Oracle Java Audit Checklist
- NDA Preparation: Create an audit-specific NDA.
- Avoid Downloads: Do not download licensable Java products during the audit.
- Understand Licensing: Ensure full understanding of Oracle Java licensing rules and policies.
- Inform Stakeholders: Communicate potential risks to all stakeholders.
- Seek Expert Help: Hire an expert to guide you through the audit process.
- Compile Java Inventory: Document all Java distributions and usage.
- Develop Response Strategy: Prepare strategic responses for Oracle’s queries.
Make sure you also read our guide on preparing for an Oracle Java audit
Oracle Java Audit Preparation
Oracle has changed its Java licensing policy, making it no longer free for commercial use. The company conducts audits to ensure compliance.
This article provides a checklist and guidance to help you identify your Java usage, avoid common pitfalls in Oracle’s Java audits, and reduce your financial risk.
Why Oracle Java Audits Are On the Rise
Oracle made Java a paid subscription product in 2019. Then, in 2023, it shifted Java licensing to a per-employee model, requiring you to license every employee (and contractor) in your organization for Java, regardless of actual usage.
This change massively increased costs. For example, a business with 500 employees could face about $90,000 per year in Java fees under Oracle’s current price list, even if only a few employees use Java.
Roughly 73% of organizations using Oracle Java have reported being audited in recent years.
Oracle’s auditors are aware that many companies haven’t been paying for Java, so they are actively seeking unlicensed usage. If your organization runs Oracle’s Java without a subscription, you should assume an audit is imminent and prepare accordingly.
Oracle’s Audit Tactics and Triggers
Oracle often begins audits through its sales team in a “soft” way. You may receive an email or call offering a Java usage review or requesting that you run Oracle’s discovery script. See common triggers that lead to Java audits.
Treat these as audits in disguise and respond cautiously. If you engage, Oracle will likely request a detailed list of all your Java installations.
Should you resist, or if they uncover unlicensed use, Oracle can escalate to a formal audit involving its License Management Services (LMS) team.
They may pressure your executives and present a hefty compliance bill to prompt you into signing a company-wide Java subscription deal to settle.
Always involve your internal compliance or legal team early and provide only the information required by contract.
Learn more about Oracle’s audit rights and scope
Building a Java License Inventory
The foundation of audit preparedness is a complete inventory of Java in your environment:
- Find All Installations: Scan all servers, virtual machines, and PCs for Oracle Java (JDK or JRE). Note every instance (especially any installed or updated after 2019, when Oracle’s free updates ended).
- Document Versions and Use: For each Java installation, record the version, vendor (Oracle vs. OpenJDK), and its intended use. Identify any that came bundled with Oracle software (these carry special rights for that use only).
Keep this inventory updated. It will inform you of your licensing status and is essential if Oracle requests a list of Java deployments.
Evaluating Your Java License Compliance and Risk
With your inventory in hand, assess your exposure:
- Identify Unlicensed Usage: Any Oracle Java being used for internal business operations or production without an active Oracle Java SE Subscription is not compliant. (Oracle’s free usage allowance covers only personal, development, or test use – not production/business use.)
- Check for Entitlements: If Java is used strictly to run another Oracle product you’ve licensed (for example, the Java runtime that comes with Oracle WebLogic or Oracle E-Business Suite), that usage is generally covered under that product’s license. Ensure those Java installations aren’t being used beyond their allowed scope.
- Estimate Your Costs: If you had to license your current Java usage, calculate the potential cost. Oracle’s Java SE Universal Subscription runs roughly $15 per employee per month at list price for a small company (with lower rates per employee at larger scales). Even limited Java use can translate into a significant annual expense under this model. Additionally, be aware that Oracle may demand back payments for unlicensed use dating back to 2019, which can significantly increase your liability (although Oracle may negotiate these down in a settlement).
Understanding these factors will help you decide on mitigation steps and give you facts to present to management (e.g., the projected cost exposure if nothing is done).
Mitigating Compliance Issues and Reducing Cost
Take proactive steps to reduce your risk and Java licensing costs:
- Replace Oracle Java with OpenJDK: Wherever possible, uninstall Oracle’s Java and switch to open-source Java distributions (such as Adoptium, Amazon Corretto, or Azul Zulu). These alternatives are free for commercial use and can run the same applications, immediately lowering your compliance risk.
- Minimize and Confine Oracle Java: Remove Oracle JDK from any system where it’s not required. For the Oracle Java instances you do need, restrict them to specific uses that are covered (for example, only to run the Oracle product they came with) and use them for nothing else.
- Consider Licensing Options: For any remaining Oracle Java usage that you cannot eliminate or replace, weigh the cost of buying a Java SE subscription versus migrating off. Sometimes, purchasing a small Oracle Java subscription (or negotiating a reasonable one during an audit) is the simplest solution. In other cases, investing in third-party support for OpenJDK and fully dropping Oracle’s Java might save more in the long run. If you do engage Oracle, negotiate – initial audit quotes are often reduced once you push back.
By reducing your Oracle Java footprint and planning, you can often avoid paying Oracle at all, or at least minimize what you pay if it comes to that.
Recommendations
- Conduct a Self-Audit: Review your internal Java usage and address any obvious compliance gaps now, before Oracle arrives.
- Prioritize Open-Source Java: Utilize free OpenJDK distributions for new deployments to minimize your exposure to Oracle licensing costs.
- Train Your Team: Ensure that developers and IT staff are aware that using Oracle’s Java in production requires a license. Establish approval processes to prevent anyone from unknowingly adding Oracle JDK.
- Leverage Oracle Bundled Rights: Utilize Java under Oracle product entitlements where applicable (and only for the intended product) to cover those instances without incurring additional costs.
- Plan Your Audit Response: Have a strategy in place if Oracle initiates an audit – know who will communicate with Oracle, have your Java inventory ready, and consider seeking expert help to negotiate or contest findings.
Checklist: 5 Steps to Prepare for an Oracle Java Audit
- Inventory Java Deployments – Map out all instances of Java in your environment, especially Oracle JDK/JRE installations.
- Verify License Coverage – Identify which Java installations are unlicensed (Oracle Java in production) and which might be covered by existing entitlements (Java used only within a licensed Oracle product).
- Remediate Now – Remove or replace any non-compliant Oracle Java instances (uninstall them or switch them to OpenJDK alternatives).
- Evaluate Licensing Needs – For any Oracle Java you must retain, determine the number of employees/licenses involved and estimate the associated cost. Be ready with these numbers if you need to negotiate or budget for compliance.
- Document Your Strategy – Prepare an internal plan for handling an Oracle Java audit, including roles, communication steps, and procedures for demonstrating compliance or remediation of any issues.
FAQ
Q1: How do we know if we need to pay for Oracle Java?
A: If you use Oracle’s Java in any production or business capacity, you need a paid Java SE subscription (Oracle only allows personal or development use for free). If you use only open-source Java and no Oracle JDK, then you don’t owe Oracle anything.
Q2: What triggers an Oracle Java audit?
A: Oracle often flags companies that downloaded Oracle Java from its website without a license purchase. If you are using Oracle’s Java without a license, you are likely to be an audit target sooner or later.
Q3: How should we respond if Oracle contacts us about a Java audit?
A: Involve your legal or compliance team immediately. Respond to Oracle professionally but only share the information you’re required to by contract (you can ask for the scope in writing and use your own inventory data instead of Oracle’s scripts). Consider consulting an Oracle licensing expert to help manage the process.
Q4: Can we avoid Oracle’s Java fees by using a different Java?
A: Yes. You can replace Oracle’s JDK/JRE with open-source Java (OpenJDK distributions from providers like Adoptium, Red Hat, or Amazon), which are free and work for most applications. Switching eliminates the need to pay Oracle for those systems (just test compatibility and plan for updates).
Q5: Do we need a Java license for the Java included with Oracle products?
A: No separate license is needed if Java is only used to run an Oracle product you’re licensed for (for example, the Java bundled with Oracle WebLogic or PeopleSoft). Oracle permits that usage without an additional subscription – just don’t use that bundled Java for any other non-Oracle application. Ensure your organization’s long-term Oracle licensing compliance and financial efficiency.
