Oracle’s recent overhaul of Java licensing has introduced a new per-employee subscription model, significantly affecting businesses, especially as they approach renewal periods. With costs expected to rise and the risk of compliance audits looming, understanding and adapting to these changes is now a critical business imperative.

Understanding Java Licensing Changes

The shift to a per-employee subscription model represents a stark departure from the legacy per-user or per-processor model. This change is projected to increase Java licensing costs by two to five times for most organizations. While current users can renew under existing terms, Oracle is likely to nudge users towards the new, more expensive model, according to reports.

The financial implications of this shift are profound.

An example cited by Gartner shows an organization with 49,500 employees facing a 90 percent increase in Java licensing costs under the new mode. Moreover, Gartner estimates that by 2026, one in five organizations using Java applications will face Oracle audits, potentially leading to significant unbudgeted noncompliance fees.


By 2026, one in five organizations using Java applications will face Oracle audits, potentially leading to significant unbudgeted noncompliance fees.


The new model should raise concerns for partners and their customers. Gartner’s estimate that 20% of Java users will be audited within three years underscores the need for businesses to be vigilant and well-prepared.

Migration to Third-Party Runtimes

In response to the increased costs, many clients are transitioning to third-party Java runtimes, such as Azul, Amazon Coretto, Eclipse Temurin, and IBM Semuru, indicating a decline in Oracle JDK usage.

Gartner advises organizations to evaluate their need for an Oracle Java SE subscription, assess alternatives like Java 17 or third-party products, and prepare detailed documentation for licensing negotiations. Those on legacy models should be prepared for potential shifts to the new subscription model.

How Block 64 Can Help

Block 64’s solutions can make all the difference in this changing landscape. Our platform offers critical visibility into IT environments, enabling businesses to accurately assess their Java usage and ensure compliance with Oracle’s licensing terms. The platform’s data-driven insights and recommendations can guide businesses in optimizing their Java deployments, whether by adjusting usage, transitioning to third-party runtimes, or navigating Oracle audits.

The changes to Oracle’s Java licensing model are a significant challenge for businesses. With potential cost increases and the risk of compliance audits, strategic planning and robust IT management are more crucial than ever. Block 64 stands ready to support businesses in navigating this new landscape, ensuring compliance, and optimizing IT investments.

Contact Block 64 for a free consultation to explore how our solutions can help your business efficiently manage the new Java licensing changes and optimize your IT operations.