Oracle Named User Plus Licensing (NUP)

Oracle Named User Plus Licensing (NUP)

• Oracle NUP licensing is based on specific users accessing Oracle software.
• Minimums vary by product and hardware configuration.
• Counts all individuals accessing or using the software, directly or indirectly.
• Ideal for environments with a known, limited user base.
• Includes both human users and non-human processes like APIs.

Oracle Named User Plus Licensing (NUP)

Oracle licensing can be a maze to navigate, and understanding the various types of licenses is crucial for avoiding compliance issues and ensuring cost efficiency. Named User Plus (NUP) Licensing is one of Oracle’s more common licensing models, particularly suited for specific user-centric deployments.

https://admodumcompliance.com/oracle-license-type/This article will explore Oracle NUP Licensing in-depth, focusing on its definition, requirements, use cases, and potential pitfalls.

What is Oracle Named User Plus (NUP) Licensing?

Named User Plus Licensing is a model based on the number of users or devices accessing Oracle software rather than the number of processors. Specifically, this type of licensing allows Oracle software to be used by a fixed set of named users and devices rather than an unlimited pool of users.

NUP licenses are ideal for environments where only a limited number of users or devices need access to the software, making it a cost-effective option in certain situations.

Key Features of Named User Plus Licensing

• User-Based Model: Licenses are issued based on the number of individual users or devices accessing the software.
• Minimum Requirement: A minimum number of Named User Plus licenses must be purchased depending on the configuration and the software being deployed.
• Flexibility: NUP licensing can be effective in environments where the number of actual users is significantly lower than that of processors, reducing licensing costs.

How Named User Plus Licensing Works

User Plus licensing requires that each user accessing the Oracle database is counted. A “named user” is defined as any individual authorized to use the software, regardless of whether they do so.

Example: Imagine using Oracle Database in a small business environment where only 30 employees access the system. Instead of purchasing a full processor license, you can buy 30 NUP licenses. This makes it much more economical than licensing the entire system for an enterprise-level number of users.

Minimum License Requirement for Oracle NUP

One critical aspect of NUP licensing is that Oracle sets a minimum threshold for the number of licenses required, which depends on the hardware configuration and the number of processors in use.

Example:

• For Oracle Database Enterprise Edition on a server with a single processor, you may need to purchase at least 25 Named User Plus licenses per processor.
• This requirement doubles to 50 NUP licenses for a server with two processors.

Oracle often changes the specifics of these rules, so it is always recommended to check the latest official Oracle documentation or consult an Oracle licensing expert.

Key Considerations for NUP Licensing

1. Counting Named Users

One of the more complex aspects of NUP licensing is understanding who counts as a named user. A named user includes:

• Any human being authorized to access the Oracle software.
• Devices (such as kiosks or automated sensors) that can access the software without human intervention.

Example: You have a production database accessed by 50 employees and ten automated devices collecting environmental data and uploading it to the database. The total count would be 60 Named User Plus licenses in this case.

2. When is NUP Licensing the Right Choice?

NUP licensing works well for scenarios where:

• Limited User Base: The total number of users is known and limited, making it more cost-effective than the more expensive processor licensing model.
• Predictable Usage: The environment has a stable number of users, and the user count is unlikely to grow significantly shortly.
• Internal Use Cases: Development, testing, or internal operations environments where only a specific number of developers or employees require access.

3. Ensuring Compliance

Oracle is known for its rigorous audits; non-compliance can result in significant fines. Here are some tips for ensuring compliance with NUP licensing:

• Document User Access: Maintain a record of authorized users accessing Oracle software.
• Review Regularly: Periodically review your user counts to ensure compliance, especially if your workforce or use case changes.
• Audit Simulations: Conduct internal audits to ensure you meet Oracle’s requirements.

Pros and Cons of Named User Plus Licensing

Pros

• Cost-Effective: NUP licensing can be much more cost-effective than processor-based licensing for environments with limited users.
• Scalability for Small Deployments: Small deployments where the user base does not expand frequently can benefit significantly.
• Controlled Access: Encourages controlled access, which is useful for compliance and security purposes.

Cons

• Minimum License Requirements: Requiring a minimum number of licenses based on processor count can be restrictive in some environments.
• User Growth Challenges: As the number of users increases, NUP licensing may quickly become more expensive than switching to a processor-based model.
• Complexity in Compliance: Accurately counting users, including inactive ones, can be challenging. Compliance is a constant concern, as Oracle regularly conducts audits.

Read about Oracle Cloud Subscription Licensing.

Named User Plus Licensing vs. Processor Licensing

Processor Licensing is another popular model for Oracle databases, and it’s worth understanding how it compares to NUP licensing:

For example, if you run a web application that thousands of users could access concurrently, processor licensing is typically more practical. Conversely, if you have a database used by 20 internal users, NUP licensing would likely be more cost-efficient.

Read about term vs perpetual license models.

Examples of Use Cases for NUP Licensing

Here are a few scenarios to provide more clarity on where Named User Plus licensing is beneficial:

1. Internal Database for HR or Accounting

An organization has a database that 15 members of the HR team access. Since the number of users is clearly defined and not expected to grow substantially, purchasing 15 NUP licenses makes sense.

2. Development and Test Environments

A company maintains a development environment for 10 developers who use Oracle to develop and test applications. In this scenario, 10 NUP licenses are cost-efficient compared to a full processor license.

3. Manufacturing Plant with Automated Devices

In a manufacturing plant, 10 automated devices collect data stored in an Oracle database, and 5 employees manage these devices and access the database. In this case, the total NUP count would be 15.

How to Calculate Named User Plus License Requirements

To calculate the number of NUP licenses required, follow these steps:

1. Identify Users and Devices: Count the total number of users and devices accessing the software.
2. Minimum Requirement Check: Based on your configuration, verify the minimum number of licenses required per processor. For example, if you have 2 processors and Oracle mandates 25 NUP licenses per processor, your minimum purchase will be 50 licenses even if you have fewer users.
3. Account for Growth: Anticipate any upcoming growth in the number of users to avoid compliance issues. You may need to purchase additional licenses if the number of users increases.

Potential Pitfalls and How to Avoid Them

1. Underestimating User Counts

One common issue is underestimating the number of users. Any user with access, even indirectly, should be included in the NUP count. For instance, users who access data via a middle-tier application still need a NUP license.

Solution: Conduct thorough audits to include all possible users and devices.

2. Confusion Over User Definition

Understanding what counts as a “user” can be confusing. Inactive users who still have access privileges also count towards the license requirement.

Solution: Regularly review and remove unnecessary user access to minimize costs and maintain compliance.

3. Meeting Minimum Requirements

Ignoring the minimum number of licenses per processor can lead to compliance issues.

Solution: Ensure you understand Oracle’s minimum license requirements based on your hardware configuration and always verify these requirements when expanding or modifying your environment.

Best Practices for Managing Named User Plus Licensing

To make the most of Oracle NUP Licensing, consider the following best practices:

• Centralized User Management: Maintain a centralized system to manage user access. This makes tracking the exact number of users easier and reduces non-compliance risk.
• Periodic License Reviews: Conduct regular license reviews to adjust the number of NUP licenses as needed, especially during organizational changes.
• Understand Your Environment: Fully understand your hardware configuration, including the number of processors, to ensure compliance with Oracle’s minimum requirements.
• Work with Licensing Experts: Engage with Oracle licensing experts or consultants to ensure you meet compliance requirements and optimize costs.

FAQs

What is Oracle Named User Plus licensing?
It is a licensing model where a specific number of human and non-human users are licensed to access Oracle software.

How is the user count determined?
Regardless of frequency, it includes all users directly or indirectly accessing the Oracle software.

Does NUP licensing include API calls?
Any process or application accessing the Oracle system, such as APIs or middleware, is counted.

What are the minimum user requirements?
Minimum licensing requirements depend on the Oracle product and hardware specifications used.

Can NUP licensing apply to virtualized environments?
Yes, but you must account for all users accessing the software in physical or virtual environments.

Is there a way to transition from NUP to processor-based licensing?
Oracle allows transitions, but you must review contractual terms and usage needs.

Are service accounts included in NUP counts?
Yes, service accounts used for automated processes are considered users.

Can I reduce the number of NUP licenses over time?
Reducing licenses is possible but requires renegotiating the contract with Oracle.

Does Oracle audit NUP compliance?
Yes, Oracle performs regular audits to ensure compliance with licensing terms.

What happens if I exceed my licensed NUP count?
You may face penalties, including purchasing additional licenses and backdated fees.

Is NUP licensing cost-effective for small teams?
It is often cost-effective for organizations with a limited, clearly defined user base.

Can NUP licenses be shared across multiple environments?
NUP licenses are typically tied to specific environments and cannot be shared.

Does the NUP model suit public-facing applications?
NUP licensing is generally unsuitable for unpredictable or high user count environments.

Are non-human users priced differently?
Non-human users are licensed at the same rate as humans under the NUP model.

What documentation is needed to prove compliance?
You must maintain detailed records of user counts, environments, and usage patterns for Oracle audits.