Open-source Java migrations rise as audits cost firms USD $500,000+
New research from Azul and the ITAM Forum has revealed that 27% of enterprises spend more than USD $500,000 annually addressing software licence non-compliance, as organisations face increased audits and consider open-source solutions to mitigate risks and costs.
The joint global survey, which gathered responses from 500 IT asset management (ITAM) and software asset management (SAM) professionals across six continents, highlighted that 73% of enterprises have experienced an Oracle Java audit in the last three years. Nearly 80% have either migrated or plan to migrate to open-source Java alternatives, underscoring shifting priorities in software asset management.
Compliance challenges
A significant portion of survey participants, 37%, identified compliance and the management of excessive licensing as their chief challenge. Complex software architectures, particularly in hybrid cloud environments, have expanded the task of maintaining compliance and tracking usage. Twenty-five percent of respondents cited complex configurations as a barrier to effective tracking of application deployment and usage both on-premises and in the cloud.
Other reported difficulties include aligning different organisational teams - such as IT, software development, legal, and procurement (27%) - as well as grappling with resource constraints (24%), rising prices for renewals and maintenance (24%), and uncertainty regarding evolving licensing rules or changes in vendor policy (23%).
Audit processes and disruption
Despite these challenges, 74% of respondents stated their organisations manage licence discovery and software audits primarily in-house. This self-reliant approach introduces its own set of difficulties, including maintaining accurate records of software use (26%), decoding complex licensing terms (23%), and generating accurate licensing compliance metrics (23%).
Auditing is now a regular feature for many, with 81% of organisations conducting licensing audits at least twice yearly, and 25% reporting continuous auditing practices. A quarter of participants said their organisation faces frequent financial penalties and legal actions as a consequence of software licensing non-compliance.
Audits carry operational and financial consequences, with more than 30% of survey participants noting unexpected disruptions, such as organisational disturbances, unforeseen budget impacts, decisions to change vendors, and delayed projects.
Oracle Java pressures
Licensing complexity is particularly pronounced with Oracle Java, according to the survey. Ninety-six percent of respondents expressed concern over Oracle's pricing and licensing policies, especially regarding the employer-based pricing model. The study noted a trend of organisations investing in new monitoring solutions and audit processes to ensure compliance and avoid Oracle licensing costs.
Faced with these pressures, 79% of organisations have already switched from Oracle Java, are migrating, or intend to migrate to open-source Java alternatives. For those considering migration, the main motivations are security and reliability (51%), followed by cost reduction (42%) and simpler compliance (40%). Of those who have completed migration, 57% identified security and reliability as their leading concern.
Participants anticipate notable cost savings by moving to open-source Java, with 66% estimating they could save at least 40% compared to Oracle Java licence costs. Only 1% expected not to see any financial benefit from such a transition.
"The results highlight a fundamental mismatch between the complexity of modern software licensing and the resources organizations rely on to effectively manage software compliance," said Martin Thompson, founder of the ITAM Forum. "ITAM and SAM professionals are becoming increasingly vital as organizations increasingly recognize that poor license management can result in significant financial penalties and operational disruptions. They must have the resources and executive buy-in to ensure compliance and successful license management."
"The data reveals a concerning trend where the increasing complexity of vendor licensing and pricing has turned routine upkeep into recurring six-figure compliance exercises. When 73% of enterprises have been audited and one in four now spends more than $500,000 a year cleaning up license issues, the cost of merely staying compliant with software licensing and pricing is unsustainable," said Scott Sellers, co-founder and CEO at Azul. "Specifically, when it comes to the uncertainty of Oracle's ever-shifting Java licensing terms, organizations shouldn't have to burn ITAM resources, interrupt projects, or absorb surprise penalties just to run their applications. Moving to open-source alternatives lets them break free from the audit treadmill, regain budget and focus on delivering value."
Market growth
The global ITAM market has experienced significant growth, rising from USD $1.15 billion in 2019 to USD $1.49 billion in 2023, representing a 6.9% compound annual growth rate. The SAM market subset is forecast to grow at 16% annually through 2029. Factors behind this expansion include the mounting proportion of IT budgets spent on software - averaging 29% - and increasingly complex licensing models due to cloud and virtualisation, alongside heightened regulatory compliance demands.
The survey demonstrates that ITAM and SAM professionals are navigating an environment of escalating complexity and exposure, as the scope of asset management shifts from simple inventory control to a vital component of risk mitigation, cost control, and strategic technology decision-making.
