Embedded Software Licenses (ESL)
Oracle Embedded Software License (ESL) Definitions
An Embedded Software License (ESL) provides an application or device with Oracle programs truly embedded into the solution in such a way that the end user has no way to know that an Oracle database or other eligible program exists as part of the solution.
Who Typically Distributes Oracle Embedded Software Licenses?
The ESL was designed specifically for Oracle Independent Software Vendors, i.e., a companies specializing in making and selling their own software, designed for mass or niche markets based on application-specific or embedded software from other software producers. In this case Oracle Corp. An ISV makes and sells software products that may run on one or more computer hardware or operating system platforms.
To become and ISV, a company must first become an Oracle Partner, i.e., join the Oracle Partner Network.
Criteria in order to be able to use Embedded Software Licenses:
• An Oracle ISV develops an application program or device and would like to distribute the underlying Oracle technology programs embedded in the application or device
• The use of the Oracle technology distributed with the application or device can be limited to the ISV’s application or device
• The ISV has reviewed the application specific full use license and has determined their application can be offered in a more restrictive manner embedded in their solution
Why would a Company may want to Distribute Oracle Embedded Software Licenses?
• End-users are more and more looking for (hosted/SaaS/cloud type) turn-key applications/services or solutions and care less and less for what vendor or technology is used to provide this service or solution.
• When distributing your application/services or solutions with and Oracle ESL, the end-user does not have to pay separately for the underlaying database and application server, but pays typically an predetermined price per application user.
• As Oracle ESL licenses are restricted, limited use licenses they are typically less costly then Oracle Full Use licenses.
• As anISV’s you are free to determine your own end-user pricing when distributing Oracle programs and services to their customers.
Restrictions to be aware of when distributing Oracle ESL licenses
• ISV’s may not distribute the Oracle programs independent of the application package. For example, when distributing an embedded software license, a partner may not distribute the Oracle database without the partner’s application program
• License fees are due to Oracle for every application package with which the programs are embedded regardless of an end user’s prior possession or pre-existing Oracle license
• License fees are to be pre-payed to Oracle.
• ISV’s may not assign previously sold licenses to another end user
• A minimum number of end-user licences and/or total ESL deal size is required, typically around 15K Euro.
Reporting RequirementsOracle requires ISV’s to report on the use of the ESL by their end-user/customer:
• The name of the programs licensed; the name, including date or version, of the applicable end user license agreement
• The name, including the date or version, of your agreement with Oracle under which the programs are being distributed
• The applicable license metrics, quantity, and term designation
• The date of the end user’s order
Contact us if you need more clarification or want to find out if Oracle ESL are a license form that could be of benefit to your company. We have been able to truly help many of our clients by migrating to an Oracle ESL-type of license.