The 3 Licensing Models for Oracle Applications

Oracle offers 3 licensing models for its installed applications to fit the unique needs of each organization: component pricing, custom applications suite pricing and enterprise pricing. Having different licensing models allow organizations to select the best combination for their operations.  Not all products are available within each of the pricing models due to the Terms, Conditions and application features.

Oracle’s component pricing model is an a la carte pricing model that caters to customers with a limited number of users. This pricing model offers two basic licensing options – usage versus user-based licensing metrics.  

Oracle’s customer applications suite (CAS) pricing model allows organizations to create custom bundles across all Oracle product lines including Siebel, PeopleSoft and JD Edwards to suit their users’ needs.  CAS licensing is for customers standardizing on Oracle. Custom Suite User licenses are strictly defined as an individual authorized to use the application programs – whether (s)he is actually using them or not. There are a number of minimums and restrictions on CAS licensing.   

Oracle’s enterprise applications pricing model assumes that Oracle is the standard enterprise software throughout the organization. The EA license model allows companies to license Oracle products for their entire organization without having to worry about keeping track of user licenses. This is, by far, the most costly option and the one with the most variants in its licensing metrics (there are 5 different pricing models with minimums requirements and restrictions on the EA licensing). The common metric is the minimum prerequisite of US$1 million in annual revenues.

The objective of these licensing models is to create a flexible enterprise software solution around an organization’s business, but licensing is rarely cut and dry.

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