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How Software Licensing Evolves in Oracle 12

By Susan J. Campbell, TMCnet Contributing Editor

When relying on enterprise resource planning (ERP) solutions to help manage the build and delivery of physical goods, organizations depend on robust software. When that software starts to become dated, software licensing policies dictate a change to the next iteration if performance standards are to be met. In moving from Oracle (News - Alert) 11 to Oracle 12, there are a few challenges to overcome to ensure the right business processes are in place to manage the software business.

A recent Flexera Software blog featured a video of Cris Wendt, Principal Strategy Consultant at Flexera Software discussing the importance of entitlement management business processes used in the management of customer interactions with digital goods. Traditional ERP implementations are optimized for the proper build and management of physical goods delivery. At the same time, purpose-built entitlement management systems are optimized for the administration of recurring software-associated revenue. This includes activation and the replenishment of software licensing.

To be successful, companies have to take a different approach to Oracle 12 than they did to Oracle 11, according to Wendt. For many, this upgrade is dramatic, as it’s not as simple as just duplicating their Oracle 11 processes in Oracle 12. It’s not uncommon for the majority of these processes to be manual, which conflict with the benefits and activities Oracle 12 was designed to deliver. In working with physical goods, the ERP solution is designed around the build and delivery of physical goods, which start with orders, materials and shipping. When the end product is shipped, the ERP solution is typically done.

For the company offering the software licensing, that ship point is often where the problems will begin. In the migration to Oracle 12, companies have the opportunity to make the necessary changes to overcome their current challenges. This allows for the addition of entitlement management, which sits between customers and the Oracle solution, creating an experience not unlike iTunes. It gives customers the right to active replenish rights and more within software licensing, providing the flexibility they need within their own environments.

This is especially important in a world where embedded devices are becoming increasingly popular. Users need the ability to manage the transfer and ownership of their digital goods and software licensing. By providing customers with the flexibility and accessibility they need, they are more likely to be loyal customers for the long-term. This ensures the benefits software licensing was designed to deliver are actually optimized.