Why Oracle’s New Java License Audits Could Cost Your Company Millions

On March 22, 2022, Oracle announced the release of Java 18, the latest version of its programming language and development platform.

According to media reports, Oracle has now added Java to its software‑license audit program, indicating that the company is prepared to generate large licensing revenues through Java compliance checks.

Oracle’s typical approach is to target non‑compliant edge customers to increase compliant revenue. In April 2019, Oracle introduced two new licensing models for its commercial Java SE Standard Edition, requiring annual subscriptions for patches and updates.

When Java 17 was released in September 2021, Oracle offered a free license with quarterly updates for three years, but only for that specific release, not for earlier versions such as Java 7, 8, or 11.

To date, Oracle has used a soft‑audit method via its sales team, but reliable sources say that since the beginning of this year the ubiquitous Java SDK has entered Oracle’s official audit process, causing concern among many users.

Craig Guarente, founder and CEO of Palisade Compliance, noted that his team has begun receiving letters from Oracle’s License Management Service (LMS) requesting detailed Java usage information.

There is widespread confusion: many believe that using older Java versions does not require a license, yet Oracle states that if you download patches or updates from its site for any version, a support license is required.

Oracle also leverages audit techniques used for other products, such as databases, to gather Java usage data. For example, a company that orders 5,000 database licenses may receive a visit from a Java sales representative asking about missing Java licenses.

Compared with other Oracle products, Java licensing has two key differences: databases and internal software often have perpetual licenses, whereas Java requires a subscription, and auditing Java may involve a broad technical analysis of IT assets.

Earlier this year, software‑asset‑management firm Anglepoint reported an official Oracle Java audit, and Oracle’s Scott Jensen told the media that many organizations completely ignore Java licensing topics.

Gartner’s research indicates that users need commercial subscriptions to obtain critical updates for Oracle Java SE 7, 8, and 11, and recommends evaluating migration to Java 17 or third‑party Java distributions.

Gartner’s VP and distinguished analyst Anne Thomas explained that Oracle’s view of virtualization also drives higher Java subscription volumes, requiring licensing per processor without distinguishing virtual environments, leading some large enterprises to face annual fees exceeding $10 million.

Another source of confusion is that the Java subscription covers the runtime environment rather than the development toolkit; many do not understand the distinction between the Java Development Kit (JDK) and the Java Runtime Environment (JRE). Oracle’s product is called Oracle JDK, but it is essentially a runtime.

Reference: https://www.theregister.com/2022/03/22/oracle_starts_to_include_java/