Azul sees rapid growth in APAC driven by Oracle's price hikes

Azul has experienced significant growth and momentum in the Asia Pacific region, including Australia, as organisations increasingly turn to Azul’s OpenJDK solutions. This shift follows Oracle’s changes to its Java SE pricing policy and the rising expenses associated with cloud computing.

During its fiscal year 2024, Azul expanded its partner network by adding 46 new partners. These included distributors aligned with emerging market geographies, resellers specific to key countries, and pan-regional systems integrators. These partners specialise in Java advisory and migration expertise, application modernisation support, and solutions for optimising cloud costs.

The financial pressures resulting from Oracle’s Java SE pricing changes and escalating cloud infrastructure costs have led Asia Pacific businesses to seek alternatives. According to Azul, its products, such as Azul Platform Core and Azul Platform Prime, offer cost savings and performance benefits. Azul Platform Core serves as a drop-in replacement for Oracle Java, claiming to save over 70% in support fees. Meanwhile, Azul Platform Prime reportedly reduces cloud and infrastructure costs by more than 20%, alongside performance improvements in critical Java applications.

The Asia Pacific region reported a 37% increase in new bookings year-over-year for Azul in FY24, accompanied by a 437% growth surge in the first quarter of FY25. The banking and finance sector in the region saw a 31% increase in new bookings within FY24.

Dean Vaughan, vice president of APAC at Azul, highlighted the region's importance, stating, "The Asia Pacific region has long been a strategic focus for Azul, offering immense growth potential and this past year has been no different." He observed that enterprises across the region are dealing with rising cloud costs and dissatisfaction with Oracle's Java pricing. "On the Oracle side specifically, we have seen a steady increase in audit threats and aggressive sales tactics. These market shifts have steered more customers toward Azul's reliable and cost-effective Java solutions," he added.

The percentage of new bookings driven through partners in the region nearly doubled from 38% in FY23 to 72% in FY24. Growth in the partner ecosystem was notable, with 46 new partners joining in FY24. Commenting on this development, Simon Taylor, vice president of global channel sales at Azul, said, "Azul’s momentum in the APAC region underscores the profound impact of our strategic channel partnerships. The substantial investment we’ve made in this ecosystem reinforces our dedication to creating a thriving network of partners that can drive sustained growth and success across the region."

Azul is also expanding its focus in India, boosting its sales and marketing support in the country. In FY24, the company engaged with five of India’s top 10 banks, three large financial services organisations, and one of the largest securities institutions, which increased its investment in Azul threefold, saving more than 70% in Java application support. Additionally, two leading systems integrators in India have partnered with Azul for customer deployments and establishing a Java migration practice.

"India represents a cornerstone of our strategic expansion in the APAC region," Vaughan commented. He noted the company's enhanced presence and investment in India, which has led to strong relationships with leading banks and financial institutions. "We are proud to support India’s leading enterprises in achieving their technological and financial goals, as well as enterprises throughout the APAC region," Vaughan added.