Understanding Oracle ASFU License: Terms and Pros and Cons

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What is Oracle ASFU License?

Oracle ASFU license (Application Specific Full Use) license is a license model available exclusively to Oracle Independent Software Vendors (ISVs) who have built solutions or applications that utilize Oracle technology. As an Oracle ISV license model, ASFU licenses can only be sold by Oracle ISV/OEM partners, who purchase the license from Oracle and resell it to end customers. The end customer is listed as the owner of the ASFU licenses, and this license model has certain limitations and technical restrictions. In this article, we will explore the terms, limitations, technical restrictions, and pros and cons of using Oracle ASFU license.

Oracle ASFU Licensing Limitations

The Oracle Application Specific Full use license is limited to a specific ISV/OEM application/solution. This license is restricted to the specific solution or application that is defined in the agreement, and it cannot be utilized for any non-SAP applications. The ASFU license limitations are defined in a contract (APRF) between Oracle and the Oracle ISV that has entered into the Oracle agreement. Additionally, it is not allowed to store any third-party data in the Oracle database or to let any third-party programs run their business logic and store any data in the Oracle database.

While it is allowed to integrate non-Oracle Application Specific applications into the solution that are using Oracle ASFU licenses, any connection to the Oracle software must be done via an ISV provided API. No direct links to the Oracle software and third-party software are allowed in the Application Specific Full use license model. However, end customers can pay a fee to migrate/upgrade their ASFU licenses to full use licenses and re-use the licenses for other applications.

Oracle ASFU Technical Limitations

Under the Oracle ASFU license model, it is not permitted to build customized code or applications and use the Oracle database license. It is also not permitted to let any third-party programs run their business logic and/or store any data in the Oracle database. However, it is allowed to let non-ASFU applications read data from the database using ODBC or similar access methods. You cannot let a non-Application Specific Full Use application write data directly to the database using ODBC or similar.

Oracle ASFU vs Oracle Full Use

The App Specific Full use license is discounted at 60% from Oracle pricelist. However, the end customer cannot contact Oracle technical support directly. The first line of contact is the ISV/OEM partner, who in return should contact Oracle if the end customer needs technical support. Oracle technical support for App Spec FU is then 19% to the ISV, as Oracle expects the ISV to act as the first line of support.

Oracle ASFU licenses do not always follow standard Oracle licensing rules by counting named user plus users or processors. Oracle ASFU is occasionally using royalty license models where the ISV can resell Oracle licenses, and Oracle gets a percentage from the ISV price list every time there is a sale. There is then no need to count processors or users.

If you enter an Oracle Unlimited license agreement, you will need to migrate and include the ASFU licenses. Compared to the Oracle PAH license model, the main difference is that Oracle PAH licenses are to be used for many end customers. The Application Specific Full use license model is for 1:1 companies. If you are an Oracle ISV, it’s very important to understand the differences in license models to avoid costly license fees if Oracle audits your business.

Two Oracle ASFU License Models

There are two different license models that the App Specific FU license is available under. The most common (95%+) is the standard Oracle license metric, named user plus, and processor licenses. If you have that license model, you need to license the Application Specific Full Use licenses the same way as you would for normal full use licenses but with the application package restrictions.

The second ASFU Oracle license model, which is rare but exists in the royalty license model. In this model, the ISV provides Oracle with its current price list, and they agree on providing Oracle a percentage of all sales. In return, the ISV can resell App Specific FU licenses without any consideration of the number of users and processors.

Oracle ASFU and Audits

Oracle ASFU license deployments should not be included in end customer Oracle license audits. Any audit of Oracle software for Application Specific Full Use must be done via the ISV/OEM.

FAQ on Oracle ASFU license

Q: Who can purchase Oracle ASFU licenses?
A: Oracle ASFU licenses are available only to Oracle Independent Software Vendors (ISVs) who have built solutions or applications that utilize Oracle technology.

Q: What are the limitations of Oracle ASFU licenses?
A: Oracle ASFU licenses can only be used for the specific solution or application that is defined in the agreement. Additionally, ASFU licenses are limited to a specific ISV/OEM application/solution.

Q: What are the technical limitations of Oracle ASFU licenses?
A: It is not allowed to store any third-party data in the Oracle database or to build customized code or applications and use the Oracle database license. Additionally, it is not permitted to let any third-party programs run its business logic or store any data in the Oracle database.

Q: What is the difference between Oracle ASFU and Oracle Full Use?
A: The App Specific Full use license is discounted at 60% from Oracle pricelist, but it has some limitations and technical restrictions compared to Oracle Full Use.

Q: Can ASFU licenses be audited by Oracle?
A: Any audit of Oracle software for Application Specific Full Use must be done via the ISV/OEM partner who resold the license. The end customer is not liable towards Oracle for any non-compliance with the Oracle license.

Q: What are the pros and cons of Oracle ASFU licenses?
A: Pros include the discounted price, and end customers are not liable for non-compliance. Cons include the limited use for the specific application package and the fact that you cannot recycle the license for another application.

In conclusion,

the Oracle Application Specific Full use (ASFU) license is a license model designed for Oracle Independent Software Vendors (ISVs) who have built solutions or applications that utilize Oracle technology. It is a discounted license model that can only be sold by Oracle ISV/OEM partners who have built solutions or applications that utilize Oracle technology. ASFU licensing comes with some restrictions and limitations that both the ISV and end customer should be aware of to avoid any costly license fees if Oracle audits their business. Despite the limitations, the Oracle ASFU license model is still a viable option for ISVs who want to provide specific solutions to their end customers. However, before making a decision, it is important to review the license terms and consult with an Oracle licensing expert to ensure compliance and avoid any legal or financial risks.

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