Oracle Licensing

2021 Java Licensing Changes

2021 Java Licensing Changes:

  • NFTC License Introduced: Java 17 is free for commercial use.
  • Older Versions: Java 1-16 is unaffected but lacks free updates.
  • Security Patches: Java 17 security patches require a license after October 2024.
  • Deadline: Organizations must decide on licensing or upgrades by October 2024.

2021 Java Licensing Changes

oracle 2021 Java Licensing Changes

In 2021, Oracle made significant changes to the Java licensing model, introducing new agreements to simplify Java usage for some users while introducing new restrictions for others.

These changes primarily involved introducing the NFTC (No-Fee Terms and Conditions) License, new conditions for older Java versions, and requirements for applying security patches.

Below, we provide a detailed overview of these 2021 changes and their implications for businesses and developers using Oracle Java.

Introduction of NFTC License

One of the most notable changes in 2021 was Oracle’s introduction of the NFTC (No-Fee Terms and Conditions) agreement.

This new licensing model allowed free commercial use of Java, starting with Oracle JDK 17.

  • What is NFTC? The No-Fee Terms and Conditions (NFTC) agreement allows organizations to use Oracle JDK 17 and later versions for commercial purposes without incurring licensing fees. This move was intended to simplify licensing and encourage businesses to adopt the latest Java versions.
  • Scope of NFTC: The NFTC license applies only to Oracle JDK 17 and newer versions. It allows commercial use without a paid subscription, making it an attractive option for businesses that want to leverage the latest Java capabilities without additional costs.
  • Key Benefits: The introduction of NFTC significantly shifted Oracle’s licensing policies. This change aimed to reduce the licensing burden and encourage businesses to upgrade to newer Java versions by making the latest version of Java free for commercial use.

Example: A software company building enterprise applications can use Java 17 without worrying about licensing fees under NFTC, provided they stick to the terms outlined in the license agreement.

Read about Oracle Java Licensing Changes from 2019.

Conditions for Older Java Versions (1-16)

Conditions for Older Java Versions (1-16)

Oracle also clarified the licensing of older Java versions, specifically versions 1 to 16. These clarifications were important for businesses that had standardized on older Java versions and were concerned about compliance with the new licensing terms.

  • No Impact on Older Versions: The NFTC license only applies to Java 17 and newer versions. Companies using Java 1 to 16 were unaffected by the NFTC license, meaning they could continue using those older versions under their existing agreements.
  • Security Concerns: One downside to using older versions of Java is that they no longer receive free security updates. For companies that continue using Java 1 to 16, this could lead to potential security risks. Older versions are vulnerable to exploits without regular security patches, putting production systems at risk.

Security Patch Requirements for Java 17 and Beyond

A major aspect of the NFTC agreement was the introduction of new requirements around security patches for Java 17.

  • Initial Free Use: Under the NFTC license, Java 17 was made available for free commercial use. However, obtaining security patches for Java 17 and newer versions after a certain point required organizations to secure a new license.
  • October 2024 Deadline: Oracle set an important deadline: October 2024. Companies that wish to continue using Java 17 beyond this date must decide whether to purchase a license to apply security patches. If no action is taken, they can continue using Java 17 without patches, creating a security risk for production environments.
  • Upgrade or Subscribe: To remain compliant and secure, businesses have two choices:
    • Upgrade to the next Java version (such as Java 18 or beyond), which may also come under NFTC terms for free use.
    • Subscribe to receive continued security patches for Java 17 after October 2024.

Example: A financial services company using Java 17 in critical systems must decide before October 2024 whether to continue with a free version without security patches (and potentially face security vulnerabilities) or purchase a subscription for continued support.

Read about Oracle Java Licensing Changes 2023.

Implications of the 2021 Licensing Changes

Implications of the 2021 Licensing Changes

The 2021 Java licensing changes have had far-reaching implications for businesses, developers, and IT teams.

Below, we highlight the main implications and what they mean for companies using Java.

Encouragement to Upgrade to Latest Versions

  • Reduced Cost Barrier: By making Java 17 free under NFTC, Oracle encouraged companies to upgrade to the latest version. This effectively reduced the cost barrier for organizations looking to stay updated with Java’s latest features and improvements.
  • Increased Adoption: The NFTC agreement led to increased interest and adoption of Java 17, especially by organizations looking to avoid the costs of ongoing Java subscriptions while ensuring they have access to the most recent performance improvements.

Ongoing Compliance Requirements

  • License Management: The NFTC license requires companies to manage their usage carefully and understand the restrictions. While Java 17 is free, companies must monitor their use cases to ensure they comply with the licensing terms.
  • Impact on Security Practices: Companies using Java 17 must make informed decisions about updating security patches. With the October 2024 deadline, it is important to determine whether a paid subscription is needed for ongoing security compliance or whether upgrading to a newer version would be a better approach.

Key Considerations for Organizations

To navigate the 2021 Java licensing changes, organizations must consider several factors:

  1. Java Version in Use: Determine whether your company uses Java 17 or an older version. This will directly impact the licensing requirements and associated costs.
  2. Need for Security Patches: If your company requires ongoing security updates, it is important to understand when a paid subscription becomes necessary and whether it is worth subscribing or upgrading to a newer version.
  3. Cost vs. Compliance: Assess the costs of subscribing to updates and migrating to newer versions under NFTC. The balance will depend on business needs, security requirements, and budget constraints.
  4. Strategic Upgrades: With the NFTC making newer versions available for free, organizations may find it beneficial to strategically plan upgrades to remain compliant while minimizing costs.

Practical Example: Choosing Between Upgrades and Subscription

Consider a retail company that relies on Java 17 for its e-commerce application. They have three options:

  • Option 1: Continue with Java 17 Without Patches: This could lead to security vulnerabilities that impact the reliability of their online store, especially after October 2024.
  • Option 2: Purchase a Subscription for Continued Patches. This option allows them to maintain security and compliance, but it has ongoing costs that may not fit their budget.
  • Option 3: Upgrade to Java 18 or Later: If the NFTC license also covers Java 18, upgrading would provide access to security patches without a subscription, ensuring continued security without added cost.

FAQ: 2021 Java Licensing Changes

What is the NFTC license introduced in 2021?
Oracle introduced the No-Fee Terms and Conditions (NFTC) license, which allows free commercial use of Java starting with JDK 17.

Which Java versions are impacted by the NFTC license?
The NFTC license applies only to Java 17 and newer versions.

Does the NFTC license apply to Java versions 1-16?
No, Java versions 1-16 are not affected by the NFTC license but do not receive free updates.

Are older Java versions still supported?
Older Java versions, like Java 8 or Java 11, do not receive free updates. Organizations must pay for extended support.

What are the conditions for using Java 17 under NFTC?
Java 17 is free for commercial use under NFTC, but security patches after October 2024 require a subscription.

Do I need a license to apply security patches to Java 17?
Yes, starting October 2024, a license will be required to apply security patches for Java 17.

What happens if I continue using Java 17 without patches?
Continuing without security patches could leave your systems vulnerable, which is a significant risk for production environments.

What options do I have after October 2024 for Java 17?
You can purchase a license for ongoing security updates or upgrade to a newer version of Java that falls under the NFTC license.

Is Java 17 completely free under NFTC?
Java 17 is free for general use under NFTC, but future security updates after the deadline require a subscription.

Why is Oracle making these licensing changes?
Oracle aims to encourage the adoption of newer Java versions while maintaining a business model for long-term support.

What are the compliance requirements for Java 17 under NFTC?
Companies must ensure they only use Java 17 within the NFTC license terms and decide how to handle updates post-October 2024.

How does the NFTC license affect my security policies?
You need to consider licensing costs for security patches or ensure timely upgrades to newer versions to remain secure.

What are the licensing costs if I need Java 17 updates post-2024?
Licensing costs vary depending on the number of installations and support agreements. You should discuss these directly with Oracle.

Should I upgrade to Java 18 instead of paying for patches?
Upgrading to Java 18 or newer versions could help you maintain free use and receive security updates without a subscription.

How can my organization prepare for the Java licensing changes?
Conduct a Java inventory, evaluate your current Java usage, and create a plan for updating or licensing by October 2024.

Read more about our Oracle License Management Services.

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  • Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.

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