Oracle Java Licensing Changes 2023

In 2023, Oracle made significant changes to the pricing model for Java SE subscriptions, with the removal of the old Named User Plus Licensing and Processor licensing from its price list. This move has resulted in the introduction of a new licensing model called “Employee for Java SE Universal Subscription,” which is based on the number of employees in an organization. This new model has significant cost implications for companies, who now face higher licensing costs for their Java usage. In this article, we provide expert advice on how to navigate these changes and avoid overpaying for Java usage.

Oracle Java SE Universal Subscription – Employee

The new license model introduced by Oracle, known as “Employee for Java SE Universal Subscription,” is an enterprise-wide license metric that has been primarily used to license Oracle applications such as Oracle E-business suite and Siebel products. This license model is based on the number of employees in an organization, and it requires licensing not only the actual users of Java but also the full-time, part-time, and temporary employees of agents, contractors, outsourcers, and consultants that support an organization’s internal business operations. As a result, organizations will need to purchase licenses for all employees, not just the actual users of the programs.

Implications for Java Usage and Costs

The new Java licensing model is based on a per-user pricing model, which has increased from $1.5 per user per month to $8.25 per user. This is a 500%+ price increase that has significant cost implications for companies, who will now have to pay much more for their Java usage than they did in the past. Most organizations will face the choice of paying much more for Java or uninstalling all Oracle Java in their data center.

Understanding the Definition of “Employee”

It is essential to understand the definition of an “employee” in the context of the new licensing model. Oracle defines an employee as full-time, part-time, and temporary employees of an organization, as well as those of agents, contractors, outsourcers, and consultants who support an organization’s internal business operations. This means that organizations will need to purchase licenses for all of these individuals, even if they do not use the programs.

What You Need to Know about the Java Licensing Changes

There are several key things that organizations need to know about the Java licensing changes. First, if you have purchased Java SE subscriptions, Oracle knows that you are a user and expects to contact you for a large upgrade on your renewal fee for Java SE licenses. Second, if you have older versions of Java, you may need to purchase a license. Third, customers who had Java ULAs will most likely not be offered a renewal and instead moved to this new license metric, which will cost more in most scenarios. Fourth, negotiation expertise and experience with Oracle are going to be much more important for customers to avoid paying millions of dollars every year for their Java usage. Finally, if you already have Java SE subscriptions, you need to take immediate action as Oracle will soon contact you asking you to pay millions of dollars more.

Oracle Java Licensing Changes 2023 FAQ

1. What is the new pricing model for Oracle Java SE subscriptions? Oracle has replaced the old Named User Plus Licensing and Processor licenses with a new license model called “Employee for Java SE Universal Subscription.” This new pricing model is based on the number of employees, with different price tiers for different ranges of employee numbers.
2. Can I still use my old Java SE subscriptions? Existing licensing agreements such as Java BCL, Java OTN, and Java NFTC are still valid. However, if you have an older version of Java that you thought did not require a license, you may need to take another look.
3. What is the definition of an employee for Java SE Universal Subscription? An employee is defined as all of your full-time, part-time, and temporary employees, as well as all of the full-time employees, part-time employees, and temporary employees of your agents, contractors, outsourcers, and consultants that support your internal business operations.
4. Do I need to purchase a license for all employees, even if they don’t use Java? Yes, you need to license not only the actual users of Java but also all of the employees as defined by Oracle’s licensing terms. This means that if you have 10,000 employees and only 1,000 of them use Java, you will still need to purchase at least 10,000 licenses.
5. What should I do if I already have Java SE subscriptions? If you already have Java SE subscriptions, you should be prepared for Oracle to contact you for a large upgrade on your renewal fee. You may not be able to purchase licenses off the old license agreement and must transition to the new license model. Immediate action is needed to understand Java licensing and take steps to minimize the impact on your organization.

Conclusion:

The changes to Oracle Java licensing have caught many organizations off guard. With the removal of the old licensing models and the adoption of a new enterprise-wide employee licensing metric, many companies are facing significant price increases for their Java usage. It’s important to take immediate action to understand the new licensing terms, determine your licensing requirements, and take steps to negotiate the best possible terms with Oracle. With expert advice and careful negotiation, your organization can minimize the impact of the Java licensing changes and avoid paying millions of dollars more each year.