Guidance to Help You Save on Oracle Java SE

As enterprise IT procurement practitioners can attest, navigating Oracle's evolving Java licensing landscape is challenging. With the shift to an employee-based licensing model for Oracle Java SE, the stakes are higher than ever. Enterprise customers are experiencing cost increases of 2x to 10x – or even higher in some cases.

The good news? Proactive measures can go a long way in helping minimize the financial impact of these changes on your next Oracle Java SE purchase or renewal.

For a deeper dive into these tactics, read our bulletin on Oracle Licensing Update – How to Mitigate Higher Costs on Your Next Renewal.

Understanding What’s Changed with Oracle Java SE Licensing

Historically, Oracle’s Java licensing relied on Named User Plus (NUP) and Processor metrics. These models offered predictability, with licensing based on specific users or server processors. However, in 2023, Oracle transitioned to a new model tied to an organization's total employee count – a broad definition that includes:

• Full-time, part-time, and temporary employees
• Contractors, consultants, and agents supporting business operations

This change simplifies some aspects of licensing but introduces significant cost implications, particularly for large enterprises. With Oracle’s aggressive pricing strategy, nearly every organization will face higher licensing counts and substantial cost increases. Furthermore, Oracle continues to enforce complex conditions for virtualized environments, which can exacerbate compliance risks.

Four Actionable Steps for Oracle Java SE Cost Mitigation

Mitigating the massive cost increases caused by changes to Oracle Java SE licensing requires diligence and preparation. Our recent bulletin shares four actionable steps to help you navigate these changes. Here are highlights:

1.  Conduct a Comprehensive Inventory

Inventory all server and workstation environments. Identify Java versions, editions, and specific assets. Be sure to use multiple data sources to ensure no deployment is overlooked.

2. Validate Oracle’s Employee Count

Calculate paid subscription requirements under both the old and new metrics. Verify Oracle’s employee count definition to avoid unnecessary costs.

3. Remediate and Optimize

Establish a clean renewal baseline and eliminate unnecessary subscriptions. Reassess your environment post-remediation to ensure compliance – this is critical! Oracle is a top offender for software license audits, and Java licensing confusion is an opportunity for them to sniff out non-compliance across your Oracle estate.

4. Explore Alternatives

Where feasible, investigate OpenJDK or other non-Oracle Java solutions. Even if a full migration isn’t possible, alternatives can serve as leverage in negotiations.

Pushback Against Higher Oracle Java SE Costs with NPI

The steps above are a blueprint for helping enterprises mitigate higher Oracle Java SE costs. For customers who have a renewal planned in the next 12 months, time is of the essence. Execution of these steps requires significant runway and customers may not have the internal licensing expertise and resources in-house.

Larger, more complex Java estates have benefitted from partnering with external licensing experts like NPI. Our Oracle Java License Position Assessment Services are designed to help enterprises analyze the financial impact of Oracle’s new pricing model, develop cost-saving strategies, and evaluate alternatives.

Here’s a real-world success story:

• The Situation: A Fortune 500 financial services company faced a daunting renewal, with Oracle pushing for employee-based Java SE licensing.
  
  
• The Solution: The client engaged NPI’s Oracle Java License Position Assessment services to identify all Java installations, eliminate unnecessary installs to reduce their licensing footprint, and negotiate with Oracle to avoid additional license purchases. 
  
  
• The Outcome: The client saved $2.5M with NPI’s expert guidance.

Don’t let new Oracle Java SE licensing overinflate your Oracle spend. Contact NPI today to learn how we can help you save big on your next renewal.