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Oracle's new pricing scheme for its 11i E-Business Suite is designed to sign up more customers for the suite by making nearly all Oracle apps available at $4,000 for a professional user and $400 for each self-service user.
The new fee schedule requires a company to have a minimum of 567 personnel and to license at least 10% of its employees as professional users and 10% as self-service users for a $250,000 buy-in. Professional users include any employees who use one of the core applications in the 11i E-Business Suite, including enterprise resource planning, procurement, manufacturing, customer-relationship management, and human-resources applications. Self-service users include those who use any Oracle Web-based self-service application.
The new pricing schedule doesn't affect the volume-based pricing for applications such as supply-chain optimization, sourcing, payroll, and Web-based order entry. Product support and update subscription fees are 7% to 15% of the license fee. The new pricing model doesn't include specialized vertical applications such as the company's communications and utilities apps.
Jacqueline Woods, Oracle's VP of global practices pricing, says companies that previously licensed a number of applications will be able to save 25% to 50% under the new per-user pricing scheme. Existing Oracle application users who decide to migrate to 11i under the new pricing model will receive credit for the net fees paid for previous applications purchases. Woods says the new pricing scheme was prompted by users who wanted simplified, lower pricing for the entire suite compared with the cost of licensing individual applications.