VENDORS HAVE A RIGHT TO BE PAID FOR THEIR SOFTWARE
No one disputes the fact that software vendors like Oracle have a right to be paid for the software they create. If you use commercial software and have not purchased a license, expect the vendor to come knocking on your door. That is exactly what Oracle is doing.
VALUE FOR PRICE PAID
Under this new pricing model, the quantity of the licenses required is determined by the number of employees, not just the actual number of employees that use the programs.
Dean Bolton, chief architect at LicenseFortress, stated, “The new Java pricing does not reflect the value Java brings to each organization, and some customers will struggle with justifying the higher price tag.”
For most companies, this headcount pricing represents at least a 3–5x increase in the price they would have paid under the previous metrics. Organizations in which a small percentage of the company needs access to Java will still be expected to license everyone under this broad definition of an employee.
THE DOWNSIDE OF SUBSCRIPTIONS
Software vendors are generally transitioning customers as quickly as possible to subscription-based models. Under the perpetual-based license model, when the vendor changes its pricing, the customer always has the option to stop paying for support and still has the right to use the perpetual license while analyzing alternatives. However, the subscription model is very different in this respect.
When a customer stops paying for the subscription, the right to use the software stops immediately. Likewise, access to the software is immediately blocked. This pay-as-you-go model certainly has its advantages, but it also has its disadvantages.
HEAD IN THE SAND
This is not a time for an organization to puts its head in the sand. Java is everywhere. Oracle has a right to be paid for its software, and armed with this new subscription plan, it will seek out organizations that are using unlicensed versions of Oracle Java. It’s important to determine a company’s exposure to this significant licensing liability. It is equally important to determine who is responsible for the license. Once you understand your risk, weigh the cost of an annual subscription against the cost of moving to alternative sources of Java, such as OpenJDK. That option may require a complete redesign and development of a well-conceived application, but that approach may also be optimal.
For some nighttime reading, we have included a chart that provides a basic breakdown of the cost of the new Java licensing model. Remember, this is based on a very broad definition of an employee. It’s good for Oracle but dangerous for unlicensed Oracle customers.