News: 1674819193

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Experts warn of steep increase in Java costs under changes to Oracle license regime

(2023/01/27)


Oracle stands accused of "predatory" licensing tactics after making changes to the Oracle Java SE subscription model that could force businesses to pay tens of thousands of dollars more each month for running the same software.

Industry experts have pointed out that businesses with limited Java use would have to license the software per employee under the new model, a dramatic shift from the one Oracle previously afforded them.

This week, Big Red – which acquired Java with its buyout of Sun Microsystems in 2009 – said [1]the new Java SE Universal Subscription is "a simple, low-cost monthly subscription that includes Java SE Licensing and Support for use on Desktops, Servers or Cloud deployments."

[2]

"Customers of the legacy Java SE Subscription products continue to receive all the original benefits and may renew under their existing terms and metrics," it said.

[3]

[4]

It comes with an [5]accompanying price list , which shows the key difference between the new and the old model is that Java will be licensed on a per employee, rather than a per user or per processor basis as the [6]old model allowed.

Although Oracle promises to allow legacy users to renew under their current Ts&Cs, it is likely to pressure users onto the new model as time goes by, sources indicated.

[7]

Craig Guarente, founder and CEO of software licensing advisor Palisade Compliance, told The Register : "Oracle always moves customers to the new model at some time. Also, what is the pricing? There is no way Oracle will have some perpetual, no price increase policy."

The shift would penalize companies which had spent years minimizing their Java usage, only to find they were being charged per employee, no matter how much Java they used, Guarente said.

"We have one customer who has a Java subscription, a Universal License Agreement for Oracle Java, the whole company, but now with the new pricing, their cost for Java goes up 10-fold. We have done analysis on several other companies and the average we're seeing is 2x to 4x price increase that this will incur because customers were very good about minimizing Oracle Java usage and getting a lower price. That's how you get leverage with Oracle."

[8]NASA overspent $15m on Oracle software because it was afraid an audit could cost more

[9]Oracle to hike support fees in line with inflation

[10]Oracle's compliance cops now include Java in license audits

[11]Oracle to release on-prem software usage tools to prep cloud switch

He added: "Not only can Oracle see that you've downloaded the software, but with Java, they can see that you've installed it and you've started to run it. One customer reached out to us saying, 'Hey, look at what my Oracle rep has said. They could see we're downloading this stuff and the renewal for the Java subscription happens in April, so they want to talk about the new pricing model'."

Guarente told us another client had said: "This is predatory, even for Oracle."

[12]

Nick Walter, CTO at Oracle support specialist House of Brick, said: "If Oracle runs true to form from past incidents of deprecating a pricing model or licensing metric then they will likely do their utmost to force customers into the new model. They may allow people to renew existing metrics and agreement but if they need any incremental license purchase then they will most likely be forced into the newer – and costlier – model."

Nathan Biggs, House of Bricks CEO, [13]estimated that a company with 250 employees, 20 Java Desktop Users and eight Java Installed Processors would pay $3,000 a year on the old model, which grows to $45,000 a year under the new subscription, a 1,400 percent increase.

"What this means for your organization is that regardless of your Java users or server footprint, you now must count every employee, contractor, consultant, and agent to determine your Java subscription bill. You are potentially on the hook for a massive subscription fee increase that may have very little benefit to your operation," Biggs said.

We have asked Oracle to respond to criticism of its licensing changes. ®

Get our [14]Tech Resources



[1] https://www.oracle.com/java/technologies/java-se-subscription-faq.html

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y9QDMCXLZkTWqLhZSFkfYwAAAEQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y9QDMCXLZkTWqLhZSFkfYwAAAEQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y9QDMCXLZkTWqLhZSFkfYwAAAEQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[5] https://www.oracle.com/assets/java-se-subscription-pricelist-5028356.pdf

[6] https://www.oracle.com/a/ocom/docs/license-definition-rules-v061121.pdf

[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y9QDMCXLZkTWqLhZSFkfYwAAAEQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[8] https://www.theregister.com/2023/01/13/nasa_software_oracle_overpayment/

[9] https://www.theregister.com/2022/07/25/oracle_set_to_impose_inflationary/

[10] https://www.theregister.com/2022/03/22/oracle_starts_to_include_java/

[11] https://www.theregister.com/2022/04/25/oracle_software_usage_tools/

[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y9QDMCXLZkTWqLhZSFkfYwAAAEQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[13] https://houseofbrick.com/blog/oracle-java-pricing/

[14] https://whitepapers.theregister.com/



Cost

elsergiovolador

(director approaches an employee who is staring at Eclipse and looking tired)

(director angrily waves a bill from Oracle) Do you see how much it costs me to have you here? You could at least type faster! Show me your spreadsheet with the coffee you drank this week!

(employee opens up a spreadsheet)

(director) oh gawd dammit that like £20 worth of coffee!!!

(employee) sir, with all respect, if you filter the spreadsheet by owner you'll see that I bought this coffee myself!

(director) and who pays you so you have all that money, huh?

(employee) well...

(director) what? do you have a side hustle?

(employee) about that...

(director) oh lord, I am losing money by even talking to you!

(employee) just... that umm...

(director) YOU ARE FIRED STEVE!

(employee) my name is Derek

(director) DEREK YOU ARE FIRED TOO!

(director makes a mark on the Oracle invoice and mumbles two more losers to go mhmhmhmhmhmhm)

Re: Cost

Dan 55

(director) oh gawd dammit that like £20 worth of coffee!!!

Don't forget the tea lady needs a Java licence too. Got to keep Ellison in yachts, they don't pay for themselves.

Right, but do all those businesses...

demon driver

... not know that they can select from a dozen compatible OpenJDK variants which they can use for free, including continuous updates? And, for some of them, purchase commercial support separately if needed?

Re: Right, but do all those businesses...

elsergiovolador

"We can't use OpenJDK, because it will make the investors shake and if something unpleasant hits the fan who are we going to blame?"

Re: Right, but do all those businesses...

Joe W

Yes. That. That's why companies buy windows, or am enterprise Linux. Yes, costs money, but at least you can point fingers.

Re: Right, but do all those businesses...

Anonymous Coward

OpenJDK has enterprise support from IBM

Re: Right, but do all those businesses...

elsergiovolador

Didn't they support the Nazis during the WWII?

Re: Right, but do all those businesses...

badflorist

They support yo' mamma.

Re: Right, but do all those businesses...

elsergiovolador

[1]IBM and World War II

[1] https://en.wikipedia.org/wiki/IBM_and_World_War_II

Re: Right, but do all those businesses...

Anonymous Coward

I recall hearing recently something along the lines of- assuming you'd made the mistake of having signed up with Oracle in the first place- the contract you agreed to states that in the event of switching to another compatible variant, you're still required to pay Oracle their fees regardless.

I also vaguely recall that this clause was indefinite(?)

(Perhaps someone else can clarify and/or correct this if it's wrong).

Re: Right, but do all those businesses...

elsergiovolador

Sounds similar to a contract where you sign off your soul to Satan...

Re: Right, but do all those businesses...

Paul Crawford

There is a difference?

Re: Right, but do all those businesses...

DarkRookie

At least with Satan, you get what you pay for.

Re: Right, but do all those businesses...

CrazyOldCatMan

you're still required to pay Oracle their fees regardless

I *very* much doubt whether (if it exists) it would pass any competent legal challenge..

Re: Right, but do all those businesses...

Anonymous Coward

I had my suspicions on that count too, but let's bear in mind that you'd likely have to put the effort (and quite possibly a lot of money) even taking it to court to get them to agree with that, if they did.

Something I suspect Oracle (and countless other manufacturers' unenforceable contracts) rely upon.

Then there's also Oracle's modus operandi of having licensing that's opaque and convoluted enough that there's always some other missed infringement they can catch you out with if you piss them off and they decide (coincidentally, cough) that they fancy auditing you. (Whether that's actually the case or not doesn't really matter so long as the customer isn't clear, and I get the impression their sales people use that as a barely-veiled threat often enough).

"Oracle stands accused of "predatory" licensing tactics"

John H Woods

insert shocked.gif meme here

Re: "Oracle stands accused of "predatory" licensing tactics"

Joe W

"even predatory for Oracle"

Harsh. (not saying it's far off the mark)

Re: "Oracle stands accused of "predatory" licensing tactics"

Steve Davies 3

Agreed. This IS NOT NEW(S)...

I'm just surprised that it has taken them so long to get around to doing this to Java.

For whom the bell tolls, Java, your grave awaits thee.

The death knell for Java in the enterprise even if you don't use an Oracle version.

If the likes of IBM were smart, they'd advertise the hell out of the fact that they have their own version of Java but they won't.

Avalanche

Those companies should use Java from a different vendor than Oracle. Problem solved.

A little off topic…

Anonymous Coward

This is the same Oracle as the one that “just put ZFS into the Linux Kernel” people think would not mind...

Just pointing that out.

l8gravely

It's the same sort of scam where Oracle demands you license the Oracle DB across *all* cores of a VCenter deployment, even if it will only run on a single set of 4 cores no matter what. Oh, you have another VCenter also running v7.0, so you can move VMs between VCenter instances using VMotion? I think you'll need to license that cluster as well. Oh wait, you don't have that setup, doesn't matter, you *might* have it setup and we can't have that.

And this is for a piece of software which is developed on Postgresql and is a supported DB by the vendor. But since our DBAs only know Oracle... we go through this shit all the time.

This is why Oracle is going the way of the mainframe and min-computer vendors, they're going to get eaten alive from the bottom end.

Anonymous Coward

You mean this, right ? https://jhdba.wordpress.com/2019/06/17/oracle-car-parking/

Of course, this is the same happening again. Following this, some time ago, I have yet to meet any company that will view Oracle DB as anything but expensive legacy we do everything to get rid of.

The AS400 of the DB. And no, I really don't think having Oracle DBAs is any excuse to even favour Oracle DB anymore.

Right now, people should really f***k off Java right away !

Come on over to .NET people!

StrangerHereMyself

I hope this will start a stampede towards .NET and C#. Oracle's predatory practices have been well documented for decades. Oracle's mantra is: "We make a boatload of money from it or we kill it!"

I suppose they've come to the conclusion they can empty their customers' pockets and they'll accept it, albeit with grinding teeth.

Re: Come on over to .NET people!

Androgynous Cupboard

Well, you've convinced me (walks to edge of frying pan, holds breath, closes eyes and jumps). This is going to be great! What can possibly go wrong?

Re: Come on over to .NET people!

xyz

Well, they'll change its name every 5 minutes for a start. :-) Then there's the bits that don't work yet.. VS2022 SSIS for example. And then there was that bug in. NET 4.5 that nearly royally shafted me and they still haven't fixed it. Who knew if you used a system font on IIS and sent stuff to a print server, it would render (just) the numbers in some weird shit typeface? E. G. Times New Roman words then 20 in weird sans serif bold crap then back to Times New Roman.

Re: Come on over to .NET people!

jilocasin

That'll be trading a devil for an imp, not much of an improvement and the imp has dreams of being a devil herself one day.

On a more serious note, .Net isn't as flexible as Java (though it does need a lot less boilerplate). In fact there's no official desktop GUI toolkit for Linux. They will try to force you into using their other properties, esp. if you are on a platform that they believe has the potential to compete with them. Windows is the primary OS, Microsoft SQL is the primary database, Azure is the primary cloud, anything else you'll have to do it yourself. Oh, as demonstrated with their attempt to pull features from the 'open source' version, reserving it for Visual Studio, they are not above sabotaging .Net if they think it might give them a commercial advantage.

Java, ever since Oracle took ownership, has been a disaster in waiting, if not in practice.

.Net isn't your savior, it's just another commercial enterprise trying to bait the trap with open source goodies.

If you are deep into Java, then switch to a true open source version, as others have mentioned, there are commercial entities that will provide support, for a price if you are nervous.

If you want to truly be free, take this opportunity to switch to a truly open language. There are plenty to choose from and more cropping up every day; JavaScript, Python, PHP, C, C++, FORTRAN, Rust, etc. etc.

Jaybus

Figures. Just as we are finally getting Haitian Bleu here again, the price is going up! Oh, wait. You mean the programming language. Whew! That's a relief. For a minute I thought it was something important.

"`Time is an illusion. Lunchtime doubly so.'
`Very deep,' said Arthur, `you should send that in to the
"Reader's Digest". They've got a page for people like you.'"

- Ford convincing Arthur to drink three pints in ten
minutes at lunchtime.