Oracle & Java: The Surprise Bill(s) You Weren’t Expecting

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We’ll get to the surprise, and more importantly, the methods and tactics in a bit, but first it’s important to detail the acquisition of Java.

Oracle acquired Java when it purchased Sun Microsystems in January of 2010. Oracle subsequently became the owner of Sun’s software product lines, including Java. Initially, Oracle maintained Sun’s free licensing approach for Java SE, however later hinted at potential adjustments to the licensing model. Oracle’s implementation of Java SE is available for Windows, MacOS, Linux and Solaris. Java is used by millions of developers around the world, and also used within many hardware and software solutions. Many end users are utilizing some form of Java and aren’t even aware of it. 

Any software manufacturer has the right to defend the use of their IP, however Oracle, like so many others has found great success in generating huge sums of additional revenues by way of ‘auditing’ their customers. When Oracle reaches out to discuss your Java usage, it usually comes in one of two forms:

Types of Audits

1. Soft Audit – These usually start as ‘friendly’ conversations and discussions about your Java usage. They may never lead to a formal audit, but still result in threats of non-compliance, which substantially end up where you’re paying large sums of money to Oracle, now and probably on an ongoing basis that were totally unplanned. 
2. Formal Audit – These can start as a formal audit initially or end up as one from ‘friendly’ conversations. The formal audit is typically where Oracle is referring to and invoking the product terms and contractual terms that allow them to demand your participation.

Although Oracle does not have any actual tools or scripts to scan for specific usage and deployments of Java as it does for some of its other products, it does many times rely on the involvement of third parties that have developed approved SAM tools. Oracle will try to rush any timeline to control as much of the process as possible, and to put you squarely in a defensive position with little time to plan and react. Many customers are completely caught off guard and typically end up sharing critical information that Oracle uses against them.

Typically, Oracle has already done quite a bit of research, before ever reaching out to you and your organization. They watch security and patch downloads, talk to people within your organization, and gather other information. They will typically build a case for an audit internally, and even go so far as building out cost models in how they expect to charge you initially, and for an ongoing basis for many years to come. Their strategy is to surprise you with a very large bill, that is way overestimated, however allow you to negotiate some of the cost, all the while targeting and planning for what you end up agreeing to. 

Coming up with an approach to manage the Oracle audit is critical to your success. Having experts that have managed these audits is extremely beneficial to the outcome. Not only having a managed process with experts, but performing an audit focused on your actual usage and not falling for the many grey areas within the Oracle Java licensing terms.

1. Robust Review – Analysis of all communications and materials with Oracle. Reviewing past and present contracts, purchases and downloads of Java.
2. Assessing Deployment – Thoroughly reviewing all deployments, past and present, along with performing analysis with respect to the numerous licensing and contractual terms.
3. Managing Communications – Taking a firm, fact-based approach with respect to all communications with Oracle. Oracle will typically try to engage directly with key executives or other established relationships.
4. Negotiations – Benchmarks and experience matter. Having worked with and defended numerous clients, we know how hard to push back and what a fair deal is. 

Having a fair and equitable outcome for both parties, that obeys the past and current product and licensing terms should be the mutually agreed upon end goal. That is what we strive for when supporting our clients. Setting yourself up for success now and in the future is truly a win-win.

For more insights and personalized advice, please contact Gray Wolf Financial today. We're here to help you every step of the way.