73% of enterprises have experienced an Oracle Java audit within the last three years and almost 8 in 10 organizations have migrated, or plan to migrate, to open-source Java alternatives
Azul, the only company 100% focused on Java, and the ITAM Forum, a global not-for-profit membership association for IT Asset Management (ITAM) professionals, today published the results of a joint global survey of 500 ITAM and software asset management (SAM) professionals. The results show just how costly software license missteps have become: 27% of enterprises now spend more than $500,000 each year fixing software-license non-compliance and Oracle Java continues to escalate as a top concern, with 73% having undergone an Oracle Java audit within the past three years and nearly eight in 10 saying they have migrated, or intend to migrate, to open-source Java alternatives to rein in risk and cost.
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Behind those numbers lies a growing challenge. Hybrid cloud architectures and an increasing inventory of applications have multiplied vendor terms, making it harder than ever to maintain compliance and visibility across teams. The survey confirms organizations struggle to track usage consistently, both on-premises and in the cloud, raising the stakes for audits and exposing costly gaps. In this environment, the scope and importance of ITAM and SAM functions, as well as the tools and processes they depend on, have shifted from simple asset tracking to a business-critical discipline that safeguards budgets, mitigates audit risk and guides strategic technology decisions.
Organizations Struggle to Manage Software Licensing Compliance
More than a third of survey participants say compliance, including the management of excessive licensing, is the top issue facing their organization (37%). In addition to the dollars spent each year resolving licensing issues including audits, additional licenses and penalties survey participants report that complex software configurations make tracking application usage more difficult (25%). Compliance requires knowledge of where the software is installed, what is running, and where the information is managed. ITAM/SAM professionals report that their organizations struggle to manage this information, especially when tracking software usage across teams or between on-premises and cloud platforms (29%).
Additional challenges relating to managing software licensing and compliance include:
- Difficulty in aligning teams, including IT, software development, legal, and procurement (27%).
- Resource constraints to effectively manage license compliance (24%).
- Escalating prices, including renewals, additional licenses, maintenance, etc. (24%).
- Ensuring compliance with evolving licensing rules or vendor policy updates (23%).
Most Organizations Handle Audits Internally, Yet Struggle with Accuracy, Resources and Repeated Disruptions
ITAM/SAM professionals cite challenges with coordination, collaboration and organization in their efforts to track software inventory, yet 74% of survey participants say their organization manages license discovery and software audits primarily or entirely in-house. This self-reliant approach comes with difficulties, as organizations struggle to maintain accurate software usage records (26%), understand complex licensing terms and conditions (23%), and provide accurate licensing compliance metrics (23%). In addition, 81% of organizations perform licensing audits at least twice a year, with 25% conducting audits continuously. About a quarter report frequent financial penalties and legal actions against them.
Survey participants also cite that software audits are highly disruptive, both operationally and financially. More than 30% report unanticipated results such as:
- Disruption of operations across the entire organization.
- Unexpected budget impacts.
- Decision to change vendors.
- Stalled projects.
Oracle Java Audit Pressures Drive Mass Migration
The survey reveals acute Oracle Java licensing challenges in addition to the high number of respondents who have experienced Oracle Java audits, 96% expressed concern about Oracle's pricing and licensing policies. Much of this stems from Oracle's employee-based pricing model for Java, which is forcing 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.
In response to concerns about Oracle's pricing and licensing policies, 79% of organizations have already migrated from Oracle Java, are actively doing so, or are planning to migrate to open-source alternatives. Those considering migration cited security and reliability as the primary drivers (51%), followed by cost reduction (42%) and simpler compliance (40%). Among organizations that have already completed migrations, security played an even larger role, with 57% citing security and reliability as their primary motivation.
Cost savings from open-source Java alternatives are substantial, with 66% of survey participants estimating they could save at least 40% compared to Oracle Java licensing costs. Only 1% expect they would not realize any savings from making the switch.
Growing Market Reflects Escalating Challenges
The findings come as the global ITAM market has grown from approximately $1.15 billion in 2019 to $1.49 billion in 20231, representing a 6.9% compound annual growth rate. The SAM market subset is expected to grow at an even faster 16% compound annual growth rate through 20292, reflecting the complexity and importance of software asset management.
Contributing factors include rising software expenditures (now accounting for, on average, 29% of IT budgets), complex licensing models driven by cloud computing and virtualization, and increasing regulatory compliance requirements.
"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."
About the Survey and Report
Dimensional Research, a leading market research firm, administered the electronic survey from February 11 March 3, 2025. ITAM Forum and Azul authored the report based on the survey results. The report data was compiled from a total of 500 IT Asset Management and Software Asset Management professionals across six continents who use Java. All respondents had direct software asset management responsibilities and were offered token compensation for their participation.
To access the full ITAM/SAM Survey Report, visit azul.com/what-keeps-itam-sam-leaders-up-at-night/.
About The ITAM Forum
The ITAM Forum is a global trade body for the advancement of the IT Asset Management industry. We are a not-for-profit membership organization, led by ITAM professionals for ITAM professionals. The ITAM Forum has two primary objectives: 1. To elevate the position of ITAM by sharing knowledge and best practices that focus on business value and aid to grow the profession. 2. To be the caretaker of the ISO 19770-1 certification scheme we brought to market in February 2023. Join us: www.itamf.org
About Azul
Headquartered in Sunnyvale, California, Azul provides the Java platform for the modern cloud enterprise. Azul is the only company 100% focused on Java. Millions of Java developers, hundreds of millions of devices and the world's most highly regarded businesses trust Azul to power their applications with exceptional capabilities, performance, security, value, and success. Azul customers include 36% of the Fortune 100, 50% of Forbes top 10 World's Most Valuable Brands, 10 of the world's top 10 banks, and leading brands like Avaya, Bazaarvoice, BMW, Deutsche Telekom, LG, Mastercard, Mizuho, Priceline, Salesforce, Software AG and Workday. Learn more at azul.com and follow us @azulsystems.
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2 Markets and Markets
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