The High Cost of Oracle Java: Managing Expenses and Operational Efficiency

The High Cost of Oracle Java: Managing Expenses and Operational Efficiency

For businesses reliant on Java, Oracle’s licensing model presents a formidable challenge. Once a freely available technology, Java has evolved into a costly necessity for enterprises, with licensing changes leading to widespread financial and operational concerns. With Java deeply embedded in enterprise IT ecosystems, organisations must navigate escalating costs, compliance risks, and operational inefficiencies to maintain control.

The Licensing Labyrinth: Rising Costs and Reduced Flexibility

Oracle’s approach to Java licensing has undergone multiple transformations, each resulting in increased complexity and cost. Since January 2023, Oracle moved to an employee-based pricing model for Java SE subscriptions. It now charges based on the total number of employees rather than actual Java users. This shift has caught many businesses off guard, with costs skyrocketing regardless of whether all employees use Java or not.

The impact is evident in the findings of the 2025 Azul State of Java Survey & Report, where 88% of enterprises reported considering alternatives to Oracle Java due to its pricing and licensing policies. Cost remains the top reason, with 42% of respondents citing financial concerns, followed closely by preferences for open-source alternatives (40%), and dissatisfaction with Oracle’s sales tactics (37%).

These figures highlight an accelerating shift away from Oracle Java as organisations seek cost-effective and transparent solutions.

Operational Challenges: Compliance and Efficiency Concerns

Beyond licensing costs, operational efficiency suffers under Oracle’s model. Organisations using Java from an Open Source provider must dedicate significant resources to preventing installation of Oracle Java. Just one installation has the potential to land the organisation with a large bill from Oracle. This creates an administrative burden that can slow down IT operations and introduce inefficiencies.

Additionally, many enterprises find themselves locked into Oracle’s ecosystem, unable to migrate away due to application dependencies and compatibility issues. The fear of triggering an Oracle audit forces companies to tread carefully, limiting innovation and agility.

According to the Azul report, 62% of organisations struggle with DevOps productivity losses due to dead or unused code. This further compounds the operational inefficiencies tied to Java management.

Exploring Alternatives: Open-Source and Cost-Effective Solutions

To counter rising costs and operational constraints, organisations are exploring alternative Java distributions such as Azul, OpenJDK, Amazon Corretto, and Eclipse Temurin. These options provide the same core Java capabilities without Oracle’s restrictive licensing terms. However, migration requires careful planning, including testing for compatibility issues and ensuring long-term support.

The survey also revealed that 71% of businesses report paying for unused cloud compute capacity tied to Java workloads, highlighting another critical inefficiency. To address this, companies are turning to high-performance JDKs and optimising cloud strategies to better align costs with actual usage. Of those utilising high-performance JDKs, the primary reasons cited were improving application performance and reducing cloud costs.

For businesses unable to transition away from Oracle Java entirely, hybrid strategies can help reduce exposure. This includes segmenting Java usage, utilizing non-Oracle distributions where possible, and negotiating enterprise agreements to secure better pricing. Additionally, investing in Java management tools can provide greater visibility into usage patterns, helping optimise licensing spend and ensure compliance.

Java’s Role in AI and Future Considerations

As enterprises modernise, Java’s role in AI-driven applications is expanding. The Azul report indicates that 50% of organisations now use Java for AI development, surpassing Python and JavaScript among Java-centric businesses. However, this growth in AI adoption also drives infrastructure demand. 72% of organisations expect to increase compute capacity to support Java-based AI functionality.

Conclusion: Regaining Control Over Java Costs

Oracle Java’s licensing model presents a significant challenge for enterprises, but organisations can take proactive steps to regain control. By carefully assessing Java usage, exploring open-source alternatives, and implementing strategic cost-management practices, businesses can mitigate financial risks while maintaining operational efficiency.

With software costs continuing to rise across the enterprise IT landscape, managing Java effectively is no longer just a licensing issue. It’s a critical component of financial and operational strategy. The Azul 2025 State of Java Survey underscores that organisations are actively seeking ways to optimise their Java deployments and reduce costs while maintaining performance and security in an increasingly competitive market.