Executive Summary
A leading healthcare provider faced significant challenges with the new Oracle Java price increases, which shifted to a costly employee-based subscription. With a $1.7 million financial risk looming, the CTO turned to LicenseFortress for a solution. After a thorough audit, LicenseFortress renegotiated the provider’s existing contract, securing a $500k renewal for the next two years and saving the organization $2.4 million. Additionally, they developed a strategy to eliminate Java usage, ensuring long-term cost savings. This case highlights the importance of proactive software license management and expert negotiation in navigating complex licensing changes.
$20K
Project Cost
$2.4M
Two-Year Savings
995%
Annualized ROI
At a Glance
Challenges
Oracle has significantly changed its Java licensing model in recent years, moving from a free usage model to a subscription-based model for commercial users. Gartner’s insights into this change highlight that Oracle’s licensing model for Java SE “can be dauntingly expensive.” This sentiment is echoed across the industry, with some describing the licensing changes as “too brutal for most.” This shift has increased the complexity of managing Java licenses and heightened compliance risks. As of January 2023, Oracle’s new pricing model requires organizations to license Java based on the total number of employees, making it even more critical for businesses to manage their Java usage efficiently. Consequently, Java audits have become a top concern for many organizations, including the healthcare provider in this case study. Under this new model, the healthcare provider’s costs would escalate dramatically.
Related: The Impact And Solution To The 2019 Oracle Java Licensing Changes, The New Oracle Java Pricing: What You Need To Know
Solution
LicenseFortress performed a comprehensive audit of the healthcare company’s Oracle Java usage and identified several key points. The first step involved an in-depth assessment of the company’s IT environment. LicenseFortress experts conducted extensive interviews with the IT staff and reviewed the existing Oracle Java deployments across the organization. This involved mapping out all instances of Java usage, including desktops, servers, and other critical applications that relied on Java.
LicenseFortress then leveraged its ArxPlatform and integrated with the healthcare company’s third-party tools, including, SCCM and BigFix to pull all the data on software usage. This integration allowed for detailed analysis and precise license tracking, ensuring that all deployments were accounted for.
Results
This assessment revealed that the provider would owe over $1.7M based on the new employee metric.
| Java SE Universal | Employee | 22000 | $ 6.75 | $1,782,000 |
Recognizing the financial burden, LicenseFortress formulated a strategic plan:
- Negotiated Renewal: Renew the existing contract at $500k for the current year and the following year.
- Long-term Strategy: Develop and implement a plan to eliminate Java usage entirely, thus avoiding the switch to the new metric.
The intervention by LicenseFortress resulted in substantial savings for the healthcare provider:
- Immediate Savings: By renewing the contract at $500k for this year and next, the healthcare provider avoided $2.4 million over the two years.
- Future Savings: The strategic elimination of Java usage would further protect the provider from the financial impact of the new licensing model.
This case study highlights the critical role of proactive software license management and strategic negotiation. By partnering with LicenseFortress, the healthcare provider not only mitigated immediate financial risks but also positioned itself for long-term operational efficiency and cost-effectiveness. The experience underscores the importance of expert guidance in navigating complex licensing landscapes, particularly in the face of changing models and metrics.
Protect Your Organization from Costly Java Licensing Changes
Facing similar challenges with Oracle Java? Download our case study to learn how proactive software license management and expert negotiation can save your organization millions. Discover how we helped a leading healthcare provider navigate the complexities of Oracle’s new licensing model and secure long-term cost savings.
