Oracle ASFU License: Understanding the Limitations

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Table Of Contents
  1. What is an Oracle ASFU license?

What is an Oracle ASFU license?

The Oracle ASFU license is a type of license that 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 like WebLogic. In addition to the ASFU license, 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.

How to qualify to re-sell ASFU licenses?

To use Oracle software through the Oracle Application Specific Full Use (ASFU) license model, organizations must be a member of the Oracle Partner Network and agree to the Oracle Partner Network Master Distribution Agreement and the Application Specific Full Use Program Distribution agreement. They must also 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.

  • To use Oracle software through the ASFU license model, organizations must join the Oracle Partner Network and agree to the Master Distribution Agreement and the Application Specific Full Use Program Distribution agreement.
  • 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 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.

Facts about Oracle ASFU licenses

  • Oracle ASFU licenses can only be used for the specific solution or application defined in the agreement.
  • These licenses are restricted to a specific ISV/OEM application/solution and are 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.
  • 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
  • The Oracle ASFU license is discounted at 60% off the Oracle price list.
  • End customers of the ASFU license cannot contact Oracle technical support directly, and must instead go through the ISV/OEM partner who then contacts Oracle if needed.
  • Oracle technical support for ASFU licenses is 19% for the ISV.
  • 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, they will need to migrate and include any ASFU licenses

What is allowed with an Oracle ASFU license?

  • Oracle ASFU licenses cannot be used to store third-party data in the Oracle database
  • Customized code or applications cannot be built and used with a Oracle database license under ASFU
  • Third-party programs cannot run business logic or store data in the Oracle database using an ASFU license
  • Non-ASFU applications can read data from the database using methods such as ODBC
  • Non-ASFU applications cannot write data directly to the database using methods such as ODBC.

Oracle ASFU License models

The Oracle Application Specific Full Use (ASFU) license is available in two different models: the standard Oracle license metric, named user plus and processor licenses, and the rarer 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. It is important to note that the ASFU license is discounted at 60% from the Oracle pricelist and that technical support for ASFU licenses is the responsibility of the ISV/OEM partner, not Oracle. Additionally, ASFU licenses entered into an Unlimited license agreement must be migrated and included.

Oracle License Expert Advise

  • Oracle’s Application Specific Full Use (ASFU) license model is available in two different license models: one based on standard Oracle licensing metrics (such as named user plus and processor licenses) and another based on a royalty model where Oracle receives a percentage of all sales from the ISV.
  • If you are an Oracle ISV considering an ASFU agreement, you should determine which license model is best for your company and solution. It may be wise to leave the APRF (Application Package Registration Form) vague to avoid needing to renegotiate for small changes or upgrades.
  • If you are an end customer with an ASFU license, make sure you 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