According to Wikipedia, a software license is “a license to use someone else’s computer program”. In short, it is a right of use. Sounds simple – and you immediately see that a “license” is not limited to On-Premises environments – but in practice I see a lot of confusion, misunderstanding and sometimes dissatisfaction. This is due to people often comparing licenses to physical property, such as a house or a car, and therefore expecting that similar conditions apply to software licenses.
What often helps me better explain this concept, is the metaphor of traveling by train. Not only is train travel environmentally friendly, but interesting comparisons can be drawn between this mode of travel, and software licenses. For example, with software, as mentioned earlier, we talk about the right of use, i.e. the right to use someone else’s software (program). In the case of train travel, we’re speaking of a person’s right to be transported. When you buy a ticket on the train, you are paying for the privilege of traveling from one point to another. You don’t receive a piece of a seat, or a square meter in the train in exchange, you merely receive the right to go from “A” to “B”. In fact, if the train is full, you’ll even need to wait for the next train, so limited is the scope of your ticket. With a major disruptions, you may even have to find an alternative way to reach your destination.
But how are these rights and privileges established? In the case of software, the right of use is recorded in the license with associated rights and obligations. In our comparison to train travel, our right to use the train is given to us via a ticket. Interestingly, in my home country of The Netherlands, we used to buy a paper ticket, though it has now been replaced by the OV chip card or the new variant, OVpay (based on the Oracle Cloud). But let’s return to software.
How do we express the volume of use, or the unit of measurement (metric) of the acquired right? In the case of Oracle software, this is referred to as Processor, Named User Plus or OCPU per hour. Back to our train metaphor, a person’s transport is measured by the distance traveled, the class of travel and the corresponding price which may be influenced by the time of travel, any applicable discounts, etc. The price for software depends on the quantity, the specific products and the type of use, possibly supplemented with additional annual support.
All of the above aspects together, combined with a possible discount agreement such as a subscription, lead to the final price. As you can see, at no point does the buyer become the owner of the software, just as the holder of the train ticket does not become the owner of their seat on the train. Since it is not about a physical purchase but rather it is about obtaining a right, the owner (Oracle or the transport company) determines the conditions for use. For example, the traveler will not be able to get away with traveling as a couple on the basis of 1 ticket, with the second traveler sitting on the lap of the first, even though they only occupy one seat!
If we think in terms of comparisons, the Oracle Universal Credit (UCC) is actually very comparable to the OV chip card. With the UCC you can use all services available within the Oracle public cloud. Just like you can travel with all types of public transport in the Netherlands with the OV-chip card.
In summary, I advise anyone dealing with software – from Oracle or anyone else – to be fully aware of the specific ways in which the right of use can be exercised, including the associated restrictions as determined by the supplier. Just as it is also good to read the terms and conditions of the transport company before embarking on a world trip.
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