The January 2023 Oracle Java SE pricing overhaul has left IT Asset Management (ITAM) and Software Asset Management (SAM) professionals facing a stark reality: the traditional infrastructure-based licensing model is gone, replaced by an employee-based metric that decouples costs from actual Java usage. For many organizations, this shift has created a licensing landscape fraught with the exposure of compliance risk, escalating audit pressures, and unplanned budget uncertainties. Without a deliberate strategy, companies risk being caught unprepared, facing potentially steep financial consequences and operational disruptions. The time to create or evaluate your planned approach to Java licensing is now.
Unless you want to spin endless cycles on deliberating Oracle’s new Java licensing model, you first need to understand your organization’s current situation and evaluate the options. Factors such as your existing Java usage, scope of licensing agreements, and organizational risk tolerance will guide the path forward. Once these elements are assessed, IT and SAM professionals can explore one of six potential strategies to manage compliance, mitigate risks, and align Java use with business objectives.
Six Strategies for Handling New Java Licensing
Ignore – You may hope Oracle goes away by ignoring sales calls and emailed audit threats, then instructing others to do the same. As Shawn Donohue of Miro Consulting said in a 2024 webinar, “If your plan is to sit and wait and do nothing, please do not do that.” There’s zero chance that Oracle doesn’t know your Java usage, even if you don’t.
Negotiate – This strategy is for organizations with an existing Oracle Java SE renewal. Getting Java use within existing contract limits is the only way to approach negotiations. You’ll likely need help, and many license managers engage advisory specialists.
Surrender – Tell Oracle “You got me” and provide Java use details. This is not a negotiation, as Oracle will insist on “back usage” pay if you refuse a multi-year contract under the new model. They’ll even expect back fees prior to the January 2023 Oracle’s license change.
Remove – Although it is possible to rebuild all applications in a new programming language and infrastructure, there is no good Java alternative for critical applications with business SLAs. Rewriting code can take years, is a significant development investment, and carries an inherent risk of buggy and poorly performing applications.
Upgrade – Remain on Java versions with Oracle No Fee Terms and Conditions (NFTC) and continuously upgrade. As of mid-September 2024, applications must be on Oracle Java 21. There’s a new long-term support (LTS) Java release every other year, and each is free to use commercially until one year after the next LTS release.
Switch –With many free and commercially supported Java alternatives, many organizations make this choice. Consider costs associated with free unsupported Java solutions (like security risks, or mission-critical application downtime), as well as the ability to support legacy Java versions e.g. 6, 7, and 8.
You’re leaning towards staying with Oracle Java SE. How do you decide?
It is rare, but if your organization falls into one of the following, the status quo of sticking with Oracle Java sometimes is the obvious best choice.
- Small companies with a large Java footprint. The employee metric likely reduces Java-related costs.
- Organizations that run Oracle Java in the Oracle Cloud, and/or within commercially supported Oracle applications. Neither brings any license risk. Provided an organization is 100% certain there’s no commercially unsupported Oracle Java, the license risk is known and covered by other contracts, so staying with Oracle is best.
When the obvious answer doesn’t present itself.
Due to high employee counts, and/or poor Java estate governance, most organizations aren’t in a situation where a decision to stay with Oracle Java is that easy. Instead, understanding your license risk helps determine their best path.
Understand License Risk
Choosing your best path involves considering six inter-related factors that make up license risk.
1. Organization’s size
Employee-based licensing means the larger the headcount, the greater your costs and likelihood there’s Oracle Java versions requiring licenses.
2. Oracle Java footprint size
If your organization is larger and only uses Java on a few production servers, you still need a paid license. If you’re out of compliance finding an Oracle Java SE alternative is more urgent.
Provided there are no usage changes, enormous Java footprints at large companies with existing Oracle Java SE contracts may continue with legacy pricing metrics.
3. Existing Java versions, licenses, and contracts
Java lurks everywhere throughout application infrastructure, so create an in-depth, up-to-date Java estate inventory that includes type, access details, OS, install type, Java versions, required paid Oracle Java SE subscriptions, and current contracts for them.
4. Oracle Java audit risk
Gartner says that by 2026, more than 20% of organizations using Java applications will be audited by Oracle. (Source: “3 Steps to Manage Exposure for Oracle Java SE Licensing,” July 18, 2023).
Audit risk increases with company size, and events like mergers, acquisitions, major hardware refresh cycles, and support renewal changes can trigger them.
5. Oracle- supported Independent Software Vendor (ISV) applications
ISVs often don’t specifically state if applications support OpenJDK, thereby defaulting to listing only Oracle Java. Since OpenJDK 11, Oracle JDK and all OpenJDK distributions are built using the same source, so there’s no difference. An ISV may not have tested applications on any OpenJDK distribution except Oracle. If switching, understand vendor migration success rates, and how they test and keep you in compliance.
6. Available skills and resources for migration
Build a basic migration plan that prioritizes the migration based on application criticality and know your organization’s Java expertise, required time, and basic ROI to complete it. If not, work with your OpenJDK distribution provider or a Java migration partner.
Fortunately, migrating to JDKs is generally not difficult, costly, or time-consuming. However, a solid plan and working closely with stakeholders ensure a seamless migration.
Don’t lose faith, the answer is closer than you think.
Navigating the complexities of Oracle Java SE’s new licensing model may feel daunting, but it also presents an opportunity to reassess and optimize your organization’s Java strategy. Whether staying with Oracle, switching to an alternative, or exploring other solutions, the right choice hinges on a clear understanding of your Java footprint, compliance risks, and long-term goals. Thoughtful planning, strong collaboration across teams, and a commitment to action will empower your organization to reduce risks, control costs, and ensure business continuity in an era of evolving software licensing.
