Oracle’s employee-based Java licensing model has been in place since 2023—but for many organisations, the real impact is only starting to be felt. Oracle is actively reaching out to businesses, often before they have assessed their Java estate or formalised a licensing strategy. Without clear visibility and a plan in place, companies’ risk being caught off guard by unexpected licensing obligations and significant costs. A well-defined Java strategy is no longer a nice-to-have—it is essential.

This article explains how Oracle’s new Java model works, why it was introduced, and what steps your company can take to stay compliant and in control.

What Changed in Oracle Java Licensing

Historically, businesses only needed to license Oracle Java for:

• Specific servers
• Named users who interacted with Java-based systems

In 2023, Oracle replaced this model with a universal employee-based licensing approach. Now, businesses must purchase licenses for every employee, regardless of whether that person uses Java, has access to a PC, or interacts with systems that depend on Java.

This includes:

• Full-time and part-time staff
• Contractors and temporary workers
• Employees in non-technical roles (e.g. warehouse staff, delivery drivers)

In short, if one person uses Oracle Java, your entire organization must be licensed.

Why Did Oracle Make This Change?

Oracle’s new model is part of a broader business strategy that aims to:

• Boost recurring revenue through subscription-based licensing
• Simplify enforcement by removing technical usage tracking
• Expand the licensing scope to cover a wider customer base

By using employee count as the pricing metric, Oracle shifts the burden onto companies—many of whom do not even realize they may now be out of compliance.

What This Means for Your Company

The financial and operational implications are significant:

• Dramatic cost increases, especially for companies with large headcounts
• Increased responsibility for IT teams, who must track installations, manage updates, and assess alternatives
• Compliance risk, even in environments where Java is only used indirectly or in legacy systems

For companies that previously relied on free distributions or assumed low exposure, this shift can represent a six- or seven-figure licensing obligation—often without clear internal ownership until Oracle makes contact.

Questions We Hear Most Often

What You Do Right Now

The earlier you act, the more options you have. Consider these actions:

1. Conduct a Java Usage Audit

• Identify where Java is installed across your infrastructure
• Check for embedded Java in third-party or legacy apps
• Confirm if Oracle Java (vs. OpenJDK or other builds) is in use

2. Define Your Java Strategy

• Restrict Oracle Java installations to essential systems
• Disable automatic updates where practical
• Train IT and procurement teams on the licensing risks

3. Engage Independent Expertise

• Clarify your licensing position and reduce assumptions
• Prepare for potential Oracle outreach or audit
• Create a roadmap for switching to a more cost-effective setup

Coming Up Next: How Oracle May Already Be Tracking You

You might think, “We are not using Oracle Java anymore,” or “We never signed a license agreement.” That may not matter.

In our next article, we explain how Oracle detects Java usage.

In the meantime, if your team needs help navigating these changes, reach out to ITAA for independent, vendor-neutral expertise.

Martijn Smit, Chief Revenue Officer CRO & Software Licensing Leader

Martijn has an extensive career in software licensing, specializing in Oracle licensing and working with manufacturers and wholesalers. As ITAA’s Chief Revenue Officer, he leads marketing, cross-selling, and strategic partnerships. Known for problem-solving, team leadership, and clear communication, Martijn drives growth and innovation within the company.