Oracle ERP Cloud Licensing: What You Need to Know

Oracle ERP Cloud Licensing

  • Hosted Named User: License each individual accessing the service.
  • Base Service: Includes essential modules like financials and project management.
  • Add-On Services: Purchase additional modules as needed.
  • Commitment Length: Typically a 3-5 year contract.
  • Cost: Starts at $625 per user per month, with a minimum of ten users.

Oracle ERP Cloud Licensing Pricing – Navigate the Complexity

oracle cloud price list

Oracle ERP Cloud Licensing, yes, you read that correctly. In Oracle ERP Cloud, you must manage your licenses with the same diligence as you did for on-premises systems.

This is even more critical because Oracle can audit you at any time. Oracle Enterprise Resource Planning (ERP) Cloud is a software-as-a-service (SaaS) offering from Oracle that provides a range of business management capabilities, including financial management, supply chain management, and project management.

When purchasing Oracle ERP Cloud licenses, several factors must be considered, including the base service, add-on services, user types, and commitment length.

Key Points for Oracle ERP Cloud Pricing and Licensing

  • Volume Purchase and Commitment: Oracle ERP Cloud is typically purchased with a volume purchase of licenses and a 3-5-year commitment.
  • Base Service: The base service is licensed on a hosted named user basis, with additional fees for test and development environments.
  • Understanding Hosted Users: It is crucial to understand what a hosted user is and what add-on modules or privileges they need access to.
  • Add-On Services: Additional add-on services may be required in addition to the base service.

What is Oracle SaaS?

Oracle SaaS (Software as a Service) is a pricing model offered by Oracle that allows customers to license Oracle products for their entire organization. This model is suitable for large enterprises and businesses with multiple locations. Customers pay for the software and services they use on a subscription basis rather than purchasing a one-time license.

With Oracle SaaS, customers can access Oracle products and services through the Internet without installing and maintaining software on their servers. The SaaS model offers several benefits:

  • Lower Upfront Costs: SaaS generally requires lower initial investment than traditional licensing models.
  • Ease of Use: Users can access the software easily through the Internet.
  • Automatic Updates: Software updates are handled automatically, ensuring users have the latest features and security updates.

However, it is important to consider the total cost of ownership (TCO) before choosing a SaaS provider, as the ongoing subscription costs can accumulate over time. Oracle has a vast portfolio of SaaS services, including Fusion and Customer Experience offerings.

Oracle Fusion Enterprise Resource Planning Cloud Service

Here is a brief description of each product included in the Oracle Fusion Enterprise Resource Planning (ERP) Cloud Service:

  • Financials Cloud Service: This service provides a range of financial management capabilities, including a general ledger, accounts payable, accounts receivable, and fixed assets.
  • Fusion Financial Reports Center Cloud Service offers a range of financial reporting and analysis tools, including financial statements, dashboards, and ad hoc reporting.
  • Advanced Collections Cloud Service: Helps manage accounts receivable and collections processes, including tracking customer payments and communicating with customers.
  • Revenue Management Cloud Service: Provides tools to manage revenue recognition, pricing, and billing processes, ensuring accurate revenue recognition following accounting standards.
  • Grants Management Cloud Service: This service manages the grant application, review, and award process, including tracking budgets, expenses, and reporting requirements.
  • Project Contract Billing Cloud Service: Manages project billing and revenue recognition processes, including tracking time and expenses and generating invoices.
  • Project Financials Cloud Service: Provides tools to manage project finances, including budgeting, forecasting, and cost tracking.
  • Project Management Cloud Service: This service offers tools to plan, execute, and track projects, including project scheduling, resource management, and collaboration.
  • Automated Invoice Processing: Automates invoice processing and matching processes, reducing the time and effort required to manage accounts payable. Requires additional purchase of the WebCenter Forms Recognition Service, which includes 1000 records.
  • Fusion Transactional Business Intelligence Cloud Service: Offers real-time reporting and analysis capabilities, helping organizations make informed business decisions based on ERP system data.

Licensing Model: Hosted Named User

Under the Hosted Named User licensing model, anyone accessing the Oracle ERP Cloud service must be licensed, regardless of active use. This includes Business Network Administrators, Endorsing Trading Partners, and Participating Trading Partners. Managing access to the service is crucial to minimize required licenses.

Oracle license definition: Hosted Named User: an individual authorized by you to access the hosted service, regardless of whether the individual is actively accessing the hosted service at any given time. Hosted Named Users may include Business Network Administrators, Endorsing Trading Partners, and Participating Trading Partners.

hosted employee

Oracle Enterprise Resource Planning Cloud Pricing

  • Base Cost: Oracle Fusion Enterprise Resource Planning Cloud service costs $625 per month or $7500 per year.
  • Minimum Purchase: Ten users, even if you only have five users.
  • Total Cost: The cost is $75,000 per year for ten users.
  • Contract Requirement: Oracle requires a 3-year contract, making the total cost for the planning cloud service alone $225,000.
  • Add-On Services: This pricing does not include additional add-on services that may be needed.

Pricing Calculation

Use the Oracle Cloud Pricing Calculator to determine specific costs for your organization.

Oracle Fusion Enterprise Resource Planning for Self-Service Cloud

Oracle Fusion Enterprise Resource Planning for Self-Service Cloud includes the following services:

  • Bill Management
  • Fusion Expenses Cloud Service
  • Fusion Project Resource Management Cloud Service
  • Restricted Use of Talent Management Base Cloud Service
  • Fusion Task Management Cloud Service
  • Fusion Time and Labor for Project Cloud Service

Note: The Self-Service Cloud service cannot be purchased as a standalone service; it requires the purchase of the planning cloud service.

Pricing Example

Scenario: You have 60 users who need the Oracle Fusion Enterprise Planning cloud service and ten who need the self-service cloud service.

  • Fusion Enterprise Planning Cloud Service:
    • Sixty licenses at $7,500 per year per license.
    • Total: $450,000 per year.
  • Self-Service Cloud Service:
    • Ten licenses at $240 per year per license.
    • Total: $2,400 per year.

Contract Requirement: Oracle requires a 3-year contract for these services.

For more detailed pricing information, refer to the Oracle Fusion price list.

oracle cloud erp licensing

Oracle ERP Cloud Licensing Mistakes

You can be out of compliance with your Oracle ERP Cloud Licensing. The SaaS offering works almost the same way as traditional on-premise licenses. This means that organizations must treat any Oracle ERP Cloud purchase and management the way they did for on-premise licenses. Manage and get expert help.

Oracle ERP Cloud Service – How can we help?

Our company specializes in helping businesses migrate to the Oracle Fusion ERP Cloud and review their licensing. We provide a range of services to assist with this process, including:

  • Licensing review: Our team can help you review your current licensing agreements and identify areas where you can optimize or negotiate better terms. We have extensive knowledge of Oracle licensing and can guide you to the best options for your business.
  • Optimization: Once on the Oracle Fusion ERP Cloud, we can help you optimize your usage to ensure you get the most value for your investment. This may include identifying areas where you can reduce the required licenses or finding more cost-effective solutions.
  • Negotiation help: We can support the negotiation process if you are entering into a new licensing agreement with Oracle. We can help you understand the agreement’s terms and conditions and ensure you get the best possible deal.

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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