2021 Java Licensing Changes
In 2021, Oracle again reshaped its Java licensing model. This time, the company introduced a more flexible licensing option for newer Java versions, aiming to encourage upgrades while still maintaining a revenue model for older versions.
The biggest change was introducing the No-Fee Terms and Conditions (NFTC) license, launched alongside Java 17 in September 2021.
Introduction of the No-Fee Terms and Conditions (NFTC)
Java 17 Released Under NFTC
Oracle released Java SE 17 as a Long-Term Support (LTS) version and made it available under the No-Fee Terms and Conditions license.
Under NFTC, businesses and developers could:
- Use Oracle JDK 17 free of charge
- Deploy it in production environments
- Avoid purchasing a Java SE subscription, at least temporarily
This marked a significant contrast from the licensing model used for Java 8 and Java 11, both of which required a paid license for commercial use and updates.
Oracle’s goal was clear: incentivize organizations to move to the latest version of Java by removing the financial barrier to adoption.
What the NFTC Allowed
- Development use – Free
- Production use – Free
- Commercial deployment – Free
- No Oracle support is required. Users can run Java 17 without entering into a paid support contract.
This shift allowed businesses to stay compliant and avoid Java-related license fees.
Older Versions Remained Commercial
Java 8 and Java 11 Licensing Unchanged
While Java 17 benefited from the no-fee model, Java 8, Java 11, and earlier versions did not.
These versions remained under their original licensing terms:
- Java 8 – Still required a Java SE Subscription for updates
- Java 11 – Also needed a paid license for commercial patching
- No retroactive benefit – NFTC did not apply to these older versions
This meant that companies using older versions of Oracle Java in production had two choices:
- Continue paying for support
- Risk running unsupported and unpatched software
Legacy System Dilemma
Many enterprises faced a tough situation:
- Modernizing legacy systems was time-consuming and expensive
- Staying on Java 8 or 11 meant recurring licensing costs
- Migrating to Java 17 could reduce costs but required application testing and validation
NFTC Comes With a Deadline
Free Updates Expire in September 2024
Oracle did not promise indefinitely free Java 17 updates. The NFTC license includes a built-in time limit:
- Free updates are available until September 2024
- After September 2024, new Java 17 patches will require a Java SE Subscription
That’s one year after Oracle’s next LTS version (Java 21) became available in September 2023.
The implication:
- Java 17 is only free for three years under NFTC
- Businesses must upgrade beyond Java 17 or begin paying for continued patch support
A Rolling Window Strategy
Oracle’s model is designed to encourage upgrades every three years. Businesses that stick to the LTS release cycle and always use the latest LTS version temporarily get free use. Those that lag behind face costs.
This approach resembles a rolling window of free use, incentivizing rapid version adoption while creating revenue from slower-moving enterprises.
Business Impact of the 2021 Java Licensing Changes
Cost Savings for Early Adopters
Companies that were able to:
- Upgrade to Java 17
- Test and validate applications quickly
- Adopt the latest LTS version
…benefited from running Oracle Java at no cost. These businesses avoided subscription fees and remained compliant with Oracle’s NFTC terms.
This was especially beneficial for startups, small businesses, and agile enterprises with less dependency on legacy platforms.
Ongoing Costs for Legacy Systems
In contrast, companies still relying on Java 8 or Java 11 had:
- No licensing relief
- Continued need for paid Java SE Subscriptions
- Ongoing pressure to modernize legacy systems
Upgrading was often not an immediate option for industries like finance, healthcare, and government, where legacy systems dominate.
As a result, these organizations had to budget for ongoing Oracle licensing just to keep their applications secure.
A Clear Message from Oracle
Oracle’s position was straightforward:
“Stay current with Java, and you get it for free — but if you hold on to older versions, you’ll pay.”
This message reflected Oracle’s broader strategy to:
- Reduce support costs by eliminating outdated version maintenance
- Drive consistent version adoption across the Java ecosystem
- Monetize slow adopters through subscription models
Read about Oracle Java Licensing Changes in 2019.
Licensing Scenarios Post-2021
Scenario 1: A Company Upgrades to Java 17
- Free production use under NFTC
- No need to buy a Java SE Subscription until September 2024
- Option to migrate to Java 21 later to stay within Oracle’s free window
Scenario 2: A Company Stays on Java 8
- Must have a Java SE Subscription
- No free updates or patches
- Subject to audit and enforcement if running without a valid license
Scenario 3: A Company Migrates to OpenJDK
- Can run Java 8, 11, or 17 using an open-source distribution
- Avoids Oracle subscription costs entirely
- Must manage its own updates and security patching
Examples of OpenJDK vendors:
- Adoptium (Eclipse Foundation)
- Amazon Corretto
- Azul Zulu
- Red Hat OpenJDK
Strategic Implications for IT Leaders
Update Cadence Becomes Business-Critical
The NFTC model rewards organizations that:
- Align internal processes with Oracle’s LTS release schedule
- Automate and standardize Java upgrade cycles
- Maintain up-to-date documentation of Java versions in use
IT leaders must now treat Java version upgrades as part of routine lifecycle management, not something delayed indefinitely.
Compliance Risk Remains
Even though Java 17 was made free, the moment a company:
- Uses Java 11 or Java 8
- Misses the September 2024 deadline for Java 17 support
- It fails to keep up with LTS upgrades
… and re-enters a paid subscription model. Tracking version usage is critical for avoiding audit penalties.
Read about the Oracle Java licensing changes in 2023.
Summary of the 2021 Java Licensing Model
What Changed
- Java 17 was released under the No-Fee Terms and Conditions (NFTC)
- Oracle JDK could be used for free in production
- Older versions (8 and 11) remained underpaid licensing
- Java 17 free updates end in September 2024
Key Takeaways
- Java 17 users had a three-year grace period with free updates
- Companies still on Java 8 or 11 had to pay or migrate
- Oracle aligned licensing with version adoption cycles
Conclusion
Oracle’s 2021 Java licensing changes offered a welcome, though temporary, break for enterprises willing to stay current with Java LTS releases. Java 17, under the NFTC license, allowed businesses to run Oracle Java in production at no cost — but only for a limited time.
Meanwhile, companies locked into older versions faced no relief and had to either budget for paid subscriptions or switch to non-Oracle OpenJDK alternatives.
Oracle’s message was clear:
“Upgrade regularly, and Java is free. Stick with the old versions, and you’ll pay.”
This change forced many IT leaders to rethink their Java strategy, upgrade cycles, and compliance practices — and laid the foundation for Oracle’s ongoing shift toward a subscription-based Java ecosystem.
