Oracle Java Licensing Changes Explained

Oracle Java Licensing Changes

• Employee-based metric: Licenses all employees, not just Java users.
• Replaces Named User Plus and Processor licenses.
• Higher costs due to broader scope.
• Oracle now includes Java in standard audits.
• Requires sharing deployment data with Oracle for renewals.

Did Oracle change the Java license?

Yes, Oracle significantly altered the Java licensing structure on January 23, 2023. The new Oracle Java SE Universal Subscription Global Price List replaces the old Processor (PROC) and Named User Plus (NUP) models. Charges are now based on the total number of full-time or part-time employees and contractors rather than the previous desktop and server-based licensing.

Is Java free in 2023?

No, Java is not free in 2023. Under the new model, all employees will be billed for the Java subscription, eliminating the previous separate charges for desktop users and processors.

Did Oracle make Java free again?

Yes, on September 14, 2021, Oracle announced that Java 17 and future versions are free. However, older versions still require a license.

Do you need an Oracle Java License?

You likely need a license if your organization downloaded Java from the Oracle website. Oracle’s 2019 announcement emphasized the need for a subscription to access Java 8 updates, marking a significant shift in licensing enforcement.

Is Java still free?

Java has never been completely free. Before 2019, some Java licensing was free, but most organizations should have purchased a license due to Oracle’s later auditing and sales efforts. Reviewing the licensing agreement is crucial to determine your needs.

Is Oracle Java 17 Free?

Yes, Java 17 is free to use under certain conditions:

• Usage Without Licensing: Free until September 2024.
• Security Patch Considerations: Licensing is required for patches released after September 2024.
• Options to Avoid Licensing:
  • Option A: Avoid applying security patches released post-September 2024.
  • Option B: Upgrade to newer Java versions to continue receiving updates without licensing.

These options should be evaluated based on security and operational needs.

The Oracle Java Licensing Agreements to Review

Oracle Binary Code License Agreement (BCLA)

• Overview: This license typically applies to Oracle’s Java Standard Edition (SE) runtime environment (JRE) and Java Development Kit (JDK).
• Key Points:
  • Allows use, reproduction, and distribution of the Java software for personal use, development, and testing.
  • Commercial use and deployment often require additional licensing.

Oracle Technology Network License Agreement (OTN)

• Overview: Designed for developers using Oracle’s Java SE for development purposes.
• Key Points:
  • Permits free access to the Java SE for development and testing.
  • Prohibits production use without a commercial license.

Oracle No-Fee Terms and Conditions (NFTC)

• Overview: Introduced for Java SE 17 and later versions, providing free access under specific conditions.
• Key Points:
  • Free for personal, development, and testing use.
  • Requires a commercial license for commercial use and deployment.

Detailed Explanation

Oracle Binary Code License Agreement (BCLA)

The BCLA is a widely recognized agreement that historically governed the use of Oracle’s Java SE software. This license allows individuals and organizations to use, reproduce, and distribute Java software for personal use, development, and testing. However, any commercial use or deployment beyond these scenarios requires a separate license. The BCLA has been foundational for many Java users, offering broad access with specific limitations on commercial applications.

Oracle Technology Network License Agreement (OTN)

The OTN License Agreement is tailored for developers, allowing them to use Oracle’s Java SE without incurring costs. This agreement supports the free use of Java SE for creating, testing, and demonstrating applications. However, it prohibits using Java SE for production without obtaining a commercial license. The OTN License is critical for fostering a robust development community while maintaining control over production environments.

Oracle No-Fee Terms and Conditions (NFTC)

The NFTC was introduced alongside Java SE 17, marking Oracle’s licensing strategy shift. This agreement provides free access to Java SE for personal, development, and testing uses, making the latest versions of Java more accessible. However, commercial use still requires a separate commercial license. The NFTC aims to balance accessibility with the need to monetize Java in commercial settings. This approach encourages widespread adoption of the latest Java versions while ensuring commercial users contribute to Oracle’s revenue.

By understanding these agreements, organizations can navigate Oracle’s licensing landscape effectively, ensuring compliance and optimizing their use of Java SE.

Three Oracle Java Licensing Changes

Oracle Java Licensing Change in 2019

In 2019, Oracle made critical changes to Java licensing:

• Subscription Requirement for Updates: Updates to Oracle Java JDK 8 from patch 211 onwards require a subscription.
• Java OTN SE Agreement: Introduced a new licensing agreement forbidding all commercial usage.
• BCLA Implications: The old BCLA already made most companies non-compliant without their awareness.
• Timeline: Changes were announced in 2019 and took effect in April 2020.

Oracle Java Licensing Change in 2021 – Introduction of the NFTC Agreement

In 2021, Oracle introduced the Oracle No-Fee Terms and Conditions (NFTC) agreement:

• Free Commercial Usage: Java is free from Oracle JDK 17 onwards.
• Security Updates: Oracle hinted that older versions might require a subscription for security updates, though not officially confirmed.
• Older Versions Unaffected: NFTC licensing does not impact older Java versions (1-16).

Understanding the Oracle Java Licensing Change in 2023

On January 23, 2023, Oracle revamped its pricing model for Java SE subscriptions:

• Employee for Java SE Universal Subscription: Replaced Named User Plus and Processor licenses.
• Removal of Old Licenses: Named User Plus and Processor licenses are no longer available.
• Validity of Existing Agreements: Java BCL, OTN, and NFTC agreements remain valid.
• License Metric Change: The new model is based on the number of employees, with tiered pricing for different employee ranges.

Oracle Java Licensing Requirements by Version

Oracle Java JDK Versions 1-8 (Pre-211 Security Updates)

• Licensing Overview: Generally, using Java versions 1-8 requires a Java SE license due to the broad scope of the Binary Code License Agreement (BCLA).
• Commercial Features Licensing: Commercial features like Java Enterprise Installer, Java Flight Recorder, Java Mission Control, and others require separate licenses from Oracle. These features cannot be used freely under the Java BCLA.

List of Oracle’s Commercial Features:

• Java Enterprise (MSI) Installer
• Java Flight Recorder
• Java Mission Control
• Java SE Runtime Environment Usage Tracking
• Java Advanced Management Console
• JRockit Mission Control, Flight Recorder, or Real-time Deterministic GC

Oracle Java JDK Versions 1-8 (Applying Security Patch 211 and Later)

• Licensing Required: From security patch 211 onwards, Java must be licensed under the Java OTN SE agreement.
• Exception: Licensing is not required if Java is used solely for products listed in Schedule B.

Oracle Java JDK Versions 11-16

• Licensing Requirement: Must license Oracle JDK for both clients and servers, with no free usage allowed.
• Exception: Licensing is not required if Java is used solely for products listed in Schedule B.

Oracle Java JDK Versions 17 and Later

• Current Status: Java 17 and later versions are free to use without a license.
• Future Requirement: From September 2024, applying any security patches to Java 17 requires a license.

By understanding these detailed licensing requirements, organizations can ensure compliance and avoid unexpected costs associated with Oracle’s Java SE licensing policies.

Was Oracle Java (JDK/JRE) Free Before 2019?

Before 2019, Oracle Java (JDK/JRE) was generally free for commercial usage under the Binary Code License Agreement (BCLA) if used for “general purpose computing.” However, a commercial license was required if the Java software was used for specific applications outside of general-purpose computing. Companies using Oracle JDK or JRE beyond general-purpose computing must purchase Oracle Java SE licenses from Oracle’s technology price list to remain compliant.

Oracle Java License Cost (Pre-2023)

Java SE Desktop Subscription

• Description: Licensed per individual user accessing Java-based applications, not per device.
• Cost: $2.50 per month per user.
• Example: If 20 users share a device, each of the 20 users needs a separate subscription.

Java SE Subscription

• Description: Licensed for servers where Java is installed.
• Cost: $25 per month per Oracle processor.
• Calculation Requirements:
  • Use Oracle core factor table.
  • Follow Oracle’s virtualization and cloud licensing policies.
  • Include licensing for disaster recovery environments.

The legacy price list is no longer available after January 23, 2023. Organizations must stay updated with Oracle’s latest pricing models to ensure compliance and manage costs effectively.

Oracle Java Licensing on VMware

Licensing Requirements for VMware Deployments

Legacy License Metrics: If you are using Oracle’s legacy license metrics (Named User Plus or Processor-Based Licensing), Oracle requires that you license every physical host in all your vCenters if you deploy Oracle JDK on a virtual server using VMware ESXi 6.0 and upwards. This requirement applies even to vCenters where Java is not installed.

Procedure for Licensing:

• Licensing varies with each ESXi version.
• Comprehensive details can be found in the Oracle and VMware Licensing article.

Recommendations

Before purchasing or engaging with Oracle sales teams:

• Review Java Deployments: Ensure all Java installations comply with Oracle licensing rules and policies.
• Check Commercial Features Usage: Identify if any Java commercial features are being used.
• Included Licenses: Verify if existing Oracle or third-party products include Java licenses.
• Match Licensing Agreements: Ensure all three licensing agreements (BCLA, OTN, NFTC) align with your usage.

Oracle Software with Included Java SE Licenses

Included Java SE License Overview

Certain Oracle products come with a restricted-use Java SE license, potentially eliminating the need for a separate Java SE license. Understanding which products include these licenses can result in significant cost savings.

Categories and Examples of Products

Schedule A Products:

• Examples: Oracle SQL Developer, JACIC Electronic Bidding Systems.

Schedule B Products:

• Examples: Oracle Forms, Oracle E-Business Suite, various Oracle WebLogic Server client applications, JD Edwards.

Detailed List of Products with Included Java SE Licenses

The following Oracle products include a restricted-use Java SE license (this list is not exhaustive):

• WebLogic Server Standard Edition
• WebLogic Enterprise Edition
• WebLogic Suite
• Internet Application Server Enterprise Edition
• GlassFish Server
• Coherence Standard Edition
• WebCenter Content
• WebCenter Universal Content Management
• WebLogic Suite for Oracle Applications
• Coherence Enterprise Edition for Oracle Applications
• Oracle Business Intelligence Server Enterprise Edition
• Oracle Data Integrator Enterprise Edition
• Oracle Data Integration Suite
• Oracle Data Service Integrator
• Oracle Business Intelligence Suite Enterprise Edition Plus
• Oracle BI Publisher
• Oracle Hyperion
• Oracle Business Intelligence Foundation Suite
• Oracle Identity Governance Suite
• Legacy BEA WebLogic product purchases
• Oracle Application-Specific Technology Products
• Oracle Identity and Access Management Suite Plus
• Oracle Access Management Suite Plus
• Oracle Identity Manager
• Oracle Access Manager
• Oracle Directory Services Plus

Additional Information

This list is not comprehensive, and specific Java SE usage rights should be confirmed by reviewing your Oracle license documentation. Checking these details ensures that you can leverage included licenses effectively, reducing additional licensing costs.

Steps for Oracle Java Negotiation

Navigating the Negotiation Process

1. Understand Your Java Deployments:

• Identify all Java deployments within your organization that require licensing. This forms the basis of your licensing needs and negotiations.

2. Create a Java Deployment Report:

• Based on old Oracle Java licensing metrics, document the number of users and servers requiring licenses. This report will clarify your Java usage.

3. Calculate Licensing Costs:

• Estimate the financial commitment based on old licensing metrics to understand potential costs.

4. Approach Oracle with Prepared Data:

• Present your data to Oracle, showing a willingness to negotiate based on old licensing metrics. Demonstrate thorough preparation.

5. Share Your Deployment Report:

• To validate your licensing information, provide a credible and well-documented report of your Java deployments.

6. Negotiate a Purchase:

• Negotiate based on either the employee-based metric or legacy metrics. Aim to pay only for actual usage, avoiding unnecessary costs.

Following these steps ensures effective negotiation of Oracle Java licensing, securing the best value for your organization while maintaining compliance.

Oracle Java Audits in 2024

Overview of Oracle Java Audits

In 2024, Oracle’s revenue from Java licenses and subscriptions exceeded its database license sales, largely driven by rigorous audit practices.

Types of Audits:

1. Soft Audit:

• Initiated by Oracle through compliance discussions and emails requesting meetings. Ignoring these communications can escalate the situation, involving legal and C-level executives.

2. Formal Audit:

• Conducted by Oracle’s audit organization, reviewing all Java deployments within a company. Typically follows uncooperative behavior from the audited entity, potentially leading to claims for backdated usage and difficult negotiations.

Audit Strategy and Results

Understanding your licensing position and formulating a robust audit defense strategy is crucial. In one instance, an organization effectively managed the process and negotiations and saved 95% of Oracle’s demands during a soft audit.

Oracle Java Audits – When You Try To Procure Licenses

Oracle’s Unique Audit Approach

Oracle’s Approach:

• Oracle requires a self-declaration “audit” before purchasing licenses, during which customers must submit their Java deployment data. This pre-purchase review ensures compliance before licenses are granted.

Steps to Navigate the Process:

1. Study Licensing Agreements:
   • Understand the three main licensing agreements (BCLA, OTN, NFTC) and Oracle’s licensing policies, including those related to virtualization and cloud.
2. Prepare for Retroactive Usage Payment:
   • Oracle often demands payment for three years of backdated usage. This retroactive fee must be included in your licensing costs.
3. Anticipate Standard Audit Inclusions:
   • Java has been part of Oracle’s standard audit since January 2023. Be prepared to address three years of retroactive usage and future compliance.

Mitigation Strategies:

• Stay informed about licensing terms and maintain accurate records of your Java deployments. This preparation will help mitigate risks during an audit.

Did You Receive an Email from Oracle Regarding Java?

Oracle is initiating “soft audits” by mass-emailing organizations to start discussing Java licensing. If you receive such an email:

1. Do Not Respond Directly:
   • Avoid replying or sharing any data about your Java deployments with Oracle immediately.
2. Seek Expert Assistance:
   • Contact us for professional guidance. We offer a tailor-made Java Audit advisory service to help you and your management team respond effectively to Oracle’s inquiries and minimize potential impacts.

Proactive Measures:

• Engage with experts to develop a robust response strategy and ensure compliance with Oracle’s licensing requirements. This approach will help safeguard your organization from unexpected costs and penalties.

Employee for Java SE Universal Subscription: Oracle’s New License Model

Overview

Oracle’s New License Model: Oracle has replaced the traditional Named User Plus and Processor-based licensing with the Employee for Java SE Universal Subscription. This shift introduces an enterprise-wide metric, similar to what is used for Oracle E-Business Suite and Siebel products.

Key Points

1. Enterprise-Wide License Metric:
   • Scope: This model requires licensing all employees, contractors, agents, outsourcers, and consultants supporting internal business operations.
   • Impact: Even if only a subset of employees uses Java, the entire workforce must be licensed.
2. Employee-Based Metric:
   • Calculation: For instance, if a company has 10,000 employees but only 1,000 Java users, licenses must still be purchased for all 10,000 employees.
3. Price Increase:
   • Cost: The cost per user has increased significantly, from $1.5 per user per month to $8.25 per user, marking an over 700% increase.

Employee for Java SE Universal Subscription – Licensing Explained

Pricing Breakdown

Oracle’s new pricing model incentivizes bulk purchases by offering discounts based on the number of employees licensed.

1. Pricing Tiers:
   • 1-999 Employees: $15.00 per employee
   • 1,000-2,999 Employees: $12.00 per employee
   • 3,000-9,999 Employees: $10.50 per employee
   • 10,000-19,999 Employees: $8.25 per employee
   • 20,000-29,999 Employees: $6.75 per employee
   • 30,000-39,999 Employees: $5.70 per employee
   • 40,000-49,999 Employees: $5.25 per employee

Implications

• Cost Management: While bulk discounts help mitigate costs, organizations still face significant financial outlays due to the broad licensing scope.
• Strategic Planning: Organizations must carefully assess their Java usage and workforce size to optimize licensing costs and remain compliant.

Licensing of Employees for Java SE Universal Subscription

Oracle’s Employee for Java SE Universal Subscription employs a unique licensing model that requires a comprehensive understanding of its scope and implications.

Key Points:

1. Employee Definition:
   • Scope: Oracle defines an “employee” as all full-time, part-time, and temporary employees, agents, contractors, outsourcers, and consultants.
   • Example: A company with 5,000 full-time employees, 500 part-time employees, and 200 contractors must license 5,700 individuals.
2. Internal Business Operations:
   • Usage Restriction: The license permits Java use only for internal business operations, not for hosting solutions for external customers.
   • Example: A company can use Java for its internal applications but cannot offer Java-based services to clients without additional licensing.
3. License Quantity Calculation:
   • Determination: The number of licenses required is based on the number of defined employees, not just those using Java.
   • Example: A company with 1,000 employees using Java but 10,000 total employees must license all 10,000 employees.
4. Minimum License Purchase:
   • Requirement: The licensed quantity must match the total number of employees as of the order date.
   • Example: If a company has 8,000 employees on the order date, it cannot purchase fewer than 8,000 licenses.
5. Processor Limit:
   • Restriction: Java SE Universal Subscription programs can be installed and run on up to 50,000 processors. Exceeding this limit requires additional licenses.
   • Example: A company using 60,000 processors must obtain extra licenses beyond the initial 50,000 processor limit.

Practical Example:

A multinational corporation with 15,000 employees, including 2,000 contractors, must license 17,000 individuals under this model. Even if only 2,000 employees actively use Java, the license must cover the entire workforce. Additionally, if the corporation uses 55,000 processors for its Java applications, it needs additional licenses beyond the standard 50,000 processor limit.

Organizations can navigate Oracle’s complex licensing model by understanding these aspects, ensuring compliance and optimal licensing costs.

Expert Advice on Oracle Java Licensing Changes in 2023

Key Changes and Steps to Take:

1. Expect Contact from Oracle:
   • Upgrade Requests: Oracle will likely contact you to upgrade your Java SE licenses, increasing your renewal fees.
   • Example: Under the new pricing model, a company previously paying $1.5 per user per month might be asked to pay $8.25 per user.
2. Oracle’s Enhanced Audit Capabilities:
   • Audits: Oracle has improved its auditing capabilities and may use third-party tools to assess your Java usage.
   • Action: Regularly audit your Java deployments internally to ensure compliance.
3. Licensing Older Versions of Java:
   • Requirement: Older versions of Java also require a license, contrary to previous assumptions.
   • Example: If using Java 8 without a license, you must obtain one to avoid penalties for non-compliance.
4. Changes for Java ULA Customers:
   • Transition: Customers with Java Unlimited License Agreements (ULAs) will transition to the new employee-based metric, potentially increasing costs.
   • Example: A company previously benefiting from ULA may now face higher licensing fees due to the broader scope of the new metric.
5. Importance of Negotiation Expertise:
   • Negotiation: Expertise in negotiating with Oracle is crucial to avoid excessive costs.
   • Action: Engage experienced negotiators to manage discussions with Oracle and secure favorable terms.
6. Renewing Existing Java Licenses:
   • Soft Audits: Renewal of Java subscriptions requires sharing deployment data with Oracle.
   • Action: Prepare for a soft audit and ensure accurate data submission to facilitate renewals.
7. Increased Licensing Requirements:
   • Broad Scope: All employees, not just Java users, must be licensed under the new model.
   • Example: A company with 10,000 employees using Java for 500 users must now license all 10,000, potentially costing $1 million annually.
8. Immediate Action Required:
   • Proactive Steps: Understand your licensing obligations, evaluate older Java versions, and consider migrating off Oracle if feasible.
   • Negotiation: Ensure your best negotiator is ready to minimize financial impact.

Real-Life Examples:

Example 1: A multinational corporation with 20,000 employees receives a contract from Oracle to upgrade their Java SE licenses. They previously paid $300,000 annually ($1.5/user/month). With the new model, their cost jumps to $1.98 million annually ($8.25/user/month). By engaging experienced negotiators, they secure a slight discount, reducing the cost to $1.8 million annually.

Example 2: A mid-sized company using Java 8 without a license faces a compliance audit. They conduct an internal audit, revealing extensive unlicensed usage. By swiftly obtaining the necessary licenses and negotiating with Oracle, they avoid hefty penalties and secure a manageable payment plan.

By staying informed and proactive, organizations can effectively navigate Oracle’s Java licensing changes, ensure compliance, and manage costs.

Free Java Options

OpenJDK Builds

Overview: OpenJDK is an open-source implementation of the Java Platform, Standard Edition, and it is free to use in development and production environments.

• Use Case: Suitable for most Java applications without the licensing costs associated with Oracle JDK.
• Example: A startup developing a new application can use OpenJDK without incurring licensing fees.

Java 17 and Later

Free Usage Conditions: Java 17 and later versions are free to use, provided no security patches are applied after the end of their public updates.

• Use Case: Organizations can use these versions freely until security updates are required.
• Example: A company can adopt Java 17 for its internal applications without initial licensing costs but must consider future patch requirements.

Older Versions of Oracle JDK

Conditional Free Usage: Under specific scenarios, some older versions of Oracle JDK may be used without a commercial license.

• Compliance: It’s crucial to review Oracle’s licensing terms to ensure compliance with these conditions.
• Example: A legacy system using Java 8 might not need a commercial license, depending on its usage and Oracle’s terms.

Considerations

Review Licensing Terms: Review each version’s specific licensing terms and conditions to ensure compliance and avoid unexpected costs.

• Example: Before deciding on an older version, check Oracle’s official guidelines to ensure the usage scenario doesn’t violate licensing terms.

By considering these options, organizations can choose a suitable Java version that aligns with their licensing needs and budget constraints.

FAQs

What are the new licensing requirements for Java SE in 2023?
Oracle requires an employee-based metric, meaning all employees, contractors, agents, and consultants must be licensed, not just Java users.

How does the employee-based metric impact costs?
The new model significantly increases costs since every employee must be licensed, even if they do not use Java.

Are older Java versions affected by the new licensing model?
Older versions still require a license under the new employee-based metric, impacting overall licensing costs.

What is included in the Java SE Universal Subscription?
It includes licensing for all employees and various support and update services from Oracle.

Can I still use the old Named User Plus or Processor-based licensing?
No, Oracle has removed these from the Java price list, replacing them with the employee-based metric.

How should I prepare for Oracle’s audit under the new licensing rules?
Maintain accurate records of Java usage, review all licensing agreements, and be prepared to share deployment data with Oracle.

What happens if I receive an email from Oracle regarding Java licensing?
This typically signals a “soft audit.” It’s advisable to contact a licensing expert before responding.

What if I have a Java Unlimited License Agreement (ULA)?
Oracle is phasing out Java ULAs, transitioning customers to the new employee-based metric, which may increase costs.

Can I use OpenJDK as an alternative to Oracle Java?
OpenJDK is a viable, free alternative for many development and production environments.

Is Java 17 free to use?
Java 17 is free, but security patches after September 2024 require a license.

Do I need a license for Java SE Desktop Subscription?
Yes, this is for licensing users accessing Java-based applications on desktops. Before the 2023 changes, it would cost $2.50 per user per month.

What if I only use Java for internal business operations?
Regardless of Java’s specific use, you must still license all employees under the new model.

How does Oracle’s audit process work?
Oracle may conduct a soft audit via email or a formal audit, reviewing all Java deployments and potentially requiring backdated licenses.

What is the cost of the new Java SE Universal Subscription?
The cost varies based on the number of employees, with higher discounts for larger quantities. It starts at $15 per employee per month for up to 999 employees.

How can I reduce licensing costs?
Review your Java usage, consider alternatives like OpenJDK, and negotiate effectively with Oracle to secure the best terms.

Should I renew my existing Java licenses?
Renewal requires sharing deployment data with Oracle, often leading to a soft audit. Seek expert advice to navigate this process efficiently.

Java Licensing Solutions

• Independent Java Licensing Assessment: We conduct thorough assessments to determine financial exposure and ensure compliance with Oracle’s licensing terms.
• Customized Licensing Strategies: Our team develops multiple licensing strategies tailored to your organization, enabling stakeholders to choose the best action.
• Negotiation Advisory Support: Leverage our industry expertise during negotiations with Oracle to achieve favorable licensing terms.
• Audit Defense Plans: We provide robust audit defense plans to protect your organization during Oracle audits, minimizing risks and potential penalties.
• Compliance Expertise: Our experts help you understand the complexities of Java licensing and identify areas of non-compliance.
• Optimized Licensing: We utilize a proven methodology ensuring that you only purchase licenses for necessary Java usage, avoiding unnecessary expenses.