The short answer: a licence metric is what Oracle counts to decide how many licences you need. For databases and middleware the two main metrics are Processor, which counts physical cores multiplied by Oracle’s core factor, and Named User Plus, which counts the people and devices that use the software, with a minimum per processor. Applications add metrics such as Application User, and Java SE is now counted per employee. The same server can cost very different amounts depending on the metric you buy.
Oracle license metrics
Oracle License Processor or NUP metrics. Application User or Professional User. Employee or Contractor. Revenue or Cost of Goods Sold.
The list is endless but Software Asset Managers should be aware of the nuances of Oracle’s licensing metrics.
What are software license metrics?
According to Sheshagiri Anegondi, Managing Partner of 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:
- Simplicity: the metric should be easy for customers to understand.
- Measurable: the metric should be countable by the publisher as well as the customer
- Fairness: the metric should provide a customer with a sense of value of the program used.
- 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. 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.
The main Oracle license metrics
| Metric | What is counted | Typical products |
|---|---|---|
| Processor | Physical cores multiplied by Oracle’s core factor for the chip, with any fraction rounded up | Database, WebLogic and other middleware |
| Named User Plus (NUP) | People, and non-human devices, authorised to use the program, with a minimum per processor (25 per processor for Database Enterprise Edition) | Database and middleware |
| Application User | Each person authorised to use an application module | E-Business Suite and other applications |
| Enterprise metrics | A business measure such as revenue or cost of goods sold | Some application modules |
| Employee | All employees, plus the staff of contractors and outsourcers who support internal operations | Java SE Universal Subscription |
| vCPU | On AWS, Azure and Google Cloud, two vCPUs count as one processor licence when multithreading is enabled | Oracle programs in authorised clouds |
| OCPU | For bring-your-own-licence on Oracle Cloud, one processor licence maps to two OCPUs | Oracle Cloud Infrastructure |
The exact definitions are in Oracle’s price lists and licence definitions. Our guides to the
Oracle core factor table and
what Oracle licensing costs work through the Processor and
Named User Plus calculations with list prices.
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