The Oracle logo is seen on its campus in Redwood City, California June 15, 2015.  REUTERS/Robert Galbraith/File PhotoThis story was delivered to BI Intelligence Apps and Platforms Briefing subscribers. To learn more and subscribe, please click here.

Java Enterprise Edition is on the shelf for the time being.

Oracle has reportedly cut funding for and stopped development on Java EE, according to Ars Technica. Java EE is the server-side Java technology that is embedded into hundreds of thousands of Internet and business apps, and it's crucial for many apps that are not based on Java.

Oracle has become somewhat infamous for cutting the cord on projects that it cannot monetize, or restricting open-source projects in order to monetize access to them. But the short-term and long-term effects of this Java EE decision could be tremendous because the global IT community is so reliant on Java and Java EE.

The full Java Ecosystem has been in development for about 20 years mostly because of its open-source business model. Restricting Java EE in this manner would likely slow updates and security patches for it, which means thousands of server and cloud applications would need to replace components in which Java EE is embedded. This could cause even more problems between Oracle and the development community and could even lead to a total separation of the two.

But it might be too soon to hit the panic button, as Oracle has several reasons not to totally shut down Java EE. The company relies heavily on Java EE for its own software and services, as it contributes indirectly to more than 70% of Oracle revenues from software and support license sales, according to Ars Technica. If Oracle lets Java EE decay, then the company would need to offset this revenue loss.

Furthermore, Oracle's oversight of Java gives the company a foothold in the cloud by fostering strong relationships with developers and customers in the industry. Plus, Oracle has already invested significant time and resources into programming language.

It's likely Oracle would simply outsource Java EE development to a third party while it keeps control of Java Standard Edition (SE). Java EE relies on Java SE's core to work, so this method would let Oracle maintain primary control of the Java platform.

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