Oracle License Metrics

What are software license metrics?

According to Sheshagiri Anegondi, CEO Rythium Technologies
a licensing metric acts as a proxy for measuring the quantum of use of a software program.

By definition, a license metric is a method to quantify usage and generate revenue for a software publisher. There are four criteria that a license metric should meet:

1. Simplicity: the metric should be easy for customers to understand.
2. Measurable: the metric should be countable by the publisher as well as the customer
3. Fairness: the metric should provide a customer with a sense of value of the program used.
4. Scalability: the metric should, with the passage of time, generate additional revenue in case the customer derives more value than originally agreed upon.

Oracle’s Transparent Definitions

Many people get confused by the Oracle License Processor or NUP metrics. These two and many others are not difficult to understand if explained well. Oracle, by themselves, are quite clear and transparent about their metrics. They have always provided the information on their websites for all of their customers and Software Asset Managers to understand.

The challenge with the metrics is the innumerable architectural deployments that are possible in an IT infrastructure landscape. This combined with the multitude of integrations with third-party platforms or applications can make interpreting Oracle’s licensing metrics quite difficult.

We have tried to ease the confusion by describing some of the metrics. We are not providing the exact definitions. These are available on the Oracle websites. Instead, we have tried to explain in layman terms the meanings of the metrics & its applicability in different situations. You should always go back to the Oracle websites and their contracts to get the correct & latest definitions of each of these license metrics.

Oracle License Metrics

Some of the more commonly used and popular Oracle license metrics are described below.