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When it comes to brand loyalty and price increases, one thing has become increasingly clear; consumers vote with their wallets.

In an age where competition is fierce and consumers can research alternatives at the click of the “search” button, consumers are making it clear that price increases without increased value are a big “no.”

Establish brands are finding this out at their peril. Take John West in the consumer food space. This year, in an attempt to combat a rise in global commodity costs, they decided to increase their prices. The net results? John West saw a drop in revenue to the lowest levels they have seen since 1999!

We are currently seeing this play out in the Java development space, where earlier this year, technology giant, Oracle, made a significant change in their Java pricing (moving from instance-related pricing to a price model based on the number of headcounts) which has materially impacted their customers’ licence renewal fees.

Existing customers are finding that their licence renewal hasn’t just crept up but, in many instances, has increased four or five times. In fact, analysis of over a dozen active Oracle Java contracts conducted by Palisade Compliance showed that prices could increase by up to 10X.

The enterprise tech space is somewhat different from the FMCG consumer space. It’s not always easy for users to walk away from a technology they have invested in as there are perceived risks in moving away from a trusted technology to an alternative that may involve learning curves and other costs.

However, this large hike in price has caused Oracle Java platform users to think about their wallets and look around for alternatives. Interestingly, once they do, they like what they see.

OpenJDK vendors like Azul not only offer users a cheaper alternative, but they do so with a no-risk, 100% compatible platform, easy migration and even advanced and enhanced functionalities for an improved overall solution.

Coming back to the cost, the differences companies are seeing are not just shaving off a few percentage points, they literally redefine the ROI of companies’ continued investment in Java development. It turns out that Oracle’s new headcount approach, means organisations need to cover everyone who is involved in their business. This extends beyond their own staff and includes staff at contractors, agents, consultants and outsourcers.

In the case of Azul, numerous customers have made the switch and in doing so have made savings that are nothing short of breathtaking.

Examples include a national broadcasting company that was facing an Oracle renewal bill of USD $937,944, but on switching to Azul, their licence cost was reduced more than 10-fold down to USD $89,286. Similarly, a global shipping and mailing company saw a reduction from USD $1,089,000 to USD $54,673.

Reduced cost is the compelling driver but an improved Java development environment is the icing on the cake.

Normally, voting with your wallet comes with a compromise, and often times people accept that compromise. However, in the case of moving from Oracle to Azul, there is no compromise.

Migrating to Azul can be very straightforward and simple for the vast majority of organisations because the OpenJDK distribution that Azul provides is built using the OpenJDK source code and undergoes extensive compatibility testing. And once the transition is done, you will find yourself enjoying:

• Broader platform support.
• Broader Java version support.
• Follow-the-sun support.
• Quarterly stabilised security updates.
• 100% open source.
• And much more.

Whether it’s consumer goods, food and beverage, or enterprise tech the rules of doing business are clear. Increase prices at your peril.

In the case of Java, not only have Oracle ignored that rule, but in doing so they are doing many Java teams a favour. They have provided a catalyst for companies to look around and survey the market. In doing so, many have found better technical alternatives that perhaps they should have been considering anyway. Notwithstanding the better solution, for many companies, not making the move just doesn’t make business sense.

To find out more about OpenJDK alternatives, click here for this paper on 8 considerations before you renew your Oracle Java licence.

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