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Purchasing extra licenses despite no software modifications

Oracle licensing expert Scott Rosenberg answers a reader's question about their adoption of Oracle E-Business Suite.

We just purchased the Oracle E-Business Suite Financials with named user plus licenses for Oracle Database Enterprise Edition. The licenses are limited use for E-Business only. We are not doing any modifications. We then signed a contract for the human resources information systems (HRIS) applications with the application license number at 400 (total employees). Oracle is now saying we need to purchase an additional 200 licenses. This is not in accordance to my understanding that the database license is bundled in the E-Business application license and that all we need is the minimum of 25 named user plus licenses per processor. It is also stated in the Oracle licensing matrix for E-Business Suite.

Have you run into this situation with Oracle before? How is it handled?

Yes, we have run into this situation with other Oracle ERP clients as Oracle technology reps will try to grow tech stack component sales as part of each applications deal. The assumption is usually that client is running modifications to their underlying technology and thus triggering the additional license requirement. We find in practice that this may be a ‘false’ assumption by the technology rep and to make matters worse, the technology rep may not be adequately trained to understand the differences of when full use or limited use technology licensing are needed with an applications install. A database license is indeed bundled in the E-Business application license and additional procurement of limited use or full use technology is only required when modifications to this underlying technology are made.

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