Users advised to review Oracle Java use as Big Red's year end approaches

International Java sales operation and the prospects of audits per-employee license model make the move to open source irresistible

Experts are warning of an increase in Oracle Java audits - as the tech giant nears its year end - following a switch to a per-employee license model that could see costs grow by up to five times.

Oracle introduced a paid subscription for Java in September 2018, and in January 2023 decided to switch its pricing model to per employee rather than per user, creating a steep price hike for customers. In July 2023, Gartner recorded users experiencing price increases of between two and five times when they switched to the new licensing model.

Speaking to The Register, Scott Sellers, CEO of Java advisory and services company Azul, said: "We're definitely seeing an uptick. One of the things that seems to be happening is we're seeing more presence in more and more countries."

He told us Oracle is "putting specific Java sales teams in country, and then identifying those companies that appear to be downloading and... then going in and requesting to [do] audits. That recipe appears to be playing out truly globally at this point."

Oracle typically ramps up both official and unofficial audits at the end of its financial year, as its compliance teams assist in getting software deals over the line by the annual deadline. Since the shift in licensing terms, Java has also become part of that strategy. However it is also a time when users can consider their position.

"At the end of May, many of those existing contracts with Oracle are coming due, so companies are looking at whether or not it makes sense for them to continue to do business with Oracle or look for alternatives," Sellers said. There are also cases where customers have been able to keep their old pricing by negotiating with Oracle.

Counting Mastercard, Starbucks and HSBC among its customers, Azul has announced a tool, JVM Inventory, designed to offer runtime-level visibility to help classify and track Oracle Java instances. Earlier this year a report from Dimensional Research — sponsored by Azul — found the percentage of Oracle Java users considering switching to alternative JVMs or JDKs based an open approach increased from 72 percent in 2023 to 88 percent in 2024.

Craig Guarente, founder and CEO of Palisade Compliance, said companies should consider moving off of Oracle Java to get rid of the licensing problem. Even if they don't, considering the option could put them in a stronger position if they want to keep the old per-user license model.

"If you have no right in your contract to renew, that's really hard for customers because it doesn't say 'when this thing expires, you can do this other thing.' What they need to do is prepare early and to be able to move off of Oracle Java, at least the paid versions of it.

"So if you can put yourself in a position with Oracle to say, we actually don't need your product, you don't have to pay for it at all. That's when we see Oracle really negotiate with customers. If you can say to them 'How about I give you nothing?' if you have a credible alternative to what Oracle is proposing, then Oracle will move the needle," he said.

Eric Guyer, founding partner at Oracle and SAP advisory and consulting firm Remend, said Oracle had set up sales teams on Java separately from the main enterprise account management and audit function.

He said organizations comfortable with their compliance should be wary of returning the call.

"Oracle is going to call you. They're going to try and escalate the matter reach into your executive, and tell them that you're stealing millions of dollars of software if you don't return the phone calls. The recommendation is send those to your spam folder; just block it. Returning that phone call is admitting you need it. The average Java rep probably has 1,000 other companies on their list. They will move on to someone who does return that phone call," he said.

Guyer said few of his clients license Oracle Java, as Remend recommends companies move off it onto open source alternatives.

The Register has asked Oracle to comment. ®