August 24, 2011 Leave a comment
by Tam Kyle
In these days of increased cost pressures and drives for efficiency, it is increasingly important that companies strive to achieve and demonstrate the greatest possible return on investment. Interest in the benefits to be achieved from hosted and virtualised service offerings like SaaS (Software as a Service), IaaS (Infrastructure as a Service) and PaaS (Platform as a Service) has led to a plethora of ‘Cloud’ providers in recent times.
Oracle’s On Demand is a good example – it is a service offering that provides managed and/or hosted Oracle technology or applications and promises financial and operational benefit to companies.
But, if you’re thinking of going down this route, have you considered all the licensing implications?
On Demand can essentially be provided in 2 ways – as Administration Services or Computer and Administration Services. Administration Services means that the client, or another 3rd party, provide the necessary data centre setup to support the application, and Oracle staff administer this application remotely, providing system administration, application technology management and monitoring.
Computer and Administration services extends this offering, and in this case, the infrastructure is provided by Oracle as well as the operational service. The services are supplied from one of Oracle’s data centre sites, for instance, in Austin, Texas. In this case it’s the customer who has remote applications access.
So what services can be supported in this manner? Well, practically any of the Enterprise Oracle offerings, though the main technology stack (i.e. database and middleware) and Oracle E-Business Suite and HCM portfolio tend to be the most popular. We’ll confine our current discussion to just that – those Oracle E-Business elements that help a company run its business – principally things like the HCM or Financial products.
So, how do you license On Demand Services for Oracle E-Business?
On Demand Services for Oracle E-Business
Well, as you’d expect, you need to have licenses for the module that you’re interested in – so if it’s Financials then you might obtain 200 Application User licenses to cover the functionality you need.
An application user is someone that you authorise to use the application programs, regardless of whether the individual is actively using the programs at any given time – note that this very specifically isn’t ‘concurrent usage’ – if you have a BAU daily user, and someone who only checks detail on a yearly basis – they both need to be licensed.
If it’s an HCM module that you’re looking to use, then it’s highly likely that it’s metric will be based on the ‘Employee’ definition – so you’d need to count all of your current full time and part time workers, and any contractors or 3rd parties who provide you with a service – again, note that this differs from what you might regard as an ‘employee’.
In all cases, check your terms and conditions – the metrics will be defined and if you’re in any doubt, speak to us and we can help clarify the situation.
So we’ve set up the situation but how do you go about solving these issues? Tune in in the next few days for part 2 where we take a closer look at actionable advice to make the most of your situation.