A survey has found that a significant majority of organizations using Oracle Corp.’s ORCL Java have been audited in the past three years. This has led to a surge in the migration to open-source Java, with many users expressing dissatisfaction with Oracle’s pricing model.
What Happened: A survey of 500 IT asset managers at organizations using Oracle Java found that 73% have undergone audits within the past three years, reported The Register.
A survey by market research firm Dimensional Research revealed that only 14% of Oracle Java users plan to continue using the company's subscription model. This move is an attempt to avoid the high costs and risks associated with Oracle’s development and runtime environments.
Oracle launched a paid subscription for Java in September 2018, and in January 2023, shifted to a per-employee pricing model — a move that led to significant cost increases for many users. By July 2023, Gartner reported that some customers saw their licensing costs rise by two to five times under the new structure.
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The research was commissioned and authored by the ITAM Forum—an independent organization representing IT asset managers—and Azul, a provider of open-source Java products and services.
The survey also highlighted the high costs and challenges of software audits. A quarter of respondents said complex software setups make tracking usage difficult, while 29% reported struggles managing software data across teams and platforms.
Over half said their organizations spend more than $100,000 annually on licensing non-compliance issues, and 27% spend over $500,000.
Why It Matters: The discontent among Oracle Java users is particularly significant given Oracle’s recent moves. The company has been investing heavily in AI and cloud infrastructure expansion across Europe, including Germany and the Netherlands.
This suggests that Oracle is positioning itself as a major player in the tech industry, making the dissatisfaction of its Java users all the more noteworthy.
Moreover, Oracle’s co-founder and chairman, Larry Ellison, recently surpassed Mark Zuckerberg to become the world’s second-richest person. Ellison’s wealth surge is partly attributed to Oracle’s AI deals and the US government, indicating the company’s growing influence in the tech sector.
Price Action: Oracle ended Tuesday at $234.96, gaining 2.48%, and inched up to $235.36 during pre-market trading, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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