Java Licensing

Oracle Java Audits and Audit Defense Strategies

Oracle Java Audits and Audit Defense Strategies

Oracle’s 2023 Java Licensing Shake-Up and Audit Defense Strategies

Blunt Advisory for CIOs and CFOs: Oracle’s Java licensing changes in 2023 represent a seismic shift that can massively increase your costs and expose your company to punitive audits.

Oracle has moved Java SE licensing to an “all employees’ subscription model, meaning that if your organization uses Oracle’s Java at all, you may be expected to pay for every employee, regardless of whether they use Java or not.

This no-nonsense guide breaks down the new licensing model, explains how Oracle audits customers under these terms, identifies common compliance traps, and provides guidance on how to defend your organization.

The tone is deliberate and direct, just as a Gartner analyst would advise, with one goal: protecting you from Oracle’s tactics and minimizing your risk.

Key Changes in Oracle Java Licensing (2023–2024)

In January 2023, Oracle overhauled its Java SE licensing. The legacy models – licensing per processor or named user – were scrapped entirely​. In its place, Oracle introduced the Java SE Universal Subscription, priced based on the number of employees.

This means the cost is calculated based on your total number of employees (including part-time employees and contractors), rather than the number of servers or users that run Java. Oracle essentially turned Java into an enterprise-wide license: you can deploy Java anywhere, but you pay based on your company size.

Under this model, every employee counts toward licensing, regardless of whether 10 or 10,000 people use Java in practice. Oracle’s policy explicitly requires licensing “all of your full-time, part-time, temporary employees, and contractors” if you choose to subscribe​. In other words, even staff who never touch a Java application still raise your fee if any Oracle Java is in use.

This change was a deliberate strategy by Oracle to maximize revenue from the Java platform. Industry analysis shows that Oracle’s fees under the new model have jumped dramatically, by 2 to 10 times in many cases, compared to the older model. CIOs and CFOs must internalize that this is not a minor tweak; it’s a fundamentally more expensive paradigm that blankets your entire workforce.

Another critical change: Oracle’s update policy tightened. The “free Java” era for business truly ended. Oracle confirmed that as of September 2024, even Long-Term Support versions, such as Java 17, will no longer receive free public updates. Continuing to use them in production now requires a paid subscription or an upgrade to the next version.

The bottom line is that Oracle has closed loopholes that previously allowed free or low-cost use of Java. If you rely on Oracle’s Java distributions for any production workloads in 2023–2024, you are squarely in the crosshairs of this new licensing scheme.

The Employee-Based Subscription Model Explained

Oracle’s Java SE Universal Subscription uses an employee-based metric that effectively functions as a broad “all-you-can-eat” license, with the catch that you pay for everyone. Below, we break down how this model works, including pricing tiers and scope:

  • Enterprise-Wide Scope: The subscription covers unlimited Java use across desktops, servers, and the cloud, making technical tracking of installations easier. You no longer count specific CPUs or named users – if you’re subscribed, you can deploy Java anywhere. However, this comes with the obligation to count all personnel in your organization for licensing​. Oracle’s definition of “Employee” is broad, encompassing full-time employees, part-time staff, temporary workers, contractors, consultants, and even agents associated with your company​. Crucially, it doesn’t matter if only a small fraction of these people use Java; Oracle charges for the total headcount. For companies with thousands of employees, this turns a minor Java usage into a major expense.
  • Pricing Tiers: Oracle charges a monthly fee per employee, with volume discounts available for larger employee counts. The pricing starts at $15 per employee per month (for up to 999 employees) and scales down at higher brackets​.

These tiered rates illustrate Oracle’s volume strategy. For example, a company with 28,000 employees would fall in the $6.75 tier, equating to roughly $2.27 million per year for Java​. Even a smaller firm of 2,300 employees would pay around $332,000 per year at the $12 tier​.

The costs mount quickly, and there is no partial licensing – one Java installation can effectively trigger a license requirement for your entire headcount. Oracle has positioned this as a “simplified” unlimited usage model, but for most organizations, it shifts the cost baseline sharply upward.

  • Enrollment and Count Determination: Oracle calculates your fee based on the employee count at the time you place your subscription order. That number becomes the basis for your contract term, typically one year. Notably, if your workforce grows during the term, Oracle’s contract will likely require you to true-up and pay for the higher count. If your workforce shrinks, you won’t get a refund – you’re locked into the initial count until renewal. This places the onus on CIOs and CFOs to carefully time and negotiate the start dates of subscriptions. Oracle did allow existing Java SE Subscription customers (from the pre-2023 model) to renew under their old metrics for a limited time, but this grace period is temporary. Oracle’s clear goal is to transition everyone to the employee metric. You can expect any grandfathered deals to be converted to the new model on renewal, likely at higher rates.

Sticker Shock Reality: By divorcing pricing from actual Java usage, Oracle’s model often overcharges relative to value. You may have a handful of internal applications written in Java, yet still be asked to budget for every employee in the company.

This “tax” on your total headcount has caught many CIOs and CFOs off guard. Oracle sales reps wasted no time in exploiting the model – immediately after the 2023 announcement, they began informing customers how many Java downloads Oracle logged for their company and how large their employee count is (as gleaned from public info), implicitly calculating the huge bill you’d owe​.

The message: if you’re using Oracle Java without an enterprise subscription, you’re one audit away from a massive compliance liability.

Oracle’s Audit Approach: Soft Audits vs. Formal Audits

Java compliance audits under the new model. A routine download or an Oracle sales call can quickly snowball into a full-blown audit.

Oracle is infamous for its license audits, and Java is now no exception. Oracle significantly ramped up Java audit activity in 2024, doubling the size of its Java-focused audit and sales teams to enforce the new subscriptions.

CIOs and CFOs must be prepared for Oracle’s two-pronged audit strategy:

  • Formal Audits: A formal audit is a contractual audit initiated under the audit clause of your Oracle agreements. If your company has any Oracle agreement (e.g., database licenses or previous Java contracts), Oracle can invoke its right to audit your software usage, including Java​. You’ll know you’re in a formal audit when you receive an official audit notification letter, which often gives around 45 days’ notice. Oracle’s License Management Services (LMS) or a similar audit team will then request detailed data for all Java installations, versions, and usage across your enterprise​. They may send you scripts or inventory spreadsheets to run, or even deploy third-party auditors. After data collection, they will analyze compliance gaps and deliver an audit report. It’s not uncommon for Oracle to claim backdated subscription fees for past Java use (retroactive charges) and also require you to purchase the Java SE Universal Subscription as we progress. Formal audits are high-stakes and adversarial – expect Oracle to come with evidence in hand (e.g., download records, support tickets) and involve your legal counsel early. The process ends with a negotiation, where Oracle will demand license fees, back payments, and perhaps penalties if unlicensed use is confirmed​. Given the new model, a formal Java audit can yield startling findings. For example, “Company X used Oracle Java without a subscription for 2 years on 100 servers; therefore, it owes 2 years of fees for all employees plus new subscriptions.” The dollar amounts can be stunning.
  • “Soft” Audits (Informal Reviews): Oracle often begins with a softer approach, especially for Java. A soft audit isn’t officially called an audit at first – it usually starts as a friendly outreach by an Oracle Java account manager or “Java compliance specialist.” They might email or call to discuss your Java usage or to ensure you’re aware of the new Java licensing changes. This is a Trojan horse. While the tone is cordial and positioned as customer service, Oracle is probing for compliance info​. The rep may casually ask what Java versions you use, where they’re deployed, and whether you have subscriptions. They often already have some intel – Oracle has been known to mention, “By the way, we noticed you downloaded Java update XYZ last year​.’ These reps do not explicitly invoke an audit clause, so it’s easy for busy executives to treat the inquiry lightly. Don’t. A soft audit is Oracle’s way of gathering evidence and admissions without the formality of a legal audit. If you provide answers indicating unlicensed use or volunteer detailed data, Oracle can quickly escalate the situation. The soft audit can turn formal with a snap of the fingers if Oracle senses resistance or a big compliance gap. Always remember that “friendly” email from Oracle is likely Step 1 of an audit. Keep communications guarded and factual.

How Oracle Gathers Evidence: Under both audit methods, Oracle leverages multiple data points to build its case:

  • Download Tracking: Oracle closely monitors who downloads Oracle Java binaries and updates. Since 2019, downloading Oracle Java (e.g., JDK 8 updates, JDK 11) has typically required logging in with an Oracle account. Oracle logs the account’s email (often, in which reveals the company), IP address, and exactly what was downloaded​. They retain these records for years. If anyone in your organization downloaded a Java patch or installer that isn’t freely permitted, Oracle flags it. For instance, a single engineer downloading a Java SE 8 security update in 2022 (after free public updates ended) can put your entire company on Oracle’s radar​. Oracle views such downloads as strong evidence that you’re using that Java version in production without a license, and they will cite it during an audit. They may even show you a spreadsheet of every download associated with your domain as “proof” of unlicensed usage.
  • OTN License Acceptances: Oracle’s Java downloads after 2019 came with the Oracle Technology Network (OTN) license, which explicitly allowed free use only for development or testing, not production. Oracle knows that if your user clicked “Accept” on the OTN license and downloaded Java, they acknowledged those terms. In audits, Oracle will highlight that your team was aware the software was not free for commercial use. It’s a way to undermine any “we didn’t understand the license” defense. Repeated OTN-licensed downloads by your staff are a red flag that likely triggers Oracle to investigate actual usage.
  • Prior License History: If you ever purchased Oracle Java licenses or subscriptions in the past and let them lapse, Oracle will come knocking. Many companies purchased Java SE subscriptions or had Java as part of another Oracle deal, such as WebLogic or Oracle Apps, before 2023. Once those agreements expire, any continued use of Oracle Java is arguably unlicensed. Oracle’s compliance teams actively track former Java customers whose contracts have ended, then reach out under the assumption they are still using Java. This often starts as a “friendly renewal reminder” (soft audit) but can quickly turn into an assertion of non-compliance for usage after your entitlement ended. If your organization has an Oracle Java contract that has ended, do not assume it’s okay to continue using Java without a new subscription – Oracle certainly doesn’t assume so.
  • Public and Internal Clues: Oracle also identifies targets through indirect means. They watch industries and companies known to be heavy Java users and cross-check who hasn’t bought a subscription. For example, if you’re a large bank or software company (where Java is ubiquitous) and Oracle’s records show no Java purchase, that alone can trigger an inquiry. Oracle reps might also leverage information from unrelated interactions – an Oracle DB sales rep hears that you have a large, internally developed Java app, or your engineers ask Oracle Support a question about Java. Even job postings for “Java developers” at your company can tip off Oracle’s auditors​. They will use any hint of Java usage as leverage. Interestingly, Oracle may target companies with little Oracle footprint more aggressively for Java audits – if you’re not a big Oracle database or applications customer, they have “nothing to lose” by enforcing compliance hard, since there’s no larger relationship at stake. But to be clear, no one is safe: even loyal Oracle enterprise customers have been audited for Java once this model kicked in.

In summary, Oracle’s audit tactics for Java are proactive and unapologetic. Soft audits are a stalking horse to gather information and set the stage, while formal audits are a contractual hammer that can have a massive financial impact.

CIOs and CFOs must educate their teams that any communication from Oracle about Java should be treated with caution and urgency.

Common Java Licensing Compliance Traps

Oracle’s licensing maze is easy to get lost in. Here are some typical compliance pitfalls that companies fall into under the new Java SE model:

  • “We Thought Java Was Free” Syndrome: Many organizations still (mistakenly) believe that Java is free because it was free for decades under Sun and early Oracle. Oracle’s changes in 2019 and 2023 ended free commercial use for Oracle’s JDK in most cases. If your IT staff continues to download Oracle JDK updates or install Java on servers out of habit, you may have unlicensed usage. Trap: Applying even a single security update to Oracle Java 8 after January 2019 without a subscription makes you non-compliant. In 2023, Oracle doubled down: unless you’re using an OpenJDK or an Oracle “no-fee” version within its limited terms, assume that any Oracle Java in production requires a paid subscription. Don’t rely on outdated assumptions from the Sun Microsystems era.
  • OTN License Misuse: Oracle’s OTN license (in effect for Java SE since 2019) allowed free use for development and testing but prohibited its use​in production. A common trap is when development teams use Oracle JDK under this free allowance and then inadvertently deploy that same build into production. The line between “test” and “production” can blur – for example, a QA environment might end up serving a limited user group internally, which Oracle could deem production. If you’ve downloaded Oracle Java under OTN terms, ensure it never reaches production systems. Oracle’s auditors will ask for deployment details to catch this. The safe stance is to segregate Oracle Java binaries used for development and testing, and never use them in any live application unless you have a subscription.
  • Ignoring the Contractor Count: The new employee-based license requires counting contractors and non-payroll workers as part of your total. Some companies get caught by only counting direct employees. Oracle will audit HR records and vendor rosters if needed. If you licensed 5,000 employees but forgot 500 contractors, you’re under-licensed. Trap: The definition of “employee” is broad – if a consultant or an outsourced IT staffer uses your systems, Oracle likely considers them in scope. Always err on the side of over-counting when self-assessing, or Oracle will do it for you (with penalties).
  • Legacy Java Bundles in Other Software: You might think, “We don’t use Oracle Java, we only run IBM WebSphere (or Oracle E-Business Suite, etc.).” Be careful: many enterprise software packages bundle Java runtime environments. Oracle’s policy generally permits using those Java components for the sole purpose of running the bundled application. If your admins repurpose that Java for other uses, it becomes unlicensed. It’s a trap when companies use the Java that came with another product elsewhere, assuming it’s covered. Best practice: Document any third-party software that includes Java and confirm with the vendor (in writing) that their license covers your usage. If not, you need to treat it as if you were using Oracle Java on your side.
  • Relying on “No-Fee” License Without Tracking: Oracle introduced a No-Fee Terms and Conditions (NFTC) license in 2021 for newer Java versions, such as Java 17 and Java 21, which allows for temporary free use. It’s free until one year after the next Long-Term Support (LTS) release. Some companies adopted Java 17, thinking they had a free pass, but failed to plan for the end of that free period. Once Java 21 came out and a year passed, their Java 17 deployments became just as licensable as any other. Trap: Free use under NFTC is a ticking clock; if you don’t continually upgrade to the latest version, you’ll fall out of compliance when the free term expires. Oracle will not miss that detail in an audit.
  • Assuming Oracle Will Give a Warning: Under older models, Oracle sometimes provided renewal notices or even grace periods. Under the 2023 regime, Oracle has shown a tendency to enforce aggressively rather than gently remind. For instance, rather than telling a customer that their old subscription has expired, Oracle might immediately initiate a compliance inquiry, assuming unlicensed use. There’s no “safe period” after your contract lapses. And if you never had a Java license, you won’t get a polite invitation – you’ll get an audit when Oracle decides the time is ripe. Always assume Oracle is watching and will strike without warning if there’s exposure.
  • Underestimating Audit Scope: A Java audit isn’t just about a few developer machines. Oracle will audit everything – servers, VMs (yes, even VMware now sidestepped by the employee model), desktops, cloud instances, and third-party environments. Some companies only focus on servers and overlook thousands of employee laptops that have Oracle Java installed. With the new model, any installation anywhere requires full coverage. Don’t let “shadow IT” Java instances (e.g., a random department installing Java for a tool) escape your notice. Oracle certainly will include them if they find out.

In short, licensing Java under Oracle’s terms is a minefield. Assume nothing is “free” or “too small to notice.” Meticulous compliance tracking and adherence to internal policies are the only ways to avoid these traps.

Tactical Responses: Preparing for Oracle’s Audit Playbook

When Oracle initiates contact about Java, whether it’s a casual email or a formal notice, your organization needs a prepared game plan.

Here’s how CIOs and CFOs should tactically respond to minimize risk:

  • Don’t ignore, but don’t panic: An outreach from Oracle about Java compliance is serious – take it seriously – but maintain a calm and controlled response. Loop in your internal licensing specialists, software asset management (SAM) team, or outside counsel immediately. Time is not on your side in an audit, but rashly volunteering information is equally dangerous. Acknowledge receipt of Oracle’s inquiry and let them know you are reviewing it. This buys you a bit of time to assemble facts.
  • Contain Communications: From the moment Oracle reaches out, centralize all communications through a single channel (e.g., your IT asset manager or legal department). Oracle’s auditors or reps may try to have informal chats with multiple people (developers, purchasing, etc.) – don’t let that happen. Insist that all requests be in writing. A single knowledgeable point of contact should handle responses to avoid inconsistent or incriminating statements.
  • Assess Your Obligations: Determine if Oracle’s request is a contractual audit or a fishing expedition. If you have an Oracle Master Agreement with an audit clause, you may eventually need to comply – but even then, you have the right to a reasonable schedule and scope. If you have no contract at all (e.g., you just downloaded software under OTN terms), Oracle doesn’t have an automatic audit right, though they can still pursue legal action for unlicensed use. In a “soft audit” scenario (no formal notice), you are not legally compelled to run Oracle’s scripts or answer every question. Tread carefully: you want to appear cooperative, but you don’t have to incriminate yourself. Often, a soft audit is handled by scheduling a meeting where Oracle will present its agenda; you can use that time to gather information on its claims without disclosing your data prematurely.
  • Gather Your Intel (Internal Audit): Launch an immediate internal fact-finding exercise. Inventory every instance of Java in your environment – servers, VMs, containers, desktops, applications, etc. Identify which are Oracle’s JDK/JRE versus open-source or other distributions. This is critical: you need to know your exposure before Oracle does. Also, pull records of any Oracle Java downloads by your staff (check internal download repositories or ask developers). This internal audit should be conducted under attorney-client privilege, if possible, so that your findings are protected in the event of litigation. The goal is to map out exactly where you stand: how many Java installations you have, what versions, and under what licensing terms.
  • Do Not Run Oracle’s tools blindly: Oracle may send you a Java usage script or tool and urge you to run it across your entire enterprise. Do not run anything on Oracle’s mere say-so. Review any provided script carefully – ideally, have it vetted by an independent license expert. These scripts could collect more data than necessary or place files that later act as evidence. It’s often sufficient (and safer) to provide Oracle with your inventory data. If you must run their tool as part of a formal audit, do so in a controlled manner, document the process, and review the raw outputs before sending them. You might find it flags installations that are not actually in scope – you’ll want to clarify those before Oracle misinterprets the data.
  • Challenge Their Data: Oracle will come armed with their download records and assumptions. Scrutinize any claims they make. For example, if they say, “John Doe downloaded Java 11 in July 2022, so you owe subscriptions for all of 2022-2023,” verify if that download was used commercially or if it was for an allowed purpose. If Oracle cites several downloads, that doesn’t directly equate to production use. Prepare to explain (with evidence) cases where downloads were for testing or never deployed. Oracle’s goal is to scare you with what they “know.” Your goal is to separate signals from noise and not concede to broad allegations without analysis.
  • Leverage Legal and Advisory Support: If a formal audit notice arrives, involve legal counsel immediately – preferably lawyers or consultants who specialize in Oracle licensing. They can help interpret your contracts and Oracle’s rights. They can also communicate with Oracle on legal terms, which often tones down Oracle’s aggressive posture. In parallel, engage third-party licensing advisors (firms experienced in Oracle audits) if you lack internal expertise. The cost of these advisors is negligible compared to the potential millions at stake. They can help you negotiate and push back on unfounded compliance claims.
  • Plan Your Negotiation Strategy: Ultimately, most Oracle audit situations end in a negotiation for a subscription purchase (or an extension of an existing one). You should enter that phase with a clear strategy: know what Oracle’s list price exposure is (worst-case), determine what a reasonable settlement or purchase looks like (perhaps a shorter subscription term, or a smaller subset of your business if you can argue not all entities use Java). Be ready to seek executive-level engagement – Oracle will often engage your CIO or CFO directly in late-stage talks to apply pressure. Ensure those executives have a unified stance and all the facts. If you find Oracle’s demands unreasonable, don’t be afraid to escalate within Oracle or delay seeking a better deal. Oracle’s initial audit findings are often overstated to create leverage. With a solid grasp of your actual usage and compliance gaps, you can often negotiate a significantly reduced outcome compared to the initial number Oracle presents.

Above all, maintain a united front internally. Oracle often tries to divide and conquer – for example, telling the CIO, “Your IT team deployed unlicensed software and put you at risk,” or telling IT managers, “Your CFO should be worried about this bill.” Don’t let them set the narrative. If you’ve prepared your leadership and aligned on the facts, Oracle’s pressure tactics will be far less effective.

Recommendations for CIOs and CFOs

In light of Oracle’s Java licensing changes and aggressive compliance stance, CIOs and CFOs should take immediate action to mitigate risk.

Below is a no-nonsense checklist of steps to protect your organization:

  1. Establish Java License Ownership: Assign a clear owner (or team) for Java licensing compliance. This could be your Software Asset Management team or a special task force combining IT and Procurement. Ensure they stay up to date on Oracle’s Java policies and are ready to respond to any Oracle inquiries. Executive sponsorship is key – make it known from the C-level that Java compliance is a priority, so it gets the attention it needs.
  2. Conduct a Proactive Java Audit (Inventory Everything): Perform a thorough internal audit of all Java usage in your enterprise. Identify every system (server, VM, container, desktop) running Oracle’s Java Runtime Environment (JRE) or JDK. Catalog the versions in use and how they were obtained. This should include shadow IT and development environments. The goal is to know your Java footprint better than Oracle does. Many organizations are surprised to find outdated Oracle Java Development Kits (JDKs) lurking on build servers or user laptops. Uninstall Oracle Java where it’s not needed or replace it with approved alternatives before Oracle comes knocking. Fewer installations mean fewer potential triggers.
  3. Strict Download and Deployment Controls: Implement a policy that requires approval for downloading or deploying Oracle Java software. Disable direct access to Oracle’s Java downloads if possible, or route it through a controlled internal repository. Educate developers and IT staff on the stakes – a simple download can put the company at risk of an audit. If Oracle’s Java is needed for a project, require a business justification and managerial sign-off. This not only reduces surprise usage, but if an audit occurs, you can demonstrate strong controls, which can influence Oracle’s approach to you, possibly making them a bit more cautious.
  4. Review Contracts and Update Audit Response Plans: If you have Oracle contracts, review the audit clauses now. Engage your legal team to understand your rights and obligations. Update your audit response plan specifically for Oracle Java. This plan should outline who to notify if an Oracle letter or email arrives, who will interface with Oracle, how long you have to respond, and what data you will (or won’t) provide. Simulate a Java audit scenario internally – it’s much better to practice now than to improvise later under duress.
  5. Don’t Rely on Oracle’s “Grandfathering”: If you were an Oracle Java subscriber under the old model, do not assume you can renew indefinitely on the old terms. Oracle has signaled that it will push everyone to the new model in time​. Start planning for that eventuality. If your renewal is approaching, contact Oracle early to understand your options and obtain any assurances in writing. But also evaluate alternatives in case the renewal comes with a hefty price hike – it’s better to be prepared with options than to be cornered into an outrageous bill.
  6. Educate and Communicate Internally: Hold briefing sessions for your development teams, application owners, and IT support about Oracle’s Java licensing. Many tech folks aren’t aware that using Oracle’s JDK in production is no longer free. Communicate the risks (in plain dollar terms) to get buy-in for compliance efforts. Likewise, brief your procurement and sourcing teams: if any software proposals include Java, they need to factor in Oracle’s licensing or ensure the vendor has an embedding license. Make Java a line item in project risk assessments.
  7. Monitor Oracle’s Moves: Keep an eye on Oracle’s Java announcements, patches, and policy changes. Oracle’s strategy can evolve (for example, offering new free usage periods or bundling Java with cloud offerings). Staying informed will let you adjust your defense strategy proactively. Join user groups or forums where Java licensing is discussed – many companies share their audit experiences, which can provide early warnings of Oracle’s tactics in the field.
  8. Engage in Scenario Planning with Finance: CFOs should model the worst-case financial exposure of a Java compliance issue. For instance, “If we had to license all 8,000 employees at $8.25/month, what’s the annual cost?”​. Having this figure allows you to make informed decisions (e.g., it might be cheaper to invest in migrating off Oracle Java in critical areas than to pay that subscription, but that’s a strategic call). At minimum, ensure you have a budget contingency for a possible true-up. Nothing is worse than being surprised by an unplanned multi-million-dollar expense. Proactively discussing it also ensures the CIO and CFO are aligned in any negotiation with Oracle – Oracle loves to catch a company divided, where IT and Finance point fingers at each other. Don’t give them that opening.
  9. Hold the Line in Negotiations: If it does come to purchasing, negotiate with clear limits. Oracle’s first offer will be high; they assume many will accept the standard price out of fear. As an empowered customer, you know your usage, and you know Oracle wants to lock in recurring revenue more than a one-time penalty. Use that: push for better pricing tiers if your usage is limited, or shorter subscription terms if you plan to reduce Java use. Consider asking for clauses that allow adjustments if your employee count drops. Bring up the fact that competitors exist (Oracle hates the word “OpenJDK” but reminding them subtly that you have options can soften their stance). In sum, treat Java like any other significant IT spend – get value for money, don’t simply capitulate to list prices.

Final Thought: Oracle’s 2023 licensing model for Java is unapologetically punitive to customers who aren’t prepared. It was designed to maximize Oracle’s revenue, not to be “easier for you,” despite Oracle’s spin.

As a CIO or CFO, your best defense is knowledge and preparation. Understand the rules, get your house in order, and approach any engagement with Oracle in a firm and factual manner.

With robust internal controls and a cohesive strategy, you can significantly reduce the threat of an Oracle Java audit turning into a financial nightmare. Your role is to protect the company’s interests, and that means being one step ahead of Oracle’s playbook at all times.

Author

  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.

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