Oracle continues to look for Java non-compliance

Analyst Gartner warns that new changes to Java licensing mean that Oracle will actively target organizations, even those that do not run any Oracle products, to comply with Java.

Gartner reports that in the 12-month period to 31 December 2022, 52% of Oracle software compliance and audit-related interactions focused on Oracle Java. It is set to become an issue in 2023 after some recent license changes.

On 23 January 2023, Oracle introduced licensing changes to Java SE. Unlike the previous Java SE license, which was measured on a per name user or per processor basis, the new subscription includes use on desktops, servers and third-party cloud deployments.

Gartner points out that the new Oracle Java SE Universal Subscription means that every person who works in an organization where Java SE is deployed is counted for the purpose of the subscription. According to Gartner, in an organization with 45,000 employees of which 40,000 are full-time, part-time and temporary staff, and 5,000 are agents, contractors and consultants, the company needs 45,000 licenses. Assuming the 65% discount provided by Oracle, this results in an annual bill of $2.8m.

The Java SE Universal Subscription fee starts at $15 per employee per month. While Java SE Desktop Subscription starts at $2.50 per named user or desktop per month and Java SE Subscription starts at $25 per processor per month, Gartner warns that the Java SE Universal Subscription fee starts at $15 per employee per month.

Companies with large numbers of employees where only a small portion are licensed to use Java SE software may find their annual license fees increase dramatically.

As an illustration of the price increase, Gartner says that an organization with an old Java SE license to cover 19,000 name users will find that the new annual subscription fee is 117% which is more expensive.

Looking at its Securities and Exchange Commission quarterly filing, Oracle reported an increase in cloud services and license support revenues of 14%, and a 16% increase in cloud license and revenues. to license the area, adding $1.4bn to its revenue.

In a report exploring the implications of the licensing scheme, Gartner said: “According to Gartner’s client interactions, Oracle is actively targeting organizations – both existing Oracle customers and those without Oracle products – in Java compliance, and has deployed its global Java licensing team to enforce compliance.”

While Oracle says that the new Java SE Universal Subscription will eliminate the need to count desktops and servers, Gartner said it is not yet clear if this compliance-target will decrease.

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