Licensing JD Edwards: Provider for core tools & infrastructure

14 jun '16 - : Andrei Agavriloaiei & Gabriel Dragoi - share: LinkedIN Mail
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Do you know the difference between IBM's Blue Stack and Oracle's Red Stack license requirements to support your JD Edwards application?  Are you able to identify the different products in your technical blueprint and do you have the right licenses for these JD Edwards tools? 

Both World and EnterpriseOne software programs rely on a set of components, which act as the underlying platform for the business logic. For EnterpriseOne, some of these are made by JD Edwards while other components such as database and application servers need to be provided by a 3rd party. To license the JD Edwards components, end-users need to purchase a product called EnterpriseOne Core Tools and Infrastructure. To license 3rd party components, end-users can purchase licenses directly from the 3rd party vendor or use the option of purchasing the same licenses from Oracle who acts as a reseller.

As a result, the following alternatives can be identified:

  • Core Tools and Infrastructure licensed separately
  • Technology Foundation - includes Core Tools and Infrastructure as well as licenses for IBM components (WebSphere Application Server, DB2, and Collaborative Portal) also known as the Blue Stack
  • Oracle Technology Foundation - includes Core Tools and Infrastructure and licenses for Oracle Components (Oracle Database Standard Edition; Oracle Internet Application Server Standard Edition; Oracle WebLogic Server Standard Edition etc.) also known as the Red Stack

In the past EnterpriseOne licenses usually included the second alternative (Technology Foundation) since JD Edwards products were initially designed and developed for IBM infrastructure. However, since Oracle’s acquisition, the focus was gradually shifted to Oracle Technology Foundation. New Technology Foundation licenses were still being sold to existing end-users for a while. But today, Oracle exclusively sells Core Tools and Infrastructure or Oracle Technology Foundation. The Technology Foundation programs cannot be bought anymore. For the end-users that did buy Technology Foundation licenses, Oracle says “Existing end-users licensed for this product needing additional licenses can license Core Tools & Infrastructure from Oracle and then go to IBM directly for additional licenses for the IBM Technology components”.

The issue we see in this area is that organizations don’t know the distinction between these products. Because of that, they end up owning incorrect combinations of Red Stack and Blue Stack licenses. Often these licenses don’t match the technology that’s underlying their EnterpriseOne installation.

There are a number of reasons why organizations end up in this situation:

  • An organization installs EnterpriseOne with IBM infrastructure and purchases EnterpriseOne licenses with Technology Foundation. They then upgrade their installation to a newer version of EnterpriseOne and they change to Oracle Technology in the process. However, they continue to use the old Technology Foundation licenses.
  • An organization purchases Technology Foundation. They then expand their user base and require additional licenses. They now get Oracle Technology Foundation licenses because Oracle no longer sells the original product.   
  • An organization purchases Technology Foundation licenses which are incorrectly migrated to Oracle Technology after a new purchase. The company still uses IBM technology for EnterpriseOne.

Other examples can be found, but the thing to remember is that it can be very costly to not make this distinction correctly. Any mismatches between the owned licenses and underlying technology should be remediated quickly.

In our next article, we will talk about Licensing Analysis for Concurrent Users. More information can also be found in our latest white paper “JD Edwards – License Compliance Risks”. Our new white paper format is mobile friendly, so you can easily read it on your tablet or mobile phone.

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