies irrespective of actual usage frequency, meaning that even infrequent users require a license.
    • Maintenance Requirements: Organizations must ensure that all active users are properly licensed, and licenses must be maintained for all individuals as long as they have system access.

Example: If your business has 200 employees and 50 suppliers who need access to the PLM system, you will need 250 NUP licenses, regardless of how often each individual uses the software.

Module-Based Licensing Structure

Modules Within Oracle Agile PLM

Oracle Agile PLM follows a module-based licensing structure, allowing organizations to choose the modules that best suit their business needs. This modular approach provides flexibility and scalability, enabling companies to start with the core features and expand as requirements grow.

1. Core Modules Available

  • Product Governance and Compliance: Helps organizations manage compliance with regulatory requirements and mitigate risks related to product governance.
  • Product Collaboration: This function facilitates collaboration between teams, including suppliers and partners, ensuring everyone can access the latest product data.
  • Product Quality Management: Designed to help organizations manage quality processes, identify issues, and implement corrective actions efficiently.
  • Product Portfolio Management: Provides visibility and control over product portfolios, allowing businesses to strategically plan and prioritize product investments.
  • Product Cost Management: Assists in managing and optimizing product costs throughout the product lifecycle.

2. Module Licensing Rules

  • Separate Licensing Per Module: Each module within Oracle Agile PLM requires a separate license. Thus, organizations can tailor their solution by licensing only the modules needed based on their business requirements.
  • All Users Must Be Licensed for Each Module: If a user needs access to a specific module, they must be properly licensed. This rule applies across all modules in the Agile PLM suite.
  • Scalable Licensing: As your business evolves, you can add additional modules based on new needs or challenges. This allows for gradual expansion without significant upfront costs.

Example: If a business is focused on quality control and compliance but doesn’t need portfolio management, they can license Product Quality Management and Product Governance and Compliance modules only, adding others as needed in the future.

Oracle Agile PLM Cost Components

Common Licensing Challenges

Licensing Oracle Agile PLM involves several cost components, which are important to understand to optimize your investment effectively.

1. Base Licensing Costs

  • Initial License Fees: Organizations must pay initial license fees for the core PLM functionality. This provides authorized users with perpetual access to the licensed modules.
  • Annual Support Fees: Annual support fees are around 22% of the initial license cost. These fees cover updates, support, and maintenance, ensuring that the software remains functional and up to date.
  • Module-Specific Costs: The total licensing cost will depend on the number of modules licensed and the scale of implementation. The more modules and users, the higher the overall cost.

Example: If the base license cost is $100,000, the annual support fee would be approximately $22,000. Additional costs are incurred as more modules and users are licensed.

2. Cloud Subscription Option

Oracle Agile PLM also offers a cloud subscription model, which provides flexibility for businesses of all sizes and includes several key features:

  • Subscription-Based Pricing: The cloud-based option offers subscription-based pricing, allowing businesses to pay monthly or annually instead of purchasing perpetual licenses upfront. This reduces capital expenditure and shifts costs to operational expenses.
  • All-Inclusive Package: The subscription includes software licensing, infrastructure, and front-line technical support, which helps reduce the burden of maintaining servers and IT staff dedicated to software management.
  • Suitable for All Sizes: This option is designed for small, medium, and large businesses, providing scalability regarding user count and features as the business grows.

Example: A small startup might choose the cloud subscription option to avoid upfront license fees and pay a monthly fee for access to the modules they need, along with technical support. Notify how many users and processors are accessing Agile PLM to avoid surprises during Oracle’s audits.

Read about Oracle Primavera Licensing

Choosing the Right Licensing Model

How to Choose the Right License Model

When selecting the right Oracle Agile PLM licensing model, it’s important to consider the following factors:

1. User Types and Access Frequency

  • If your organization has a stable number of users who regularly access Agile PLM, the Named User Plus (NUP) model provides a cost-effective solution.
  • If your user count is highly dynamic or involves many external collaborators, consider the cloud subscription model for more flexibility.

2. Module Needs

  • Assess which modules are necessary for your business operations. Licensing only the required modules initially can help manage costs, while additional modules can be added later as the business evolves.

3. On-Premises vs. Cloud

  • The on-premises model with perpetual licenses may be more suitable for organizations that prefer to manage their IT infrastructure internally.
  • The cloud subscription model provides a hassle-free alternative for companies looking to avoid hardware costs and infrastructure maintenance.

Tips for Managing Oracle Agile PLM Costs

Tips for Managing Oracle Agile PLM Costs

Oracle licenses are known for their complexity, but a few strategies can help manage your costs:

  • Audit Your Usage Regularly: Make sure your licenses match your actual usage. This can prevent unnecessary spending on modules or users no longer needed.
  • Negotiate with Oracle: Oracle is known for being willing to negotiate. If your company is considering expanding or purchasing multiple products, don’t hesitate to push for a discount or bundle deal.
  • Consider Third-Party Licensing Experts: There are consulting firms specializing in Oracle licensing. They can help you optimize your setup and avoid costly mistakes.

Read about Oracle Hyperion Licensing.

Deep Dive: Module Licensing Details

Deep Dive: Module Licensing Details

Understanding the different modules is key to making informed licensing decisions. Let’s take a deeper look at some of the essential modules and what they bring to the table:

1. Agile Product Collaboration (PC)

  • Features: Agile Product Collaboration is the core of PLM. It manages engineering changes, BOMs, product data, and collaboration between design teams.
  • Licensing Consideration: This module is a must-have if you’re heavily involved in product development, with frequent design updates and extensive use of BOMs.
  • Example: A company that frequently updates its product design (like a consumer electronics firm) will need a PC to manage all the changes and maintain version control.

2. Agile Product Quality Management (PQM)

  • Features: PQM helps manage quality events, track the root causes of quality issues, and implement corrective actions.
  • Licensing Consideration: Any company that needs to maintain stringent quality standards, such as automotive or aerospace, should prioritize PQM.
  • Example: An aerospace manufacturer needs PQM to ensure that every component meets specific quality benchmarks, ensuring flight safety.

3. Agile Product Governance & Compliance (PG&C)

  • Features: This module manages regulatory compliance and helps document the standards and certifications that products must meet. It’s crucial for companies in regulated industries.
  • Licensing Consideration: Pharmaceutical, medical device and chemical companies need this module to comply with industry standards.
  • Example: A pharmaceutical company needs PG&C to track FDA approvals and ensure each product release meets regulatory standards.

4. Agile Product Portfolio Management (PPM)

  • Features: PPM aims to manage projects, allocate resources, and ensure projects stay on track.
  • Licensing Consideration: This module is best for companies managing several projects simultaneously, especially when resources overlap.
  • Example: A software company might use PPM to ensure that different development projects are running on schedule and that engineers are efficiently allocated across these projects.

5. Agile Engineering Collaboration

  • Features: This module is specific to design collaboration. It integrates CAD systems with Agile PLM, ensuring seamless work between engineering teams.
  • Licensing Consideration: This is a critical module if you use complex CAD systems and must ensure design data flows smoothly into PLM.
  • For example, a car manufacturer with an in-house design team might need this module to integrate design data from various CAD systems into Agile PLM.

Oracle Agile PLM Licensing FAQ

What are the primary licensing metrics for Oracle Agile PLM? The main metrics are Named User Plus (NUP), which licenses individual users, and module-specific licensing, which allows organizations to choose and license only the required features.

How does Named User Plus licensing work? Each individual authorized to access the Agile PLM system needs a Named User Plus (NUP) license. It covers both employees and external collaborators, regardless of actual usage frequency.

Can I license only certain modules of Agile PLM? Yes, Oracle Agile PLM follows a module-based structure, allowing you to license only those your organization needs, such as Product Quality Management or Product Portfolio Management.

What are the cost components for on-premises Agile PLM licensing? On-premises licensing includes an initial and annual support fees, typically around 22% of the initial cost. Each module licensed will have its specific costs.

What is included in the cloud subscription option for Agile PLM? The cloud subscription includes software licensing, infrastructure, and technical support. This option is suitable for businesses that prefer to avoid upfront infrastructure costs.

How is module-specific licensing structured? Module licensing allows businesses to license different components of Agile PLM, such as Product Collaboration or Product Cost Management, based on business needs, providing flexibility and scalability.

Do all users accessing a module need licenses? Yes, all users who need access to a specific module must be licensed for that module. Licensing is user-specific and based on module requirements.

Can I add more modules later if the business needs to change? Yes, additional modules can be added as your business requirements evolve. This modular approach helps scale the PLM capabilities according to growth or new product initiatives.

What is the difference between on-premises and cloud Agile PLM? On-premises Agile PLM requires purchasing perpetual licenses and maintaining hardware. Cloud Agile PLM, on the other hand, is subscription-based and includes infrastructure management, making it a more hands-off approach.

Who needs a Named User Plus (NUP) license? Any individual authorized to access the Agile PLM system, whether an internal employee or an external collaborator, needs a NUP license.

What is the annual support fee for Oracle Agile PLM? It is typically around 22% of the initial license cost. This fee ensures that your software remains up to date and includes access to Oracle support.

How does module-based pricing help with cost management? By licensing only the needed modules, organizations can reduce costs and focus their investment on the features essential to their business operations.

What are Agile PLM’s main core modules? The core modules include Product Governance and Compliance, Product Collaboration, Product Quality Management, Product Portfolio Management, and Product Cost Management.

Is the cloud subscription option suitable for small businesses? Yes, due to its flexibility in pricing and ease of access, the cloud subscription is suitable for businesses of all sizes, including small and medium-sized companies.

How can I decide between on-premises and cloud Agile PLM? If you prefer to manage infrastructure in-house, on-premises is ideal. The cloud subscription option may be more suitable if you want flexibility, scalability, and reduced IT overhead.

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