In January of last year, we issued a red alert to our customers about the major changes to Oracle’s Java licensing model and their potential impact on future Oracle Java audits. Under this new policy, if even one employee in your organization requires a commercial Java license, you must license every employee—an update that has far-reaching financial implications for businesses of all sizes.
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Oracle’s Broad Definition of an “Employee”
Oracle’s definition of who needs to be licensed is alarmingly broad. According to the Oracle Subscription Global Price List, an employee is defined as:
- (i) All full-time, part-time, and temporary employees within your company
- (ii) All full-time, part-time, and temporary employees of your agents, contractors, outsourcers, and consultants that support your internal business operations
This means that even indirect employees, like contractors or temporary workers, could dramatically increase your licensing costs. You can find more details here.
Gartner’s Warning: Expect More Audits
Earlier this year, Gartner issued a warning that Oracle is prepared to rigorously enforce its new Java licensing terms. According to Gartner, one in five Java users is likely to face an Oracle audit within the next three years. This comes as no surprise, as we’ve seen a significant increase in Oracle inquiries, and our own data suggests this aggressive audit activity is ramping up even faster than expected.
Gartner’s predictions are coming to fruition, and the trend is alarming. Oracle’s unprecedented level of aggressiveness means that businesses need to prepare for audits, and the potential for Oracle to demand payment for both past and future Java usage is a growing concern.
In 2024, we’ve already seen over a 600% increase in Oracle Java compliance services in response to the pricing changes, soft audit and audit notices.
The High Cost of Noncompliance
As Oracle steps up its audit game, the financial risk for businesses is real. The table below highlights the potential costs for Java licensing based on employee count under Oracle’s new model. The numbers add up fast, especially for larger organizations:
| Employee Count | Monthly Cost Per Employee | Yearly Cost Per Employee | Annual Cost (Low Range) | Annual Cost (High Range) |
|---|---|---|---|---|
| 1-999 | $15.00 | $180.00 | $180.00 | $179,820.00 |
| 1,000-2,999 | $12.00 | $144.00 | $144,000.00 | $431,856.00 |
| 3,000-9,999 | $10.50 | $126.00 | $378,000.00 | $1,259,874.00 |
| 10,000-19,999 | $8.25 | $99.00 | $990,000.00 | $1,979,901.00 |
| 20,000-29,999 | $6.75 | $81.00 | $1,620,000.00 | $2,429,919.00 |
| 30,000-39,999 | $5.70 | $68.40 | $2,052,000.00 | $2,735,931.60 |
| 40,000-49,999 | $5.25 | $63.00 | $2,520,000.00 | $3,149,937.00 |
| 50,000+ | Varies | Varies | Varies | Varies |
What Should You Do Next?
Get a Quote for an Oracle Java Compliance & Optimization Review and calculate your savings.
With our COR, you’ll receive:
- A detailed breakdown of your Oracle Java costs under the new pricing model
- A comprehensive identification of all Oracle Java installations across your environment(s)
- Cost-effective alternatives for replacing Java where possible
- Identify third-party and Oracle software that may include restricted or limited-use licenses
- Expert guidance to manage and optimize your future Java licensing strategy
- Support in negotiations for upcoming Oracle Java renewals
If you’d like to learn more or arrange a Q&A session with our team, we’re happy to help. Book a meeting to discuss your options.
