Java remains one of the most sought-after programming languages globally. The object-oriented language stands out for its platform independence, simplicity in teaching and learning, ease of adoption, and commitment to safety, solidifying its position globally in a wide range of enterprise applications.
Notwithstanding the fact that Oracle has been enforcing licensing changes for new versions of Java since 2019, organizations have been forced to revisit their Java strategies. Companies across APAC are increasingly opting for open-source alternatives to traditional Java offerings, with many now favouring OpenJDK-based solutions such as those provided by Azul Systems.
According to Gil Tene, chief expertise officer at Azul, the company’s Java offerings – which support major organizations such as Netflix, Mastercard, Salesforce, Workday, and Adobe – are not only facilitating optimal cloud cost management but also enabling clients to proactively mitigate Java vulnerabilities.
Oracle has significantly revised its Java licensing and pricing strategy, effective October 2018. The company now offers a free commercial license for Java Standard Edition (SE), with restrictions on certain uses, such as developing Android apps or deploying in production environments. A commercial license is required for use-cases that exceed the free license’s limitations.
Since 2019, Oracle has undergone significant changes to its Oracle JDK licensing and pricing structure. Oracle has primarily focused on adjusting its licensing model to encourage enterprise customers of Java to pay a fee for using the previously free open-source development language in an industrial setting.
Updates in 2019 and 2021
After replacing Oracle JDK 8 with a newer version in 2019, Oracle aimed to encourage industrial manufacturers to adopt Oracle Java for commercial use by offering a paid Oracle Java SE subscription. In 2021, a backlash prompted Oracle to reconsider its stance, ultimately allowing industrial manufacturing to commence with the release of Java Development Kit (JDK) 17 in that year.
The 2021 adjustments primarily entailed updates to Long-Term Support (LTS) variants of Java for at least a full year following the release of the subsequent LTS version, shorter than comparable OpenJDK providers. The newly introduced license terms also did not permit redistribution for a fee.
The current 2023 replace
As of 2023, Oracle implemented a new policy requiring organizations using Oracle Java to purchase a licence for their entire workforce if just one employee or server installed a licensable version of Java.
Following the pricing adjustment, which did not distinguish between various types of Java users, Oracle captured a broader audience, including individual contractors working on behalf of organizations. Consequently, the shift led to substantial price hikes for companies opting to continue using Oracle Java.
Oracle’s recent Java licensing and pricing adjustments have yielded several key outcomes. The company’s shift towards a more tiered pricing structure has led to increased revenue, as developers are now incentivized to adopt higher-level licenses for more advanced features.
As Oracle’s support for Oracle JDK continues to evolve, numerous organizations using the platform are weighing their alternatives and potentially migrating to new solutions. Oracle’s Java market share plummeted from 75% in 2020 to just 21% by 2023, experiencing a staggering 29% decline within the span of a solitary year.
Since Oracle’s JDK 11 distribution adopted an extra restrictive licensing model, followed by a shift back towards openness with Java 17, a notable trend has emerged: users have been gradually moving away from Oracle binaries, a phenomenon that has persisted and worsened year-over-year.
A survey of 2,000 companies using Java found that Oracle’s market share declined from 75% in 2020 for Java Growth Equipment distributions to 42% as of at least one instance of Oracle Java in 2023.
According to Azul’s report, widespread unease has ensued following Oracle’s 2023 licence and pricing updates, with an overwhelming 82% of companies expressing concerns about the changes. Notably, a significant proportion (approximately 72%) are now actively considering alternatives to Oracle Java, fuelling further apprehension.
Amazon’s Coretto surged to a 31% market share in 2023, but subsequently declined to 18% by 2024. A diverse array of distributors, akin to the community-driven Eclipse Adoptium and Azul Projects, has garnered significant attention as well.
Azul’s Java Distribution Partnerships in APAC?
As Azul’s Asia-Pacific business capitalizes on the migration away from Oracle JDK, it enjoys a strategic advantage. The company offers a reliable OracleJDK substitute, dubbed Azul Platform Core, alongside a premium offering, Azul Platform Prime, optimized for peak performance, reliability, and effectiveness.
Dean Vaughan, Azul’s Vice President for Asia-Pacific, credits Oracle’s recent 2023 licensing updates with driving significant growth across key markets such as Australia, Malaysia, India, Taiwan, and the Philippines. Recently, the company has also expanded its portfolio by acquiring prominent Japanese multinational firms.
Mastering in-depth Java usage unlocks three significant benefits:
1. Optimized resource allocation?
2. Enhanced code maintainability and scalability?
3. Streamlined debugging processes?
The widespread adoption of Java within enterprises has led to significant licensing concerns for many users. Organisations under pressure to scrutinise their use of Java can also benefit from cloud cost optimisation, enhanced security, and transforming their organisations into more competitive entities in their industry and in the market for developer talent.
1. What are the ideal pricing strategies for virtualized Java environments on cloud infrastructure?
Organisations expanding across Asia-Pacific have leveraged hyperscalers such as Amazon Web Services (AWS) and Microsoft Azure, as well as regional players like Tencent and Alibaba, to drive their cloud adoption in the region. While some cloud providers go to great lengths to help clients optimize workloads and reduce costs, he noted that they don’t invest time in “proof of concept” exercises.
As Azul witnesses growth from cloud-native companies in the ASEAN, Indian, and Chinese markets. These countries have nurtured their own homegrown tech sectors, which, relative to international companies, are more willing to venture out on a limb and experiment with OpenJDK distributors or optimize Java to “drastically reduce” the cloud costs they’re incurring.
2. Vulnerabilities in older Java versions: A call to action for effective security
The importance of safety, compliance, and governance in driving the consideration to pay extra attention to Java is another crucial factor. Organizations are increasingly motivated to update their Java versions due to frequent vulnerabilities and exposures affecting older versions, as seen with recent incidents impacting over 80% of Java users, according to Azul, underscoring the need for good cybersecurity hygiene.
Azul’s Intelligence Cloud, situated atop its Platform Core and Prime Java offerings, empowers users to detect and prioritize any vulnerabilities identified within various Java iterations. By identifying and prioritizing known vulnerabilities that have been integrated into production, organisations ensure their DevOps teams focus on addressing the most critical concerns.
Azul’s comprehensive report on Java trends and insights, gathered through a survey conducted among its community members, offers valuable insights into the evolving landscape.
According to the findings, respondents overwhelmingly highlighted the growing importance of microservices as their go-to choice for developing applications (72%).
3. Elevate your competitive edge by leveraging state-of-the-art Java advancements, such as OpenJDK, Azul Zing, and GraalVM.
Organizations frequently aim to revitalize their technology infrastructure by migrating to more recent versions of Java. By offering opportunities for cutting-edge innovation, this initiative could attract talented young developers and empower collaborative teams to leverage the latest advancements in Java technology. “Java’s remarkable evolution over the past decade makes it an attractive investment opportunity for those looking to capitalize on its growth potential,” Tene said.
Azul’s premium Java offering, dubbed Java Prime, has garnered significant traction within the financial services sector in Asia-Pacific (APAC). Tene notes that several companies are attracted to a revamped Java model that boasts improved speed, reliability, and scalability, allowing them to efficiently handle large workloads and maintain their competitive edge in their respective market segments.
