A growing number of organizations are rethinking their use of Oracle Java due to a combination of rising costs, licensing uncertainties, and the risk of audits. Recent research shows a significant industry trend: nearly 80% of IT asset and software management professionals are steering away from Oracle’s Java platform in favor of open-source alternatives.
The Shift Towards Open Java Solutions
The findings, based on responses from 500 professionals working in IT Asset Management (ITAM) and Software Asset Management (SAM), highlight a clear movement away from Oracle’s Java offerings. The research was conducted by Azul, a provider of open-source Java solutions, in collaboration with the ITAM Forum, a community-focused organization supporting ITAM professionals.
Between 2020 and 2023, Oracle implemented several major updates to its Java licensing structure, the most controversial of which was the introduction of an employee-based subscription model in early 2023. This change replaced the previous licensing models based on devices or processor cores.
Employee-Based Pricing: A New Model With Broad Implications
Under the new system, companies are required to license Java for every employee—not just the ones who actually use it. This definition includes full-time and part-time workers, as well as contractors and temporary staff involved in internal operations. Even if only a small part of a business uses Java, the cost applies company-wide, leading to dramatic increases in licensing fees.
Previously, pricing for Java SE hovered around $2.50 per user on desktops or $25 per core for server deployments. With the Universal Subscription plan introduced in 2023, costs now start at $15 per employee monthly for smaller organizations, decreasing based on headcount—down to $12 per user for companies with over 1,000 employees and as low as $5.25 per employee for enterprises with 40,000 or more staff members.
New Expenses and Uncertainty Push Companies to Act
As a result of the pricing overhaul, many organizations have had to reevaluate their budgets, invest in new systems to track Java usage, and prepare for potential licensing audits. More than a quarter of surveyed professionals said they faced challenges interpreting Oracle’s complex licensing conditions. Others noted the difficulty of justifying large-scale licensing fees when Java is used only in limited scenarios within their environments.
The combination of higher costs, licensing ambiguity, and audit risks has created an environment where open-source Java solutions appear increasingly attractive. Businesses are now actively exploring alternatives that offer more flexibility, transparency, and cost control.
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