Understanding Oracle Primavera P6 Licensing: A Comprehensive Guide

Oracle Primavera P6 is a leading project management software suite widely used across industries like construction, oil & gas, manufacturing, and public administration. Its robust tools for planning, scheduling, resource management, and cost control make it a top choice for managing complex projects. A key consideration for organizations looking to implement Primavera is understanding its licensing options, as these directly impact deployment, usage, and scalability.

Licensing Models for Oracle Primavera

Oracle Primavera offers two primary licensing models: Named User Perpetual Licensing and Cloud Subscription Licensing. Both options cater to different organizational needs, providing flexibility in software deployment and usage.

1. Named User Perpetual Licensing

Named User Perpetual Licensing is a traditional licensing model where licenses are purchased for specific individuals (named users) within the organization. These licenses are permanently owned by the organization, allowing for long-term usage even after the initial maintenance period expires.

Key Features:

*Ownership: Licenses are permanently owned by the organization.

*Deployment: Installed on client hardware, private servers, or private cloud environments.

*User Assignment: Each license is assigned to a named individual and cannot be shared among multiple users.

*Flexibility: Licenses can be re-assigned to another individual within the organization if the original user leaves.

*Maintenance: The first year of maintenance is included, covering technical support and software updates. Renewal is optional but recommended for continued support and upgrades

Termination Clause Based on Matching Service Level (MSL):

Oracle's Matching Service Level (MSL) policy requires that all perpetual licenses in a contract must be maintained at the same service level. If an organization chooses not to renew maintenance for specific licenses, those licenses must be terminated. Once terminated, the licenses can no longer be used, even though they were originally perpetual. Organizations should carefully evaluate their requirements before opting for partial maintenance renewal.

Example Scenario:

An organization with 10 perpetual licenses wants to renew maintenance for only 5 licenses. Under the MSL policy, the remaining 5 licenses must be terminated and cannot be used going forward.

2. Cloud Subscription Licensing

Cloud Subscription Licensing is a newer, flexible option where the software is hosted on Oracle's cloud servers and accessed on a subscription basis. This model is ideal for organizations seeking scalable, on-demand project management tools without the overhead of on-premises infrastructure.

Key Features:

*Subscription-Based: Licenses are rented for a specific period, typically with a minimum commitment of 12 months.

*Cloud-Hosted: Managed and maintained on Oracle’s secure cloud servers, reducing IT resource requirements.

*User Minimums: A minimum of 25 users for P6 EPPM Cloud subscriptions is required.No option available for P6 PPM for cloud subcription.

*Scalability: The number of licenses can be adjusted at renewal, but must meet Oracle's minimum thresholds.

*Renewal: Access to the software is tied to the subscription period. Non-renewal results in loss of access.

Example Scenario:

A construction firm requiring 30 licenses for a project can opt for cloud subscriptions, enabling them to scale up or down based on project needs.

Considerations for Choosing the Right License

1. Project Size and Duration: For long-term, large-scale projects, perpetual licensing may be more cost-effective. For short-term or fluctuating project requirements, cloud subscriptions provide flexibility.
2. IT Infrastructure: Organizations with robust IT infrastructure may prefer perpetual licenses for on-premises deployment. Smaller teams or firms without dedicated IT resources may benefit from Oracle’s managed cloud environment.
3. User Base: Named user licenses are ideal for stable user groups. For teams that grow or shrink frequently, cloud subscriptions allow easier scalability.
4. Budget: Perpetual licenses have a higher upfront cost but lower long-term expenses. Cloud subscriptions spread costs over time, which can be easier for budgeting.

Renewals and Maintenance

Perpetual Licenses:

While the licenses are permanent, maintenance renewal is optional but recommended for access to updates and technical support. Lapsed maintenance can be reinstated with a 150% prorated reinstatement fee based on the original license order date. However, under the Matching Service Level (MSL) policy, partial renewal is not allowed without terminating unused licenses.

Cloud Subscriptions:

Renewal is mandatory to continue using the software. Without renewal, access to the software is revoked.

Why Partner with IPEC Project Systems Sdn Bhd?

As an Oracle Gold Partner specializing in Primavera solutions, IPEC Project Systems Sdn Bhd provides expert guidance on licensing, deployment, and training. We help organizations select the best licensing model based on their unique project needs, ensuring optimal ROI on their Primavera investment.

For more information or assistance with Oracle Primavera licensing, contact sales@ipecsystems.com.my. Our team is ready to support you in making an informed decision.