You don't actually "deactivate" a user in OnDemand. You can control who has access to the applications in your instance by managing application access:
Hope it helps.
Piece of cake. From Application Access page, each time you revoke application access from a user to a given application, you free one spot in that application. You can actually see it reflected on the "remaining spots" in the same page, on each of the applications' columns.
You guys should really update the online documentation with this information. I just spent the better part of an hour trying to do this in the interface and searching online before stumbling on this here. Judging from other people's questions I bet I'm not the only one.
Thanks for the feedback, Christian, I understand searching for the right doc can be a frustrating process! I'll make sure to pass this along, and in the meantime it's good to make sure that you're in the OnDemand docs by verifying that "AOD" is in the URL like the link above - this will ensure you're looking at the right stuff with the latest info.
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