Navigating Java Licensing: Oracle’s Policies and the Shift to OpenJDK

The landscape of Java licensing has undergone significant transformations over the past few years, primarily driven by Oracle’s evolving policies. Before 2018, Java was largely considered free for use by developers and enterprises alike. However, the introduction of the Oracle Technology Network License Agreement (OTNLA) marked a pivotal shift. This new agreement imposed restrictions on the use of Oracle Java, allowing free usage only for personal use, development, testing, and operations within the Oracle cloud. This change particularly affected Oracle JDK 8 and 11, causing enterprises to reassess their Java strategies.

With the release of JDK 17 in September 2021, Oracle introduced another significant revision to their licensing policy, known as the No Fee Terms and Conditions (NFTC). The NFTC allows free use of Java for purposes such as development, testing, and internal business operations but with a crucial caveat: a time limit. This free period extends for one year after the release of the subsequent Long-Term Support (LTS) version. Given that the cadence of LTS versions has shifted from three years to two years, this effectively provides a three-year free period for any given LTS release. For instance, JDK 21, released in September 2023, means the free period for JDK 17 will conclude in September 2024.

As the deadline for the free use of JDK 17 approaches, enterprises face critical decisions. They can opt to obtain a Java SE subscription, switch to a different Java distribution, or revert to using older versions like JDK 8. The impending license change underscores the importance of strategic planning to mitigate potential disruptions. Simon Ritter, Deputy CTO and Java Champion at Azul, emphasizes the need for organizations to carefully evaluate their options and plan accordingly to avoid unexpected costs and operational challenges.

In January 2023, Oracle introduced an employee-based pricing model for its Java subscriptions, a move that has sparked considerable debate. Experts warned that this new model would lead to significant price hikes for users, and by July, Gartner predicted that costs could increase up to fivefold compared to the previous usage-based model. A study by Dimensional Research, sponsored by Azul, revealed that 86 percent of Oracle Java users are either currently migrating or planning to migrate their applications away from Oracle environments. High costs were cited by 53 percent of respondents as the primary reason for this shift, while 47 percent expressed a preference for open-source alternatives.

The migration from Oracle Java to open-source platforms like OpenJDK is gaining momentum. Platforms such as Azul, Amazon, and Microsoft offer open-source versions of OpenJDK, providing viable alternatives to Oracle’s offerings. Of the users who have switched, 46 percent use a paid platform, 45 percent use a free supported platform, and 37 percent use a free unsupported platform. The financial benefits of these alternatives are evident, with 25 percent of users reporting that Oracle was significantly more expensive and 41 percent finding it somewhat more expensive than the alternatives. The migration process typically takes around a year, with 23 percent of organizations completing it within three months.

Organizations are increasingly turning to open-source Java distributions to avoid vendor lock-in and reduce costs. The availability of new instance types and discounts for OpenJDK further incentivizes this shift. Additionally, legacy software can be gradually refactored to deliver results in months, thanks to the flexibility and support offered by open-source alternatives. Licensing experts note that IP addresses of downloads provide a trail for organizations to follow, aiding in the preparation for transitions away from Oracle Java. As enterprises become more conscious of IT costs, they are exploring more cost-effective and flexible solutions for their Java needs.

A recent survey conducted by Dimensional Research on behalf of Azul Systems highlights the scale of the migration from Oracle Java. The survey, which included 663 IT professionals with Java expertise, found that 86 percent of respondents are migrating some portion of their applications to an open-source edition of the Java platform or have already completed the migration. The primary reasons for this shift are the high cost of Oracle Java subscriptions and a general preference for open-source software. Other concerns include potential changes in pricing, licensing, and support from Oracle, as well as the possibility of Java usage audits.

Among the surveyed professionals, 24 percent reported dissatisfaction with the level of support provided by Oracle Java. Azul Systems CEO Scott Sellers notes that ensuring compliance with Oracle Java licensing is a significant challenge for organizations, given the potential for unexpected costs. The survey also found that 75 percent of organizations that have already completed a migration did so in less than 12 months, with 23 percent requiring less than three months. Overall, 84 percent of respondents said the migration process was either easier than expected or went as planned.

For those planning to migrate in the future, the majority expect the process to take one to two years, with only 14 percent anticipating completion within a year. The change to Oracle Java licensing, which now bases pricing on the number of employees accessing an application, has accelerated migrations to open-source options. Despite this, only 36 percent of respondents using Oracle Java have switched to the new pricing model. A significant portion of organizations, 36 percent, remain satisfied with Oracle’s support and pricing, indicating that while dissatisfaction is widespread, it is not universal.

The growing trend towards open-source Java distributions reflects broader industry shifts towards more cost-effective, flexible, and open solutions. The Java community is increasingly valuing the technical expertise, timely releases, and customer support offered by paid support for open-source distributions. As organizations navigate the complexities of Java licensing and seek to optimize their IT expenditures, the appeal of open-source alternatives continues to rise. The role of platform teams in enabling innovation and efficiency in development, deployment, and scaling of new technologies is also becoming more critical.

Emma Woollacott, a freelance journalist with an impressive portfolio, highlights the importance of open-source solutions in the development industry. Her article underscores the growing concerns and dissatisfaction with Oracle Java among users, presenting Azul Systems as a leading alternative. The emphasis on cost savings, flexibility, and support resonates with the broader Java community’s desire for more sustainable and adaptable solutions. As enterprises continue to evaluate their Java strategies, the shift towards open-source distributions like OpenJDK is likely to gain further traction.

In conclusion, the evolving landscape of Java licensing, driven by Oracle’s policy changes, has prompted many organizations to reconsider their Java strategies. The introduction of the OTNLA and NFTC, along with the new employee-based pricing model, has led to increased costs and uncertainty for Oracle Java users. Consequently, a significant number of enterprises are migrating to open-source alternatives like OpenJDK, attracted by the potential for cost savings, flexibility, and better support. As the deadline for the free use of JDK 17 approaches, careful planning and strategic decision-making will be crucial for organizations to navigate these changes effectively.