Economy Growth Image by Mohamed Hassan from PixabayEarlier this week, Azul published a business update for its last financial year. Since Oracle changed its licencing and pricing plan in January 2023, Azul has benefitted. Oracle’s pricing was estimated to cost between 2-5 times more for most organisations.

Since then, the Azul OpenJDK-based Azul Platform Core, has seen 49% growth in customer booking year-over-year and an additional 36% new customers over the same period. Azuls share of the market has increased while Oracle’s has declined. In a recent interview in Enterprise Times, Scott Sellers, Co-Founder and CEO of Azul, believes that Oracle’s share will drop from the 60%-70% it enjoyed in 2018/19 (Source Gartner) to about 30% and may decline further.

Scott Sellers, President, CEO and Co-Founder of Azul (Image Credit: LinkedIn)
Scott Sellers, President, CEO and Co-Founder of Azul

Sellers commented, “It’s clear that customers are frustrated with the uncertainty around Oracle Java’s frequent pricing and licensing changes — the switch last January was its fourth major change in four years, leaving customers looking for other options.

“Azul is the clear leader in helping ease that transition to our Java runtime and development platform that is based on the same open-source code as Oracle’s, with broader support, for typically at least 70% less in support fees.”

Worldwide growth fuelled by benefits

Azul offers customers a way to experience a 20% decrease in their cloud and infrastructure costs from deploying its platform. Not only is the Azul Platform Core growth high, but it has also seen a 30% improvement in customer bookings for Java runtime Azul Platform Prime. Importantly Azul has maintained a 95% customer ARR (Annual Retention Rate) over the last year, presumably much higher than Oracle!

Azul has not only seen growth in North America. The company has a presence in 14 countries and partners in 88. In its international regions, growth is also strong.

  • Asia-Pacific (APAC) region grew 37% year-over-year in new bookings
  • Europe, Middle East and Africa (EMEA) region had a 69% increase in the last quarter year-over-year

These figures do not appear comparable, but as a private company, Azul does not have to reveal the full year-over-year growth across Europe. However, it seems likely to have been considerable, though possibly less than the last quarter, when Oracle licensing might have expired and companies made the switch.

Azul is also growing its partner ecosystem, adding 36 new partners in a six month period. Those channel partners, disgruntled by the new Oracle pricing, are bringing new customers across as well to the Azul platform, increasing the volume of new partners by 67% year-over-year. Azul now has over 100 partners with its program.

Dwight Jordan, Vice President of Software Alliances and Operations at SoftwareONE. “Whenever changes occur in software pricing models, they present an opportunity for us to assist clients in modernizing their legacy infrastructure and optimizing their cloud investments. At SoftwareONE, we’ve forged partnerships with key software providers, such as Azul, to empower clients with comprehensive insights into their software estate, enabling them to unlock additional commercial opportunities.”

Enterprise Times: What does this means

Azul has not revealed any specific revenue growth, nor are some of the figures like-for-like. However, its growth, partly because of the Oracle announcement, is impressive. Azul should continue to grow thanks to the Oracle announcement, which will come as good news for its investors. With a rapidly growing partner ecosystem and its products now available on both the AWS and Google marketing places, the future looks good.

Recent research from Azul noted that 72% of Oracle Java customers are exploring alternatives, and Azul hopes that its platform will capture a lot of that business. Azul is also investing in its product, announcing the release of code inventory. This solution identifies dead or unused source code that developers can remove, saving substantial time and money in the medium term.

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