A new global survey of 500 IT asset and software asset management professionals by Azul and the ITAM Forum has revealed that 73% of enterprises have undergone an Oracle Java audit in the past three years, and 79% have either migrated, are in the process of migrating, or plan to migrate to open-source Java alternatives to avoid licensing pitfalls and escalating costs.

More than a quarter of surveyed enterprises report spending over $500,000 annually to resolve software license non-compliance issues, including audit penalties and additional licenses. Complex licensing models, hybrid cloud environments, and limited visibility across IT teams are amplifying risk, making software compliance a top concern for 37% of organizations.

The pressure is particularly acute with Oracle Java. With 96% expressing concern over Oracle’s pricing model—especially its employee-based licensing—organizations are investing in internal tracking and audit tools to avoid unexpected costs. Nearly 66% estimate they could save at least 40% by switching to open-source Java distributions.

Despite these challenges, 74% of organizations still manage audits in-house. However, this self-managed approach is strained by a lack of resources, coordination difficulties, and limited accuracy in usage tracking. 81% of companies now perform audits at least twice a year, with one in four conducting them continuously. Nearly a third reported audits led to operational disruptions, budget hits, or vendor changes.

Beyond Java, the survey highlights growing complexity across all software licensing. Key issues include:

• Poor tracking across hybrid environments (29%)
• Difficulty coordinating across departments (27%)
• Resource constraints (24%)
• Evolving vendor policies (23%)

“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.”

The findings come as the ITAM market grows to $1.49 billion in 2023, with the SAM segment projected to rise 16% annually through 2029—driven by rising software spend, virtualization, and stricter compliance mandates.