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Infrastructure & Reliability · Middleware — Web · Chapter 23 of 33

Web middleware licensing, costs and the comparison

Per socket, per core, per virtual core, per employee — four ways to be charged for the same Java workload, one server priced four ways, and the comparison table an interviewer expects you to reason from.

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Licensing is the part of middleware that engineers most often leave to procurement, and the part senior interviews most often use to separate people who have run an estate from people who have used one. The numbers below are list prices observed on 26 September 2026 — a large bank pays materially less under an enterprise agreement — but the metric a product is charged on decides how the bill grows, and the metric does not change with negotiation.

The five ways you can be charged

1. Nothing, for the software. Apache httpd, Nginx open source, Tomcat, Jetty, WildFly and Open Liberty are free to use. The cost moves to people: someone must patch, support and answer for them, and many banks buy third-party support to have a contract to point to.

2. Per core, by subscription. Red Hat sells JBoss EAP as an annual subscription per band of cores. Red Hat’s own store lists Standard at US$8,800 a year and Premium at US$13,200; resellers’ listings of the same product codes show each subscription covering 16 cores. Premium adds round-the-clock support for severe issues. It is a subscription: the entitlement to updates and support lasts exactly as long as the payments.

3. IBM’s processor metrics. IBM licenses WebSphere, IBM MQ and much of its software on one of two units. A Processor Value Unit (PVU) is a rating IBM assigns per core by processor type — 70 PVUs per core for the common two-socket Intel Xeon or AMD EPYC server, more on larger machines. A Virtual Processor Core (VPC) is simply one virtual core (not to be confused with the other VPC, a cloud provider’s Virtual Private Cloud network). IBM steers newer and container deployments to VPCs.

4. Oracle’s per-processor metric. Oracle licenses WebLogic per “processor”, where a processor is the number of cores multiplied by a core factor — 0.5 for Intel and AMD x86 — except Standard Edition, which counts occupied sockets. Oracle’s technology price list, as reproduced consistently by independent licensing advisers, gives WebLogic Server Standard Edition $10,000, Enterprise Edition $25,000 and WebLogic Suite $45,000 per processor, plus annual support of about 22% of the licence. We could not retrieve Oracle’s own price-list document directly, so treat these as attributed, not verified. Suite adds Oracle Coherence, an in-memory data grid, and Java SE Suite; Standard Edition excludes clustering, so it rarely fits a production bank estate.

5. Per employee — for the Java underneath. Since 23 January 2023, Oracle has sold its Java runtime commercially only as the Java SE Universal Subscription, priced per employee, not per installation: $15 per employee per month for up to 999 employees, falling through bands — $12 up to 2,999, $10.50 up to 9,999 — to $5.25 at 40,000–49,999, with larger organisations quoted individually. “Employee” includes contractors and outsourcers supporting internal operations, whether or not they ever touch Java. (Oracle also publishes recent Java releases free under its No-Fee Terms and Conditions for a limited period; the subscription is what buys updates for older releases, and support.)

The two virtualisation traps

Both large vendors price on processors, and both have rules about virtual machines that turn a small server into a large bill.

IBM: sub-capacity needs a tool. IBM allows you to license only the virtual cores a product can use, rather than the whole physical host — sub-capacity licensing — but only if you run the IBM License Metric Tool (ILMT) or another approved tool that records usage. IBM’s own terms state the consequence plainly: “Failure to comply with the above will result in charging under full capacity for the total number of physical processor cores activated and available for use on the server.” An 8-core virtual machine on a 64-core host is an 8-core licence with ILMT and a 64-core licence without it.

Oracle: soft partitions do not limit the licence. Oracle’s partitioning policy distinguishes hard partitioning, which it accepts as limiting the cores to be licensed, from soft partitioning, which it does not — and it has treated common VMware deployments as soft, so the licence follows every physical core the virtual machine could run on. The policy is a separate Oracle document that changes over time; check the current version before any design review.

One server, priced every way

ONE 16-CORE, TWO-SOCKET x86 SERVER — LIST PRICE, SEPTEMBER 2026 Tomcat + OpenJDKopen source$0 licence; support optionalJBoss EAP16-core subscription$8,800–13,200 a yearWebLogic SE2 occupied sockets$20,000 once + ~22%/yrWebLogic EE16 cores × 0.5 = 8$200,000 once + ~$44,000/yrWebLogic Suite16 cores × 0.5 = 8$360,000 once + ~$79,000/yrWebSphere ND16 × 70 = 1,120 PVUIBM publishes no WebSphere price bars to scale on the one-off or first-year figure; 0.9 px per $1,000 List prices only. The metric decides the bill’s shape; negotiation decides its size.
The same application on the same 16-core server. JBoss EAP and WebLogic are real list figures; IBM does not publish a WebSphere price, so its bar is intentionally absent rather than guessed. Enterprise agreements cut all of these, but they do not change which ones scale with cores.
StackMetricCalculationList costNotes
Tomcat on an OpenJDK buildNone—$0Support optional, from third parties
JBoss EAP16-core subscription1 subscriptionUS$8,800 (Standard) or US$13,200 (Premium) a yearRed Hat store, 26 Sep 2026; includes Red Hat’s own OpenJDK build
WebLogic SEOccupied socket2 × $10,000$20,000 once, then about $4,400 a yearNo clustering
WebLogic EECores × 0.516 × 0.5 = 8 × $25,000$200,000 once, then about $44,000 a yearAttributed price list
WebLogic SuiteCores × 0.58 × $45,000$360,000 once, then about $79,000 a yearAdds Coherence and Java SE Suite
WebSphere traditional NDPVU or VPC16 × 70 = 1,120 PVUsNot publishedSub-capacity only with ILMT

The line that often exceeds all the servers combined

Price the Java runtime separately. A bank of 8,000 employees on Oracle’s per-employee subscription pays 8,000 × $10.50 × 12 = $1,008,000 a year at list, for Java alone — regardless of how many servers run it.

Which is why many banks have moved to other builds of the same open-source Java, OpenJDK: Eclipse Temurin (free), the Red Hat build of OpenJDK (included in RHEL and JBoss subscriptions), IBM Semeru (supplied with WebSphere), Amazon Corretto and Microsoft’s build, with commercial support available from vendors such as Azul. The runtime is often the largest single saving in the whole web estate, and it needs no application change beyond testing.

Web servers and load balancers

Apache httpd and Nginx open source cost nothing; IIS is included in the Windows Server licence; IBM HTTP Server is supplied with WebSphere. NGINX Plus is sold by F5 per instance on an annual subscription through resellers; public figures conflict, so ask for a quote rather than trusting a blog. Load balancers — F5 BIG-IP, NetScaler — are priced by appliance or throughput tier, usually through a quote.

The comparison

TomcatWebSphere traditionalWebSphere LibertyWebLogicJBoss EAP
ScopeWeb only (servlets)Full Java EEModular, full if enabledFull platformFull platform
Namespacejavax (9.0) or jakarta (10.1, 11)javax onlyBoth, per featurejavax to 14.1.2; jakarta from 15.1.1javax to 7.4; jakarta from 8.0
Licence metricNonePVU or VPCPVU or VPC (Open Liberty free)Per processor (cores × 0.5) or socketPer-core subscription
Public list price$0Not publishedNot published (Open Liberty $0)$10k / $25k / $45k per processor (attributed)US$8,800–13,200 per 16 cores a year
Lifecycle9.0 to at least Mar 2027No planned end of supportContinuous delivery, no end dateOracle support tiersRed Hat lifecycle per major version
Strongest atSmall footprint, embedded, cheapRunning large legacy Java EE estates unchangedModernising WebSphere applications into containersOracle-stack estates (Oracle databases and applications)A supported full platform at subscription cost
Weakest atNo transactions, messaging or EJBs of its ownJava 8 and javax-only librariesSome traditional features need reworkLicence cost and virtualisation rulesMigration effort from other full servers
Typical bank useNew services, Spring BootCore-vendor and staff applicationsWebSphere modernisationOracle FLEXCUBE and other Oracle applicationsTemenos and other certified packages; cost-driven moves

Oracle’s own banking products — FLEXCUBE among them — are built to run on WebLogic, which is one reason WebLogic persists in banks that use them; the core-banking landscape is in core banking.

How to choose, as decision rules

  • If a core-banking or payments vendor certifies only one server, that decides it. Running an uncertified stack forfeits vendor support for the application.
  • New Java services: an embedded server (Tomcat in Spring Boot, or Liberty, or Quarkus) in a container, on an OpenJDK build.
  • Large existing Java EE estates: stay on the current full server while planning the jakarta move, or move to Liberty or JBoss EAP where the licence saving pays for the testing.
  • Before any of that: fix the Java runtime licence and the ILMT position. Both are cheaper than any migration and frequently larger.

What interviewers ask about web middleware cost

  • “How would you reduce the licence cost of our WebLogic estate without rewriting anything?” (Runtime first, then core factor and partitioning, then consolidation, then a move to JBoss or Liberty for what is left.)
  • “What is a PVU, and why does ILMT matter?”
  • “Why can a small virtual machine produce a large Oracle bill?”
  • “We have 8,000 staff and one Java application. What does Oracle Java cost us?”
  • “Tomcat is free. Why would anyone pay for WebSphere?” (Transactions, messaging, clustering, vendor certification and a contract to point to.)

Check yourself

What are the five ways web middleware is charged?Free software (pay in people); per-core subscription (JBoss EAP); IBM PVU or VPC (WebSphere); Oracle per processor = cores × core factor, or per socket for SE (WebLogic); and per employee for the Oracle Java runtime.
What does a JBoss EAP subscription cost at list?US$8,800 a year Standard, US$13,200 Premium, per 16 cores (Red Hat store, Sep 2026).
What is a PVU?IBM's per-core rating by processor type — 70 per core on a common two-socket x86 server.
What is the ILMT trap?Sub-capacity licensing requires ILMT or an approved tool; without it IBM charges full capacity for every physical core on the host.
How is an Oracle processor calculated on x86?Cores × 0.5 core factor; Standard Edition instead counts occupied sockets.
Price WebLogic EE on a 16-core server.16 × 0.5 = 8 processors × $25,000 = $200,000 list, plus about $44,000 a year support (attributed list price).
Why can VMware inflate an Oracle licence?Oracle's partitioning policy treats soft partitioning as non-limiting, so the licence can follow every physical core the VM could run on.
How is Oracle's Java priced since January 2023?Per employee, including contractors — $15 per employee per month up to 999, falling to $5.25 at 40,000–49,999.
What does Java cost an 8,000-employee bank at list?8,000 × $10.50 × 12 = $1,008,000 a year.
Name three alternatives to Oracle's Java build.Eclipse Temurin, the Red Hat build of OpenJDK, IBM Semeru — also Amazon Corretto and Microsoft's build.
Why would a bank still pay for a full application server?Transactions, messaging, clustering, vendor certification of core packages, and a support contract.
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