Definition
Named User Licensing: A license model where each license is assigned to one identified individual by name, account ID, or employee ID. Only that person may access the software. License counts are auditable through identity logs, and reassignment is restricted by contract, typically to a 30, 60, or 90 day cooling period after termination or role change.
Named user models dominate enterprise software pricing across Oracle, SAP, Salesforce, and Workday. The model lets vendors price closer to usage while still preserving the ability to audit. The audit hook is the identity log. If a vendor finds 1,200 named identities accessing the system but only 1,000 named user licenses purchased, the buyer owes the gap at list price plus back support, with no discount.
The structural feature that catches most procurement teams off guard is the named user minimum. Oracle Enterprise Edition Named User Plus carries 25 users per processor minimum. A 4 processor production server requires 100 NUP licenses even if only 30 employees touch the database. The minimum is the single largest driver of NUP audit settlements in our benchmark sample.
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Where named user shows up
Oracle uses Named User Plus for Database Enterprise Edition and most middleware. SAP uses tiered Named User categories from Developer to Professional to Employee Self Service, with prices that vary by tier. Salesforce uses per user subscriptions across Sales Cloud, Service Cloud, and Platform editions. Workday subscriptions price by named worker, which is closer to a per employee model than a true named user model. The differences matter because audit rights, true up triggers, and minimums vary by vendor.
For closely related vocabulary, see the concurrent user licensing definition, the ELA definition, and the per seat pricing definition. The glossary hub covers the broader pricing vocabulary. For audit benchmarks, the audit defense playbook by vendor documents settlement ratios and defense tactics.
Frequently asked questions
What is a named user license?
A named user license is a license tied to a single identified individual by name. Only that person may use the software. Oracle Named User Plus, SAP Named User, and Salesforce per user subscriptions all use the named user model. Named user counts are auditable and cannot be shared across employees.
What is the Oracle Named User Plus minimum?
Oracle Enterprise Edition Named User Plus carries a minimum of 25 users per processor. A 4 processor server therefore requires 100 NUP licenses minimum even if only 30 employees use the database. The minimum drives most NUP audit findings.
Named user versus concurrent user?
Named user licenses are assigned to a single person and cannot be reassigned within 30 to 90 days. Concurrent user licenses allow any user to access the software as long as the total simultaneous active sessions stays within the license count. Concurrent models died off as cloud delivery rose.
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