Oracle’s Java licensing changes in recent years can mean unexpected costs for many organisations. Customers that seek to avoid expensive fees must gain a full understanding of their Java estate in order to assess and mitigate compliance risk. One of the most challenging, yet critical aspects of this process is determining whether your third-party applications include a Java licence or require separate licensing for which you are responsible.
This is why Oracle's move to a fee-based subscription model for Java SE is creating real urgency for organisations to take stock of their Java usage and determine subscription requirements. Whilst rough estimates may be tempting, they can result in compliance risk from undercounting or, conversely, significant overspend.
When Oracle initially changed its Java licensing model, many organisations were caught off guard. Oracle can now track Java downloads and installations, making it relatively straightforward for them to identify usage and potentially initiate licensing audits.
We've witnessed cases where Oracle has approached organisations based simply on their employee count, presenting substantial bills for Java licences that weren't properly accounted for. In one instance, a multinational company received an unexpected $2 million bill after Oracle determined their Java usage based on total headcount.
The particular challenge with third-party applications is the ambiguity surrounding Java licensing responsibility. Does the publisher cover the licence through their agreement with Oracle? Or does that responsibility fall to you as the end user?
Without clear information, you risk either paying twice for the same licence or facing compliance issues during an audit.
Here are four practical steps you can start using today to identify which publishers include Java in their applications and cover the Java licence via a royalty or similar agreement with Oracle.
As a first step, examine the contracts you have in place from the publisher. Software licence agreements or supplements often reference the third-party software included with the primary application. In the best cases, when Oracle Java is licensed by the application vendor, the licence agreement will confirm the inclusion of Oracle Java and your right to use it with the application being licensed. Some publisher agreements may be more vague, referencing Oracle Java but without clarity on who bears the licensing burden. Others may not refer to Oracle or Java at all.
Many software vendors publish generic versions of their licence agreements online. These typically include the vendor's standard terms and conditions. Where available, these "boilerplate" agreements can be a good secondary source for discovering if Oracle Java is bundled and covered under the vendor licence.
If contractual documents don't provide complete clarity on Oracle Java licensing, contact your trusted sales representative or support contact at the software publisher. They should be able to confirm whether their organisation has the appropriate agreements with Oracle that allow them to bundle Java and assume the licensing responsibility.
This direct approach is often the most effective. A simple email—"Does your software include Oracle Java, and if so, does your licence cover our use of it?"—could save your organisation significant costs and complications.
Document any feedback provided by the publisher as part of your Java governance strategy.
Some software publishers post clarifying articles, statements, or documents on their support site regarding Oracle Java licensing as it pertains to their product. If you pay for support and have valid login credentials to the support site, you may find this information readily available.
We recommend archiving any documents that confirm inclusion of the Oracle Java licence, as long as this is permitted by the publisher.
Finally, software publisher websites can be valuable resources in determining whether Oracle Java is bundled and licensed with a given application or solution. Many publishers that have a royalty or ISV agreement with Oracle proactively state this on their websites to alleviate customer concerns.
In other situations, publishers may address Oracle Java on community pages and chats. Publicly available installation, user, or administrator guides, or system requirements pages, may also help confirm Oracle Java status.
Beyond this immediate situation, we recommend implementing these best practices to effectively manage your Java licensing commitments in the future:
The SoftwareOne Oracle Java Advisory Services team provides clear guidance in an area that's anything but straightforward. With their deep expertise in both Oracle and Java, I can tell you that our experts know what you’re dealing with—inside and out.
We can help you:
A large power technology company faced a challenge when their Oracle Java subscription neared expiration. They wanted to remain on legacy metrics rather than move to Oracle's costlier "employee count" model. SoftwareOne's Oracle Java Advisory team provided a comprehensive inventory assessment, strategic calculations, and expert consultancy during Oracle's "soft audit." After a year of detailed analysis and strategic negotiations, we helped the company achieve a major licensing win. Oracle accepted their revised Processor and Named User Plus quantities—significantly lower than their previous subscription. With these and other interventions, the company’s annual Java subscription dropped from $1.4M to $646K, creating substantial ongoing savings.
The takeaway: with expert advice, legacy Java customers CAN renew with legacy metrics and reduce annual fees.
Don't overcount the number of licensable Java installations by including those embedded with applications already covered by existing software agreements. The steps outlined in this blog will help you avoid such overcounting.
In the best cases, taking these steps will yield proof that an embedded or bundled Java instance is already licensed.
In other cases, you may find Java licensing information that is enlightening, yet ambiguous. And sometimes research efforts will end up entirely inconclusive.
Results will vary based on how well the publisher has anticipated customer concerns about Oracle's licensing approach to Java.
And remember, the SoftwareOne team specialises in simplifying Oracle Java challenges, so we can take some of the headaches away for you. Contact us today to learn how our Oracle Java Advisory Services can help your organisation understand its Java licensing position and potentially save significant costs.
Understand if you're paying unnecessary Oracle Java licensing fees. Find out how to review your third-party applications and save money.
Understand if you're paying unnecessary Oracle Java licensing fees. Find out how to review your third-party applications and save money.
