OpenJDK vs Oracle JDK: Licensing, Support, and Total Cost of Ownership

OpenJDK vs. Oracle JDK: Licensing, Support, and Total Cost of Ownership

Executive Summary:

Oracle recent Java licensing changes have turned Java from a “free” development staple into a potential budget and compliance risk.

In response, many enterprises are weighing Oracle JDK (Oracle’s paid Java distribution) against OpenJDK (the free open-source Java).

This advisory outlines the key differences between the two in terms of licensing, support, and long-term costs, offering practical insights for IT, procurement, and finance teams on managing this transition.

Why Java Licensing Is Now a Boardroom Issue

Insight: Oracle’s licensing shake-up has made Java a significant line item and risk factor. Since 2019, Oracle has transitioned Java from a free public update model to a paid subscription model, and in 2023, it shifted to an employee-based licensing metric.

This means businesses must now license Java for every employee, not just the servers or users running it.

Costs have spiked dramatically – what was once free can now run into millions per year for large firms.

Example Scenario:

A global manufacturer with 20,000 staff was accustomed to free Java. After Oracle’s 2023 switch to per-employee subscriptions, it faced an annual bill of over $ 1.6 million for Java licenses.

In another case, a mid-sized company with a handful of Java applications saw its Java costs jump 15-fold under the new model. These “Java bills” blindsided CFOs who hadn’t budgeted for a language runtime that had previously been free.

Practical Takeaway:

Enterprise leaders can no longer ignore Java licensing. Treat Java as you would any major software: get visibility into where it’s used and what it could cost.

The recent changes are pushing organizations to revisit their Java strategy at the highest levels – it’s now a topic for CIO and CFO oversight, not just developers.

Proactive planning (or switching to alternatives) is critical to avoid unwelcome surprises in the IT budget.

OpenJDK vs. Oracle JDK – What’s the Difference?

Insight: Oracle JDK and OpenJDK share the same core code and functionality – since Java 11, Oracle’s commercial JDK is essentially a repackaged build of the OpenJDK project.

The real differences lie in licensing and terms of use, not technical capability.

OpenJDK is the open-source reference implementation of Java, free under the GNU General Public License (with a permissive “classpath exception” for use in proprietary apps).

Oracle JDK is Oracle’s proprietary distribution of that code, released under Oracle’s licenses with associated costs and restrictions.

Example Scenario: A bank’s development team found that their applications ran indistinguishably on OpenJDK versus Oracle JDK – performance and features were identical. Historically, Oracle JDK included a few extras (mission control tools, etc.), but those have since been open-sourced.

Today, whether you run your app on Oracle JDK or a reputable OpenJDK build (from vendors such as Eclipse Adoptium, Amazon Corretto, or Red Hat), the behavior remains the same.

The big distinction is the fine print: running on Oracle JDK could trigger licensing fees, whereas OpenJDK is free to use.

Practical Takeaway:

There’s no technical barrier to choosing OpenJDK over Oracle JDK for the vast majority of use cases – Java is Java. Enterprises should focus on the legal and support implications. If you can swap out Oracle’s Java for OpenJDK, you likely won’t notice a difference in functionality.

This opens the door to significant cost savings, provided you effectively manage support and updates (addressed below).

In short, Oracle JDK and OpenJDK are twin engines; their outputs are the same – it’s the licensing fuel that differs.

Licensing Models: Subscription vs. Free Use

Insight: Oracle JDK now requires a paid subscription for almost all commercial uses, whereas OpenJDK and its various distributions are free of license cost.

Oracle’s current Java SE Universal Subscription model counts all employees (plus contractors) in an organization, regardless of actual Java usage.

By contrast, OpenJDK’s license (GPL with classpath exception) allows unlimited use, modification, and redistribution without fees.

These divergent models mean choosing Oracle ties you to recurring costs and compliance obligations, while OpenJDK offers freedom from license fees (with some trade-offs in support).

Example Scenario:

Under Oracle’s pricing, a company with 5,000 employees might pay on the order of $600,000+ per year for Java SE subscriptions – a stark change from something free a few years ago.

Oracle’s price starts around $15 per employee/month (for smaller organizations) and scales down to single-digit dollars at very large volumes.

The catch: even if only 100 of those 5,000 employees actively use Java, the company still must license all 5,000.

In contrast, if that company adopts an OpenJDK distribution (for example, Amazon’s Corretto or Eclipse Temurin), its license cost is $0. Many organizations are understandably asking: why pay six or seven figures annually for Java when a free, compliant alternative exists?

Compliance and Audit Risk:

Along with cost, Oracle’s model introduces compliance risk. Suppose you continue using Oracle JDK without a subscription (e.g., an outdated Java 8 or 11 install lurking on a server).

In that case, you’re technically out of compliance – a liability if Oracle initiates an audit. Oracle has become increasingly aggressive in auditing Java usage.

One common trap is accidentally using Oracle’s JDK when you intended to use OpenJDK; the moment an Oracle binary is in production without a license, you’re at risk of a compliance claim.

OpenJDK usage avoids this entirely. Oracle has no audit rights or fees on an open-source JDK. (Oracle even explicitly permits companies to switch to OpenJDK if they don’t want to pay, reinforcing that OpenJDK is the escape hatch for Java fees.)

Licensing Comparison Table: Below is a high-level comparison of Oracle JDK vs OpenJDK in terms of licensing and cost drivers:

Practical Takeaway:

For licensing, the choice is clear: Oracle JDK offers predictable costs but significant fees and compliance work, whereas OpenJDK incurs zero license cost, but you take charge of support if needed.

Enterprises should calculate their Java footprint cost under Oracle’s model versus the open-source route.

Many find the subscription cost hard to justify given that the open-source alternative is functionally equivalent.

However, if you do stick with Oracle JDK, rigorous software asset management is needed to avoid audit surprises (track every installation and ensure you’re licensed for each one).

On the flip side, if you opt for OpenJDK, ensure your IT teams standardize on approved open-source builds and remove any Oracle binaries to remain fully compliant and cost-free.

Support and Security Updates

Insight: Running Java in production isn’t just about having the JDK installed – you need timely security patches and perhaps a support lifeline when issues arise.

Oracle’s value proposition for its JDK is largely based on the support and updates bundle: paying subscribers receive Oracle’s 24/7 support and updates for older Java versions beyond their public end-of-life.

In contrast, OpenJDK offers a more community-driven (and vendor-diverse) support model: updates are freely available for current versions, and multiple vendors provide long-term updates and optional paid support services.

The trade-off comes down to all-in-one support from Oracle versus a mix-and-match approach with OpenJDK (community updates plus optional support from a provider of your choice).

Example Scenario:

Consider a financial institution running a legacy application on Java 8. Oracle’s public updates for Java 8 ended years ago, but Oracle will still provide patches – if the bank pays for a Java SE Subscription. With Oracle, the bank could stay on Java 8 and remain secure (for a hefty fee).

Now consider the OpenJDK path: several vendors (like Red Hat and Amazon) continue to provide free Java 8 OpenJDK updates well into the late 2020s. Amazon’s Corretto distribution commits to Java 8 updates through at least 2030 at no cost.

The bank could switch those servers to OpenJDK and still get the same critical fixes without paying Oracle.

If the bank needs a support hotline for Java issues, they could contract a company like Azul or IBM for a support subscription, likely at a fraction of Oracle’s price.

Another real-world example is Newcastle City Council (UK), which faced Oracle’s licensing change. The council migrated thousands of PCs from Oracle JDK to Azul’s supported OpenJDK.

The result was over an 80% reduction in Java-related vulnerabilities (since they could apply patches again) and no performance or functionality complaints from users.

They achieved a fully supported Java environment while avoiding Oracle’s fees – a win-win for their IT security and budget.

Practical Takeaway:

Enterprises have viable, cost-effective options to maintain Java security and support without relying on Oracle.

If you require 24/7 vendor support, companies such as Red Hat, Azul, Amazon, Microsoft, and even third-party support firms (e.g., Spinnaker, TuxCare) offer Java support services on OpenJDK.

Many organizations discover they rarely call Oracle for support anyway – they just need the patches, which are obtainable through open-source channels.

The key is to assess your needs: if your environment requires a vendor to call for JVM issues, consider a third-party support contract (it will likely still cost far less than Oracle). If you have a capable in-house team, you might rely on the community updates and internal expertise alone.

Bottom line: With OpenJDK, you can still obtain all the same fixes that Oracle provides (since Oracle contributes these fixes upstream), often on the same quarterly schedule. You also regain control of your upgrade timeline, no forced two-year upgrade cycles – which can help reduce operational strain.

In sum, Oracle JDK’s support is all-or-nothing (pay to get everything, stop paying and get nothing), whereas OpenJDK’s support model is á la carte and flexible to your budget and needs.

Total Cost of Ownership Considerations

Insight: The decision between Oracle JDK and OpenJDK has profound long-term cost implications beyond just annual license fees.

Total Cost of Ownership (TCO) encompasses direct costs (such as subscription fees or support contracts), indirect costs (including in-house effort for managing updates and migration work), and strategic costs (such as vendor lock-in or flexibility considerations).

Oracle JDK’s TCO is characterized by ongoing subscription fees and potential future price increases, as well as the costs associated with compliance management.

OpenJDK’s TCO is primarily the cost of migration (a one-time effort to switch) and the expenses incurred for support or maintenance tooling.

For most enterprises, the scale tips heavily in favor of OpenJDK when looking over a multi-year horizon.

Example Scenario:

A large online retailer evaluated a 3-year TCO of staying with Oracle JDK versus migrating to OpenJDK. Oracle’s per-employee pricing meant about $2 million per year, every year, to cover their workforce.

Over 3 years, that’s $6M (not even accounting for headcount growth or possible price hikes). On top of that, they factored the “compliance overhead,” dedicating SAM/licensing team resources to manage Java audits and true-ups.

By contrast, moving to OpenJDK incurred upfront migration costs, including testing and deployment efforts estimated at $200,000, as well as a $50,000 annual subscription for premium support on critical systems.

Even with the addition of internal labor for patch management, the 3-year OpenJDK path was well under $1 million in total.

The choice was clear: they could save over 80% in TCO by switching to OpenJDK. Perhaps more importantly, they eliminated future uncertainty with OpenJDK; there’s no risk of a vendor suddenly changing terms or auditing them for additional fees.

Another strategic cost is vendor lock-in. Organizations that committed to Oracle’s Java subscriptions in 2019 found, at renewal time, that Oracle introduced a new metric (employees) that dramatically raised costs.

Once your IT environment is tied deeply to a vendor’s distribution, the vendor gains leverage in negotiations. Java is core infrastructure that’s hard to rip out on short notice – Oracle knows this.

In contrast, using an open-source Java gives you leverage: you can switch support providers or even bring support in-house.

You’re not dependent on a single vendor’s pricing whims for the runtime that underpins your applications.

Practical Takeaway: When comparing options, take a 3-5 year view of costs.

Oracle JDK’s cost is recurring and largely out of your control (it can increase if Oracle’s policies change or your employee count grows).

OpenJDK’s cost is under your control – you decide what to spend on support or tools, and you avoid surprise charges.

It’s wise to budget some resources for managing an OpenJDK environment (e.g., testing new Java versions, monitoring for updates). Still, those costs are modest and predictable compared to a big subscription.

Also consider risk as a cost factor: the risk of an Oracle audit or a forced upgrade should be weighed against the stability of an open-source approach.

Many enterprises ultimately conclude that OpenJDK offers a dramatically lower TCO and fewer “gotchas,” making it the financially prudent choice after decades of assuming “Java = free.”

Now that Oracle has monetized Java, sticking with the status quo can mean paying a Java tax indefinitely – whereas investing in an open-source strategy pays off in agility and savings.

Strategic Considerations: Making the Right Choice

Insight:

Deciding between Oracle JDK and OpenJDK isn’t just a technical upgrade – it’s a strategic sourcing decision.

Enterprises should consider factors such as risk tolerance, internal capabilities, vendor relationships, and the roadmap of their application portfolio.

There’s no one-size-fits-all answer; some organizations may find that paying for Oracle is worth it for specific cases, while most will benefit from a transition to OpenJDK.

Key considerations include: whether your software vendors or in-house apps have any dependency on Oracle-specific features (rare, but check); how quickly your teams can adapt to new Java versions (if you try to stay on Oracle’s free NFTC track, you’ll need rapid upgrade cycles); and your ability to govern Java usage enterprise-wide (preventing “rogue” downloads of Oracle JDK).

Example Scenario:

Imagine a multinational bank that uses a third-party core banking system certified only on Oracle JDK 8. In the short term, that one application might necessitate maintaining an Oracle Java subscription to stay supported by the vendor. However, for the bank’s other dozens of Java applications (internal microservices, web apps, etc.), there is no such restriction – those can be moved to OpenJDK freely.

The bank might decide on a hybrid approach: purchase a minimal Oracle Java subscription just for the systems that truly require Oracle’s JDK, but migrate everything else to OpenJDK to avoid unnecessary fees.

Over time, they can pressure the third-party vendor to support OpenJDK or plan to replace that system. This scenario highlights the importance of strategically segmenting your Java usage, rather than adopting a one-size-fits-all approach.

Another consideration is operational change management. Switching to OpenJDK should be treated like any other enterprise IT change – plan it, test it, communicate it. Involve development and QA teams to verify compatibility.

Most organizations find it straightforward (since Java compatibility is strong), but proper testing avoids surprises.

Also, update your documentation and processes: for instance, ensure build pipelines use OpenJDK going forward, and educate developers that downloading Oracle JDK on their own could create compliance issues.

Culturally, the IT department should treat OpenJDK as the new standard Java platform and Oracle JDK as an exception that requires approval.

Practical Takeaway:

Enterprise buyers should frame the Java decision as part of their broader IT strategy. If you value freedom from vendor lock-in and cost efficiency, align with the principles of OpenJDK and open source.

If you need Oracle’s involvement (due to an application requirement or corporate policy), contain that exposure and negotiate hard – Oracle knows you have alternatives now. Above all, avoid complacency: doing nothing means you are likely to pay more and risk audits.

The prudent move is to take control of your Java estate – inventory it, decide which parts can go open-source, and execute a plan. Java is too ubiquitous to leave unmonitored under new licensing terms.

A strategic approach can turn this from a potential budget shock into an opportunity: by freeing up Java costs, you can reinvest savings into innovation or other priorities.

Vendor-neutral, informed decision making is key – whether that means sticking with Oracle in limited cases or embracing OpenJDK, make the choice deliberately with all stakeholders informed.

Recommendations

Expert Tips for IT and Procurement Leaders:

• Inventory Your Java Usage: Start with a detailed audit of where Java (JDK/JRE) is running in your organization. Include servers, VMs, desktops, and third-party applications that embed Java. This reveals the amount of Oracle JDK you are using and your potential exposure under Oracle’s licensing terms. Many enterprises uncover outdated Oracle JDK installations they weren’t aware of – find them and document them.
• Segment and Assess Necessity: For each instance of Java, determine if it truly needs to be Oracle’s JDK. In most cases, it won’t. Identify any applications that explicitly require Oracle JDK or have support contracts tied to it – these are the only ones that might justify staying with Oracle. Everything else is a candidate to switch to OpenJDK.
• Cost Analysis and Business Case: Calculate the cost of doing nothing (i.e., paying Oracle) versus migrating. Include a multi-year projection. This business case will be crucial in obtaining executive buy-in. Don’t forget to factor in the soft costs of compliance management if you stay with Oracle. Often, the business case for OpenJDK practically writes itself when you show millions in potential savings.
• Evaluate Support Options: Decide how you’ll get support and updates for Java outside of Oracle. If you have strong internal Java expertise, you might use community updates and self-support. If you need a vendor, evaluate third-party support providers by obtaining quotes and comparing service levels. Options from major IT vendors (such as Red Hat) or specialized support firms can meet your needs at a lower cost.
• Pilot the Transition: Run a pilot migration of a few applications to OpenJDK. This will build confidence internally. Choose non-critical systems first, or set up a test environment for a critical one, and switch the JDK to an OpenJDK build. Verify that everything works (it likely will). Use this pilot to develop a playbook for a wider rollout, including steps for uninstalling Oracle JDK, installing OpenJDK, and conducting regression testing.
• Engage Vendor Management: If you must maintain any Oracle Java usage, enter negotiations with a clear understanding. Talk to Oracle about your options – sometimes volume discounts or legacy metrics might be grandfathered for a while, but don’t count on it long-term. If you have an Enterprise Agreement with Oracle, check if Java can be bundled at a favorable rate. Always have Plan B (migration) underway to give you leverage.
• Update Policies and Communication: Implement a policy that governs Java usage within the enterprise. For example, mandate that only approved OpenJDK distributions are to be used for new deployments, and that downloading Oracle JDK requires approval from the license management team. Educate developers and IT staff about these guidelines so there’s no confusion. Make it clear this is about avoiding unnecessary costs and staying compliant.
• Monitor and Stay Informed: Treat Java like an ongoing asset to manage. Keep an eye on updates from Oracle (e.g., if they announce new licensing changes or free offerings) and from the OpenJDK community (new LTS releases, end of updates for old versions). Assign ownership for Java in your asset management or architecture team. This ensures you won’t be caught off guard by future changes – you’ll be ready to adapt your strategy.

Checklist: 5 Actions to Take

A step-by-step action plan for moving forward with confidence:

1. Discover and Audit: Compile an inventory of all Java installations across your enterprise. Identify the versions and determine whether they are based on Oracle or OpenJDK. This includes servers, employee laptops, build servers, and packaged software that comes with Java. (You can’t manage what you don’t know exists.)
2. Assess Compliance and Risk: For each Oracle JDK instance, check if it’s under a valid license or exemption. Determine how many employees or processors would need to be licensed under Oracle’s rules. What would be the financial risk if Oracle were to audit you today? (This builds urgency and executive awareness.)
3. Develop a Migration Plan: Based on your findings, determine which systems can be migrated to OpenJDK and outline the necessary steps. Include testing applications on OpenJDK, training staff if necessary, and scheduling the rollout. Additionally, select an OpenJDK distribution (e.g., AdoptOpenJDK/Temurin, Corretto) and verify its support timeline for your Java versions.
4. Execute and Validate: Begin replacing Oracle JDK with OpenJDK in a controlled manner. Start with non-production or less critical systems as a pilot, then extend to production environments. Track progress and issues. Ensure that security updates are applied promptly via the new OpenJDK update process. (Celebrate quick wins as servers and services successfully switch over – this builds momentum.)
5. Secure Ongoing Support & Governance: Establish long-term arrangements for Java support and oversight. If you’ve chosen a support vendor, formalize that contract and SLA. If you’re self-supporting, assign responsibility for monitoring Java updates (e.g., quarterly patch checks). Update your IT policies to prevent the use of unapproved Oracle JDKs in the future. Finally, report back to stakeholders on the cost savings achieved and ensure Java remains a managed asset in your IT portfolio. (Regular governance will keep you compliant and optimized year after year.)

FAQ

Q1: Is Java no longer free to use?
A: The programming language Java is free and open-source in the form of OpenJDK. However, Oracle’s commercial JDK is no longer free for most business uses. Oracle now requires a paid subscription if you use its Java distribution in production (outside of narrow exceptions like personal use or development). The good news is that you can use OpenJDK distributions, which are free and just as functional. In short, Java technology is free, but Oracle’s branded JDK requires a license in enterprises. Many companies are switching to OpenJDK to avoid paying fees while still using Java.

Q2: What are the risks if we ignore this and stay on Oracle JDK without paying?
A: If you continue using Oracle JDK in production without a subscription, you’re running a compliance risk. Oracle has the right to audit your usage, and they have been actively auditing companies for Java deployments. The risk is receiving a large back-bill for unlicensed use or being pressured into a costly agreement. It’s comparable to using any unlicensed software – penalties and sudden costs can occur. Additionally, without a current support contract, you won’t receive security updates for critical fixes on your Java versions. The safer approach is either to properly license what you use (budgeting for Oracle’s subscription) or migrate off Oracle’s JDK to free alternatives.

Q3: How hard is it to switch from Oracle JDK to OpenJDK?
A: In most cases, it’s quite straightforward. Oracle JDK and OpenJDK builds are essentially the same codebase; therefore, your applications should run on OpenJDK without requiring any code changes. Many enterprises have successfully swapped out Oracle JDK for OpenJDK in their development, test, and production environments. The process involves uninstalling Oracle’s JDK, installing the OpenJDK distribution of your choice, and testing your applications to ensure everything works. You should also update any scripts or tools (like JAVA_HOME paths) to point to OpenJDK. It’s wise to test critical applications in a staging environment first, but experience shows that compatibility is nearly 100%. A bit of planning and testing is usually all that’s needed to make the transition.

Q4: Will we still get updates and security patches if we use OpenJDK?
A: Yes – the Java community and several major vendors provide updates for OpenJDK. For each Java Long-Term Support version (like Java 11, 17, 21, etc.), there are OpenJDK builds that receive regular security patches (typically every three months, matching Oracle’s update schedule). For example, Eclipse Temurin (Adoptium), Amazon Corretto, Azul Zulu, and Red Hat OpenJDK all offer free updates for Java LTS releases for many years. You can set up your systems to use those builds and get the latest fixes. The only difference is that with OpenJDK, you are responsible for applying the updates (since Oracle is not pushing them to you) – but that’s a standard patch management task. If you want guaranteed support, you have the option to purchase a support plan from these vendors; however, the updates themselves are available for free. In summary, you won’t miss out on patches; you’ll just obtain them from the open-source channels rather than Oracle.

Q5: What if some vendors or applications only certify support for Oracle JDK?
A: This is an important consideration. While the majority of modern software vendors recognize OpenJDK as equivalent to Oracle JDK, there are occasional cases (especially with older or niche applications) where a vendor’s support policy might technically require Oracle JDK. If you encounter this, you have a few options: 1) Engage the vendor – ask if they have tested with OpenJDK or plan to support it, because many are updating their policies given Oracle’s changes. 2) If the software is critical and the vendor truly won’t support OpenJDK, you might maintain an Oracle JDK for that specific application and license just what you need for it (to stay compliant). 3) Consider alternatives or mitigations – sometimes the “certification” is out of date and the app will run on OpenJDK regardless. Always validate in a test environment. In our experience, it’s increasingly rare for a vendor to mandate Oracle specifically, as OpenJDK is widely acknowledged as the standard Java runtime now. But it’s worth double-checking your vendor agreements for any such clauses. A balanced approach can be to keep Oracle JDK for the few places it’s required, and migrate the rest of your environment to OpenJDK. This way you dramatically cut costs while maintaining support where it’s truly needed.

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