Eclipse, Azul, other providers may see increased Java downloads amid Oracle’s shift to per-employee pricing
Oracle’s recent shift to a per-employee pricing model for Java subscriptions has sparked significant reactions across the tech industry, particularly benefiting competitors like Eclipse Foundation and Azul Systems. Eclipse wasted no time in promoting its alternative, highlighting the cost-effectiveness of Temurin OpenJDK distributions compared to Oracle’s new pricing structure. Mike Milinkovich, Executive Director of Eclipse, underscored the accessibility of their community-supported Java offerings, contrasting them with Oracle’s perceived high costs.
Azul Systems, known for its Zulu OpenJDK distributions, reported a surge in inquiries following Oracle’s pricing announcement. Scott Sellers, Azul’s CEO, criticized Oracle’s approach, arguing that their pricing model is out of sync with the value provided by the software. Unlike Oracle’s blanket per-employee charge, Azul continues to price based on actual usage, aiming to maintain competitive pricing and flexibility for Java users.
Oracle’s Java SE Universal Subscription, introduced to streamline licensing across various environments including desktops and cloud platforms, defines employees broadly to encompass all types of workers associated with a company. This move aims to simplify licensing administration but has drawn criticism for potentially increasing costs for organizations with large workforces, regardless of actual software usage.
Beyond Eclipse and Azul, other major players in the Java ecosystem such as Microsoft and Red Hat also offer their distributions of Java, providing enterprises with alternative paths away from Oracle’s offerings. This diversification reflects a broader trend where organizations seek more flexible and cost-effective solutions amidst changing software licensing landscapes.
Azul said that it has seen a massive increase in inquiries about Java licensing since Oracle’s Universal pricing plan debuted. “This is a major shock to the Java ecosystem,” Azul President/CEO Scott Sellers said. He described Oracle’s plan as one of the few instances he could think of in which pricing is decoupled from the value derived from the software. Azul’s Java pricing, Sellers noted, is based on how many people are actually using it.
Oracle in a FAQ said the Universal plan permits use across the desktop, servers, and third-party clouds, thus simplifying tracking and management. But the per-employee pricing plan stipulates that the number of employees is defined as actual number of employees (including full-time, part-time, and temporary employees, as well as employees of third parties supporting a company), not just those using the programs.
According to industry reports, Oracle’s dominance in the Java market has waned significantly in recent years, with its market share dropping notably. This decline, coupled with the controversial pricing changes, has prompted many enterprises to reassess their Java procurement strategies. As Oracle prepares to launch JDK 20, its upcoming version of standard Java, on March 21, the industry watches closely to gauge the impact of these pricing adjustments on the broader Java community.