To all ISVs considering Oracle Database for your hosted solution

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So you’re an ISV looking for the perfect database for your hosted solution. You might think Oracle Database is the optimal solution for your particular use case since it’s got all the features you need, like reliability, scalability, performance, and security. Plus, it’s got this cool multi-tenant feature that lets one software app serve multiple customers.

But hold up – before you sign that contract, you’d better read it carefully. Here’s why:

Oracle has two different agreements for its on-premises and cloud software: the Oracle Master Agreement (OMA) and the Cloud Service Agreement (CSA). Both say you can only use the Oracle programs or services for “internal business operations.” It’s unclear what that means, so you might have to talk to Oracle about it later, especially if you’re using the software to host stuff for other people (end users).

Many ISVs don’t realize this and think they can use Oracle Database for their hosting services, but that’s a breach of contract. If you’re an ISV or you provide hosting services, you need to make sure you have special “hosting rights” in your Oracle agreement that let you host the software for other people’s business operations.

Suppose you want to distribute Oracle software as part of your application. In that case, you’ll need a distribution agreement with Oracle – either an Embedded Software License Distribution Agreement or an Application Specific Full Use Distribution Agreement. If you’re hosting your proprietary app on your servers, you’ll need to get Proprietary Application Hosting licenses from Oracle that give you specific “Internet Hosting” rights.

Make sense? Good luck with all that contract stuff!

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