Oracle EPM Cloud Licensing
- Two Tiers: Standard and Enterprise.
- Hosted Named User Model: Each user needs a license.
- Minimum Purchase: 20 users, 3-year contract.
- Base Cost: $625/user/month.
- Includes: One production and one non-production environment.
Oracle EPM Cloud Licensing
Oracle’s Enterprise Performance Management (EPM) Cloud offers two subscription tiers designed to meet the unique needs of organizations of all sizes.
Understanding Oracle EPM Cloud licensing can help businesses make informed decisions, optimize costs, and ensure efficient implementation.
This guide will cover the key aspects of Oracle EPM Cloud licensing, including subscription options, pricing, and best practices for managing licenses.
Oracle EPM Cloud Subscriptions
Oracle EPM Cloud offers two distinct subscription models:
1. EPM Standard Subscription
This subscription is designed for small to mid-sized businesses that need fundamental EPM functionalities. The Standard subscription includes:
- Planning: Tools for budgeting, forecasting, and creating strategic plans.
- Account Reconciliation (Reconciliation Compliance): Automates account reconciliation to improve accuracy and efficiency.
- Financial Consolidation and Close: Helps streamline financial reporting and ensures compliance with accounting standards.
- Narrative Reporting: Facilitates the creation of financial and management reports.
2. EPM Enterprise Subscription
The Enterprise tier offers all the capabilities of the Standard subscription and adds enhanced features that are especially beneficial for larger organizations. This includes:
- FreeForm: Flexible modeling to meet complex needs beyond traditional planning.
- Enterprise Data Management: Tools to manage data governance and facilitate enterprise data changes.
- Profitability and Cost Management: Analyze and understand the drivers of costs and profitability.
- Tax Reporting with Task Manager: Streamline the tax provision and reporting processes.
- Enhanced AI and Intelligent Performance Management: Leverages advanced analytics to improve decision-making.
Licensing Structure
Oracle EPM Cloud operates on a Hosted Named User licensing model, which has a few key characteristics:
- Environment Provision: Includes one production environment and one non-production (staging) environment.
- Licenses for All Users: Each user authorized to access the service requires a license. This means licenses are required for active and inactive users with access.
- Minimum Requirements: To use Oracle EPM Cloud, organizations must meet certain requirements:
- Minimum Purchase: 20 users.
- Contract Duration: Minimum of three years.
Read about Oracle SCM Licensing.
Pricing Framework
The cost structure for Oracle EPM Cloud can be broken down into the following components:
- Base Cost: $625 per user per month.
- Annual Cost: $7,500 per user.
- Minimum Annual Investment: $150,000 for 20 users.
- Three-Year Contract Total: $450,000 for 20 users.
Cost Optimization Example
For larger implementations, there are potential savings:
- Without Discounts: A company with 1,000 users over five years would pay $3,125,000.
- With a 40% Discount: The total cost could be reduced to $1,875,000.
Integrated Business Process
Oracle’s new licensing model represents a major shift from purchasing individual EPM products to a unified subscription approach. Organizations now receive access to multiple business processes under a single license, which offers several benefits:
Cost Benefits
- Consolidated Pricing: All applications are covered under one pricing structure.
- Access to Multiple Applications: No additional costs per user for each application.
- Potential Savings: This new approach can lead to significant cost reductions when compared to licensing each EPM product separately.
Environment Provisions
Additional Environments: Available for purchase if needed. but more comprehensive reports helped lower these costs.
Included Environments: One production and one non-production environment.
Implementation Considerations
Implementing Oracle EPM Cloud effectively requires strategic planning. Key considerations include:
- Business Processes and Modules: Determine which EPM features are needed (e.g., planning, reconciliation).
- Planning and Budgeting: Understand your organization’s budgeting requirements.
- Reporting and Analytics: Assess analytics, reporting, and storage requirements.
- Account Reconciliation: Define your reconciliation processes.
- Metadata Management: Consider how metadata will be sourced and maintained.
License Management Best Practices
Proper management of Oracle EPM licenses is crucial for cost efficiency and compliance. Here are some best practices:
Optimization Strategies
- Regular Access Reviews: Review user access to identify and remove unnecessary user licenses.
- User Role Documentation: Document user roles to ensure appropriate access and not over-licensed.
- Environment Planning: Strategically plan the usage of production and non-production environments.
- Monitor Utilization: Actively monitor how licenses are being used to avoid over-provisioning.
Migration and Transition Options
For organizations transitioning to Oracle EPM Cloud, there are several ways to migrate:
- Use Life Cycle Management (LCM): Use LCM tools to migrate objects from on-premises to the cloud.
- Complete Current Agreement: Fulfill your existing license agreement before transitioning.
- Direct Migration: Cancel existing agreements and directly transition to EPM Cloud.
Read about Oracle OTM Licensing.
Oracle EPM Cloud Licensing FAQ
What is Oracle EPM Cloud Licensing? It is a subscription model that offers organizations access to various business performance management tools, including planning, budgeting, consolidation, and reporting, through different subscription tiers.
What are the available subscription tiers for Oracle EPM Cloud? Oracle EPM Cloud offers two subscription tiers: Standard and Enterprise. The Standard tier is suited for small to mid-sized organizations, while the Enterprise tier offers advanced capabilities for larger organizations.
What features are included in the EPM Standard subscription? The Standard subscription includes core functionalities such as Planning, Account Reconciliation, Financial Consolidation and Close, and Narrative Reporting, which are essential for financial and business planning.
What additional features are provided in the EPM Enterprise subscription? The Enterprise subscription includes all Standard features and offers advanced functionalities such as FreeForm, Enterprise Data Management, Profitability and Cost Management, and Tax Reporting with Task Manager.
How is Oracle EPM Cloud Licensing structured? The licensing model is based on a “Hosted Named User” approach, which means each user authorized to access the service requires a license, regardless of actual usage.
What is the minimum user requirement for Oracle EPM Cloud Licensing? The minimum requirement is 20 users, which ensures a baseline level of commitment from organizations seeking to implement these tools.
How long is the contract duration for Oracle EPM Cloud Licensing? Oracle requires a minimum contract duration of three years for EPM Cloud Licensing, which allows organizations to fully benefit from the implementation and support provided.
What environments are included in the Oracle EPM Cloud subscription? Each subscription includes one production environment and one non-production (staging) environment. This allows organizations to test configurations before moving them into a live environment.
Can organizations purchase additional non-production environments for Oracle EPM Cloud? Yes, organizations can purchase additional non-production environments if needed. This is useful for those with complex requirements or multiple testing phases.
What is the cost structure for Oracle EPM Cloud Licensing? The base cost is $625 per user per month, with an annual cost of $7,500. The minimum annual investment for 20 users is $150,000, with a three-year total of $450,000.
How can organizations optimize Oracle EPM Cloud Licensing costs? They can do so by reviewing user access regularly, ensuring only necessary users have licenses, clearly documenting roles, and strategically planning production and non-production environments.
What benefits does the integrated business process model of EPM Cloud provide? The integrated model allows organizations to access multiple business processes under one license, resulting in cost savings, simplified license management, and increased flexibility in accessing tools.
What migration options are available for transitioning to Oracle EPM Cloud? Organizations can complete their current agreement before transitioning or migrating directly by canceling it. Migration tools like Life Cycle Management (LCM) facilitate the transition of objects and data.
Are there additional costs associated with implementing Oracle EPM Cloud? Organizations should consider costs for extra environments, additional services, training, and support. These additional expenses can vary based on specific implementation needs.
How can the Oracle EPM Cloud licensing model reduce administrative overhead? The licensing model simplifies user management and consolidates multiple tools under a single license, reducing the administrative burden associated with managing multiple licenses and environments.
What should organizations consider regarding Oracle EPM Cloud Licensing in the future? They should stay informed about Oracle’s updates to licensing models and features, evaluate any new functionalities that could benefit their operations, and ensure they have a scalable approach for potential growth and changing business needs.
