Oracle Java: An Update

Two major events have happened in the world of licensing Oracle Java over the last half decade.

First, on April 19, 2019, Oracle made the business decision to take monetizing Java seriously. While this was a surprise to many long-time users who were accustomed to Oracle’s laissez faire attitude towards Java licensing (remember the Binary Code License?), the terms for licensing were relatively straightforward. To wit, Oracle offered a usage-based term license that measured processor and desktop installations. Though Oracle continued to muck up the waters with its extra-contractual virtualization policy, it was at least possible for a licensee to anticipate fees and curtail its workloads accordingly.

Then, on January 23, 2023, everything changed. With the release of the Oracle Java SE Universal Subscription model, licensees were bound to licensing the number of employees regardless of actual usage. Oracle’s decision to ‘simplify’ Java licensing terms almost three years ago left us with much to say. Several blog posts and one ITAM podcast later, we felt confident that we had done our best at warning Java users of what to watch for and how to prepare for the worst. Since then, we have more to share from the front lines, as we have seen plenty of Java matters.

But first, a recap…

The Lead Up to Changes in Oracle Java and the Fallout

Prior to the licensing changes, businesses had been subject to the uncertainties and vagaries of licensing Oracle’s Java for several years while Oracle struggled with how to best monetize Java. And, while its current landing place is potentially more predictable for business consumers, the new metrics presented a degree of uncontrollable financial exposure previously unimaginable.

With Oracle’s release of the employee-based metric for licensing Oracle’s Java, the sole Subscription Metric is listed as “Employee for Java SE Universal Subscription,” and the listed “Monthly Subscription Price” decreases in increments as the “Volume” of employees increases. The new metric is a defined term and can be read here, but it is simplified in the example below:

Pricing Example ($USD): Your company has a total employee count of 28,000 as detailed in the Employee for Java SE Universal Subscription definition below. This includes 23,000 full-time, part-time, and temporary employees plus 5,000 agents, contractors and consultants. Therefore, the price would be 28,000 X $USD 6.75/month X 12 months = $USD 2,268,000/year.

The surprises did not stop there. Oracle casts a spectacularly wide net with the use of the term “employee.” Not only does it include full, part-time and even temporary employees (regardless of whether any individual uses Java), it also includes “all of the full-time employees, part-time employees and temporary employees of Your agents, contractors, outsourcers, and consultants that support Your internal business operations.”

What does this even mean? And, more importantly, how is it supposed to be applied? The language is far from clear and Oracle sure isn’t providing any clear guidance. For the individual licensee, however, it absolutely means that all Java licensing must be scrutinized.

Our Initial Insights and Recommendations

On or around this time we published several blog posts offering our initial thoughts, including:

• The new model perfects Oracle’s “shock and awe” licensing tactic.
• The new model is a practical guarantor of noncompliance.
• The new model punishes licensees who have effectively managed their Java footprint.
• Free iterations of Java are still free.
• Non-Commercial use of Java is also still free.
• But be very careful with “free” Java.
• The new model may have stemmed from Oracle’s historic inability to accurately audit Java installations.
• Oracle is absolutely tracking your company’s Java downloads.
• Be very careful executing any agreement pursuant to this new metric.
• Every company should anticipate an Oracle inquiry into Java use.

What Happened Next?

Just several months after the licensing changes, we saw firsthand how the new metric was drastically more expensive for many Oracle customers. Many companies were fleeing from Oracle for their Java needs as Oracle specifically targeted Java usage. We saw that many companies using Java – even those with recently executed employee-based licenses – were finding themselves technically non-compliant.

The Seven Habits of Highly Effective Oracle Java Users

While representing Java licensees across myriad businesses and industries, we were able to identify the effective habits of Java users that, if employed, will help prevent your business from becoming a casualty. Oracle became increasingly aggressive with Java licensing, eclipsing the attention placed on Oracle’s portfolio of other programs, leading us to identify and share a list of seven habits of highly effective Java users which we elaborated on here:

1. Effective Java users know which Java license (there are many) governs which Java installations.
2. Effective Java users have realistic licensing goals and a negotiating strategy for how to get there. 
3. Effective Java users do not ignore Oracle’s emails about their Java licensing.
4. Effective Java users know when their employees are downloading Java.
5. Effective Java users have a concrete plan in place if their intentions are to discontinue use of Java.
6. Effective Java users make no assumptions about being protected from an Oracle audit.
7. Effective Java users know that pride goeth before a fall.

What Now?

As we approach the three-year mark since Oracle made the last major changes to their Oracle Java licensing policy, Beeman & Muchmore is well-postured to share candid insights and hard-earned experience on how the Oracle Java licensing changes are impacting organizations across the globe. Our latest analysis includes what options you may have to mitigate risk, avoid onerous bills, and effectively manage negotiations and relations with Oracle.

Though far too much to get into in a single blog post, bear in mind the following:

• Oracle is not slowing down its aggressive Java licensing techniques. If anything, they are ramping up.
• Contractual audits are down; soft audits are up. As we have written about before, soft audits are stealthily becoming Oracle’s new mode of enforcing licensing terms.
• Every Java inquiry must be taken seriously. If you are contacted by an Oracle Java rep, consider it to be the official launch of a soft audit. And, rest assured, Oracle is NOT going to go away on its own accord.
• Creative licensing solutions are harder to come by. While far from impossible, solutions that fall short of direct utilization of the employee-based metric are few and far between. Creativity and persistence are mandatory.
• Involve counsel early. Before any disclosures are made to Oracle and before any contracts are executed, it is essential to involve counsel knowledgeable in Java licensing.

As always, do not hesitate to reach out to us with any questions or comments – we are always happy to chat about what we have seen.

Published on October 21, 2025