The short answer: In January 2023 Oracle moved Java SE from Processor and Named User Plus pricing to a price per employee. The cost for many customers rose by a large multiple, because the bill follows total headcount, including contractors, not Java use. You can cut the cost by moving to OpenJDK or to a supported non-Oracle Java. We have seen customers save more than 70% this way. For Oracle’s current prices, see our Java license cost article.
From User and Processor licensing to employee licensing
This note sets out the changes to Oracle’s Java licensing and the alternatives open to a business. For the full timeline, see our guide to the Java licensing changes.
Until January 2023, Java was priced on Processor and Named User Plus (NUP). Customers could judge its commercial value from where it was deployed.
The new model is an employee-based subscription. In Oracle’s view, if one employee runs commercial Oracle Java, the company must pay for all its employees. Employees here means people on the payroll and also the outsourcers, contractors and agents who work for or on behalf of the company.
The impact on businesses
The change raised costs for many customers. We have seen the increase calculated at between 4 and 50 times the cost of the actual use.
Key points of the employee model
- The price depends on total employee count, whatever the Java use or hardware.
- Oracle’s Java SE Universal Subscription price list of 8 October 2026 starts at US$100 a year for up to 10 employees. A company with 3,000 employees pays US$378,000 a year.
- The minimum term is one year.
Older price lists, such as the one that started at US$15 per employee per month, no longer apply.
How Oracle responds
Oracle tries to keep customers with multi-year contracts that lock in subscription revenue. We have seen five-year contracts, and there was talk of ten years.
The alternatives to Oracle Java
Several options exist: Azul Platform Core, Amazon Corretto, Eclipse Temurin, Red Hat builds and Oracle’s own OpenJDK builds. Companies can gain savings, better support and more flexibility by moving. The right choice depends on your applications and what your software vendors certify.
Two versions need attention. JDK 17 updates after September 2024 and JDK 21 updates after September 2026 are not free for production use. Oracle JDK 25 is free until September 2028. See OpenJDK versus Oracle JDK for the differences.
What we recommend
- Look at alternatives before you sign anything.
- Avoid long commitments. A short contract with Oracle gives you time for a planned move.
- Find out where Oracle Java runs. Our Java license review does this.
Questions we are asked about the Java changes
What changed in Oracle’s Java licensing?
The metric changed in January 2023 from Processor and Named User Plus to employees. The free terms also changed by version: JDK 17 and JDK 21 updates became paid after September 2024 and September 2026.
How much can we save by moving away from Oracle Java?
We have seen customers save more than 70%. Your result depends on how much Java you run and which runtime you choose.
Sheshagiri Anegondi
Managing Partner of Rythium Technologies. Seventeen years at Oracle, from 1998 to 2015, in leadership roles including Vice President Sales, after Compaq and Digital Equipment Corporation.
Author of “Licensing Oracle: The Reference Manual for Managing Oracle License Compliance & Procuring Oracle Software, Hardware, Cloud & Services” (Notion Press, 2021) (ISBN 10: 1639046887).
See more of our analysis in Google: add Rythium as a preferred source