Summary
Oracle Java audits can create significant financial and operational risks. Prevent them by knowing your Java estate, understanding your licensing exposure, and keeping your environment compliant. And if Oracle comes knocking, control the communication, verify its requests, and assess its findings before responding. But the risk remains as long as Oracle Java does. Migrating to a fully supported, lower-cost, TCK-certified alternative like Azul Core is what actually eliminates the audit risk.
From their beginnings as Sydney’s first electricity supplier in 1904, Ausgrid has grown into the largest electricity provider on Australia’s east coast. The future remains strong, as Ausgrid plans to invest in transmitting and storing electricity, and in enabling vehicles to be charged with it.
Getting Audited By Oracle Is a Real Financial and Operational Nightmare
Since Oracle changed its commercial licensing model to per-employee in 2023, audit concerns have only grown. In our 2026 State of Java Survey and Report, 92% of organizations using Oracle Java said they were worried about the new pricing model, up 10% from the 82% reported in the 2023 version of that study.
And this level of concern is for very good reason. An Oracle audit often comes with significant financial consequences. In a 2025 survey by Azul and the IT Asset Management (ITAM) Forum, 27% of organizations said they spend more than $500,000 annually resolving software license non-compliance issues.
And on the operational side, 30% of respondents reported organization-wide disruption, stalled projects, and forced vendor changes after a software audit.
Whether your organization is currently being audited by Oracle or simply wants to be proactive about avoiding a future audit, you’ll find this article helpful.
Below, we’ll cover what to do before an audit and how to handle one when it happens. We’ll also look at how to permanently eliminate that audit anxiety by migrating to a lower-cost, fully supported OpenJDK like Azul Core.
Azul Successfully Migrates Users off of Oracle
Azul has helped hundreds of enterprises eliminate their Oracle audit anxiety by migrating to Azul Core, our fully supported OpenJDK distribution. The University of Southern Queensland, for example, moved 1,000+ desktop applications from Oracle Java to Azul Core in just two weeks, with no disruption to its operations.
Our day-to-day work helping enterprises understand their Java estates, manage Oracle licensing exposure, and migrate to OpenJDK is what this article builds on.
During a recent Windows 11 upgrade project, Ausgrid’s technology team discovered that some of the applications managed by non-technology teams were dependent on various versions of Oracle Java. The timing of this discovery coincided with Oracle’s 2023 shift from an instance-based license subscription model to one based on total employee headcount — a change that dramatically increased potential licensing exposure for organizations worldwide.
4 Steps to Avoid an Oracle Java Audit
1) Identify and Document Every Oracle Java Deployment
You can’t manage your licensing exposure well if you don’t know where you are currently using Oracle Java. So,
- Identify every Java installation across endpoints, servers, virtual machines, and cloud environments.
- Record the vendor and JDK version for each installation, and single out Oracle JDK instances.
- Map each JVM to its installation location and application to know where Oracle Java is being used and what systems depend on it.
2) Determine Which Oracle Java Deployments Actually Need a Paid License
Once you know where Oracle Java is running, the next step is to determine which deployments actually require a commercial subscription. Not every Oracle Java installation automatically means you owe Oracle a monthly payment.
Review each deployment against the license terms that apply to its specific JDK version, use case, and environment. Some versions may be covered by free-use terms, while your usage type or level in others might exempt you from a subscription.
Also, confirm the licensing responsibility for Oracle Java bundled with third-party applications, as they may be subject to the application vendor’s licensing terms rather than yours.
Then document the Oracle JDK deployments currently running without commercial coverage.
3) Get Compliant Across Your Entire Oracle Java Estate
The next thing to do after uncovering your unlicensed Java deployments is to decide what happens to them.
And here, you are not trying to move all unlicensed installations to a paid subscription or remove every one. Instead, aim to keep only the deployments that have a clear business reason to remain in your estate.
Do this by:
- Reviewing each uncovered Oracle Java deployment to understand which applications, systems, and business processes depend on it.
- Singling out deployments that support critical business systems and either paying an Oracle subscription for them, switching them to another Oracle JDK version that supports your usage for free or migrating them to another OpenJDK. (We’ll cover migration in more detail later.)
- Removing the remaining unnecessary Oracle Java installations with no active business or application dependency.
Note: Azul Intelligence Cloud makes it easy to visualize your Java estate and identify unnecessary installations. It automatically flags dead and unused code so your engineering team can see what can be removed without spending hours digging through individual installations.
4) Put Guardrails in Place So Unlicensed Oracle Java Doesn’t Creep Back In
Now that your Oracle Java estate is compliant, you need to make sure it stays that way. Prevent new, accidental compliance issues from reentering your network by putting guardrails in place:
- Keep your Java inventory current by continuously monitoring for new Oracle JVMs across your environment and investigating them before they become a licensing issue.
- Restrict access to Oracle Java download portals through firewall or network controls so employees can’t download Oracle JDK without approval.
- Make an approved OpenJDK distribution readily available so developers and application teams have a supported alternative when they need Java.
- Manage any remaining Oracle Java deployments by tracking their licensing status, ownership, and approved use, and helping keep them within the applicable license terms.
- Remove legacy Oracle JDK installers from endpoints, servers, and internal file shares where they could be used to reintroduce unapproved Oracle Java.
And if you’re wondering how you’re supposed to keep up with all of this manually, Azul Intelligence Cloud can help here as well and take much of the ongoing monitoring off your team’s plate.
Its JVM Inventory continuously catalogs running JVMs across your environment, giving you visibility into new Oracle JVMs, their versions, where they’re running, and which applications they’re associated with. This lets you spot new Oracle Java installations as they appear, investigate whether they’re authorized, and take action before they create new licensing exposure.
Already Got An Oracle Call? Here’s How to Handle It
1) Don’t Ignore Oracle’s Communications1. Don’t Ignore Oracle’s Communications
Don’t leave Oracle’s messages unanswered. Ignoring the inquiry can cause them to escalate directly to executive legal and litigation teams. So, acknowledge the message and keep the conversation moving while you assess the request internally.
2) Verify What Oracle Is Actually Asking For
Before sharing anything, establish whether you’re dealing with an informal inquiry, a formal audit, or a request tied to a specific agreement. Ask Oracle to put the request, scope, and information they need in writing. Don’t let a vague “Java review” turn into an open-ended data-gathering exercise.
3) Route all Communication Through One Person
Designate a single point of contact from procurement, legal, IT asset management, or another appropriate team. Train technical staff never to answer informal queries about your Java footprint, security patching, or versions individually, but to instead direct Oracle back to that point of contact.
4) Don’t Run Oracle’s Scripts or Complete Its Discovery Workbook Without Review
Do not immediately run scripts, install audit tools, or return deployment workbooks supplied by Oracle. First have your licensing and legal teams determine exactly what information is being requested, why it is needed, and what you are required to provide. If technical data must be collected, decide internally how to gather and validate it before sending anything externally.
5) Build Your Own View of Your Java Estate
Don’t rely on Oracle’s data collection to tell you what you have. Pull your own inventory of Oracle JDK installations, versions, deployment locations, applications, and applicable license terms. Reconcile that information against contracts, subscriptions, purchase records, and third-party software agreements, so you know where you stand before responding.
6. Get Licensing and Legal Expertise Involved Early
If Oracle has raised a potential compliance issue or formally initiated an audit, bring in counsel and an independent software licensing specialist with Oracle Java expertise. They can help interpret the applicable agreements, assess your exposure, review Oracle’s requests, and determine how to respond without unnecessarily expanding the scope of the discussion.
7) Keep a Written Record of Everything
Preserve Oracle’s emails, letters, requests, meeting notes, data you provide, and your own inventory findings. Document when information was requested, who supplied it, and what was sent. A clear audit trail gives your team a reliable record of how the inquiry progressed and what was actually disclosed.
8) Don’t Make Commitments Before You Know Your Position8. Don’t Make Commitments Before You Know Your Position
Avoid agreeing to purchase subscriptions, accepting Oracle’s assessment, or acknowledging a compliance shortfall before your team has reviewed the facts. First establish which deployments are covered, which license terms apply, and whether Oracle’s interpretation matches your agreements. Then respond from an informed position.
How to Eliminate Your Oracle Java Audit Risk
If your organization relies on Java, staying on Oracle JDK means accepting the possibility of an audit. As long as Oracle Java remains in your environment, that risk remains.
And this risk isn’t exactly small: 73% of organizations surveyed by Azul and the ITAM Forum in 2025 had experienced an Oracle Java audit in the past three years.
If you truly want to eliminate the possibility of being audited by Oracle, the only option is to get off Oracle JDK and move to an OpenJDK alternative.
Azul Core is one of those alternatives, and we’ve helped hundreds of enterprises like yours make this transition seamlessly, without disrupting operations. Here’s exactly how we did it for Ausgrid.
How Ausgrid Eliminated Oracle Java Audit Risk With Azul Core
The Brand
Ausgrid is the largest electricity provider on Australia’s east coast. From its beginnings as Sydney’s first electricity supplier in 1904, Ausgrid has grown steadily, and its future remains strong as it plans to invest in transmitting and storing electricity and enabling vehicles to be charged.
The Challenge
During a recent Windows 11 upgrade project, Ausgrid’s technology team discovered that some applications managed by non-technology teams depended on various versions of Oracle Java. This discovery coincided with Oracle’s 2023 shift from an instance-based license subscription model to one based on total employee headcount, a change that dramatically increased potential licensing exposure for organizations worldwide.
Under Oracle’s new model, any single use of Oracle Java could trigger a company-wide fee for every one of Ausgrid’s 4,000 employees, plus every contractor or consultant, regardless of whether they used a company device. For Ausgrid, this could have been more than $700,000 per year in potential licensing costs .
“Oracle’s license subscription model was very aggressive, and I was aware of their ability to move the goalposts again at any time,” said Glen Parker, Senior Partner Solutions Manager at Ausgrid. “This represented a risk we simply weren’t willing to carry forward.”
Ausgrid sought a solution that supported license compliance (helping reduce audit concerns) and minimized cost without disrupting operations.
The Solution
One of Ausgrid’s technology partners recommended Azul Core as a compatible alternative to Oracle Java. To validate compatibility, Azul conducted three proof-of-concept (POC) deployments across Ausgrid’s applications and device environments.
“The Azul Core POCs gave us confidence that migrating to an OpenJDK alternative was the right approach,” said Parker. “We saw first-hand that moving off Oracle Java wouldn’t cause any disruption, which was an important milestone in our evaluation. With Azul Core, we now have a modern, well-supported Java platform with clear, predictable licensing — and the confidence of knowing we’ll be covered in the event Oracle comes knocking to perform an audit of our Java usage.”
The full migration was completed in just two months, preserving application stability throughout the transition while resolving the compliance concern. With Azul Core, Ausgrid saved 80% in potential Java license costs [Source: azul.com/customer-success/ausgrid/].
“Ausgrid’s proactive approach shows how critical it is for enterprises to address Java licensing risks before they become compliance crises,” said Dean Vaughan, Vice President of APAC at Azul. “By moving to Azul Core, Ausgrid successfully eliminated two significant business issues in one initiative: audit anxiety and substantial and unplanned license costs.”
The False Hope of Simply Moving to a New LTS Version
When evaluating Oracle Java support periods, it’s easy to assume that moving to the latest Long-Term Support (LTS) version once the previous one stops receiving free updates is the easiest option. After all, new LTS releases receive free updates for a generous duration. For example, Oracle JDK 21’s NFTC window ends in September 2026, three years after its release in September 2023.
However, when you switch mission-critical enterprise applications to a new version of the Java platform, you need to run the full suite of tests available to ensure there are no differences in functionality.
This is often a challenging task that requires considerable engineering time and resources. And you have to repeat it every time your current Java version reaches the end of its NFTC window.
Ultimately, this can drain your team’s time and introduce disruptions to mission-critical business applications.
A better approach is to keep using the proven Java version your application was built on while updating it quarterly to maintain maximum security and stability.
Switching to Azul Core lets you take this approach. We provide quarterly security and bug-fix updates, plus backported fixes for supported Java versions. We also price based on the number of cores or desktops using Java, so your licensing costs are tied to your actual Java deployment rather than your total employee headcount.
Using Oracle Java 21? It may be a better option to move to Azul Core and keep running your application on a proven Java version than to switch to Oracle Java 25 and spend additional time and resources on extensive testing.
Sign Off the Oracle Audit Anxiety With AzulSign Off the Oracle Audit Anxiety With Azul
If Oracle’s commercial licensing shift is giving you audit anxiety, it’s worth working toward making that anxiety a thing of the past, not a permanent part of managing your Java estate.
With Azul Core, you can move to a lower-cost, fully supported, TCK-certified OpenJDK with predictable licensing and ongoing security updates.
And with Azul Intelligence Cloud, you can discover and classify running JVMs on an ongoing basis, track Oracle Java instances, and prevent them from being reintroduced after migration, helping you maintain compliance and significantly reduce ongoing audit risk.
Want to see how Azul Core or Azul Intelligence Cloud work? Check out our OpenJDK migration resources, get a quote for Azul Core, or book an Azul Intelligence Cloud demo.
