Oracle Java Licensing Changes: The Definitive Enterprise Guide for 2025

Oracle Java Licensing Changes: The Definitive Enterprise Guide for 2025

Oracle’s recent Java licensing changes have turned Java from a free utility into a serious budget and compliance concern for enterprises. In this guide, we break down what CIOs, CFOs, and IT leaders need to know about the new licensing model, why costs are rising, and how to adapt your strategy.

By understanding these changes and planning, you can avoid compliance pitfalls and manage costs while still obtaining the Java capabilities your business needs.

Key Milestones in Oracle Java Licensing (2019–2025)

• 2019 – End of free public updates: Oracle stopped providing free public updates for Java 8 (and later versions) for commercial use. Starting in 2019, businesses could no longer use Oracle’s Java in production without a paid plan. Oracle replaced the old free Binary Code License with a more restrictive Oracle Technology Network (OTN) license, which allowed free use only for development or personal use – not for running business applications. This was the first wake-up call that “free Java” was coming to an end for enterprises. Companies had to start budgeting for Java just to get critical security patches.
• 2019 – Java subscriptions introduced: Alongside the end of free updates, Oracle introduced Java SE subscription plans. These were based on traditional metrics (per user or per processor, similar to other Oracle software licenses). Enterprises began paying monthly fees per developer or per server to stay current with Java updates. This subscription model was new territory for many Java users, setting the stage for further changes to come.
• 2021 – NFTC (No-Fee Terms and Conditions) for Java 17: In 2021, Oracle released Java 17 (a long-term support version) under a “No-Fee Terms and Conditions” license. NFTC allowed organizations to use Oracle JDK for free, even in production, but only for a limited time. Under NFTC, you could run Java 17 with updates until one year after the next LTS release. In plain terms, Java 17 stayed free with updates until late 2024. Oracle aimed to encourage everyone to stay on the latest version of Java. But once that grace period ends, you either pay for a subscription to keep getting updates or upgrade to the next LTS (Java 21) to reset the free period. NFTC was a temporary relief for some, but it came with an expiration date.
• 2023 – Employee-based Java SE Universal Subscription: January 2023 brought the most dramatic licensing change. Oracle introduced the Java SE Universal Subscription model, which requires licensing based on your total number of employees. This replaced the older per-user and per-processor Java licenses. Now, if a company uses Oracle Java, it must count all full-time employees, part-time staff, and contractors in the organization. The idea was to simplify licensing with one metric, but many businesses experienced it as a steep price increase. For example, a company with 25,000 employees could incur an annual Java bill of $2 million or more under this model—a cost that has taken many CFOs by surprise. Oracle initially allowed existing Java subscription customers to renew under the old model in limited cases, but it became clear that the future lies with the all-employee model.
• 2024 – NFTC expiration and audit crackdowns: In late 2024, the free update period for Java 17 under NFTC officially ended (about one year after Java 21’s release). Companies that had been enjoying free Java 17 updates had to make a choice: either pay Oracle for a subscription to continue receiving patches or migrate those systems to an alternative Java version (or upgrade to Java 21, which starts a new free period). At the same time, Oracle significantly ramped up Java compliance audits. Oracle’s license teams began actively contacting organizations to review Java usage. Even companies using non-Oracle Java distributions received “friendly” inquiries, as Oracle wanted to ensure no Oracle JDK was in use without a license. By 2025, Oracle will treat Java just like its database business – actively enforcing licenses. Enterprises are now on high alert for Java audit risk, whereas a few years ago, Java wasn’t even on the radar for software audits.

(By 2025, these changes will have transformed Java licensing. Java is no longer a throw-in utility; it’s a software product that demands active management of licenses and updates.)

How the Current Universal Subscription Model Works

Oracle’s current Java SE Universal Subscription is a per-employee licensing model. Here’s how it works in practice:

• Per-employee licensing (plain English): Instead of counting how many servers or CPUs are running Java, Oracle now asks, “How many people work at your company?” You pay a fee for each employee, typically on a per-month basis. In return, you get the rights to use Oracle’s Java on any number of devices or servers within your organization. Think of it as an enterprise-wide license covering everyone, rather than a license per installation. If you have 10,000 employees, you need 10,000 Java licenses – even if only a small fraction of them actually use applications running on Oracle Java. This model shifts Java licensing to a broad headcount-based subscription.
• Tiered pricing concept: The cost per employee is tiered: the more employees you have, the lower the cost per employee. For example, a smaller company might start at around $15 per employee per month. In contrast, a very large enterprise (with tens of thousands of employees) might pay closer to $5 per employee per month after applying volume discounts. The total cost, of course, grows with headcount – so a bigger company still pays a much bigger bill overall. Oracle publishes these tiers, but importantly, you cannot choose to license just some employees at those rates; the model assumes you’re covering everyone. The tiered pricing is designed to make the model more palatable for large organizations, but it also means that mid-sized firms could feel a real pinch if they fall into a higher-cost tier without a large headcount.
• Who counts as an “employee”: Oracle’s definition of employee is very broad. It includes full-time staff, part-time workers, temporary employees, contractors, consultants, and agency workers who are working for your company in any capacity. In other words, anyone on your payroll or supporting your operations counts. It doesn’t matter if a person never touches a computer or doesn’t know what Java is. If they work for your organization, Oracle considers them in the count because they benefit indirectly from Java-based systems. The only people you wouldn’t count are truly external end-users (like your customers) or third parties who use their own systems unrelated to your internal operations. This broad definition catches many by surprise. For instance, a manufacturing firm must count everyone on the factory floor, including contractors, not just the IT team, when determining Java licensing requirements.
• “Unlimited use,” explained: The upside of the Universal Subscription is that it grants essentially unlimited Java use within the company. Once you’ve licensed every employee, you can deploy Oracle’s Java on as many servers, PCs, and cloud instances as you want without tracking each installation. There’s no need to worry about whether you have 100 copies or 100,000 copies of Java running – the subscription covers it. This greatly simplifies compliance from a usage-tracking perspective. However, “unlimited” has boundaries: it’s only unlimited within your organization and for covered uses. You can’t, for example, share it with a subsidiary without also counting those employees, and you must still stay within the scope of Java SE (the subscription doesn’t cover other Oracle products). Also, you cannot choose to license only part of your organization – partial coverage is not allowed. Oracle requires an all-or-nothing approach: either every employee is licensed under the subscription, or you’re technically unlicensed for any Java use in production. Finally, note that “unlimited” usage rights are only valid as long as you continue to pay for the subscription. If you stop renewing, you lose the right to use Oracle Java going forward (unless you fall back to an older free version or switch platforms).

In summary, the Universal Subscription model simplifies certain aspects of license management (eliminating the need to count devices) but introduces a substantial enterprise-wide cost and a broad definition of who must be included.

Companies must be very clear about their employee counts and plan for how this model affects their IT budgets.

Why These Changes Are Disruptive for Enterprises

Oracle’s licensing changes for Java have caused major disruption in how enterprises budget and plan for software.

Several factors make the new model challenging:

• Rising costs: Many organizations are experiencing sticker shock with the per-employee model. Under the old model, you might have only paid for Java on a handful of servers or for a few hundred developer licenses. Now every single employee generates a cost, whether they actively use Java or not. This can multiply your Java spend many times over. For example, a company that previously paid for 500 Java users could now be paying for 10,000 employees, representing a significant increase. These rising costs force companies to divert budget to Java that might have been unplanned, squeezing IT and even forcing cuts elsewhere. CFOs are now paying attention to Java in a way they never had to before.
• Budget volatility: The employee-based cost introduces new variability. If your company grows and hires more people, your Java subscription cost will increase at the next true-up or renewal. Even if Oracle’s per-employee prices stay the same, a hiring spree or an acquisition could blow up your costs unexpectedly. Conversely, if you downsize, you typically won’t see immediate savings because you’re often locked into a contract for the subscription term. This means planning a multi-year IT budget for Java is tricky – you have to forecast headcount changes and factor those into future costs. It’s a moving target, making Java a more dynamic (and unpredictable) line item than before.
• Expanded compliance and audit exposure: Java is ubiquitous – it runs on servers, desktops, and devices across the enterprise. In the past, when Java was freely usable, most organizations didn’t track Java installations at all. Now that Oracle charges for Java, every instance of Oracle’s JDK in your environment is a potential compliance risk if you’re not fully licensed. Oracle is aware of this and has begun auditing companies specifically for their use of Java. The broad employee definition means it’s easy for Oracle to claim you’re under-licensed if you didn’t include a segment of your workforce or contractors. Audit risk has increased significantly. Companies that never worried about Java are now scrambling to conduct internal audits, remove unauthorized installations, and demonstrate compliance. And since Java is often embedded in other software or used in ways IT might not centrally control, it’s a big task to get your arms around it.
• Multi-year planning uncertainty: With Oracle’s changes, it’s hard to predict what Java licensing will look like in a few years. Oracle could adjust pricing tiers, change the rules (just as they did in 2023), or introduce new terms. Additionally, the NFTC’s “free for a while” approach means that every couple of years, when a new LTS version arrives, you have to make a decision: do we upgrade all our Java applications to stay on the free version, or do we pay to stay on the older one? These are strategic decisions that involve workload, testing, and downtime considerations – not trivial for large environments. The pace of Java releases (new LTS every two years) combined with Oracle’s licensing tactics means enterprises need a Java roadmap as part of their IT strategy. There’s a sense of uncertainty: Will Oracle stick to the current model or enforce something new again by 2026? This uncertainty makes it crucial to stay flexible and informed.

In short, Oracle’s Java licensing changes have turned what used to be a background IT utility into a significant financial and compliance project. Enterprises must respond proactively to avoid budget overruns and compliance slip-ups.

Common Mistakes Enterprises Make

As organizations adapt to the new Java licensing landscape, certain pitfalls persist.

Here are some common mistakes to avoid:

• Assuming Java is still “free”: It’s surprising how many teams haven’t gotten the memo that Oracle Java now requires a paid license for most uses. Assuming that Java is free (because it was free for decades) can lead to unintentional non-compliance. We often find pockets of an organization still downloading Oracle JDK for new projects without realizing that these deployments require licensing. The result can be an unpleasant surprise during an audit or when someone finally tallies up usage.
• Ignoring NFTC timing and expiration: Taking advantage of Oracle’s no-fee terms for the latest Java version can be a smart short-term move, but ignoring the end date is a risky move. We see companies happily using Java 17 under NFTC, but they forget that after late 2024, those instances are no longer entitled to updates or free use. If you don’t track when that “free ride” ends, you might suddenly find yourself running outdated, unpatched Java or facing a last-minute need to buy licenses. Always mark your calendar for when an NFTC period expires and have a plan (such as upgrading or subscribing) in place before it’s too late.
• Miscounting employees for licensing: When implementing the employee-based model, some organizations mistakenly try to exclude parts of their workforce (e.g., “We’ll only count the IT department” or “Those contractors aren’t really employees.”). Under Oracle’s rules, that approach doesn’t fly. If Oracle audits you and finds you left out a category like contractors or part-timers, you could be on the hook for back fees and penalties. Another mistake is not keeping up with headcount changes – if you have licensed 10,000 employees but a merger increases your headcount to 12,000, you need to true up. Undercounting employees is a costly error.
• Excluding procurement or finance from the process: Java licensing often begins as a technical issue (“We need to get Java updates”), but it quickly evolves into a commercial one. If IT handles it alone, they might miss opportunities that procurement or finance would catch, like negotiating better terms or aligning Java deals with other contracts. We’ve seen cases where a well-meaning IT manager just accepts Oracle’s standard quote, whereas involving procurement could have led to a discount or at least better payment terms. Also, finance needs to forecast these costs. Don’t treat Java as just an IT issue – it’s now a cross-functional concern.
• Negotiating with Oracle without usage data: Going into any vendor negotiation unprepared is dangerous, and Java is no exception. If you can’t clearly articulate how many Java instances you have, what versions, where they’re running, and how critical they are, you’re negotiating in the dark. Oracle’s reps may assert that “you need to license X thousand employees” or that you have Java on “these many servers” (Oracle sometimes has download data). Without your own data, you can’t challenge or verify those claims. The mistake is to engage in talks or, worse, agree to a deal without first doing a thorough internal assessment of Java usage. Good data is your leverage.
• Overlooking non-Oracle alternatives: Another common misstep is thinking Oracle Java is the only viable option. In fact, open-source Java distributions (OpenJDK and others) can run the same applications with no license cost. Companies sometimes rush into a large Oracle subscription because they believe migrating to OpenJDK is too difficult or not feasible. That’s not true – in many cases, it’s quite straightforward. Overlooking these alternatives means you might be paying for something you could obtain for free (or at a significantly lower cost with third-party support). It’s a mistake not to at least evaluate the feasibility of using OpenJDK or a vendor-supported Java, such as Amazon Corretto, Azul Zulu, or Red Hat OpenJDK, as part of your strategy.

By being aware of these common mistakes, you can take steps to avoid them and handle Java licensing in a more informed way.

Cost Management and Compliance Strategies

In the face of the new reality of Oracle Java licensing, enterprises need a plan. Here are key strategies to manage costs and stay in compliance:

• Build a Java cost forecast: Treat Java licensing like the significant budget item it now is. Create a multi-year forecast for Java costs under various scenarios. For example, model your spending if your employee count grows by 5% or 10%, or if Oracle raises prices after your initial term. Additionally, model the cost difference if you migrate a portion of your Java workloads to open-source solutions. This scenario planning will help you anticipate budget impacts. A forecast might reveal, for instance, that in three years, your Java subscription could cost an additional $ 500,000 due to headcount growth – information that is critical for CFO approval and for motivating cost-saving measures today.
• Conduct internal audits and implement controls: Don’t wait for Oracle to audit you – proactively audit yourself. Inventory all the Java installations in your environment. Determine which ones are Oracle JDK versus OpenJDK or others. Many organizations set up automated scanning through their IT asset management tools to flag Oracle JDK installs. Once you have established a baseline, implement controls, such as restricting access to who can download and install Oracle Java. Some firms even remove administrative rights or block Oracle’s download sites to prevent unlicensed installs. By policing your environment, you can identify compliance issues early and either remove unauthorized Oracle JDKs or allocate a proper budget for them. Internal audits should be ongoing, not one-time, given how easy it is for a developer or admin to accidentally include an Oracle JDK in a deployment.
• Reduce the Oracle Java footprint: One straightforward way to cut costs is to use Oracle’s Java only where truly necessary. For many use cases, you can replace Oracle JDK with OpenJDK (the free, open-source equivalent) or another distribution that doesn’t incur fees. For example, if you have a hundred internal applications and only a couple absolutely require Oracle JDK for support reasons, consider standardizing the rest on OpenJDK. Every Oracle JDK you remove is one less thing to pay for (or worry about auditing). We advise clients to categorize their Java applications: which ones can run on OpenJDK with minimal effort, and which might need Oracle’s version? Often, a large chunk can transition to open source with proper testing. Over time, this shrinks your paid footprint and weakens Oracle’s leverage over you.
• Establish governance, policy, and training: Treat Java like any other key IT asset by building governance around it. Develop a clear Java usage policy – for instance, “Oracle Java may not be used in production without approval from the Architecture team and the License Desk” or “All new Java deployments must use OpenJDK unless an exemption is granted.” Communicate this policy across IT and development teams. Provide training or informational sessions to ensure that everyone understands the licensing implications of downloading the Oracle JDK. Make Java usage a topic in architecture review boards or change management processes, so it stays on the radar. Schedule periodic reviews (e.g., quarterly) of your Java licensing position – including the number of installations, any upcoming NFTC expirations, and other relevant details. Good governance ensures Java doesn’t fall through the cracks and lead to surprises.
• Have an audit defense playbook: Despite your best efforts, Oracle may come knocking with a Java audit or “license review.” Prepare for this in advance. Assemble a small response team – typically someone from IT asset management, someone from legal, and someone from procurement or vendor management. Assign roles: who will communicate with Oracle (typically one person, often from procurement or legal), who will gather data internally, and who will coordinate any required actions. Have a documented process for responding to audit requests, including how to verify any Oracle findings. Importantly, keep records of your Java usage and licensing status. If you’ve migrated systems to OpenJDK, document that (so you can prove those installations are not Oracle’s JDK). If you do have Oracle Java deployments, maintain proof of what is licensed. A well-rehearsed audit response plan means you won’t be scrambling if that official notice arrives. Instead, you’ll respond calmly and accurately, which can significantly limit the scope and duration of the audit.

By implementing these strategies, you’ll not only control costs but also create a stronger compliance posture. In our experience, companies that take these steps end up far better prepared and often save money by avoiding panic buys or penalties.

Negotiation and Vendor Strategy

When dealing with Oracle (or any big vendor), how you negotiate can be just as important as what you negotiate.

Here are ways to improve your position regarding Java:

• Leverage Java in broader Oracle negotiations: If you’re also an Oracle database, middleware, or applications customer, you likely have periodic negotiations or an Enterprise Agreement with Oracle. Java can be a bargaining chip. For example, if you’re renewing a major Oracle database contract, that might be a good time to broach Java licensing as part of the package. Oracle sales representatives now have targets for Java, so they may be willing to offer a discount on Java if it helps them close a larger deal for databases or cloud services. Conversely, suppose you’re unhappy with the Java terms. In that case, you might leverage your spend in other areas to get Oracle to listen (e.g., “We spend $10M a year on Oracle DB – we need better Java pricing given our total relationship”). Integrating Java into a bigger negotiation can yield concessions that you wouldn’t get if you handled it in isolation.
• Use usage data and alternatives as leverage: Knowledge is power in negotiations. Come to Oracle with hard data on how and where you use Java. If you can show, for instance, that only 20% of your environment actually relies on Oracle JDK and you have a plan to swap out the rest for OpenJDK, you signal to Oracle that you’re not a captive client. Also, don’t shy away from mentioning that you’re evaluating open-source Java or third-party support options. Even the hint that you might migrate off Oracle can make them more flexible. We have seen Oracle offer more favorable terms to clients who presented a credible Plan B, because Oracle would rather have some revenue than lose the account entirely. The key is being credible – have a real plan or pilot underway for using alternatives, not just a bluff.
• Counter the “one-way” narrative and seek concessions: Oracle may present the Universal Subscription as non-negotiable – “This is our standard price, everyone must license all employees, end of story.” In practice, there can be flexibility, especially for larger customers. Push back on price and terms. For example, ask for a multi-year price lock (so you’re protected from price hikes for, say, 3-5 years). Consider negotiating a phased approach – perhaps you license a subset of the organization for the first year while transitioning, rather than incurring a big-bang cost (Oracle might resist, but it’s worth discussing if you truly only need Java in part of the business initially). You could seek concessions, such as extended support for an older Java version at no extra cost, or inclusion of Java in an Unlimited License Agreement (ULA) if you already have one. Oracle sales reps do have some discounting authority on Java. The list price doesn’t have to be the price you pay, especially if you have leverage from potential alternatives or other business you do with Oracle. Don’t accept the first offer.
• Timing and internal alignment: Timing your negotiation can make a difference. Oracle, like many vendors, has quarterly and annual targets. If you approach them near the end of their quarter or fiscal year with a potential Java subscription deal on the table, they may be more motivated to be flexible in booking the revenue. Also, ensure internal alignment before negotiating: get your IT, finance, and executive leaders on the same page about the desired outcome (e.g., maximum budget, acceptable terms). If Oracle senses internal disagreement or urgency, it may exploit it. Always have a walk-away option defined – for instance, be prepared to migrate to OpenJDK for most systems if Oracle’s proposal isn’t reasonable. Your willingness to walk away is your ultimate leverage. It’s easier to negotiate confidently when you know you have an alternative plan that you can live with.

By being strategic about how you engage Oracle, you can often turn a one-sided proposition into a more balanced deal. It might not be “cheap,” but you can aim for “fair” and sustainable for your organization.

Hybrid Licensing Approaches

Given the cost and rigidity of Oracle’s model, many enterprises are considering a hybrid approach – using Oracle Java in some areas and open-source Java in others.

Here’s how to make that work:

• Identify where Oracle Java is truly essential: Not every Java workload needs Oracle’s JDK or the official support that comes with it. Pinpoint the cases where it does. For example, perhaps a third-party software your business relies on is only certified by the vendor to run on Oracle Java – that might be a candidate to keep on Oracle’s JDK (at least until the vendor supports alternatives). Or perhaps you have an in-house application that is so critical that you want the peace of mind that comes with Oracle’s support if something goes wrong. These critical use cases, which often represent a minority of total Java usage, may justify maintaining support for Oracle Java. Everything else is a candidate for open-source alternatives. The goal is to limit Oracle Java to the “must-haves” rather than the “nice-to-haves.”
• Use OpenJDK (or other distributions) wherever viable: OpenJDK is the open-source reference implementation of Java and, for most practical purposes, it runs Java applications just as well as Oracle’s version. In fact, Oracle’s JDK itself is largely built on the OpenJDK source. There are also free distributions, such as Eclipse Temurin (Adoptium) and Amazon Corretto, which provide reliable builds of OpenJDK. Enterprises can deploy these with confidence for the majority of applications, especially internal apps or non-mission-critical systems. By shifting those systems to open-source Java, you avoid licensing costs and reduce compliance complexity (no Oracle audit worries on those systems). Many organizations start by migrating development and test environments to OpenJDK (since that has zero impact on end users), then move non-critical production systems once they’re comfortable. Over time, you might find that 80-90% of your Java estate can run on non-Oracle JDKs without issue.
• Operate a mixed Java environment with discipline: Running both Oracle JDK and OpenJDK in different places is totally feasible, but it requires some tracking. You’ll need to maintain a clear inventory: which servers or applications are using Oracle’s JDK (and thus need licenses) versus which are using OpenJDK. This might involve tagging systems in your configuration management database or using scripts to detect the Java vendor version. Additionally, consider your update/patching strategy – Oracle releases updates for its JDK on a regular schedule (which you receive if you have a subscription or during NFTC periods), while OpenJDK updates are distributed through different channels (community releases or vendor releases). Ensure your operations team is aware of the process for updating OpenJDK installations, which may require more manual effort unless you use a managed distribution. With the right processes, a mixed environment doesn’t have to be any more complex than other multi-vendor setups. Just keep the lines clear: Oracle JDK here, OpenJDK there, and don’t mix them on the same system unless necessary.
• Roadmap to reduce Oracle dependency: If you adopt a hybrid approach, you can aim to gradually reduce Oracle usage over time. Create a roadmap that includes milestones such as: by next quarter, migrate X application cluster to OpenJDK; by next year, reduce Oracle JDK installations by Y%. If you have a renewal of your Oracle Java subscription in, say, 2026, plan to have significantly less reliance on it by then so you have leverage to negotiate or perhaps the option not to renew at all. Each project that retires an Oracle JDK deployment moves you one step closer to freedom. Some companies even set a strategic goal, e.g., “Within 3 years, we will be 90% on open-source Java.” Even if you don’t hit 100%, the cost savings and flexibility gained by cutting the Oracle footprint are substantial. And as you demonstrate success with alternatives, internal resistance fades, and more teams will be willing to make the switch.

A hybrid approach offers the best of both worlds: you pay Oracle only where you truly need their product/support, and you optimize costs by utilizing free solutions elsewhere.

It requires coordination, but many enterprises find that this strategy strikes the sweet spot between risk and cost.

Enterprise Roadmap for 2025 and Beyond

To navigate Oracle Java licensing in 2025 and beyond, organizations should take a structured approach.

Here’s a roadmap to consider:

• 1. Inventory and baseline: Start with a thorough inventory of all Java usage in your enterprise. Identify every application, server, or environment that runs Java, and note the version and distribution (E.g., Oracle, OpenJDK, IBM) it uses. This baseline will reveal your exposure – both in terms of licensing needs and potential areas for optimization. Many firms discover they have far more Java in use than they thought, including legacy apps and embedded uses. You can’t manage or strategize what you haven’t discovered, so this step is critical.
• 2. Scenario planning (Oracle-only vs. hybrid vs. migrate): With your inventory in hand, map out a few strategic scenarios. Scenario A: You stick with Oracle’s Java for everything – what does that cost and what are the risks? Scenario B: A hybrid model – perhaps Oracle Java for certain systems and OpenJDK for the rest – what would that look like in terms of cost savings and management overhead? Scenario C: An aggressive migration off Oracle entirely – how quickly could it be done, what would it save, and what might be the challenges? Presenting these options to stakeholders (with rough cost and risk estimates for 3-5 years) allows for an informed decision on how to move forward. For example, scenario planning might reveal that an Oracle-only approach incurs $X million in costs over three years. In contrast, a hybrid or full migration plan could reduce that by 50% after initial transition costs. It’s not just about cost – also consider support, performance, and internal skill factors in each scenario.
• 3. Executive sponsorship and funding: Whichever strategy you lean towards, ensure you have executive buy-in. Java licensing might seem technical, but given the potential costs and risks (millions of dollars, audit penalties, system migrations), it’s absolutely a leadership issue. Get a C-level sponsor (CIO or CFO typically) who understands the importance and can champion necessary investments or policy changes. For instance, if the decision is to migrate a lot of systems to OpenJDK, there might be upfront project costs for testing and certification – the CFO should see that as an investment with ROI in license savings. Likewise, if the plan is to go all-in with Oracle for now, leadership should be aware of the long-term commitment and ensure that budgets are allocated accordingly. Having top-level support also signals to all departments that this is a priority, not just a side project.
• 4. Procurement and legal involvement: As you move into execution, involve your procurement and legal teams in any dealings with Oracle or third-party support providers. Procurement can help negotiate the best terms if you do enter a Java SE Universal Subscription – for example, ensuring you get the best volume tier or adding favorable clauses (like price caps). Legal should review any license agreements, paying attention to definitions (to ensure you understand exactly who counts as an employee and what rights you have under NFTC, among other details) and any audit clauses. If you’re adopting open-source alternatives, legal can help with open-source policy compliance and any support contracts you might sign (e.g., with Red Hat or Azul for their Java support). Essentially, treat Java licensing as you would any major software contract – get the experts to vet and negotiate it.
• 5. Policy, governance, and calendar reminders: Implement the governance mechanisms we discussed. Write or update internal policies on Java usage and licensing. Make sure there’s an owner (or committee) accountable for Java license management in the future. Importantly, keep a calendar of key dates: when does your Oracle subscription term end? When do NFTC periods for your Java versions expire? When is the next Java LTS release (since that might affect your plans)? Mark these dates well in advance and plan checkpoints. For example, if Java 21’s NFTC free period ends in late 2025, start discussions in mid-2025 about whether to upgrade to Java 25 or buy support. If your Oracle deal is set to expire in December 2025, begin planning for renewal or migration by mid-2025. Regular governance meetings (quarterly or biannually) should review these timelines to ensure nothing sneaks up on you.
• 6. Ongoing market watch and adaptation: Finally, keep an eye on the broader Java and IT asset management landscape. The year 2025 may not mark the end of Java licensing changes – Oracle could introduce new pricing, or perhaps they’ll respond if enough customers move away (perhaps offering a more attractive model, who knows). Also, watch what other companies are doing and what successes or pitfalls they encounter in Java license management. Stay informed about new Java versions, which are released every two years (with Java 21 expected in 2023 and Java 25 anticipated in 2025). Plan how your organization will adopt or skip these releases in light of NFTC timelines. Additionally, keep track of alternative Java providers – for instance, if a major vendor offers a compelling support package for OpenJDK, it might be worth considering at your next strategy review. In short, treat Java like a strategic component of your IT, with ongoing evaluation and adjustment, rather than a one-time set-and-forget decision.

By following an organized roadmap, you’ll transform Java licensing from a chaotic scramble into a manageable part of your IT strategy. This reduces risk and often uncovers cost-saving opportunities that more ad-hoc approaches would miss.

(Table: Scenario Planning – Oracle Java Licensing Strategies)

This scenario planning table illustrates how different approaches can impact your costs and risks. Many enterprises find a hybrid model to be a balanced path, at least as an interim step toward more open-source usage.

Related articles

• Oracle Java Licensing FAQs – 2025 Edition
• Oracle Java Licensing Myths – What’s True in 2025?
• Oracle Java Licensing Risks and Audit Behaviors in 2025
• Oracle Java License Changes in 2025 – Updated Rules, Costs, and Risks
• Oracle Java Licensing Roadmap – Preparing for the Next 5 Years

FAQ – Oracle Java Licensing Changes

What changed in 2023?
In 2023, Oracle moved Java SE licensing to an employee-based Universal Subscription model. Instead of buying licenses for specific servers or users, companies now must license Java for all employees in the organization. This replaced the old Named User Plus and Processor metrics. For many, this change meant a significant increase in Java licensing costs, since you’re paying per headcount regardless of actual usage. Oracle essentially turned Java into an enterprise-wide subscription.

Who needs a license under the employee-based model?
Under the new model, if you use Oracle’s Java in any production capacity, you are expected to count every employee, contractor, and temp in your organization towards licensing. It’s not just the developers or IT staff using Java directly – it also includes roles such as HR, sales, or factory workers, even if they don’t use Java themselves. Oracle’s rationale is that all employees benefit from the business systems that run on Java. The only people you do not count are external users (like your customers) or third-party service providers who are running their own systems. In practice, nearly everyone on your payroll counts.

How long does NFTC cover?
Oracle’s No-Fee Terms and Conditions (NFTC) provide free use of a given Java version until one year after the next Long-Term Support (LTS) release. For example, Java 17 was released in 2021 and was free under NFTC until approximately one year after Java 21 (the next Long-Term Support, LTS) release in 2023 – so free updates lasted until late 2024. After that point, Java 17 will no longer receive free updates, and you will need to pay for a subscription to continue using it with support. Similarly, Java 21 is free under NFTC likely until a year after Java 25 is released (expected around 2025). In plain terms, NFTC is a grace period: it lets you run the latest LTS Java for a couple of years at no cost, but it’s not a permanent free license. Eventually, you must either upgrade to the next version to reset the clock or start paying if you want to stay on the older version with updates.

Are there still free options for Java?
Yes. The good news is that Java, as a technology, remains available for free – it’s just Oracle’s specific distribution and support that incur costs. The primary free option is OpenJDK, which is the open-source version of Java. Oracle itself provides OpenJDK builds (with no support, just the raw bits), and there are other providers like Eclipse Adoptium (Temurin), Amazon Corretto, Azul Zulu, and more that offer Java builds you can use without a license fee. These are essentially the same core Java platform, just without Oracle’s branding and support. Many of them even offer free security updates for a limited time, and some vendors sell support if needed (at prices typically lower than Oracle’s). Therefore, an enterprise can run Java in production without incurring Oracle’s costs by using one of these alternatives. It does require you to manage the updates yourself (or pay a smaller fee to a vendor for support services), but it’s absolutely a viable route. Many organizations are now switching to open-source Java to avoid the new Oracle costs.

How do you defend against a Java audit?
Defending against an Oracle Java audit starts long before you get an audit notice. First, get your records in order – know exactly where Oracle Java is deployed in your environment. Remove or replace any Oracle JDK installations that are not truly needed or not licensed. If you do get audited, engage with Oracle carefully: typically, your procurement or legal department should be the ones communicating, not random IT staff. Respond only to the scope of the audit – for instance, if Oracle asks for a list of Java installations, provide the list but avoid volunteering extra information, such as “we think we might be out of compliance here or there.” It’s often wise to involve independent advisors (a role we often play at Redress Compliance) to help manage the process and push back if Oracle overreaches. During the audit, maintain a factual and professional tone. Demonstrate to Oracle that you have controls in place and are willing to remediate any genuine findings, while also being prepared to challenge any incorrect claims they may make. A strong defense might include proof that certain Java installations are actually OpenJDK or belong to software that includes a Java license. The bottom line: be prepared, stay organized, and don’t panic. With the right approach, an audit can be navigated without catastrophic outcomes.

Can enterprises really migrate away from Oracle Java?
Absolutely, many enterprises have done so or are in the process. Since Java itself is a standardized platform, switching from Oracle’s JDK to OpenJDK (or another distribution) is usually very straightforward for most applications. We’ve seen banks, manufacturers, and software companies successfully move thousands of servers and workstations to open-source Java. The key is testing: you’ll want to validate that your applications run the same under the new JDK – in the vast majority of cases, they do. There’s also the matter of updates and support: some companies opt for a support contract from a vendor like Red Hat, Azul, or Amazon for their Java distribution, which is often still cheaper than Oracle. Others decide to handle updates in-house by staying on top of the free releases. Migrating away is a project – you need planning, testing, and execution – but it’s quite feasible. It’s similar to switching any enterprise software: with a good plan and executive support, you can do it. Many organizations are using the threat (or reality) of migration as leverage with Oracle, and some have taken the leap and not looked back. In the end, using Oracle Java is a choice, not an inevitability, and enterprises can break free if the cost-benefit doesn’t add up.

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