A recent survey conducted by Dimensional Research for the ITAM Forum and Azul, with 500 IT asset managers (ITAM) and software asset managers (SAM) across six continents, revealed that an overwhelming majority—75%—of respondents reported undergoing Oracle Java audits in the past three years. This frequency underscores how critical compliance has become for organisations relying on Java.
Rising Costs of Licensing Issues
The survey also highlighted the financial pressure associated with these audits. Over 25% of participants stated their organisations spend more than $500,000 annually addressing licensing concerns—whether through audit remediation, purchasing additional licenses, or paying penalties for non-compliance. This significant expenditure emphasizes why effective license management is a top priority.
Compliance as a Key Concern
Compliance emerged as the primary challenge for many ITAM and SAM professionals. In fact, 37% ranked compliance, including the mitigation of excessive licensing, as their top organisational worry. Additionally, 25% of respondents noted that complex software configurations make tracking application usage increasingly difficult, exacerbating compliance risks.
Challenges in Tracking Java Usage
Simon Ritter, author of OpenJDK Migration for Dummies and deputy CTO at Azul, emphasized the difficulty of tracking Java usage at scale. He noted that auditing “requires examining each machine in the IT estate that runs any Java Virtual Machine (JVM)–based applications.” This underscores the challenge of creating an accurate inventory in large, heterogeneous environments.
A Culture of Frequent Audits
According to the survey, organisations aren’t waiting for annual checks—they’re auditing frequently. More than half (51%) conduct billing and license compliance audits at least four times a year, while 81% do so at least twice annually. Alarmingly, 25% said they engage in continuous audits. To manage this audit pace, ITAM Review recommends automating licensing audits to maintain visibility and prevent inventory inaccuracies.
Oracle’s Pricing Shift and Company Responses
In January 2023, Oracle introduced a new pricing structure that shifted Java SE fees to an employee-based model, charging organisations based on headcount—including contractors and part-time workers. In response, many organisations implemented tools and systems designed to better monitor Java usage and costs, seeking to avoid unexpected charges.
The Strategic Shift in ITAM/SAM Roles
Martin Thompson, founder of the ITAM Forum, commented on the changing landscape: “ITAM and SAM professionals are becoming increasingly vital as organisations recognise that poor license management can result in significant financial penalties and operational disruptions.” He added that these teams need adequate resources and executive buy-in to ensure both compliance and effective license management.
Growing Concerns Over Licensing Costs
It’s no surprise that 96% of ITAM and SAM respondents expressed concern about Oracle Java’s licensing costs. Moreover, 29% revealed that the introduction of per-employee licensing under Java SE subscriptions had prompted a reevaluation of their use of Oracle Java and a consideration of alternatives.
Migration to Open-Source Providers
Cost remains the primary motivator for migration. According to the survey, over 68% of respondents believe they could slash Java licensing expenses by as much as 50% by switching away from Oracle. Beyond cost, security and reliability were also deciding factors: 57% of organisations that have already migrated cited better security and stability as their primary reasons.
A Call for Alternative Java Solutions
Scott Sellers, co-founder and CEO of Azul, commented on the limitations of Oracle’s approach: “When it comes to the uncertainty of Oracle’s ever-shifting Java licensing terms, organisations shouldn’t have to burn ITAM resources, interrupt projects, or absorb surprise penalties just to run their applications.” He went on to say that embracing open-source Java alternatives can free organisations from audit burdens, preserve budgets, and refocus teams on delivering business value.
Conclusion
This comprehensive survey makes clear that Oracle’s aggressive licensing and audit model has put significant strain on organizations, both financially and operationally. Frequent audits, rising costs, and opaque pricing have made compliance more burdensome than ever. In response, many ITAM and SAM teams are proactively migrating to open-source Java platforms, not only as a cost-saving measure, but also to gain more predictable, reliable, and secure foundations for their Java deployments.
