Oracle’s move to employee-based pricing has left companies rethinking their Java strategy. Some are staring down renewals and tough negotiations, others want to stick with free versions but need to be sure they won’t get tripped up on compliance, and plenty are weighing whether it’s time to replace Oracle Java altogether. The truth is, there’s no single right answer—it all comes down to what makes sense for your business.
According to The Rising Cost of Software Compliance: 2025 Survey of Software Audits its impact is significant.
(in plain English)
Year | Change | What it means for you |
|---|---|---|
| 2019 | From free to paid (for most organizations) | Before 2019, many commercial users ran Java SE at no cost. Oracle ended that—most orgs now need a commercial subscription to remain licensed. |
| 2019–2022 | Multiple pricing models introduced | Oracle moved from classic per-user / per-processor metrics through several subscription iterations, creating confusion and contract sprawl. |
| 2019 onward | Rise of third-party distributions | As Oracle tightened licensing, vendors like Azul, Amazon Corretto, and Eclipse Temurin gained mainstream adoption—real alternatives, but migration/testing and policy cleanup are essential. |
| 2020 onward | End of free public updates for older LTS | Free public updates for releases like Java 8/11 ended. To keep security patches, you need a paid subscription or a supported alternative build. |
| 2020 onward | Audit & compliance exposure increased | Oracle became more aggressive in auditing Java usage. Without an inventory and policy, organizations face back-bills or forced subscription buys. |
| 2021 | Java 17+ under NFTC (limited free use) | Oracle NFTC allows personal/limited use—not most commercial production. Paid subscription or vetted alternative is typically required. |
| 2023 | Employee-based licensing | Java SE Universal Subscription (Employee) ties price to total employee headcount (plus certain contractors), not installs—there are no “unused licenses.” |
| Ongoing | Restricted “free” use clarified | Java remains free for personal use, dev/test, and some OSS scenarios, but not for most business use. Terms evolve—review policy text before assuming “free.” |
We have a solution.
No. Oracle Java requires a paid subscription for commercial use. Only specific versions covered under the No-Fee Terms and Conditions (NFTC) license may be used at no cost, and those rights are limited.
Oracle uses an employee-based licensing model. Organizations pay based on total employee headcount, not the number of installations or users.
BCL (Binary Code License): Applied before 2019 and allowed free commercial use with restrictions.
OTN (Oracle Technology Network License): Applies to many older LTS releases; permits personal use, development, and testing but restricts commercial use.
NFTC (No-Fee Terms and Conditions): Introduced for Java 17 and newer; allows free use in production until the next LTS version is released, after which a subscription is required.
Short answer is yes. OpenJDK is free and open-source. Organizations can adopt OpenJDK or vendor-supported builds (e.g., Azul, Amazon Corretto) to avoid Oracle subscription costs, provided they meet support and certification needs.
However, switching to OpenJDK is not always a simple drop-in replacement. It can be easy if applications rely only on standard Java features, but more complex if they depend on Oracle-specific functionality, require third-party software that is only certified on Oracle JDK, or run across large, distributed environments that need discovery and testing.
2019: End of free commercial updates for Oracle JDK; subscriptions introduced.
2021: NFTC license introduced, enabling temporary free use of LTS versions (e.g., Java 17).
2023: Employee-based Universal Subscription pricing model introduced.
Whether you want to eliminate Oracle Java altogether
or negotiate an existing contract — we help you achieve the best outcomes.
DOWNLOAD OUR WHITEPAPER
How to Get Rid of Oracle Java for Good!
Considerations |
What it means for your Oracle Java Licensing |
|---|---|
| Renewals | If you’re up against Oracle’s employee-based pricing model, negotiations matter — terms can often be improved with the right approach. |
| Free Versions | Many environments can still run Java at no cost, but only if you’re sure usage falls within the “free” terms. Staying compliant here is critical to avoid surprise fees. |
| Alternatives | Some organizations choose to fully replace Oracle Java with supported third-party distributions, ensuring long-term freedom from Oracle’s pricing. |
| Elimination Process | Removing Oracle Java isn’t a one-time fix. Success means validating it’s gone and preventing it from being reintroduced through updates or developer installs. |
| Ongoing Compliance | Policies, monitoring, and controls are essential to keep the environment clean and avoid drifting back into license exposure. |
Once you schedule a meeting, you’ll receive a confirmation email with a calendar invite. Our team will connect with you within one business day to gather any necessary information to tailor the call to your needs. Feel free to forward the invite to any team members you’d like to include. We look forward to assisting you!
If you have any questions in the meantime, please contact us at info@licensefortress.com or call us at 424.231.4135.
