Executive Summary
A leading healthcare provider, operating a complex and mission-critical IT environment, recognized early signs of trouble in Oracle’s evolving Java licensing strategy. After Oracle ended free commercial use of Java, the CTO engaged LicenseFortress for SAM Managed Services to monitor usage and compliance, initially saving $120,000. Not long after, Oracle overhauled Java licensing yet again—this time introducing a controversial employee-based model designed to boost revenue and simplify enforcement. With LicenseFortress already monitoring their environment, the healthcare provider was ready. Through legal contract review, strategic negotiations, and a complete Java elimination strategy, they avoided $2.4 million in new fees. Their $30,000 annual ArxSecure investment delivered more than $2.5 million in total savings and an 8,500% ROI.
$30K
Annual Project Cost
$2.5M
Two-Year Savings
8,500%
ROI
At a Glance
Challenges
Adapting to Oracle’s Constantly Evolving Java Licensing Model
The trigger for this engagement began when Oracle announced that commercial use of Java would no longer be free—ending public updates for Java SE 8 and requiring paid licenses for continued use in production environments.
The organization relied heavily on Java to support critical systems and applications. Initially, they operated under Oracle’s legacy licensing model, which required a mix of Named User Plus (NUP) and Processor licenses. Like many organizations, they struggled with vague usage metrics and confusing entitlements, which led to uncontrolled costs nearing $456,000 per year. When LicenseFortress reviewed license deployments, they discovered actual usage was significantly lower—only 118 NUP licenses were truly needed.
But before the organization could fully optimize its Java licensing strategy, Oracle changed the game again.
Facing mounting enforcement challenges under the NUP model, Oracle introduced a sweeping change in January 2023: licensing Java based on employee count. This approach drastically increased compliance risk for companies like this healthcare provider, where only a small portion of staff actually used Java—but all would now require licenses. For this provider, the shift translated to an estimated $1.7 million in annual fees. The organization faced a costly new reality: either comply with an inflated licensing requirement or exit Java entirely.
Related: The Impact And Solution To The 2019 Oracle Java Licensing Changes, The New Oracle Java Pricing: What You Need To Know
Solution
From Optimization to Elimination
LicenseFortress guided the organization through both phases of this licensing transformation. The engagement began with a full review of Java usage and entitlements, which revealed licensing errors and overspending under the legacy model. By mapping actual deployment against contract terms, LicenseFortress developed a precise Effective License Position (ELP), helping the provider correct inaccuracies and reduce unnecessary costs. This effort alone resulted in $120,000 in annual savings.
When Oracle shifted to the employee-based model, the team was ready. LicenseFortress quickly assessed the impact, reviewed contracts for legal leverage, and negotiated a temporary two-year, $500,000 subscription agreement. This bought the provider time to implement a complete Java removal strategy. Working closely with internal teams, LicenseFortress identified alternative technologies, oversaw the decommissioning process, and verified full removal. As a result, the healthcare provider was able to exit Java entirely—eliminating all future costs and audit risk.
Results
Millions Saved and Long-Term Peace of Mind
The engagement delivered over $2.5 million in total savings: $120,000 in annual reductions under Oracle’s legacy model and $2.4 million in avoided costs under the employee-based structure. With only a $30,000 annual ArxSecure investment, the healthcare provider achieved an ROI of 8,500%. When annualized across both phases of savings, the ROI exceeded 4,000%.
Today, the organization operates free from Java and Oracle’s unpredictable licensing tactics. Their ArxSecure subscription provides peace of mind and continuous monitoring—ensuring they’re prepared for whatever changes software vendors introduce next.
Before You Renew Java or Accept Oracle’s Terms, Explore the Alternatives
Oracle’s Java licensing strategy may keep changing—but your strategy doesn’t have to. Download our Java Licensing Guide to learn how to stay in control, or book a meeting to speak with a licensing expert.