Software licensing is becoming a minefield for IT leaders – and it’s driving them into the arms of the open source community

Organizations are investing heavily in resolving software licensing issues, leading some IT decision-makers to consider open source alternatives.

According to a report from Java provider Azul and the ITAM Forum, 27% of enterprises now spend over $500,000 annually addressing license compliance problems.

Oracle Java has emerged as a key concern, with 73% of companies having faced an Oracle Java audit in the last three years. Nearly 80% of respondents have either shifted or plan to shift to open source Java solutions to mitigate costs and risks.

Approximately two-thirds of organizations believe that adopting open source Java could cut their expenses by at least 40% compared to Oracle Java licensing fees.

Scott Sellers, co-founder and CEO of Azul, commented on this growing issue:
“The data shows a troubling trend where vendor licensing complexity and pricing models have transformed basic maintenance into costly compliance efforts.”

“When 73% of enterprises are undergoing audits and one in four spends more than $500,000 yearly to resolve licensing issues, it's clear that staying compliant is no longer financially sustainable.”

The rise of hybrid cloud infrastructures and growing application portfolios has made it increasingly difficult to maintain visibility and compliance across departments. Organizations also face challenges in consistently tracking usage both locally and in cloud environments.

Over a third of survey participants identified compliance management—including dealing with excessive licensing—as their biggest organizational challenge.

A quarter of respondents noted that complex software configurations make it harder to monitor application usage, especially across teams or between local and cloud-based platforms.

Additional difficulties in managing software licenses include aligning different internal departments such as IT, development, legal, and procurement—cited by 27%.

Other major concerns include limited resources, rising costs, and adapting to constantly changing licensing policies or vendor updates.

Audit difficulties add to the burden

The study revealed that 75% of organizations manage audits internally but struggle with coordination and organization when tracking software assets.

More than a quarter find it difficult to keep accurate records of software usage, while 23% struggle to interpret complex licensing agreements. The same percentage find it hard to provide reliable compliance reports.

Just over 80% of organizations perform licensing audits at least twice a year, with 25% conducting them continuously.

Meanwhile, a quarter of companies reported facing frequent financial penalties or legal consequences due to non-compliance.

Martin Thompson, founder of the ITAM Forum, said:
“These findings expose a major disconnect between the complexity of today’s software licensing landscape and the tools organizations use to manage compliance.”

“As businesses realize that poor license handling can lead to serious financial and operational consequences, the role of ITAM and SAM professionals becomes ever more crucial. They must be given the proper support and leadership backing to ensure effective compliance and license control.”

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