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Audits and compliance

Oracle Java Licensing Changes: What They Mean for Your Organization

How Oracle's Java SE Universal Subscription works, why the employee metric changes the cost, what counts as an employee, and your options to reduce Java spend.

By the MI Solutions SAM team10 min read2 exhibits

In January 2023 Oracle introduced the Java SE Universal Subscription, priced per employee rather than per user or per processor. For many organizations the cost of Oracle Java changed overnight, because the new metric counts everyone in the organization, not only the people or servers using Java.

How the employee metric works

You pay a monthly price per employee, with lower unit prices for larger organizations. Oracle's published price list starts at $15 per employee per month for organizations with fewer than 1,000 employees, with lower rates at higher volumes.

Exhibit 1
Java cost scales with headcount, not with Java usageAnnual list cost of Java SE Universal Subscription by employee count, $K$0K$250K$500K$750K$1,000K$90K500$144K1,000$288K2,000$378K3,000$630K5,000$990K10,000Calculated from Oracle's published per-employee monthly list prices: $15 (1–999), $12 (1,000–2,999), $10.50(3,000–9,999), $8.25 (10,000–19,999). Negotiated prices may differ.Source: Oracle Java SE Universal Subscription Global Price List.

What counts as an employee

The definition is broad: full-time, part-time and temporary employees, and contractors, outsourcers, agents and consultants who support your internal business operations. It is not limited to people who use Java.

Your options

  1. Find where Oracle Java is installed

    Inventory every desktop and server, and identify which installations are Oracle's distribution and which versions.

  2. Identify what genuinely needs Oracle Java

    Some applications require it or are certified only for it.

  3. Move the rest to other Java distributions

    Several OpenJDK-based distributions are available; test applications before switching.

  4. Model the cost

    Compare the subscription cost for your headcount with the cost of migration.

  5. Prepare for review

    Oracle has actively reviewed Java usage; keep records of what you removed and when.

Most Java estates turn out to have far more Oracle installations than applications that need them. A typical first inventory narrows quickly:

Exhibit 2
Most Oracle Java installations can be replacedOracle Java installations in a first inventory and what they turned out to be, illustrative1,840Oracle Java installations foundDesktops and servers410Still needed by an application1,430 unused or bundled leftovers,removed50Certified for Oracle Java only360 moved to another distribution aftertestingIllustrative. Whether the remaining installations justify a subscription, and on which terms, is a commercialdecision to model with your advisor.

A Java decommissioning project

How MI One helps

Frequently asked questions

Do we have to license every employee even if few use Java?

Under the employee metric, yes, if you subscribe to the Universal Subscription. That is why reducing dependence on Oracle Java can save so much.

Are older Java subscriptions still valid?

Existing agreements continue under their terms until renewal. At renewal, the available options may differ. Check with Oracle and your advisor.

Is OpenJDK a drop-in replacement?

For many applications it works without changes, but test each one. Some vendors certify their applications only on specific Java distributions.


Sources

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