The benefits of primary usage and concurrent usage licenses for Oracle’s E-Business Suite

17 mar '15 - Tudor Stoenescu - share: LinkedIN Mail

Primary Usage 

Oracle e-Business Suite licenses purchased before December 2006 fall under the “Primary Usage” principle. If your organization owns such licenses and purchased additional ones after December 2006, then Primary Usage governs the extra licenses also. If organizations are not aware of this or don’t distinguish proper - which is often the case – during an Oracle License Audit or License Review the benefits of the Primary Usage principle are being wasted. 

Before December 2006, Oracle applied a so-called Primary Usage policy by which organizations could purchase licenses for Financials, Purchasing, Discrete Manufacturing, Process Manufacturing and Project Costing with the primary configuration. Consequently, any individual authorized for at least two or more of these applications would only be counted once. This licensing model was cost effective and provided a feeling of paying for “fair usage” since it didn’t require licenses for every application program separately. Under the current Application User licensing model however, 1 individual authorized for Financials, Purchasing and Project Costing requires 1 Application User license for Financials, 1 for Purchasing, and 1 for Project Costing. If the Primary Usage principle is still applicable, such a person only needs 1 single license. 

Concurrent Usage    

From 1994 to 1998, Oracle sold its E-Business Suite applications on “Concurrent Device” or “Concurrent User” license metrics. Although Oracle does not sell software this way anymore, organizations owning such licenses are still allowed to use the applications under the original terms. Concurrent licenses require organizations to license the maximum number of users or devices that will use the software concurrently, i.e. simultaneously. This licensing model is cost effective and provides a feeling of paying for “fair usage.” Concurrent licensing does not require an organization to list all authorized individuals as per the current Application User model. Instead, peak usage is the crucial factor.

Concurrent Device or Concurrent User licenses often provide a lot of value to organizations but, especially since they are no longer sold, “concurrent” usage should be actively managed. For example, by determining on a regular basis which user population is the “heaviest” in order to allocate the available Concurrent licenses to them. Not managing the concurrent usage of the software means that in a license audit you cannot prove your compliance position. Consequently, an organization will need to to migrate Concurrent licenses to the less favorable Application or Named User licenses. In most cases this requires additional Application or Named User licenses to be purchased since the whole authorized user population needs to be licensed. 

Managing software licenses properly also gives you the opportunity to mix older, more favorable licenses with new licenses, which may be needed due to the natural growth of the usage population. Consider an organization with 10 Concurrent User licenses and a total of 100 individuals, which are authorized to use the Financials application. With a maximum of 8 simultaneous users over the last month or year there wouldn’t be any issue. However, not being sure and able to demonstrate may mean that your organization needs to subscribe all 100 individuals; which would be a costly and unnecessary investment in license and recurring annual support fees.

Do you want to learn more about Oracle's E-Business Suite? Then please join our free online expert session on March 20.


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