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HomeOracle updates subscription model for Java Standard Edition licenses

Oracle updates subscription model for Java Standard Edition licenses

20 March 2023

As of January 23, 2023, Oracle has implemented a new subscription model for Java SE called ”Oracle Java SE Universal Subscription”.

In Oracle’s new subscription model for Java SE Universal, the number of required licenses is based on the number of employees and processors as opposed to the previous subscription model where the required licenses were based on the number of desktop users and processors.

An “employee” is defined as all your full-time, part-time, temporary employees, and all the full-time employees, part-time employees, and temporary employees of your agents, contractors, outsourcers, and consultants that support your internal business operations. This means that the required number of licenses is determined by the total number of employees both internal and external and is not limited to the employees that use Java. Furthermore, there is an upper limit of 50,000 processors combined with the number of employees.

The subscription rates for Java SE Universal begin at $ 15 per employee for companies with 1-999 employees and decrease in price depending on your number of employees. If your company has Java installed on more than 50,000 processors (not counting desktops and laptops) you must contact Oracles for a customized subscription fee. You can find the entire subscription metrics here: https://www.oracle.com/us/corporate/pricing/price-lists/java-se-subscription-pricelist-5028356.pdf

It is important to note that while the new subscription metrics simplify how the volume of required licenses is calculated and makes tracking and management of licensed environments easier, it also significantly increases costs for companies that have a limited number of users on Java but has a high number of employees. Further, if a company has outsourced its IT to a third party, any employee at that third party working on the company’s IT will count towards the required number of licenses, which can significantly increase the subscription fee.

Oracle have in the Q&A concerning the new model stated that legacy Java SE customers may renew their subscriptions under their existing terms and metrics: Java SE Universal Subscription FAQ (oracle.com). We assume that this will only apply if the existing customers renew their subscriptions without any changes to the existing subscription.

We recommended that you carefully evaluate your Java SE usage and licensing needs in due time before any new subscriptions are necessary and assess possible alternatives if the cost is too high.

If you have any questions, please do not hesitate to contact Ole Horsfeldt or Tue Goldschmieding.

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