7 Replies Latest reply on Dec 4, 2015 4:50 PM by Hussein Sawwan-Oracle

    Licensing Oracle technology products under E-Business Suite

    Sebastian Anghel

      Dear all,

       

      We are an Oracle Gold partner from Romania, having as core business the implementation of Oracle E-Business Suite for more than 12 years.

       

      We already sent Oracle some questions regarding licensing Oracle technology products under E-Business Suite. We really hope though to find some answers here.

       

      The main subject is to find out when a customer should buy technology licenses (Oracle DB and Oracle Internet Application Server) and when not, taking into consideration the aspects from bellow.

       

      Since a few years ago Oracle E-Business Suite R12 does not have an official localization patch for Romania, therefore it cannot be used out-of-the-box in order to make financial and accounting reporting towards the Romanian authorities, as it is required by the law at the moment.

       

      According to Oracle licensing rules (application price list supplement), the standard version of Oracle EBS includes a restricted-use right for the Oracle technology licenses (“……..Restricted-use: Oracle Database Enterprise Edition, Programmer and Internet Application Server Enterprise Edition…….”) and it can be installed on any hardware a customer may have (there are no specified limits for the number of cores/processors that can be used). In the event Oracle would have provided an official localization patch for Romania, covering all legal requirements, customers could benefit from this feature without licensing, full use, the Oracle technology products, for the entire hardware stack planned to be used by the Oracle EBS.

       

      Because there is no official localization patch, the implementer is forced to make modifications to Oracle Database and Oracle Internet Application Server (build new reports, create new database objects needed by these reports – views, triggers, etc.) in order to build a custom localization package that will make Oracle E-Business Suite compliant with the legal requirements from Romania.

       

      Through an implementation contract between Implementer and the end user, Implementer may transfer only the right of use for this custom localization package and state that the Customer shall not have the right to make additional modifications to the standard version of Oracle EBS.

       

      According to the application price list supplement, making the above mentioned modifications to the database and the application server implies licensing the technology products under Oracle EBS (Oracle Database and Oracle Internet Application Server), which has multiple drawbacks.

       

      We can understand that technology products must be licensed whenever a customer wishes to develop on top of EBS new applications or integrations with external applications, which are not in the localization scope.

       

      We requested an official solution for solving these aspects, because the licenses for the technology products needed for building the custom localization for Romania imply a high price, and customers really cannot understand why they must pay for the Oracle technology, when the localization package should have been included in the standard product.

       

      In the event there is no solution and customers must pay for the Oracle technology licenses, I was wondering if there is an Oracle procedure which would allow licensing the technology products by the number of EBS users (and not based on the hardware resources and processor core factor and minimums).

       

      We also requested a clarification regarding the licensing rules for Oracle technology products used by E-Business Suite, in the event the application&database are installed on virtual servers (with a maximum of 2 Intel x86 cores for each virtual server, limited by a contract), in a private datacenter from Europe (because of the EU rules concerning data protection) and the virtualization software is not Oracle VM.

       

      If you have any ideas regarding the above aspects, please let us know.

       

      Many thanks for your help,

      Sebastian