JD Edwards Licensing

JD Edwards Licensing in Brief

• Named User License: Assigned to specific individual users.
• Concurrent User License: Shared pool of licenses for simultaneous users.
• Processor License: Based on the number of server processors used.
• Enterprise License: Unlimited user access across the organization.
• Metered License: Usage-based licensing for specific metrics.

JD Edwards Licensing

Oracle JD Edwards (JDE) is a leading Enterprise Resource Planning (ERP) software that helps businesses manage essential functions in finance, supply chain management, manufacturing, human resources, and more. Understanding JD Edwards’ licensing options is crucial for effectively using it.

Licensing directly impacts both the costs and operational flexibility of the software. This guide provides an in-depth overview of JD Edwards licensing models, types of licenses, pricing structures, and tips for compliance.

Introduction to JD Edwards Licensing

JD Edwards offers multiple licensing models designed to meet various organizational needs. From small businesses to large enterprises, each licensing type is tailored to different user needs, usage patterns, and budgeting considerations. Oracle provides flexible options, including Named User, Concurrent User, Processor-based, Enterprise-wide, and Metered licensing models.

Choosing the right license for JD Edwards is about matching features and understanding how licensing structures will support growth and optimize costs over time. This guide aims to help decision-makers select a suitable licensing approach by exploring every aspect of JD Edwards licensing.

Overview of JD Edwards Licensing Models

Oracle JD Edwards supports five primary licensing models:

• Named User License: Assigned to specific individuals requiring consistent access.
• Concurrent User License: A shared licensing model where licenses are pooled for use by multiple individuals.
• Processor License: Based on the number of server processors used to run JD Edwards software.
• Enterprise License: Designed for organizations needing broad, unrestricted access.
• Metered License: Usage-based licensing is calculated according to specific usage metrics.

Below, we examine these licensing models in detail.

Read about Peoplesoft licensing.

JD Edwards Licensing Models Explained

1. Named User Licensing

User licensing is one of the most common options for JD Edwards applications. This model assigns a license to a specific individual within the organization. These individuals are known as “Full-Use” users, and they can access all parts of the JD Edwards software for which the license is valid.

• Full Access: Named users have full access to the JD Edwards applications they are licensed, including modules, features, and data.
• Ideal for Essential Personnel: This model suits employees or contractors who require consistent, ongoing access to JD Edwards, such as finance teams, HR personnel, or supply chain managers.
• Scalable but Fixed: Named user licensing is fixed to specific users, meaning that organizations must track and update their user list regularly to ensure compliance.

Example: If a manufacturing company has 30 employees who regularly access the JD Edwards ERP system, each needs a Named User License. This license ensures they can access all features required to perform their jobs effectively.

2. Concurrent User Licensing

The Concurrent User License model allows multiple users to share a pool of licenses, with access granted based on simultaneous use. A “shared use” model enables organizations to manage their licensing requirements more flexibly.

• Maximum User Limit: This licensing type specifies the maximum number of users accessing JD Edwards simultaneously.
• Cost-Effective for Rotating Shifts: This model is ideal for companies operating on different shifts or in different time zones, where user demand does not overlap significantly. As users log out, their licenses are freed up for other users.
• Real-Time Monitoring: To ensure compliance, organizations must keep track of concurrent users accessing the system in real time.

Example: An international retail chain with offices in different time zones might have 200 employees needing JD Edwards access. However, if only 50 users are expected to access the system at once, purchasing 50 concurrent user licenses would be sufficient.

3. Processor-Based Licensing

Processor Licensing is a server-oriented approach where licensing is determined by the number of processors used by the JD Edwards software servers.

• Server Capacity: This model allows unlimited users, focusing instead on the server’s processing power. It is typically employed when it becomes cumbersome to track individual users.
• Best for Server-Centric Planning: Organizations wanting to avoid the hassle of tracking user counts might find processor licensing an attractive option, especially when the ERP is accessed across multiple departments and locations.
• Measuring Processor Use: The total number of processors used is a key metric, which means organizations must factor in server upgrades or scaling needs.

Example: A large enterprise with many departments using JD Edwards software may choose a processor-based license. Instead of tracking hundreds of individual users, licensing would be based on the number of processors the servers hosting the software use.

4. Enterprise License

The Enterprise License model offers the most expansive licensing option for large organizations needing comprehensive coverage.

• Unlimited Users: Enterprise Licensing allows unlimited user access across the organization, making it suitable for businesses that want to provide access without being constrained by individual user limits.
• Ideal for Growing Businesses: As businesses expand, the number of users accessing JD Edwards may increase rapidly. The Enterprise License ensures that licensing costs remain predictable.
• Simplified Management: This model greatly simplifies licensing management by eliminating the need to track user or processor metrics.

Example: A multinational corporation with thousands of employees might opt for an Enterprise License to avoid the administrative burden of managing individual user licenses. This would enable streamlined access across departments and regions.

5. Metered Licensing

Metered Licensing is a usage-based approach that calculates costs based on specific metrics or usage levels, such as the number of transactions processed.

• Usage Flexibility: This model allows organizations to pay only for what they use, providing flexibility and potentially lowering costs if software usage fluctuates.
• Good for Seasonal Businesses: Metered licensing provides a way to only pay for higher usage when necessary for businesses with seasonal peaks- such as retail companies during holiday seasons.
• Track Usage Closely: Organizations must track their use closely to remain compliant and manage expenses effectively.

Example: A logistics company might opt for metered licensing if JD Edwards’s usage is closely tied to order volume, which can vary throughout the year. This ensures that the company only pays for the system when actively using it. This system is compatible with the older AS/400 architecture.

Read about Oracle Fusion Application Licensing.

Historical Evolution of JD Edwards Pricing Models

JD Edwards licensing has evolved significantly, offering various pricing models based on organizational needs and changing technology landscapes.

Here’s a look at the major pricing structures that have been used:

• Server Model-Based Pricing: Before October 1993, licensing fees were based on server capacity. There were no user restrictions; organizations licensed based on the capacity of their IBM AS/400 servers.
• Concurrent User-Based Pricing: Between 1993 and 1996, licensing transitioned to a concurrent user model. This allowed multiple employees to use the software based on a shared pool of licenses for simultaneous access.
• Suite-Based Pricing: From 1993 to 2002, JD Edwards offered suite-based licensing. This model allowed organizations to license a collection of products, known as “suites,” often for a set number of users.
• Solution-Based Pricing: Introduced in 2002, this model allows organizations to purchase specific components and provides more granular control over licensing. It evolved further under PeopleSoft’s stewardship after JD Edwards’ acquisition.
• Enterprise Licensing: Today, JD Edwards offers enterprise licensing, which allows organizations to use JD Edwards products without tracking individual licenses and ensures full access across all business areas.

JD Edwards License Types Explained

JD Edwards licenses are categorized into different user types, depending on the level of access required:

1. Full-Use Users

• Concurrent Users: These licenses provide unrestricted access to JD Edwards applications. They are best for those who need complete system functionality.

2. Moderate Users

• Limited Access: Moderate User licenses restrict access to certain JD Edwards modules or features. They are intended for users who do not need full functionality but still require access to certain key tasks.

3. Inquiry Users

• View-Only Access: Inquiry User licenses are for individuals who only need to view data. They cannot perform transactions. This type is ideal for managers or stakeholders who require insights but do not need to interact with the system.

Component Pricing Model

Component Pricing allows companies to license specific products or modules within JD Edwards, depending on their business needs. Oracle’s “a la carte” approach means companies can choose which components they require.

• HR and Payroll Modules: Priced based on employee count, enabling businesses to scale as their workforce changes.
• Supply Chain Management: Licensing for supply chain modules is based on the cost of goods sold, directly tied to the organization’s scale of operations.
• Expense Management: Priced by the number of expense reports processed, making it ideal for organizations that want to control costs based on usage metrics.

Example: A mid-sized company with a significant workforce but fewer supply chain needs may choose HR and Payroll components without investing in full-scale supply chain modules, thereby optimizing costs.

Custom Application Suite (CAS) Pricing

Custom Application Suite (CAS) Pricing is an alternative for organizations that want to purchase a combination of JD Edwards products bundled into a tailored suite. The CAS pricing model allows companies to:

• Bundle Products: Create a custom suite tailored to specific user needs.
• User Flexibility: Allow multiple user types to access different modules within the suite.

However, not all JD Edwards products can be licensed via CAS, and some must be purchased separately to meet specialized requirements.

Compliance and Auditing Your JD Edwards Licenses

Organizations using JD Edwards should conduct regular license audits to remain compliant with Oracle’s licensing terms. These audits can help ensure that the number of users or processors matches the licensed quantities and that any changes in system use are properly accounted for.

Tips for Conducting JD Edwards License Audits

• Use Oracle LMS Scripts: Oracle provides License Management Services (LMS) scripts to measure compliance. These tools help monitor the use of JD Edwards applications and generate reports for internal compliance checks.
• Review User Access Regularly: With models like Named User or Concurrent User licensing, organizations should periodically review and update user access to avoid paying for inactive users.
• Match Licensing to Growth: As the organization grows or changes, licensing needs may also change. Enterprise Licenses may be a good option for companies anticipating rapid growth, eliminating the need for constant recalibration.
• Verify Module-Specific Licenses: Make sure you meet all prerequisites for any licensed modules. Failure to do so could result in compliance penalties.

JD Edwards Licensing: Best Practices

Licensing JD Edwards effectively requires careful planning and ongoing management. Here are some best practices to help manage JD Edwards licenses:

1. Choose the Appropriate Licensing Model

Organizations must choose a licensing model based on their specific needs:

• Named User Licensing: Best for users requiring frequent access to all JD Edwards features.
• Concurrent User Licensing: Ideal for organizations with users in multiple shifts, minimizing costs through shared access.
• Processor or Enterprise Licensing: Suitable for organizations with many users accessing multiple modules, as it allows broad usage without user-specific restrictions.

2. Manage User Access Actively

JD Edwards licensing compliance requires that user access is actively managed:

• Deactivate Inactive Users: Ensure users without access are deactivated to prevent unnecessary license costs.
• Track Concurrent Usage: Track real-time user numbers for concurrent licensing models to avoid breaching the license user limit.

3. Leverage Component Pricing for Granularity

If your organization requires only specific functions of JD Edwards, component pricing can be used to save costs by licensing individual modules rather than an entire suite.

• Limit Access to Required Components: Only buy licenses for necessary components, such as Payroll or Supply Chain, to optimize costs.
• Avoid Over-Licensing: Purchasing an entire suite when only a few modules are needed can lead to unnecessary costs.

4. Consider Future Growth with Enterprise Licensing

For larger enterprises or organizations with rapid growth potential, an Enterprise License can eliminate concerns about tracking user counts, ensuring cost predictability, and reducing administrative overhead.

5. Regular Internal Audits

Conducting internal audits before Oracle’s audits can help preempt compliance issues:

• Run LMS Tools: Utilize Oracle-provided LMS tools to track the use of licensed software.
• Align Licensing with Business Changes: Update licensing to reflect changes such as department growth, new hires, or acquisitions.

JD Edwards Licensing FAQ

What are the key JD Edwards licensing models? JD Edwards offers Named User, Concurrent User, Processor, Enterprise, and Metering licenses. Each serves a different need, from specific individuals to broad enterprise-wide access.

How does Named User licensing work? Named User Licensing assigns a license to a specific individual who requires full access to JD Edwards software. Each user is tied to their specific license, ensuring consistent system access.

What is a Concurrent User license in JD Edwards? Concurrent User licenses allow multiple users to share a pool of licenses. Users can share the access as long as the number of users accessing the system simultaneously does not exceed the licensed number.

How is Processor licensing calculated for JD Edwards? Processor licensing is based on the number of processors used by the JD Edwards servers. It provides an alternative to tracking individual users, focusing on server capacity.

What does an Enterprise License cover? Enterprise Licensing offers unrestricted user access to JD Edwards across the entire organization. It is ideal for large companies that need widespread access without managing individual licenses.

What is Metered Licensing in JD Edwards? Metered Licensing is a usage-based approach where organizations pay based on specific metrics like transaction volume. This is suitable for companies with varying workloads throughout the year.

Can different licensing models be used together? Yes, JD Edwards allows for a combination of licensing models depending on the specific requirements of each department or user group within the organization.

What are the benefits of Concurrent User licensing? Concurrent User licensing is cost-effective for companies with shifts or part-time users. Users can share licenses, optimizing costs without purchasing individual access for everyone.

How does JD Edwards Component Pricing work? Component Pricing allows companies to buy licenses for specific modules instead of the entire suite. Modules like HR/Payroll are priced per employee, while supply chain licenses are linked to the cost of goods sold.

What is Custom Application Suite (CAS) Pricing? CAS Pricing allows multiple JD Edwards products to be bunded into a custom suite for specific user groups. This helps companies tailor their licensing to fit unique needs.

How do I conduct a JD Edwards license audit? Use Oracle LMS scripts to measure compliance. Regular audits help ensure that your actual use matches the number of licenses purchased and can prevent compliance issues.

What is the difference between Full-Use and Inquiry Users? Full-Use licenses allow complete access to JD Edwards applications, while Inquiry Users have view-only access and cannot perform transactions. Inquiry Users are ideal for stakeholders needing insights without altering data.

How are JD Edwards licenses affected by server upgrades? If you have a Processor License, server upgrades that increase the number of processors may require additional licenses. To ensure compliance, server capacity should be regularly reviewed.

What are the licensing requirements for JD Edwards Outsourcing? When outsourcing functions, any workers accessing JD Edwards must be licensed under the appropriate model, such as Employee or Concurrent User licensing.

Why is regular auditing important for JD Edwards licensing? Regular audits are crucial to ensure compliance, manage costs, and prevent issues during official Oracle audits. Audits help you align actual usage with purchased licenses.

What should be considered when choosing a JD Edwards licensing model? Consider user patterns, organizational size, and future growth. Named User licenses are best for consistent users, while Concurrent or Enterprise licenses suit organizations with fluctuating or large-scale needs.