Today’s complex technology infrastructure makes it difficult to keep track of every digital asset, especially when it comes to software licences. Spread across different clouds or on-premise data centres, the distributed systems mean it’s a challenge to trackusage consistently.
The problem is set to become more pronounced, as the software market in India continues to grow. Driven by AI, cloud and digital transformation, the country’s software market is projected to reach US$18.4 billion by the end of this year, up from US$15.2 billion in 2024, according to research firm IDC.
VP of Global Channel and Alliances
Azul
For organisations, failing to properly account for software licences and usageis costly. Last month, a report from Azul and The ITAM Forum – the ITAM/SAM Survey & Report– revealed that 54% spend more than $100k each year fixing software-licence non-compliance and 27% of enterprises spend more than $550k per year in anexpensive exercise to keep their operations going.This is further validated by a direct correlation in the same report that states that 26% oforganizations regularly struggle with maintaining accurate software usage records.
One major concern for ITAM professionals is maintaining compliance for their Java software, which underpins much of today’s digital economy. From powering enterprise applications and financial systems to supporting e-commerce platforms and mobile services, Java remains integral to nearly every industry that delivers digital products or services and the business-critical applications most closely tied to their topline revenue.
In the ITAM/SAM Survey & Report of500 global IT asset management (ITAM) and software asset management (SAM) professionals, almost all (96%) say they are concerned with Oracle Java’spricing and licensing policies.
Unsurprisingly, more than a third of survey participants point to compliance, including the management of excessive licensing, as the top issue facing their organisation. In addition to the dollars spent each year resolving licensing issues – including Oracle Java audits which 73% have experienced within the last threeyears –and the additional licenses and penalties that surface in remediating any discrepancies. Further compounding this issue for ITAM teams is thatcomplex software configurations make tracking application usage more difficult, according to a quarter of the respondents.
This situation is further exacerbated as the tools used by ITAM and SAM professionals are also becoming more complex as their role has evolved far beyond simple asset tracking. Today, they are responsible for mitigating audit risk and protecting budgets in what has become a business-critical discipline.
If only all the effort and cost involved would solve the Oracle Java licensing problem, then at least they might be worth the trouble. However, many enterprises find themselves running on an endless treadmill to stay compliant, especially with uncertainly around Oracle’s pricing and licensing policies, which have changedfour times in the past five years.
Notably,Oracle’s employee-based pricing model for Javaforces companies that do not intend to pay Oracle to invest in new monitoring systems, tracking tools and internal audit processes to ensure they have eliminated all Java instances that require an Oracle license and that they proactively prevent any future installations.
Getting off an endless treadmill
For many enterprises, the regular audits and unending disruption to operations are an unnecessary and unwelcome distraction to their business.
For instance,52% run an audit on all licensing at least 4 times a year and 81% at least twice a year. Given the additional cost and hassle, and specifically as it relates to Oracle Java SE licensing, it’s not surprising that over 79% of organisations say they have already migrated from Oracle Java, are actively doing so, or are planning to migrate to open-source alternatives.
There are additional factors driving this change. One important reason is that OpenJDK versions of Java are secure and reliable. Secondly the big value add is cost reduction – two-thirds of organisations say they save at least 40% compared to Oracle Java.
Many organisations recognise that spending half a million dollars each year just to fix licensing issues is unsustainable. They also understand that hoping to avoid an Oracle audit is unrealistic, as the majority have already undergone one.
For organisations that have not yet taken decisive action, the ongoing changes to Oracle’s Java licensing terms create uncertainty and risk, making the situation likely to become even more complex over time.
To prevent operational disruptions or unexpected penalties for running business-critical applications, organisations must plan and prepare now. Migrating to an open-source Java alternative can deliver the same stability and support as Oracle Java, while also providing greater certainty around licensing compliance in today’s complex IT environments.
–Authored by Simon Taylor, VP of Global Channel and Alliances, Azul
