Oracle Java Licensing Changes 2024
- NFTC Expiration: Java 17’s No-Fee Terms and Conditions (NFTC) license expires in October 2024.
- Commercial Licensing: As of October 2024, applying security patches to Java 17 will require a commercial license.
- Oracle Java SE Universal Subscription: Organizations must purchase licenses based on the number of employees.
- Alternative Options: Consider using alternative Java distributions, such as OpenJDK, to avoid new licensing costs.
Oracle Java Licensing Changes 2024
Executive Summary:
In 2024, Oracle’s “No-Fee Terms and Conditions” (NFTC) policy for Java ends: Oracle Java 17, formerly free to use, will require a paid license for updates after the NFTC period expires.
This article explains the end of the NFTC era for enterprises and how CIOs can navigate the changes in Java licensing. The Oracle Java licensing overview provides the broader context for understanding the shift away from the NF/TC model.
Java 17 and the No-Fee License Period
Oracle introduced the No-Fee Terms and Conditions (NFTC) license with Java 17 (released in 2021). Looking back at 2019 Java licensing changes helps trace how the subscription model was introduced.
This license allowed organizations to use Oracle JDK 17 in production at no cost, including receiving security updates, for a certain time.
Under NFTC, Java 17 could be used freely with Oracle-provided patches until one year after the next LTS release (Java 21).
In practice, this meant free Java 17 updates until approximately September 2024 – a temporary “free pass” that allowed enterprises to run the latest Java version without incurring immediate licensing costs.
NFTC License Expiration in 2024
The end of 2024 marks the expiration of Java 17’s NFTC free-use period:
- October 2024 Deadline: Oracle’s free support for Java 17 under NFTC ends in October 2024 (one year after Java 21’s release). After that date, security patches for Java 17 will no longer be available at no cost. Organizations using Java 17 must run it without new patches (risking security issues) or purchase a commercial Java SE subscription to continue receiving updates.
- Java 21 and Beyond: Java 21 also came with an NFTC license (free updates for a limited time). Expect its free period to end one year after the release of Java 25. Oracle’s strategy is to encourage customers to pay for subscriptions once the free period has lapsed.
Impact on Organizations
For CIOs and CTOs, the end of the NFTC period for Java 17 has several implications:
- Budget Planning: Companies that embraced Java 17 under NFTC now face unbudgeted costs. Getting updates beyond late 2024 will require purchasing Oracle’s Java SE subscriptions (priced per employee). This introduces significant new annual expenses that were not previously planned.
- Security and Compliance: Running Java 17 without security patches isn’t a viable long-term strategy; it leaves systems vulnerable and can become a compliance red flag. Inaction (staying on free-but-unsupported Java 17) could expose the organization to cybersecurity threats and audit findings. If you want to understand the headcount metric, Understanding Oracle’s employee‑based Java licensing model explains its implications.
Preparing for the End of NFTC: What CIOs Should Do
As the free ride for Java 17 comes to an end, enterprises should take proactive steps:
1. Inventory Java Usage:
Identify all applications and systems running Java 17 (and older versions). Determine the criticality of each instance and whether it will require updates or support after 2024. This inventory identifies which systems require upgrades or licensing and which may be decommissioned or left as is.
2. Evaluate Upgrade Paths:
Plan to upgrade Java 17 applications to Java 21 or a newer LTS release before the NFTC deadline. Upgrading extends your free-use window (Java 21 would be free until its NFTC period ends) and keeps systems on a supported version. Begin testing and remediation early, as code or dependencies may need changes to work on the newer Java version.
3. Consider Alternate JDKs:
Assess whether you can switch from Oracle’s JDK to an open-source or third-party Java distribution for systems requiring Java 17 updates. OpenJDK distributions will continue to receive Java 17 patches beyond 2024. Many enterprises are migrating to these free alternatives to avoid Oracle fees. However, ensure your applications are compatible with the new platform and have a source for support or updates (e.g., from the open-source community or a vendor). For organisations considering alternatives, How to migrate from Oracle Java to OpenJDK – a practical guide offers a transition path.
4. Budget for Subscriptions if Necessary:
If some critical workloads cannot be upgraded or moved off Oracle JDK by the deadline, prepare a budget for Oracle Java SE subscriptions. Contact Oracle to understand the subscription cost for your company size, and attempt to negotiate better rates or terms (especially if your Java usage is extensive). Factor these potential costs into your 2024–2025 IT budgets now. CIOs looking for executive guidance can explore 20 things CIOs must know about Oracle Java licensing and audit risk in 2025.
5. Strengthen Governance:
Use this transition as an opportunity to enforce strong Java governance. Ensure all new Java deployments are evaluated for licensing impact. Decide on a long-term strategy: Will you continually adopt the latest LTS under NFTC (if Oracle continues that program), or standardize on a non-Oracle JDK to avoid periodic licensing cliffhangers? Setting clear policies for Java usage and updates will help prevent future licensing surprises.
For a forward‑looking perspective, Oracle Java licensing changes 2025 – top 20 insights and strategies outlines what’s coming next.
FAQs
What are the key changes in Oracle Java 17 licensing for 2024?
Oracle Java 17 has introduced a subscription-based licensing model for commercial use. This replaces the previous perpetual licensing option, which required organizations to pay ongoing fees based on the number of users or processors.
How does the new subscription model affect existing Java users?
Existing Oracle Java SE users with perpetual licenses must switch to the subscription model when upgrading to Java 17. This change means ongoing costs instead of a one-time license fee, impacting budget planning.
Can I still use older versions of Java without a subscription?
Yes, you can continue using older versions of Oracle Java with perpetual licenses without additional subscription fees. However, you won’t receive updates or support unless you migrate to the subscription model.
What options do I have if I don’t want to move to a subscription model?
If you prefer not to adopt Oracle’s subscription model, consider using alternative open-source Java distributions, such as OpenJDK. These alternatives are free, but they may lack the commercial support and features that Oracle provides.
How are subscription costs calculated under the new model?
Subscription costs for Oracle Java 17 are typically calculated based on the number of users or processors. To determine your total subscription cost, you must assess all environments where Java is installed, including both development and production environments.
Will Oracle audit my usage of Java 17?
Yes, Oracle may conduct audits to ensure compliance with the subscription model. Maintaining accurate records of your Java usage is crucial to avoid penalties for non-compliance.
What happens if my usage increases during the subscription period?
If your usage of Oracle Java 17 increases, you must update your subscription accordingly by purchasing additional licenses or adjusting your subscription tier to accommodate the growth.
Can I negotiate discounts on the new Java 17 subscription model?
Oracle may offer discounts based on factors such as long-term commitments or volume purchases. It is advisable to negotiate these terms early, especially if you expect significant or growing usage.
How does the Java 17 licensing model impact small businesses?
The subscription model introduces new costs for small businesses that rely on perpetual licenses. However, Oracle may offer tailored pricing or discounts for smaller organizations; therefore, it is essential to explore these options.
Is there any flexibility in the Java 17 subscription model?
While Oracle’s subscription model is generally fixed, license allocation may be flexible across users or processors. Negotiating terms that allow adjustments as your needs change can help manage costs effectively.
What support options are available under the new licensing model?
A Java 17 subscription includes technical support, security updates, and regular patches from Oracle. The level of support depends on your subscription tier, so ensure it aligns with your organization’s requirements.
How does the new model impact companies that use multiple Java versions?
Companies using multiple Java versions must manage separate licensing agreements. Older versions might remain under perpetual licenses, but Java 17 and newer versions will require subscriptions, adding complexity to license management.
Can I transition back to a previous Java version if I’m unhappy with Java 17?
If you hold a perpetual license for an older Java version, you can revert to that version if the Java 17 subscription model doesn’t meet your needs. However, you’ll lose access to the latest updates and features.
What should I do if I’m unsure about my Java 17 licensing needs?
If you’re uncertain about your licensing needs for Java 17, it’s wise to conduct a thorough audit of your current usage and consult with Oracle or a licensing expert to ensure you’re choosing the best option for your organization.
How can I ensure compliance with the new Oracle Java 17 licensing model?
To ensure compliance, regularly review your Java usage, maintain accurate records, and stay informed about Oracle’s licensing requirements. Consider engaging with a licensing expert to help manage the transition to the subscription model.
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