Oracle ERP Cloud Licensing: What You Need to Know

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Table Of Contents
  1. Oracle ERP Cloud Licensing Pricing – Navigate the complexity
  2. Oracle Enterprise Resource Planning Cloud Pricing
  3. Oracle ERP Cloud Service – How can we help?

Oracle ERP Cloud Licensing Pricing – Navigate the complexity

Oracle ERP Cloud Licensing, yes you read it correct. In Oracle ERP Cloud you need to manage your licenses the same way as you did for on prem. But only more carefully as 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, there are several factors to consider, including the base service and add-on services, the type of user, and the commitment length.

Here is a summary of the key points to keep in mind when it comes to Oracle ERP Cloud pricing and licensing:

  • Oracle ERP Cloud is typically purchased with a volume purchase of licenses and a 3-5 year commitment.
  • The base service is licensed on a hosted named user basis, with additional fees for test and development.
  • It is important to understand what is a hosted user and what add-on modules or privileges they need access to.
  • You may need to purchase additional add-on services 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. It is suitable for large enterprises and businesses with multiple locations. In this model, 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 lower upfront costs, ease of use, and automatic updates. However, it is important to consider the total cost of ownership (ToC) before choosing a SaaS provider, as the ongoing subscription costs can add up over time. Oracle has a vast portfolio of Oracle SaaS services, including Fusion and Customer Experience offerings.

Oracle Fusion Enterprise Resource Planning Cloud Service

Here is a brief description of each of the products included in the Oracle Fusion Enterprise Resource Planning Cloud Service:

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

Under the Hosted Named User licensing model, you are required to license any individual who has access to the Oracle ERP Cloud service, regardless of whether they are actively using it at any given time. This includes Business Network Administrators, Endorsing Trading Partners, and Participating Trading Partners. It is important to carefully manage access to the service and only grant it to users who need it to minimize the number of licenses required.

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

  • Oracle Fusion Enterprise Resource Planning Cloud service costs $625 per month or $7500 per year.
  • The minimum purchase is for ten users, even if you only have five users.
  • The cost for ten users is $75,000.
  • Oracle requires a 3-year contract, so the cost for the planning cloud service alone would be $225,000.
  • This pricing does not include any additional add-on services that you may need.
  • You can use the Oracle Cloud Pricing Calculator to determine the specific cost for your organization.

To use Oracle Fusion Enterprise Resource Planning cloud service and any other related cloud services, such as self-service, you must first license the base Oracle Fusion Enterprise Resource Planning cloud service. Once you have this service, you can use other cloud services.

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
  • You cannot purchase the Self-Service Cloud service as a standalone service. You must also purchase 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.
  • To license these services, you will need to purchase the following:
    • Sixty licenses for the Fusion Enterprise Planning Cloud service cost $7,500 per year per license, for a total of $450,000 per year.
    • Ten licenses for the Self-Service Cloud Service cost $240 per year per license, for a total of $2,400 per year.
  • Oracle requires a 3-year contract for these services.
  • You can find more information about pricing in the Oracle Fusion price list.
oracle cloud erp licensing

Oracle ERP Cloud Licensing Mistakes

You can be out of compliant with your Oracle ERP Cloud Licensing, the SaaS offering works almost the same way as traditional on premise licenses. This means that organizations need to treat any Oracle ERP Cloud purchase and management the same way as 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 any areas where you may be able to optimize or negotiate better terms. We have extensive knowledge of Oracle licensing and can provide guidance on the best options for your business.
  • Optimization: Once you are on the Oracle Fusion ERP Cloud, we can help you optimize your usage to ensure that you are getting the most value for your investment. This may include identifying areas where you can reduce the number of licenses required or finding more cost-effective solutions.
  • Negotiation help: If you are entering into a new licensing agreement with Oracle, we can provide support in the negotiation process. We can help you understand the terms and conditions of the agreement and ensure that you get the best possible deal.

Overall, our goal is to help your business make the most of the Oracle Fusion ERP Cloud by providing expert guidance and support throughout the migration and licensing process. Contact us today