January 2019 – Java Licensing Goes Subscription
In January 2019, Oracle broke with tradition and started charging for something it had always given away for free: Java updates. For decades prior, Java was a free and almost invisible backbone of enterprise IT. Now, seemingly overnight, it turned into a product with a price tag and formal licensing terms.
This abrupt shift forced CIOs and procurement teams to confront a question they had never had to ask before: Do we need to purchase a Java license? Java had been so ubiquitous and freely available that licensing wasn’t even on the radar for most organizations—until Oracle changed the rules.
Pro Tip: 2019 was the year Java stopped being free — and started being managed.
For a full picture of all changes, read our guide Oracle Java Licensing Changes & Updates (2019–2025).
The Background – Java Was Always Free… Until It Wasn’t
For most of Java’s history, enterprises didn’t spend a penny on using it. The standard Oracle Java platform (originally from Sun Microsystems) was available at no cost and without contracts.
Before 2019, organizations could:
- Download and use Oracle’s Java Development Kit (JDK) for free, with no license fees.
- Receive public updates (security patches and bug fixes) at no charge when Oracle releases them.
- Run Java in production environments without any commercial agreement or payments to Oracle.
This “free forever” assumption was rooted in Sun’s open distribution philosophy—one that Oracle inherited when it acquired Sun in 2010. For nearly a decade, Oracle continued providing Java updates freely. But by 2019, Oracle’s patience with the free model had run out, and it was ready to monetize Java’s vast user base.
What Changed in January 2019
| Before 2019 | After 2019 |
|---|---|
| Oracle JDK updates were free for all users | Security updates now required a paid subscription for commercial use |
| Licensed under the “BCL” (Binary Code License) – free use, limited redistribution | Replaced by a Java SE Subscription license (for-fee commercial use) |
| No distinction between personal and business use | Business use required a subscription (personal use could remain free) |
| Single Oracle JDK release for all purposes | Forked into two products: Oracle JDK (with paid support) and OpenJDK (the free open-source alternative) |
In short, Oracle split Java into two tracks. For businesses, the Oracle JDK would continue to get updates and support—but only if you paid for a Java SE Subscription.
Meanwhile, Oracle directed those seeking free updates to the OpenJDK community builds. The Java SE Subscription became the new commercial path forward, offered under Oracle’s familiar licensing metrics: either per Processor (for servers) or per Named User Plus (for individual desktop users).
(Oracle’s licensing metrics like Named User Plus and Processor are part of their standard playbook—see Licensing Models & Metrics Explained for a deeper look at how these metrics work.)
Pro Tip: Oracle didn’t charge for new Java — it charged for keeping old Java secure.
Oracle’s Motivation – Monetize a Mature Platform
Why did Oracle make this move? In a word: monetization. Java was (and still is) deeply entrenched in enterprise IT—by some estimates, it ran in 90% of organizations. Oracle recognized that Java’s ubiquity presented a lucrative opportunity.
For years, Oracle had been investing in maintaining Java (security patches, bug fixes, support infrastructure) without a direct revenue stream from the vast majority of users. From Oracle’s perspective, continuing to provide all that maintenance for free made little business sense.
By introducing paid subscriptions for Java support, Oracle could turn a cost center into a profit center. The subscription fees provided a steady, predictable revenue stream in exchange for ongoing updates and support.
This move also aligned with Oracle’s broader strategy of shifting from one-time software license sales to recurring subscription models.
In short, Oracle decided it was time to make money from Java’s maturity and pervasiveness—turning routine maintenance into a billable product.
Read about the 2023 changes, Java Licensing Changes 2023 – CIO Briefing.
How It Impacted Businesses
The shift from free to paid Java caught most organizations off guard. Budgets hadn’t accounted for Java licensing, and suddenly, many companies were scrambling.
Here are some key impact areas and what happened in each:
| Impact Area | What Happened |
|---|---|
| Cost Shock | Enterprises running Java on hundreds or thousands of servers suddenly faced significant annual fees they never planned for. |
| Audit Risk | Oracle began actively checking for unlicensed Java deployments through audits and customer outreach, putting non-compliant companies at risk. |
| Operational Confusion | IT departments struggled to identify which Java versions were in use and whether they were Oracle’s builds that now required payment. |
| Vendor Lock-In Fear | Companies grew wary of being dependent on Oracle’s JDK, fearing they were now locked into a costly relationship for a critical platform. |
| Migration Movement | A surge of organizations started looking at alternatives – moving to free OpenJDK builds or third-party Java distributions (like Adoptium or Amazon Corretto) to escape Oracle’s fees. |
Pro Tip: For many CIOs, 2019 was their first Java invoice—and they were determined it would be their last from Oracle.
The Subscription Model – How It Worked
With the new Java SE Subscription, Oracle essentially started selling what used to be free. Here’s what the subscription provided and how Oracle priced it:
What the Java SE Subscription covered:
- Right to use Oracle JDK in production: Companies have legal use of Oracle’s JDK for internal business operations.
- Security updates and bug fixes: Access to all critical patch updates and performance improvements that Oracle would release for Java.
- Oracle support: The ability to contact Oracle’s support team for help with Java issues.
How the pricing worked:
- Named User Plus (for desktops/users): A fee per named user or desktop installation. This was typically used for end-user machines or developer workstations running Java.
- Per Processor (for servers): A fee per processor core on the servers where Java was installed (using Oracle’s standard processor counting rules).
In practice, this meant customers had to count either the number of people using Java or the number of server cores running it. It introduced an Oracle-style counting exercise that made Java licensing more complex than it had ever been when it was free.
Pro Tip: Oracle replaced free simplicity with licensed complexity.
Options Enterprises Had
Confronted with the new reality in 2019, enterprises had to decide how to handle Java going forward. Essentially, four paths emerged:
- Pay for a Java SE Subscription: Many organizations chose to bite the bullet and purchase Oracle’s Java SE subscription, ensuring compliance and official support for production systems.
- Switch to OpenJDK builds: Some opted to drop Oracle’s JDK entirely and move to the open-source OpenJDK builds (which are functionally equivalent to Oracle JDK) to continue getting free updates, albeit on a community-driven schedule.
- Migrate to third-party JDK distributions: Many companies turned to vendor-supported Java builds such as Amazon Corretto, Azul Zulu, or the AdoptOpenJDK/Adoptium project. These alternatives offered Java without Oracle’s fees, and in some cases, with third-party support options.
- Segment their usage: Another approach was to use a mix-and-match strategy. For critical production environments where Oracle’s support was deemed necessary, companies paid for subscriptions. For development, testing, and less critical workloads, they used free versions of Java to minimize costs.
In the wake of the licensing change, many enterprises adopted a hybrid approach.
The savviest organizations diversified their Java estate to avoid getting locked into a single vendor: they paid Oracle where they absolutely had to, and shifted everything else to free or cheaper alternatives.
Checklist – How the 2019 Change Affected Enterprises
To respond to Oracle’s new Java licensing rules, enterprise IT and asset management teams quickly ran through the following checklist:
- Inventory all Oracle JDK installations: Discover where Oracle’s Java was installed across all servers, PCs, and applications.
- Determine support needs: Identify which systems truly needed Oracle’s ongoing updates and support (e.g. mission-critical production systems) versus those that could risk using free alternatives.
- Replace non-critical instances: Swap Oracle JDK for OpenJDK or other free distributions on development machines, test servers, and other less critical workloads to avoid unnecessary licensing costs.
- Educate the IT team: Make sure developers and system administrators can distinguish Oracle JDK from other Java builds and understand the new licensing implications.
- Review contracts for audit exposure: Re-read Oracle contracts and prepare for potential license audits, ensuring any use of Oracle Java is documented and compliant.
Pro Tip: 2019 forced IT departments to learn a new skill: Java license management.
The Long-Term Ripple Effect
Oracle’s 2019 move didn’t happen in isolation—it triggered lasting changes in how both customers and Oracle itself approached Java:
- Java as a managed asset: Enterprises learned they needed to track and manage Java installations, just as they do with any other licensed software. Java was no longer an “install-and-forget” utility; it became a line item in IT asset management.
- Oracle’s taste of new revenue: Oracle discovered that there was significant money to be made from Java’s install base. The company realized that a bit of licensing complexity and uncertainty could drive customers toward paid subscriptions, adding a new profitable stream.
- Setting the stage for bigger changes: The 2019 shift paved the way for further licensing moves. Oracle later introduced a No-Fee Terms (NFTC) license for certain Java versions (attempting to offer free use with conditions for newer releases). By 2023, it rolled out a far-reaching Java SE Universal Subscription model priced by the total number of employees. In other words, 2019 was just the beginning of a series of Java licensing shake-ups.
- A change in control: Perhaps the biggest impact was psychological and strategic. Oracle’s actions demonstrated that it had final say over how Java is consumed. It was no longer just a technical decision of which JDK to use, but a business decision. The “free Java” era was over, and Oracle had asserted control over the Java ecosystem in a way it never had before.
For a broader view of how Java licensing evolved from 2019 through 2025, see Licensing Changes 2019–2025.
5 Lessons from the 2019 Oracle Java License Change
- Free software from Oracle rarely stays free forever.
- Licensing changes often start small — and then expand over time.
- Always separate development/test from production environments. (Keep non-production Java usage on free tiers when possible.)
- Benchmark alternative Java builds early. Evaluate OpenJDK or other distributions before you’re forced to, so you’re not scrambling later.
- Expect future models to simplify payment, not reduce cost. When Oracle “streamlines” a licensing model, it’s usually to make payments easier to collect, not to save you money.
Pro Tip: The 2019 model ended “free Java,” and the 2023 model ended “simple Java.”
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