Introduction to Oracle Java Licensing

Introduction to Oracle Java Licensing Summary:

• Java SE licensing changed significantly in 2019, 2021, and 2023.
• 2019 ended free support for Java SE 8.
• 2021 introduced the NFTC for Java 17, allowing some free use.
• 2023 moved to employee-based subscription licensing.

Introduction to Oracle Java Licensing

Oracle Java licensing has undergone significant changes in recent years, creating a complex landscape for organizations to navigate. As an Oracle licensing expert, I will provide an in-depth overview of the current state of Java licensing, key changes, and important business considerations.

Oracle’s Java Platform, Standard Edition (Java SE), has been a cornerstone of enterprise software development for decades. However, the licensing model for Java has evolved, particularly since Oracle acquired Sun Microsystems in 2010.

The most recent and impactful changes occurred in 2019, 2021, and 2023, reshaping how organizations must approach Java licensing.

The 2019 Java Licensing Shift

In 2019, Oracle announced a major change to its Java SE licensing model. This change ended free long-term support for Oracle’s Java SE 8 commercial users. Key points of this change included:

• Subscription Requirement for Updates: Oracle Java JDK 8 updates from patch 211 onwards would require a paid subscription.
• Introduction of the Java OTN SE Agreement: This new licensing agreement prohibited all commercial usage of Java without a license.
• Implications of the Existing BCLA Agreement: The Binary Code License Agreement (BCLA), which many companies had not carefully reviewed, was already making most commercial users non-compliant.

These changes took effect in April 2020, forcing many organizations to reassess their Java usage and licensing strategy.

The 2021 NFTC Agreement

In 2021, Oracle introduced another significant change with the No-Fee Terms and Conditions (NFTC) agreement. This agreement applied to Java 17 and later versions, allowing free commercial usage of these newer Java versions. However, there were important caveats:

• Free Usage of Java 17 and Later Versions: Java 17 and subsequent versions were free commercially.
• Security Patches Require a Subscription: Security patches for Java 17 released after September 2024 would require a paid subscription.
• Applicability to Java Versions: The NFTC agreement did not affect Java versions 1-16 licensing terms.

This change relieved organizations willing to adopt newer Java versions and introduced new considerations for long-term support and security patching.

The 2023 Employee-Based Licensing Model

The most recent and perhaps most impactful change came in January 2023 when Oracle introduced the “Employee for Java SE Universal Subscription” model. This new model replaced the previous Named User Plus and Processor licenses. Key aspects of this change include:

• Enterprise-Wide Metric: The new model is based on an organization’s total number of employees, not just Java users or servers.
• All-Employee Licensing: If an organization requires Java for a single user or server, they must purchase licenses for their entire employee population.
• Pricing Tiers: The new model introduced different price tiers based on the number of employees, ranging from $15 per employee per month for smaller organizations to $5.25 per employee per month for larger ones.
• Removal of Old Licensing Options: The Named User Plus and Processor licenses are no longer available for new purchases.

This change has significant implications for organizations of all sizes, potentially leading to substantial increases in licensing costs for many businesses.

Oracle Java Licensing Agreements

To navigate Oracle Java licensing effectively, it’s crucial to understand the three main licensing agreements currently in play:

• Oracle Binary Code License Agreement (BCL)
  • Applies to older Oracle Java versions and patches.
  • Allows commercial usage if Java is used for “general purpose computing.”
  • Requires a license for usage outside of “general purpose computing.”
• Oracle Technology Network License Agreement (OTN)
  • Applies to Oracle Java 11 and Java 17.
  • Prohibits all commercial usage without a license.
• Oracle No-Fee Terms and Conditions (NFTC)
  • Introduced in 2021 for Java 17 and later versions.
  • Allows free commercial usage of Java 17 onwards, with restrictions on long-term security patches.

Organizations must carefully review these agreements and determine which apply to their Java deployments and usage scenarios.

Determining License Requirements

Given the complexity of Oracle’s Java licensing model, organizations often struggle to determine whether they need a license.

Here are some key considerations:

• Java Version: Different versions of Java are subject to different licensing terms. For example:
  • Java SE 6 updates after Update 45 (February 2013) require a license.
  • Java SE 7 updates after Update 80 (April 2015) require a license.
  • Java SE 8 updates after Update 202 (January 2019) require a license for production use.
• Usage Scenario: The BCL agreement allows free use for “general purpose computing,” but many organizations find their use cases fall outside this definition.
• Commercial Features: Java commercial features have always required a separate license.
• Security Patches: Applying certain security patches, particularly for older Java versions, can trigger the need for a license.
• Employee Count: Under the new 2023 model, an organization’s total number of employees determines licensing requirements, not just the number of Java users.

Oracle Java Licensing Costs

Before the 2023 changes, Oracle offered two main licensing options:

• Java SE Desktop Subscription: USD 2.50 per month per user.
• Java SE Subscription: USD 25 per month per Oracle processor.

With the introduction of the Employee for Java SE Universal Subscription model in 2023, pricing now follows a tiered structure based on the number of employees:

• $15.00 per employee for 1-999 employees.
• $12.00 per employee for 1,000-2,999 employees.
• $10.50 per employee for 3,000-9,999 employees.
• $8.25 per employee for 10,000-19,999 employees.
• $6.75 per employee for 20,000-29,999 employees.
• $5.70 per employee for 30,000-39,999 employees.
• $5.25 per employee for 40,000-49,999 employees.

This new pricing model can significantly increase costs for many organizations, particularly those with many employees but relatively few Java users.

Oracle Java Audits

Oracle has become increasingly aggressive in enforcing Java licensing compliance. The company conducts two types of audits:

• Soft Audits: These begin with Oracle contacting organizations for license compliance discussions, often through emails requesting meetings.
• Formal Audits: Oracle’s audit organization reviews all Java deployments within a company in these more rigorous audits.

Organizations should be prepared for these audits by maintaining accurate Java deployments and usage records. It’s also crucial to understand that Oracle may claim backdated usage and pursue retroactive licensing fees.

Free Java Options

For organizations looking to avoid Oracle Java licensing costs, several alternatives are available:

• OpenJDK: An open-source implementation of Java SE that is free for development and production use.
• Oracle Java 17 and Later Versions: Free under the NFTC license, with caveats regarding long-term security patches.
• Alternative Java Implementations: Other vendors, such as Red Hat, Amazon, and Azul Systems, offer their builds of OpenJDK with varying levels of support.

However, organizations must carefully evaluate support, security, and compatibility options with their existing systems and applications.

Navigating Oracle Java Licensing

Given the complexity and potential financial impact of Oracle Java licensing, organizations should consider the following steps:

1. Conduct a Thorough Inventory of Java Deployments: Understand where and how Java is used across your organization, including servers, desktops, and cloud environments.
2. Review Applicable Licensing Agreements: Identify which Oracle Java licensing agreements apply based on the Java versions used.
3. Assess the Impact of the New Employee-Based Licensing Model: Determine how the 2023 model affects your organization’s licensing needs and budget.
4. Consider Alternatives to Oracle Java: To reduce costs, evaluate open-source alternatives, such as OpenJDK or vendor-supported options.
5. Develop a Clear Strategy for Java Usage, Licensing, and Migration: Decide on a path forward that balances compliance, cost, and the organization’s long-term needs.
6. Prepare for Potential Oracle Audits: Maintain accurate records of Java deployments and ensure compliance to mitigate risks of retroactive fees.
7. Engage with Licensing Experts or Consultants: Work with professionals who understand Oracle’s licensing model to help navigate complex scenarios and negotiations.

Oracle Java Licensing FAQ:

What is Oracle Java Licensing?
Oracle Java Licensing involves agreements and models that govern the use of Oracle’s Java SE platform, requiring paid subscriptions for certain versions and uses.

What are the main types of Oracle Java licenses?
There are three main types: Oracle Binary Code License (BCL), Oracle Technology Network License (OTN), and No-Fee Terms and Conditions (NFTC).

How did Oracle Java licensing change in 2019?
In 2019, Oracle ended free long-term support for Java SE 8. After patch 211, commercial users needed a paid subscription for updates.

What is the No-Fee Terms and Conditions (NFTC) license?
Introduced in 2021, NFTC allows free commercial use of Java 17 and newer versions but requires a subscription for security patches after September 2024.

How does the 2023 employee-based licensing model work?
The 2023 model licenses Java based on the total number of employees, not just the number of Java users or servers, making it an enterprise-wide metric.

Do small businesses need Oracle Java licenses?
Yes, Oracle’s licensing requirements apply to businesses of all sizes. The employee-based model means all employees must be covered if Java is used anywhere.

What happened to Named User Plus and Processor licenses?
These licensing options were replaced in 2023 by the Employee for Java SE Universal Subscription, which uses an employee-based metric.

Is Java still free to use for commercial purposes?
Some versions, like Java 17 under NFTC, are free for commercial use until September 2024. Older versions and certain security updates require a paid subscription.

Can I use OpenJDK as an alternative to Oracle Java?
Yes, OpenJDK is a free, open-source alternative to Oracle Java. However, it may lack enterprise support, and organizations must assess compatibility and security needs.

Does Oracle audit Java usage?
Yes, Oracle conducts soft and formal audits to ensure compliance. Organizations should keep detailed records of Java deployments to prepare for audits.

What is a soft audit in Oracle Java licensing?
A soft audit starts with Oracle contacting an organization to review their Java licensing, often through email, encouraging them to disclose their usage.

What are the costs of Oracle Java licensing in 2023?
The costs are tiered based on employee count, starting at $15 per employee per month for organizations with 1-999 employees and decreasing with higher employee numbers.

How do I determine if I need an Oracle Java license?
You likely need a license if your organization uses Java versions that are subject to Oracle’s agreements or applies certain updates. Review versions, updates, and use cases to confirm.

What should I do to prepare for an Oracle Java audit?
Conduct a full inventory of Java installations, understand all use cases, ensure compliance, and be prepared to provide documentation to Oracle if requested.

What free Java options are available?
OpenJDK and alternatives like Eclipse OpenJ9 or Azul Zulu Community Edition offer free Java implementations that may be viable alternatives to Oracle Java, depending on the use case.