webinar siebel crm - the most common license compliance issues seen

Presentation Richard Spithoven & Anamaria Avram

LICENSING SIEBEL CRM: AN OVERVIEW OF THE MOST COMMON LICENSE COMPLIANCE ISSUES


ANAMARIA AVRAM

RICHARD SPITHOVEN

Meet our Siebel experts

2014 – present Senior Technical Licensing Expert b.lay, the license management company !ORACLE!2012– 2014 Senior Siebel Technical Analyst Oracle License Management Services ORACLE!2011– 2012 Technical Licensing Analyst Oracle License Management Services

2013 – present Director / Partner b.lay, the license management company ORACLE 2009 – 2013 REGIONAL DIRECTOR LMS Europe South ORACLE 2005 – 2009 Principal Licensing Consultant Oracle EMEA


Agenda 1.  License Entitlements – How does it work? 2.  Horizontal and Vertical applications 3.  Employee, Customer and Partner 4.  Unawareness of Siebel License Keys 5.  Siebel pricing vs Oracle pricing & metrics 6.  Users

1.  Authorized vs. Used 2.  Inactive Users Still Having Access? 3.  Incorrect Assignment of Responsibilities 4.  Professional Edition vs. Enterprise Edition 5.  External Users vs. Internal Users

7.  Concurrent migrates to Processor 8.  Custom Views Determine Usage 9.  Conclusions


License Entitlements – How does it work? (1/1)

In order to understand what your real license entitlements are,

a number of documents and sources need to be

reviewed, analyzed, understood and maintained

on a regular basis.


License Entitlements – How does it work? (1/1)

OF OLSA

SR

SP1 PD10g BP

SR SR

SP2 PD11g

SR SR

Time

These sources include:

-  Order Form (OF)

-  License Agreement (OLSA, SLSA or OMA)

-  Support Renewals (SR) – Subject to change

-  Support Policies (SP) – Subject to change

-  Prog. Documentation (PD) – Subject to change

-  Online Documents (BP) – Subject to change

-  Online Guidelines (BP) – Subject to change


Siebel CRM – Horizontal and Vertical (I)

o  Horizontal Applications are industry independent solutions, o  for instance Siebel CRM Base and Siebel Contracts.

o  Vertical applications are industry specific solutions such as Siebel Public Sector CRM Base and Siebel CME Contracts (Communications, Media and Energy).

o  Vertical Applications contain the entire set of modules including horizontal applications, which means they are more expensive.

Differences between the two Siebel business solutions can have a huge impact on licensing.


Siebel CRM – Horizontal and Vertical (II) Example:

When an organization licenses the Siebel Contracts they should install Siebel Contracts functionality and not Siebel CME Contracts.

*Exposure Value= (Number of Users*License Price) + (Number of Users*Support Price)


Siebel CRM – Employee, Customer and Partner

In addition to the Horizontal and Vertical classification, Siebel applications may also be classified by the Employee, Customer and Partner user type:

•  Employee Applications – products to be used by an organization’s employees, for instance sales people using Siebel Contracts;

•  Customer Applications – products to be used by an organization’s customers, mainly designed for purchasing online, e.g. Siebel Public Sector eService;

•  Partner Applications – products to be used by partners of the organization, e.g. Siebel Public Sector Partner Portal.


•  Prior to Oracle’s acquisition, an end user had to enter into a license agreement with Siebel, after which he would receive his unique license keys to enable the functionality purchased.

•  Post Oracle’s acquisition, the licensing model changed to Oracle’s licensing model:

•  Customers can now download license keys from:

http://www.oracle.com/us/support/licensecodes/siebel/index.html

The downloaded license keys often include more functionalities than the organization is licensed for. Extra Siebel modules/functionalities in use will need to be licensed, reflecting the total number of authorized users.

Siebel CRM – Unawareness of Siebel License Keys


Siebel CRM – Siebel pricing vs Oracle pricing Prior to Oracle’s acquisition, Siebel products were sold as an individual application (e.g. Siebel Sales Enterprise) and as application bundle (e.g. eAdvisor and eConfigurator Bundle).

Once with the acquisition, Oracle started selling Siebel products under the three standard pricing models for Oracle applications:

•  Component licensing Oracle’s traditional à la carte pricing model and cost effective for customers licensing one or a few Oracle products with a limited number of end users. ( e.g. Siebel CRM Base, licensed per Application User, allowing one individual to use one single Siebel software program.

•  Custom Application Suite (CAS) licensing Under CAS licensing a customer may purchase different software products in one bundle (e.g. Siebel CRM Base licensed per Custom Suite User). This metric allows one individual to use multiple Siebel software programs as defined in the bundle.

•  Enterprise licensing allows customers to license the desired Siebel software programs for their entire organization without having to keep track of specific user licenses, servers or deployment locations on which the Siebel software programs are installed. ( e.g. Siebel Asset Management licensed by the Enterprise Metric “Enterprise $M in Revenue.”


•  The metric units that Oracle applies today for the Siebel products are not totally different from the legacy metrics used by Siebel System. Siebel products were generally sold per user.

Siebel CRM – Siebel metrics vs Oracle metrics

Historical license metric Current License Metric Named User is defined as an individual authorized by you to use the programs which are installed on a single server or multiple servers, regardless of whether the individual is actively using the programs at any given time. Customer may copy, install and use these Siebel Programs for additional Named Users only upon payment of additional Siebel Program license fees.

Application User is defined as an individual authorized by you to use the applicable licensed application programs which are installed on a single server or on multiple servers regardless of whether the individual is actively using the programs at any given time. If you license the Oracle Self Service Work Request option in conjunction with Oracle Enterprise Asset Management, you are required to maintain licenses for the equivalent number of Application users licensed and you are granted unlimited access to initiate work requests, view work request status and view scheduled completion date for your entire employee population. For Order Management, application users are allowed to manually enter orders directly into the programs but any orders entered electronically from other sources must be licensed separately by Electronic Order Line


•  Another type of user-based license is Registered User. The current Registered User licenses are equivalent to the legacy Registered User licenses: both focus on the number of business partner individuals authorized to use the software. Partner Applications are typically licensed under this metric.

•  For the non user based licenses such as Processor, Physical Server, Computer etc., usage counts are based upon the (physical) hardware on which the Siebel software programs are deployed. Computer licenses are very similar to the legacy Physical Sever licenses; both focus on the number of servers where the software is installed. Licenses on the Physical Server metric often come with limitations such as number of CPUs on the machine or number of records stored in the database installed. End users need to make sure that these extra limitations in the terms of their agreement are being met, since any breach of these restrictions would require purchasing additional licenses.

•  Some metrics only became available for Siebel Products after Oracle’s acquisition, such as Custom Suite User, Enterprise, and metrics that are not available anymore like Concurrent Users.

Siebel CRM – Siebel metrics vs Oracle metrics


For the most common metric definitions (Named User, Application User or Registered User) the total required number of licenses is determined by the total number of distinct individuals which are authorized to use the software, no matter if they are actively using the software.

Most of the organizations that are using Siebel CRM license only the users that are actively using the products, even if their contract states that every user authorized to make use of the software needs to be license no matter if they are active users.

Proper cleanup involves performing the user deactivation process in a correct and complete way, so that anyone who doesn’t need access to

the Siebel Programs anymore is being removed.

Siebel CRM – Authorized vs. Used (I)


Based on the reconciliation between these two type of reports, organizations will be able to perform a proper usage clean up.

Siebel CRM – Authorized vs. Used (II)

Usage Report •  Siebel Authorized Usage Report – allows organizations to see the number of users that

are authorized to use their Siebel Programs; •  Siebel Actual Usage Report – allows organizations to see the number of users that are

actively using a certain Siebel Program;


Siebel CRM – Inactive Users Still Having Access?

•  Most organizations do not comply with Oracle's methodology for measuring usage in a Siebel

environment and often a clear deactivation methodology is lacking. •  Old users are simply deactivated by changing logins or it is assumed that anyone who left the

company or changed roles should not be counted as having access to the software anymore. •  Oracle requires organizations to license each person that is formally authorized to use the software,

no matter if she or he is an active user.

It’s extremely important to apply a proper and complete deactivation process, consisting of updating employee IDs, statuses, responsibilities and many other changes at both the database and the application level.


Siebel CRM – Incorrect Assignment of Responsibilities

Responsibilities

Views

Siebel Product

•  Users have access (are authorized) to Siebel products, once they have a Responsibility assigned;

•  Each responsibility contains one or more views; •  Each view belongs to one or more Siebel Products.

Siebel administrators usually assign responsibilities to users without knowing that the views behind those specific responsibilities may be part of Siebel products for which the organization didn’t acquire a license. Aproper clean up should involve validating the user responsibility association process as well.


Siebel CRM – Professional Edition vs. Enterprise Edition

•  Siebel CRM Professional Edition (SPE) is a scaled-down version of the Siebel Enterprise Edition.

•  SPE is targeted at small and medium-size businesses (SMEs) that don’t require the full Enterprise Edition.

•  Siebel Professional Edition is a good fit for smaller businesses, but the software has its limitations.


Siebel CRM – Professional Edition. vs. Enterprise Edition

Siebel CRM Base Siebel CRM Service Base, SPE

Technical functionality Service Base SPE Base - Service

Product Version 8.1 8.1

# views ~ 900 ~ 100

Impact on licensing:

•  SPE customers often use Enterprise Edition functionality, without realizing it. This usually happens when the downloaded key provides access to more functionality than needed and as a consequence will allow the usage of functionality that wasn’t paid for.

•  In case of an audit, organizations making use of SPE modules or functionalities need to migrate

their licenses to the more expensive Siebel Enterprise Edition license.


Siebel CRM – External Users vs. Internal Users

Employee Products

Customer Products

Analytics Partner Products

•  Many organizations provide external users access to internal applications without owning an external license type.

•  Compliance then can only be determined on the available (internal) license metrics (typically Named User, Application User or Concurrent User), resulting in large non‐compliance situations and associated costs.


Siebel CRM – External Users vs. Internal Users

Example

Product Category Product name Quantity

Siebel Base ApplicationSiebel CRM CME Base 40Siebel CME General Siebel CME Contracts 10

License Entitlements Overview (LEO)

External Users Overview

*Exposure Value= [(Number of Licenses - Number of Users)*License Price)]+ [(Number of Licenses - Number of Users)* Price)]


•  Concurrent User is an old licensing metric that Oracle does not sell it anymore. •  In case of non compliance customers that are licensed for Concurrent User

will need to purchase additional licenses on the new license metric Processor, which are more expensive.

Siebel CRM – Concurrent migrates to Processor

Properly keeping track of their changing population will allow organizations to make sure that old license metrics do not exceed the entitled quantity, and gives them time to assess the new metrics on which Oracle sells. Moreover, keeping track of the changing population allows organizations to stay informed of Oracle’s licensing practices and migrations, and keeps them up to date of implications that occur when extending the use for certain old metrics.


Organizations should pay close attention to what Siebel modules and functionalities the custom views are build upon, especially since if only one single custom view is mapped to an unlicensed application, this may cause large compliance risks and associated financial risks.

•  Many organization have implemented customized views in their Siebel installation to accommodate their needs.

•  The bulk of Siebel usage in organizations might come from custom views;

Siebel CRM – Custom Views Determine Usage (I)


Siebel CRM – Custom Views Determine Usage (II)

Product Category Product name Quantity Siebel Base Application Siebel CRM Base 40Siebel CRM General Siebel Forecasting 15Siebel CME General Siebel CME Contracts 10

•  Example

License Entitlements Overview (LEO)

Custom Views Overview

*Exposure Value= [(Number of Licenses - Number of Users)*License Price)]+ [(Number of Licenses - Number of Users)* Price)]


Siebel CRM – Conclusions

–  Create an internal software license management team of multiple disciplines (procurement, legal, DBA, Infrastructure Managers, Business Application Mangers, Outsourcers) with C-level sponsorship and review on a regular basis:

•  Make software license management a priority at C-level and budget for the proper software license management practice, tailored to the specific needs of your organization.

•  your real license entitlements (incl. OD, OLSA, SR, SP, PD, BP)

•  your real deployment and (licensable) usage of the software

•  reconcile your license entitlements with your license deployment and usage in order to identify and address software license compliance issues proactively!


①  Oracle License Review or License Audit Answers to your Top 20 Questions

②  Oracle Licensing Guide: Your quick Oracle Licensing Guide

③  Oracle Unlimited License Agreements (ULA): An overview of the major risks you should be aware of

④  Oracle Databases An overview of the ins & outs of this type of agreement

⑤  Oracle E-Business Suite: An overview of the most common license compliance issues

Further reading on www.b-lay.com


Siebel CRM – Questions


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Oracle Enterprise Licensing - A Detailed Overview of How It Works 28th April 16:00 CET


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