In October 2024, Oracle made a significant licensing change affecting organizations using Java 17. Specifically, the release of the Java 17.0.12 update marked a critical shift from the previously free No-Fee Terms and Conditions (NFTC) license to the paid Oracle Technology Network (OTN) license agreement.
This change means businesses that previously used Oracle Java 17 freely under NFTC must now negotiate new licensing terms if they apply security patches from October 2024 onward.
This article explains in detail what triggered the Oracle Java licensing change, what it entails, and how businesses can effectively respond to this important licensing shift.
Background: Oracle Java 17 and the NFTC License
Understanding the context behind Oracle Java 17 and its initial licensing structure is the first step in fully grasping the 2024 licensing change.
Initial NFTC License Introduction (2021)
When Oracle released Java 17 in September 2021, it introduced a unique license known as the No-Fee Terms and Conditions (NFTC).
This license permitted:
- Free Commercial Use: Organizations could freely deploy Java 17 in commercial and production environments without incurring upfront licensing costs.
- Free Security Updates: Oracle provided quarterly Critical Patch Updates (CPUs), keeping Java 17 secure without subscription fees.
- Temporary Licensing Window: NFTC licensing was explicitly temporary, expiring in September 2024.
This temporary free-use approach incentivized organizations to abandon older subscription-only versions (e.g., Java 8, Java 11) and adopt Java 17.
Why Oracle Offered NFTC Licensing
Oracle’s NFTC license strategically aimed to:
- Accelerate the adoption of newer Java versions.
- Move companies away from legacy versions requiring paid subscriptions.
- Reduce Java fragmentation across different organizations and industry sectors.
- Establish a predictable upgrade cycle, setting the stage for future paid subscriptions once the free period ends.
For three years (2021–2024), the NFTC licensing temporarily eliminated Java licensing fees, which proved beneficial to many businesses.
Read about the Oracle Java licensing changes in 2021.
October 2024 Licensing Change: From NFTC to OTN
In October 2024, Oracle’s licensing model for Java 17 fundamentally changed with the release of the Java 17.0.12 update.
Transition to the OTN License Model
With Java 17.0.12, Oracle moved Java 17 from the free NFTC license to the Oracle Technology Network (OTN) agreement. Under this licensing shift, the implications for commercial users were significant:
- Paid Commercial Use: Organizations applying Java 17 updates from version 17.0.12 onward must hold a paid Oracle Java SE subscription for commercial usage.
- Continued Free Use Limited to Non-commercial Activities: Under OTN, Java remains freely available—but only for specific purposes like personal use, testing, development, or non-commercial demonstrations.
- Immediate Subscription Requirement for Security Patches: Organizations must purchase Oracle subscriptions after September 2024 to receive security patches and updates.
Licensing Comparison: NFTC vs. OTN
| Licensing Aspect | NFTC (Before Sept 2024) | OTN (Oct 2024 onward) |
|---|---|---|
| Commercial Usage | Free | Subscription Required |
| Development & Testing | Free | Free |
| Security Patch Availability | Free (Quarterly Updates) | Subscription-only |
| Costs | No direct costs | Subscription fees apply |
| Licensing Risk | Minimal until expiration | Compliance risks without license |
Example Scenario
Consider a manufacturing company that upgraded to Java 17 in 2022 under NFTC and incurred no licensing costs until September 2024.
However, after applying the Java 17.0.12 patch released in October 2024, the company must purchase Oracle subscriptions to legally receive continued updates and remain compliant.
What Does the Oracle Technology Network (OTN) License Mean?
To understand the impact clearly, let’s dive deeper into what Oracle’s OTN license entails.
Detailed Terms of the OTN License
The Oracle Technology Network (OTN) agreement outlines precise terms for Java software usage:
- Free for Personal, Development, and Testing:
OTN explicitly permits Java use free of charge for non-production tasks, such as internal testing, prototyping, and demonstrations. - Subscription for Production Use:
Commercial and production use demands an Oracle Java SE Subscription. Without this subscription, businesses face non-compliance risks and potential licensing audits from Oracle. - Strict Compliance and Audit Risk:
Under the OTN license, Oracle routinely conducts licensing audits to ensure compliance, often resulting in fines or retroactive subscription fees for violations.
Costs Associated with the OTN License
Oracle Java SE subscriptions typically follow two licensing metrics:
- Named User Plus (NUP): Priced per individual accessing Java-based applications.
- Processor-Based Licensing: Based on the number of processor cores running Java software.
Typical subscription costs:
- Approximately $30 per named user per year.
- Roughly $300 per processor per year.
Practical Cost Example
A mid-sized business with 10 Java-running servers (2 processors each):
- 10 servers × 2 processors/server = 20 processors total
- 20 processors × $300/year per processor = $6,000 annual licensing cost
This illustrates why the OTN transition significantly increases operating expenses for businesses previously accustomed to NFTC’s no-cost licensing.
Strategic Options After the October 2024 Licensing Change
Businesses faced with Oracle’s NFTC-to-OTN licensing shift have several strategic paths to evaluate clearly:
Option A: Pay Oracle Java Subscription Fees
- Ensures full compliance and ongoing security updates from Oracle.
- Predictable licensing costs, but often substantial.
Option B: Do Not Apply Patches (Remain on Java 17.0.11 or Earlier)
- No immediate licensing costs.
- Increases security risk significantly and raises compliance concerns.
- Not recommended for critical business applications.
Option C: Migrate to an Alternative Java Distribution
- Popular alternatives include Amazon Corretto, Azul Zulu, Eclipse Temurin, and community-based OpenJDK distributions.
- Offers continued free security updates without Oracle subscription costs.
- Migration requires testing for application compatibility.
Real-world Example:
A large retailer using Java 17 extensively transitioned smoothly to Amazon Corretto, avoiding substantial Oracle subscription costs while continuing to receive free security patches.
Recommended Best Practices Following the Licensing Change
Given the transition from NFTC to OTN licensing for Java 17, companies should adopt these recommended best practices to manage risk and control costs:
- Immediate Audit of Java Deployments:
Identify exactly where Oracle Java is used commercially to clarify licensing obligations. - Assess Subscription Costs and Risks:
Compare Oracle subscription costs with alternatives clearly and evaluate total cost implications. - Early Migration Planning:
Develop and execute a detailed migration plan toward a sustainable Java distribution, such as Amazon Corretto or OpenJDK. - Maintain Comprehensive Licensing Documentation:
Document Java licensing status continuously, providing a clear audit trail in case of Oracle’s licensing audits.
Read how Oracle Java 6 is licensed.
Frequently Asked Questions (FAQs)
Is Java 17 still free after the 2024 licensing change?
No. From Java 17.0.12 (October 2024), Oracle requires a paid subscription for commercial production use.
Can we legally use Java 17 without updates to avoid subscription fees?
Yes, legally you can, but using Java without security updates significantly increases compliance and security risks.
Does this licensing change affect non-production usage?
No. Non-production (development, testing, prototyping) remains free under the OTN license.
What alternatives exist to avoid Oracle Java subscription costs?
Common free alternatives include Amazon Corretto, Azul Zulu, OpenJDK, and Eclipse Temurin.
Conclusion: Planning for Oracle Java’s New Licensing Reality
Oracle’s October 2024 shift from NFTC to OTN licensing for Java 17 marks a major turning point, requiring businesses to rethink their Java strategy comprehensively. Understanding these licensing changes, proactively managing compliance risks, and evaluating alternative Java solutions will significantly influence future IT budgeting and strategic planning.
Companies that approach this licensing transition proactively, perform thorough audits, and plan migrations early will best manage costs and compliance effectively in the post-NFTC licensing era.
