Understand Java License Cost: A Clear Guide to Java Licensing

Posted By Zoe Brooks

On 01 July 2025

Java has long been a popular programming language due to its flexibility, reliability, and widespread use in enterprise systems. However, over recent years, Java licensing has evolved, and understanding the Java license cost has become essential for businesses and developers alike. Companies now need to consider licensing terms and costs before integrating Java into their operations.

What is Java Licensing?

Java licensing refers to the legal agreement between Oracle (or another Java vendor) and a user or organization regarding how Java software can be used. Historically, Java was free to use under the Oracle Binary Code License Agreement. However, in 2019, Oracle shifted its licensing model for the Oracle JDK (Java Development Kit) starting with Java 11, moving from a free-to-use policy to a subscription-based model for commercial use.

This change introduced new complexities for organizations relying on Oracle’s version of Java, especially since older versions like Java 8 were widely adopted before the licensing changes took place.

What Changed in Java License Terms?

Before Java 11, businesses and developers could use Oracle JDK for free, even in commercial environments. Post-Java 11, Oracle requires a commercial license for the Oracle JDK if used in production. Oracle introduced a Java SE Subscription model that provides licensing, updates, and support.

From Java 17 onwards, Oracle adopted a new “Oracle No-Fee Terms and Conditions” (NFTC) license. This allows free use of Oracle JDK for commercial and personal use, but only for the current version. Once a new version is released, users must upgrade or buy a subscription to continue receiving updates and support.

Java License Cost: What You Need to Know

The Java license cost primarily depends on the size of your organization and the number of users or processors using Java. Oracle uses a subscription pricing model based on either:

Per Employee (for desktop use)
Per Processor (for server use)

1. Java SE Desktop Subscription (Per Employee)

For organizations using Java on desktops, the licensing cost is calculated based on the total number of employees, regardless of whether each one uses Java.

1–999 Employees: $2.50 per employee/month
1,000–2,999 Employees: $2.00 per employee/month
3,000–9,999 Employees: $1.75 per employee/month
10,000+ Employees: $1.50 per employee/month

This means even if only 100 employees use Java, but your organization has 1,000 employees in total, you’ll pay for all 1,000.

2. Java SE Universal Subscription (Per Processor)

This is ideal for server-based applications and is calculated per processor.

Price starts at $25 per processor/month for Java SE Universal Subscription.
The cost may increase based on additional support or older versions being used.

It’s important to consult Oracle or a certified reseller to get an accurate cost estimate tailored to your infrastructure.

Do You Really Need to Pay for Java?

Not always. The Java licensing model varies depending on the distribution you choose. Oracle JDK isn’t the only option available. Several vendors offer free and open-source Java distributions:

OpenJDK: Backed by the Java community and supported by multiple vendors. It is completely free under the GNU General Public License (GPL) with Classpath Exception.
Amazon Corretto: Free and production-ready distribution maintained by Amazon.
Adoptium (Eclipse Temurin): Open-source and widely used in enterprises.
Zulu by Azul Systems: Offers both free and commercial support plans.

So, if your organization doesn’t require Oracle’s official support or long-term update guarantees, you may be able to avoid the Java license cost by switching to one of these alternatives.

Why Organizations Still Opt for Paid Java Licensing

Despite the availability of free alternatives, many enterprises continue to purchase Oracle’s Java license. Here’s why:

Guaranteed Long-Term Support: Oracle provides up to 8 years of updates and patches for LTS (Long-Term Support) releases.
Security and Compliance: Some organizations need certified support for audits and security standards.
Product Compatibility: Certain Oracle products work best or exclusively with Oracle JDK.
Global Support Services: 24/7 customer support from Oracle is a crucial factor for some mission-critical applications.

In such cases, the Java license cost is considered an investment in stability and security.

Managing Java Licensing in Your Business

To avoid unexpected costs or compliance issues, organizations should take the following steps:

Conduct a Java Usage Audit
Identify where Java is installed and in use—desktops, servers, embedded devices.
Determine Your Licensing Needs
Decide whether you need Oracle JDK’s features and support, or if open-source options are sufficient.
Evaluate Cost vs. Benefit
Compare the Java license cost to the potential risks of using unsupported Java versions.
Stay Updated on Licensing Changes
Java licensing terms can change. Regularly review Oracle’s licensing pages or work with legal/IT experts.

Conclusion

Understanding Java licensing and the Java license cost is vital for every organization that relies on Java-based applications. While Oracle’s commercial licensing can be expensive, especially for large enterprises, it offers robust support and long-term stability. However, many businesses can significantly reduce costs by using open-source Java distributions like OpenJDK or Amazon Corretto.

Make sure your decision aligns with your technical requirements, compliance obligations, and budget. Whether you choose to pay for Oracle’s services or go with a free alternative, knowing your options ensures you stay compliant and cost-effective.

Congratulations! You've completed this blog.