What’s happening on Java license deals?

What should customers do in November 2023 to February 2024

What are we seeing about Java license deals in the market?

  1. Oracle has started concluding deals with some customers with the new ‘Employee’ metric in different geographies – we have seen deals happen in the USA, Europe and in India.
  2. Deal sizes are upwards of $200k per year for small customers, $1m for medium sized customers and above $3m per year for large customers.
  3. Customers are being asked for past 2- or 3-year usage of Java.
  4. Oracle is making the statement to customers very vigorously:  even if one machine has commercial Java, you need to pay for every employee. Interestingly we have customers who have found they need to pay nothing to Oracle.
  5. Customers who are getting intimidated are paying up.
  6. Customers are being threatened with Java audits.

What should customers do?

  • Do not get intimidated. You need to respond to Oracle but do it with expert advise or legal advice from your internal counsel.
  • There are many ways to license Java. Understand Java licensing and then go ahead and discuss with Oracle.
  • Do an internal Java deployment review. You might be pleasantly surprised with the outcome.
  • Plan your Java deployment and usage strategies.
  • Plan your Java procurement looking at all the possible alternatives and understanding the value you are getting from the deployments.

How can we help you on Java license changes

  • We have developed a Java License Analyzer (available as a product and a service) that will help you understand your Oracle & non-Oracle Java deployments.
  • We can provide you with key understanding of the convoluted mosaic of Java license change and its impacts on compliance and costs.
  • We can help you with audit defense if Oracle pushes for a Java audit.
  • We can provide you with the data and justifications for the best price for doing a deal with Oracle for Java.
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Sheshagiri helps companies reduce Software License & Support costs through deployment optimization and risk management in software license compliance audits. His core skills are Software License Management, Enterprise Software Sales & Sales Management.

Sheshagiri is, currently, the Managing Partner & Principle Licensing Advisor at Rythium Technologies. Prior to this, he was a Vice-President in Oracle Corporation.