Monday 1 August 2022

JDE oracle licence audit, again and again

There are numerous ways of interpreting oracle licence audits, but my guess is that if oracle wanted to pursue you - you could get in trouble pretty easy.

I invite you  all to pull out your licence agreements and pay special attention to the definition of an application server.  This is someone that is authorized by you to use an application regardless of whether they are using the application.

If you take this as a lawyer would, I would argue that you do not authorise people if you leave security all doors open.  The words and context of this definition seem to imply an active act of authorisation.  This is not active authorisation, you have not performed any actions to authorise.  But - if you lock everything out and then start to authorise back (all doors closed), then you are opening yourself up for issues.  Therefore a solid security model where you are actively allowing people to use JDE programs, you are going to need to ensure that the end users are licenced.

It's strange that this 2010 definition then goes into breaking down particular modules and transactions.



Just testing of the definition has survived the test of time: from https://www.oracle.com/a/ocom/docs/license-definition-rules-v091120.pdf 

Application User: is defined as an individual authorized by You to use the applicable licensed application Programs which are installed on a single server or on multiple servers regardless of whether the individual is actively using the Programs at any given time. If You license the Oracle Self Service Work Request option in conjunction with Oracle Enterprise Asset Management, You are required to maintain licenses for the equivalent number of Application Users licensed and You are granted unlimited access to initiate work requests, view work request status and view scheduled completion dates for Your entire employee population. Application Users licensed for Oracle Order Management are allowed to manually enter orders directly into the Programs but any orders entered electronically from other sources must be licensed separately. For Oracle Sourcing, Oracle Fusion Sourcing, Oracle iSupplier Portal, Oracle Fusion Supplier Portal, Oracle Services Procurement, PeopleSoft eSupplier Connection, PeopleSoft Strategic Sourcing, PeopleSoft Supplier Contract Management and JD Edwards Supplier Self Service Programs, use by Your external suppliers is included with Your application user licenses. For the purposes of the Oracle Financial Services Operational Risk Solution Program, employees who are just contributing information to the Program via the applicable user interface shall not be counted as application users

So yes, seems the same.

Given the above two definitions, it seems that the best thing you can do to avoid any problems is to ensure that you have the appropriate security in place which will enforce your licence metrics.  The old saying that "enterprise licences" prevented audits is not right, as an enterprise licence is generally only for a certain number of modules.

Short addendum - Enterprise Metric:

Enterprise licences can allow customers to have any number of users using JDE and they only need to pay a certain amount of fees based upon revenue of their business.  There are generally additional provisions for additional revenue - i.e. if you increase your revenue over the number listed - you will need to buy additional units.


For example, a customer might have a table like the above.  It means that they can have heaps of users, but will pay oracle based upon the perceived revenue number above (313 $M).  They will pay a fixed fee to oracle based upon this number.  Note that this is only for 19 named modules, not all of the JDe modules.

If the revenue goes above this, then they'll need to "top up" in increments that are generally listed in their licence agreement.  The increments are generally in tranches, therefore if the revenue is above the 313$M and in the next tranche (156$M), then they'll need to pay the additional amounts.





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