Hey there, app developers and business gurus! Are you ready to dive into the exciting world of Salesforce licensing? Let us break it down in a super effortless way!
So, step one on your app development journey is choosing the right license for your creation. This license is like the official relationship status with Salesforce! There are two main types to consider: the ISVforce license and the OEM license. Let’s see what they’re all about!
All about ISVForce
ISV stands for ‘Independent Software Vendor,’ and this license is the go-to for developers who want to distribute their apps through AppExchange. It’s like your backstage pass to the Salesforce app party! With the ISV license, you can offer your app for sale. It’s a must-have requirement if you want to sell your creation on the Salesforce platform.
Now, picture this: your app could be an add-on to existing Salesforce features, like a cool upgrade for users’ Sales or Service Cloud. It adds extra features and functionality to fill up any gaps and make the Salesforce experience even better! People can upgrade their app collection by buying your app, giving them an enhanced Salesforce journey.
Primer to Salesforce OEM
‘OEM’ stands for ‘Original Equipment Manufacturer,’ and this license is all about custom apps bundled with hardware. It’s like the perfect match for industries like healthcare, manufacturing, or finance!
Imagine developing a custom app that comes together with some awesome hardware. It’s a dynamic duo! Salesforce assigns OEM licenses to developers who build this kind of special software. Unlike ISV licenses, OEM-licensed apps don’t rely on Sales Cloud or Service Cloud features. They’re independent stars, doing their thing on their own. For instance, you could have software bundled with digital cameras, ERP apps, or accounting solutions.
However, users can’t buy OEM products directly. They’ll have to reach out to you, the developers, to grab your app. So, it’s like you’re making a direct connection with your users! And here’s an important thing to remember, once the OEM-licensed software gets tied to specific hardware, it stays that way. You can’t just install it on any other system, even if the original hardware isn’t in use anymore.
Users who get their hands on these licenses from partners can use them only to access the partner’s app. Salesforce sets some restrictions here. Users can’t create or extend apps with custom objects. But they can still access other apps sold with an OEM license, so there are still plenty of options! You can also choose to go with a global salesforce consultant, who can advise you in picking the right license for your needs!
AppExchange OEM Edition: Empowering Developers to Shine
Ready to take your app-selling game to the next level? Introducing the AppExchange OEM Edition – your ticket to app-selling success on the Salesforce platform! Let’s discover the benefits this brings!
- Freedom & Flexibility
With the AppExchange OEM Edition, developers can sell their apps through the AppExchange, just like with ISVforce apps. The best part? No need for a separate contract with Salesforce! This means more freedom and flexibility for you, the brilliant app creators.
- Proven & Secure Platform
Say goodbye to worries about infrastructure and sales. The AppExchange OEM Edition provides developers with a proven and secure platform to develop and sell on-demand apps. Stand out from the crowd with your unique creations that go beyond the usual ISV apps.
- Super Cool Features to Boost App
The AppExchange OEM Edition spoils developers with fantastic features, including:
- A common user interface, single security, and data sharing model for a seamless experience.
- Customization and integration using the AppExchange Builder, AppExchange API, and AppExchange Database.
- Up to five custom tabs and up to fifty custom objects to make your app truly stand out.
- Access to the trusted Salesforce service delivery platform, known for its transparency, reliability, and security.
- Flexibility & Negotiations
Hey, we get it – one size doesn’t fit all! That’s why Salesforce offers flexibility with various OEM license models. The actual configuration covered by your license depends on negotiations. Consider factors like industry/vertical market size, opportunity potential, and the level of dependency on CRM (Customer Relationship Management) standard objects vs. the Force.com platform app.
When it comes to Salesforce licenses, developers are partial to both ISVforce and OEM licenses. This is because the ISVforce License helps you upload your apps on the AppExchange and make existing Salesforce users happy while the OEM License enables you to get creative with custom apps using the Force.com platform.
Read more : https://suyati.com/blog/10-tips-for-successful-salesforce-cpq-implementation/
Licenses and Permissions
For ISVforce apps, customers install them into existing orgs, utilizing the available Salesforce features. Make sure your app shines by using the customer’s Lead, Campaign, Opportunity, and Case objects, and consider offering optional features requiring additional licenses. Alternatively, developers can sell OEM Embedded apps to existing Salesforce customers or new customers. If they sell to existing customers, the license requirement is the same as for ISVforce apps.
For new customers without a Salesforce license, developers must provide them with an org that already has the app installed. When customers buy OEM Embedded apps, they also get one or more AppExchange Application licenses. OEM Embedded apps have access to the Salesforce Lightning Platform, allowing them to use standard and custom objects, workflow, reporting, and security. They can also access some Sales and Services Cloud objects like Leads, Campaigns, and Opportunities. However, regular users of these apps can’t access these features.
The functionality of the org depends on the Salesforce edition and user licenses purchased by the developer. Developers choose an edition and then purchase licenses for unique features within that edition. They can also get add-on licenses, called feature or permission set licenses, to access additional features not included in the base edition. Since these licenses can be very costly, it is best to have a Salesforce consulting company like Suyati guiding you on your purchases.
Related article: https://suyati.com/blog/salesforce-price-increase-after-a-seven-year-long-hiatus/
In Summary
Choosing the right license depends on factors like app functionality, target users, and app architecture. ISVforce is great for enhancing Sales or Service Cloud, while OEM is ideal for custom-built apps with broader use cases. If you are still not sure about which license would help you the most, worry not. Our globally expert Salesforce consulting partner at Suyati is just a call away and can guide you through your Salesforce journey without a hitch!
2 comments
Thank you for the time to put this together and in continuation of our last topic I will reply now.
I spend a lot of time over the past couple years explaining licensing options to clients (renewals) and prospects (new orders). If I am a trusted advisor on the application then these topics should be addressed as well in helping a client understand cost associated their decisions.
Currently I have an ISV app (free) and managed a humble 120+ installs. In finishing out a new version, I am looking towards a paid app since there’s more functionality and features and I have proven the market. I remain an ISV solely because my app centers around the core CRM standard objects. The ISV apps is just a layer or enhancement to the existing platform of Service or Sales Cloud. To date myself a little, I could say “plug and play” or now “click and configure”. For ISV’s your clients have to have Salesforce already, this is your dependency. Now, how you write you app (apex, vf, etc) can include or exclude various Editions of Salesforce. Not all ISV apps work on all editions. Interesting enough, some powerful Enterprise apps work on Professional edition because they have a “baked in API” structure which is often seen with Marketing Automation tools. Thus giving added value to the PE customer to use an ISV app, otherwise, they have to upgrade to EE or purchase for PE (bonus to ISV).
The OEM much like the EE Platform license ($25) has two standard objects (Accts/Contacts), API, workflow, etc…However, their customers don’t have to have Salesforce. They sell a stand alone platform with feature functuonality of CRM (workflow, dashboards, reports, etc). Their price is baked into the fees they pay Salesforce and their app could cost the same as a Salesforce SFA license but it is niche and very specific at times to a line of business and pre-built. They may also work with other CRMs and hence the desire to be an OEM as it is just api restructuring to hook in.
Lastly, as a word of caution. If you are a Salesforce client and using an ISV app or not and decide to pursue and OEM application then you can encounter some challenges in naming conventions, doubling your TCO (total cost of ownership). Maybe you keep the apps seperate and use the api to connect them or maybe you try to overlay them. Maybe the OEM provider can package an ISV app for you that is less expensive and more interoperable.
ISV = Salesforce and OEM = Platform
*Managed and Unmanaged packages? The managed app is controlled by the provider (ISV/OEM) so you can’t mess with or change the code. The Unmanaged app is just the opposite and allows you to jump start your process/development by being 80 or 90% ready. In some cases maybe 100%.
Thanks again for your post.
Excellent explanation!!