b-lay oracle e-business suite - are you in control?

Presentation Richard Spithoven & Tudor Stoenescu

Oracle E-Business Suite licenses:

Are you in control?


Introduction

Richard SpithovenDirector / Partner b.lay

2013 – present

Regional DirectorOracle EMEA – LMS Europe South

2009 – 2013

Principal Licensing consultantOracle Europe, Middle-East & Africa

2005 - 2009


Introduction

Tudor StoenescuSenior Software Licensing Analystb.lay2014 – Present

Senior LMS Technical ConsultantOracle2009 - 2014


Audit Methodology• User – based measurement methodology• Usage – based measurement methodology

1

2 Common License Compliance Issues – License Metric• Application User & Application User Read Only• Primary Usage• Concurrent Usage• Professional User vs Employee User• Professional User Internal • vs Professional User External

Agenda


Common License Compliance Issues – Applications• Human Resources• Order Management• Enterprise Asset Management & Self Service

Work Requests

3

4Common License Compliance Issues - Customization• Customized E-Business Suite Applications• Customized Database Technology

• Database Modifications• Application Server Modifications

• Consultancy Firms

Agenda


Audit MethodologyUser Based licensing models - Depending on the contractual agreed license metric


AUDIT TRAIL

Enable Audit Trail at “Responisbility” or “ Form”

level

FND TABLES

Following FND tables in under lying database are populated

fnd_logins, fnd_login_responsibilities, fnd_user,fnd_user_responsibility,

fnd_application, fnd_application_tl, fnd_product_installations,

fnd_responsibility_tl, fnd_user_resp_groups,

WF_LOCAL_USER_ROLES, ICX_SESSIONS

EXPORT

Export Scripts or Manual Export needed to export the

data

Audit Methodology

USERS

Users, Responsibilities and installed

Application modules are linked

ANALYSIS

Responsibilities are then analysed and “mapped”

to the licensable

EBS program


Example Audit Methodology

• Human Resource application module has the ID 800. (installed program)

• Responsibilities assigned to this can be:• HR Manager• Global Payroll Manager• Time Management Manager

• Responsiblities will be mapped to the licensable EBS programs:• Human Resources• Payroll• Time & Labour


Example Audit MethodologyMethodology is depending on the contractual agreed license metric!!

• “Usage Based licensing models” (e.g. Employee, Electronic Order Lines, Expense Report, Compensated Individual, Trainee, Person, etc)

• Separate queries to query data of different tables

• Example (Employee metric):

SELECT COUNT(*) FROM PER_PEOPLE_F WHERE UPPER (CURRENT-EMPLOYEE-FLAG)=”YES”;


Example Audit MethodologyMethodology is depending on the contractual agreed license metric!!

Example (Expense Report):

SELECT'&&GREP_PREFIX.,&USAGE_QUERY.,’ ||to_char(creation_date,'YYYY-MM') ||','||COUNT(invoice_id) ||',’

FROM ap_invoices_all

WHERE invoice_type_lookup_code='EXPENSE REPORT’AND source='SelfService’AND (select max(creation_date) from ap_invoices_all

where invoice_type_lookup_code='EXPENSE REPORT’

AND source='SelfService') <= 730 + creation_dateGROUP BY to_char(creation_date,'YYYY-MM’)ORDER BY to_char(creation_date,'YYYY-MM');


Application User is defined as an individual which is authorized by you to use the applicable licensed application programs which are installed on a single server or multiple server, regardless of whether the individual is actively using the programs at any given time.

Application User vs Application User Read Only

Application User Read Only is defined as an individual which is authorized by you to run only queries or reports against the application program for which you have also acquired non read-only licenses.


Active User Management is required;

Perform regular reviews!

Application User vs Application User Read Only

All environments should be included!

Keep track of the functionality you test & disable responsibilities if you decide not to continue with

the test functionality

Prod TestDev Acc


End user purchased up to December 2006

Financials, Purchasing, Discrete Manufacturing, Process Manufacturing and

Project Costing with the Primary Usage principle.

Any individual authorized for at least two or more of these E-Business Suite

applications should only be counted once.

And does NOT require to license every individual for every E-Business Suite

application separately (as per the current Application User metric).

If an end-user purchased licenses before December 2006 and after December

2006,

Primary Usage principle is still applicable.

Primary Usage


Primary Usage vs Application Usage

Financials Purchasing Project Costing

License Requirement:

1 Application User license (e.g. for Financials)

provides one individual the right to make use of Financials, Purchasing and Project Costing as well.

License Requirement:

1 Application User license for Financials &1 Application User license for Purchasing &1 Application User license for Project Costing

Financials Purchasing Project Costing


Concurrent Usage

1 2 3 4 5 6 8 8 9 10 11 120

20

40

60

80

100

120

Concurrent Usage and Concurrent Device licenses are no longer sold, but terms and conditions of existing Concurrent licenses remain valid.

The maximum number of users/devices that are simultaneously making use of the software are required to be licensed (“peak usage”)

Active software license management is needed to allocate the appropriate amount of licenses to the “heaviest usage”; failure of proper management of these software licenses typically results in a “forced” migration to the – typically less favourable – current Application User license metric.

time

users


Professional User vs Employee User (1/2)

• Both license metrics were sold in the period February 2000 – March 2003.

• Individuals got the right to make use of a “suite” or “bundled” of different E-Business Suite applications as defined in an Appendix of the Ordering Document; many organizations wrongly assume that they can make use of all the E-Business Suite programs.


Professional User vs Employee User (2/2)

Minimum number of Professional User licenses equals typically 10% of your employee population independent of the amount of the actual number of users

Minimum number of Professional User and Employee User licenses together equals typically 20% of your employee population independent of the amount of the actual number of users.

Individuals that are authorized to use the E-Business Suite programs of both the Professional User AND the Employee User bundle will be counted as Professional User;

since this is the “stronger” of the two.


Prof. User INTERNAL vs Prof. User EXTERNAl

Historically enterprise software was used to support internal business processes of an organization; later software also got used to support business processes between organizations (B2B processes).

Differentiation in types of users made:•Individuals of the own organization – Professional User Internal•Individuals of external organizations - Professional User External

External User licenses were cheaper but require that all external users are clearly identified in the software (e.g. naming conventions, company email address, access management);

lack of applying proper user management will result in counting all users as “Internal Users”


Human Resources

Prior October 2006, Human Resources was sold

on the metric “Person”;

After October 2006, Human Resources was sold

on the metric “Employee”

Organizations have been recommended and should migrate

all their HR licenses to the Employee metric,

but often end-users still have both metrics in place and pay support

maintenance for it.

During an audit of the EBS programs licensed on an Employee

metric (e.g. HR), queries are validating your HR

Records in the software to validate if the employee or contingent worker flags are set to “Yes”;

Lack of proper management and updates of the HR records result often in retired people still having the flag “Yes” resulting in a higher number of EBS licenses required.


Enterprise Asset Management & Self Service Work Requests

Self Service Work Requests (SSWR) is a so called “option” of

the parent program Enterprise Asset Management (EAM);

Options are required to be licensed at the same level as the parent

program.”

Responsibilities for both SSW and EAM are however usually during the

setup and authorization process both defined under Enterprise Asset

Management.

Resulting in the fact that individuals authorized to make use of SSWR

are counter as EAM.

Responsibilities for both SSW and EAM should therefore be clearly

defined, in order to avoid an artificial increase of the number of EAM

users.


CUSTOMIZATIONS E-Business Suite Application

Almost all organizations using E-Business Suite need to perform customizations to adjust the functionality to

their business needs.

These customizations are typically based on an existing E-Business Suite application itself, and are

therefore required to be licensed;

Lack of registration at the beginning of the implementation (which E-Business Suite applications

are being used for which customizations) results almost always in a higher number of required licensed since

this usage was not accounted for.


CUSTOMIZATIONS E-Business Suite Application

In the rare occasions that customizations are NOT based on an existing E-Business Suite application, still

these individuals - authorized to make use of these customizations - are required to be licensed since

these customizations do make use of the E-Business Suite infrastructure (the logon-system)

These individuals will be required to license the cheapest license from the current Oracle E-Business

Suite pricelist, in case this is identified during the course of a license audit


CUSTOMIZATIONS: Technology Programs

Oracle was originally a database software company; with the introduction of Oracle E-Business Suite

gaining market share within the Enterprise Application industry has been (and still is) one of it’s strategy’s.

As part of this strategy, all E-Business Suite licenses include a “restricted usage right” for the underling Database Enterprise Edition, Internet Application

Server Enterprise Edition, Internet Developer Suite, Programmer and Business Intelligence Publisher programs; this restricted usage is only granted in

combination with the Oracle E-Business Suite and is restricted to the “out of the box” / “ unmodified”

E-Business suite software.

.



The usage of Oracle Database and Oracle Application server programs is restricted to the “out of the box” / “ unmodified” E-Business suite software.

The usage of Internet Developer Suite is restricted to:

a) install and configure discover workbooks and end user layer content and b) for warehouse metadata to support EDW delivered with Oracle Applications (Forms and Reports builder for diagnostics purposes only).

The restricted usage of the Oracle Programmer is restricted to the underlying technology as invoked by the unmodifiedE-Business Suite Application.

The usage of Business Intelligence Publisher is restricted to publish information from the Oracle Applications.

.



Given the specific nature of the business processes and/or the integration with other applications, organizations in 99 out of 100 cases all need to implement modifications to the Oracle Database and/or Oracle Application Server supporting the E-Business Suite programs, resulting in:

Additional need of

• Full Use licenses• Oracle Database Enterprise Edition

• Full Use licenses• Oracle Internet Application Server Enterprise Edition

• Full Use licenses • Oracle Internet Developer Suite and/or Programmer

.



Database Programs

Examples of customizations to the Oracle Database Enterprise Edition, are:

• adding and/or modifying row and/or columns in the tables

• adding and/or modifying stored procedures and/or triggers

which are part of Oracle E-Business Suite application schema.

The above modifications are checked during a license audit when Oracle asks you to run the so called “DDL” queries; the above mentioned modifications require Full Use licenses for the Oracle Database Enterprise Edition AND

Oracle Internet Application Servers Programs . In addition, additional Full Use licenses for Internet Developer AND/OR Programmer may be required.



Application Server Programs

Examples of customizations to the Oracle Internet Application Server, are creation or modifications of reports, forms, workbooks modifications implemented as Java programs, which include Java that produces html interface or Java business which are part of Oracle E-Business Suite application schema.

The above mentioned modifications require Full Use licenses for Oracle Internet Application Servers Programs.

In addition, additional Full Use licenses for Internet Developer AND/OR Programmer may be required. In case only customizations are being made to the Internet Application Server programs, an end-user remains to keep the restricted usage rights for the Oracle Database Enterprise Edition.



More details about these kind of modifications can be found in:

Oracle’s Application Licensing Table, which can be found through the following URL:http://www.oracle.com/us/corporate/pricing/application-licensing-table-070571.pdf

Your Oracle Software License and Services Agreement (SLSA) and/or Oracle License and Services Agreement (OLSA) and/or Oracle Master Agreement typically refer to the above mentioned Application Licensing Table as an integral part of your agreement; agreements from before 2000 do NOT include such a reference.

Please check your license agreement at all times!

http://www.oracle.com/us/corporate/pricing/application-licensing-table-070571.pdf

http://www.oracle.com/us/corporate/pricing/application-licensing-table-070571.pdf


Customizations : Consultancy Firms (1/2)

End-user organizations typically don’t do an EBS implementation or EBS modification themselves; an implementation partner or consultancy firm (like Oracle Consulting itself) is typically chosen;

These consultancy firms are typically not aware of the licensing implications of the modifications they make to the E-Business Suite software.

Non-compliance issues are therefore often discovered many years after the implementation of the software resulting in unexpected financial risks and unbudgeted costs.


Customizations : Consultancy Firms (2/2)

Organizations often try to claim back the costs to the consultancy firms that performed these modifications but often don’t realize themselves that the organization itself is fully responsible and

accountable for complying with the terms and conditions of its license agreements; even if Oracle’s own consultancy organization did perform the implementation and modifications on behalf of the organization.


Make sofware license management a priority at C-level and budget for the proper software license management practice, tailored to the specific needs of your organisation.

Create an internal software license management team of multiple disciplines (procurement, legal, DBA, Infrastructure Managers, Business Application Mangers, Outsourcers) with C-level sponsorship and review on a regular basis:

•your real license entitlements (incl. OD, OLSA, SR, SP, PD, BP)

•your real deployment and (licensable) usage of the software

•reconcile your license entitlements with your license deployment and usage in order to identify and address software license compliance issues proactively!

Some take-aways…


Questions?


① Oracle License Review or License Audit Answers to your Top 20 Questions

② Oracle Licensing Guide:Your quick Oracle Licensing Guide

③ Oracle Unlimited License Agreements (ULA):An overview of the major risks you should be aware of

④ Oracle Pool of Funds Agreements:An overview of the ins & outs of this type of agreement

⑤ Oracle E-Business Suite:An overview of the most common license compliance issues

Further reading on www.b-lay.com


Audit SupportSupport during your audit

Contract ManagementKnowing what you can do with your rights

License ManagementBenefit from your rights