Case Study – Java Advisory Services – CSAA Insurance – $1.5M Claim Resolved at Zero Cost
CSAA Insurance was hit with a $1.5 million Java licensing claim from Oracle. They paid nothing.
In this video, we walk through how Redress Compliance helped CSAA eliminate a multi-million dollar Oracle Java claim — and gain full control of their Java compliance position.
In highly regulated industries like insurance, Oracle’s audit tactics can escalate quickly. Java may be embedded in internal platforms or legacy systems — and Oracle counts on that complexity to justify massive licensing demands.
Background
CSAA Insurance Group is a major regional insurance provider serving millions of policyholders.
With thousands of employees and a robust IT infrastructure, CSAA relies on numerous Java-based applications for critical functions like policy management, claims processing, and customer service portals.
Java underpins many of the custom-developed systems and third-party solutions in use, making it a foundational technology for the company’s daily operations.
Challenges
During an Oracle license review, the account team flagged CSAA’s Java usage as a compliance gap. Oracle estimated a $1.5 million exposure for CSAA’s widespread Java installations across servers and desktops.
This was a shock, as CSAA had long assumed Java was free to use. The confusion stemmed from Oracle’s 2019 licensing changes, which made it unclear what required a paid Java SE subscription.
From internal application servers to employee desktops, many systems ran Java that Oracle now deemed unlicensed. Facing a potential $1.5 million bill or a forced Java subscription, CSAA turned to Redress Compliance for assistance.
How Redress Compliance Helped
Redress Compliance provided Java licensing advisory and audit defense support to help CSAA navigate this challenge.
The team’s actions included:
- Java Environment Assessment: Redress conducted a thorough inventory of Java usage across CSAA’s IT landscape. They identified all installations and distinguished between Oracle Java and any open-source versions in use.
- Policy & Version Analysis: The experts reviewed the specific Java versions and update levels running at CSAA. They discovered many servers were running older Java releases that did not trigger Oracle’s new licensing fees. Highlighting these instances significantly reduced the scope of the supposed non-compliance.
- Contract Review & Entitlements: They even found a clause in one Oracle middleware license that allowed Java use at no extra cost in that context, negating part of Oracle’s claim.
- Oracle Engagement & Negotiation: Armed with hard evidence, Redress engaged with Oracle on CSAA’s behalf. They demonstrated that Oracle’s $1.5M claim was significantly overstated, given CSAA’s actual entitlements and usage. Through pointed discussions, Redress challenged Oracle’s assertions and persuaded them to retract the $1.5 million demand. CSAA avoided an expensive subscription by demonstrating it was already in compliance.
Outcome and Impact
CSAA Insurance avoided any payment to Oracle for Java. Oracle dropped the $1.5 million claim entirely, sparing the insurer from an unplanned financial hit. The company not only averted the immediate $1.5 million expense but also avoided the ongoing costs of a Java subscription.
Equally important, CSAA gained a clear understanding of its Java usage and how to manage it under Oracle’s policies, giving leadership confidence that its deployments are under control.
Redress Compliance’s support resolved the issue at zero cost and empowered CSAA with stronger software asset management practices moving forward.
Client Testimonial
“We were bracing for a huge unexpected cost due to our Java usage. Redress Compliance gave us clarity and confidence. Their knowledge of Oracle’s Java licensing rules was impressive – they showed us that much of our usage was actually compliant. In the end, we paid Oracle nothing. Redress turned a potential $1.5 million problem into a lesson in smarter license management for us.”
– Director of IT
Call-to-Action
Unsure about your Java licensing compliance or facing Oracle Java audit pressures? Get ahead of the risk with Redress Compliance.
Contact us today for a comprehensive review or audit defense consultation regarding Java licensing.
Our experts will help you understand your compliance position, mitigate Java licensing risks, and avoid unnecessary costs through proven Java audit defense strategies and best practices for licensing.
