Azul Acquires Payara to Deepen Its Hold on Enterprise Java

For enterprises still running large portions of their business on Java, modernisation has become less about rewriting code and more about making decades-old systems work reliably in cloud-first environments. Azul’s acquisition of Payara reflects that reality.

The deal brings together two companies that have spent years operating in the less visible but deeply consequential layer of enterprise software: the Java runtime and application server stack that underpins everything from banking systems to logistics platforms.

By acquiring Payara, Azul is consolidating its position as an independent, open-source alternative for organisations seeking to modernise Java applications without locking themselves deeper into proprietary ecosystems.

From Runtime Performance to Application Servers

Azul has long been known for its focus on Java runtimes and performance optimisation. Payara, by contrast, built its reputation in the Jakarta EE (formerly Java EE) ecosystem, supporting enterprise-grade application servers and microservices used across hybrid and cloud-native environments.

The combination expands Azul’s footprint across the full Java application stack, from the JVM layer to application servers, giving enterprises a single, commercially supported platform to manage diverse Java workloads.

The two companies are not strangers. Their collaboration dates back to 2018, when Azul Platform Core was embedded into Payara Server Enterprise. The acquisition formalises a relationship that had already matured in production environments.

Modernisation Without Platform Lock-In

At the centre of the deal is a shared view of how enterprise Java is evolving.

Many large organisations are under pressure to modernise applications while retaining operational stability. Re-platforming entire systems is costly and risky, especially for business-critical workloads. Azul and Payara are positioning their combined offering as a way to incrementally modernise Java estates while staying aligned with open-source standards.

According to Azul, the integrated platform is designed to support a wide spectrum of use cases, from legacy enterprise applications to microservices, IoT deployments, and newer Java frameworks, without forcing customers into proprietary tooling.

Leadership Perspective on the Acquisition

“This strategic acquisition is further testament to Azul’s commitment to support the needs of our global enterprise customer base,” said Scott Sellers, co-founder and CEO of Azul. “Payara delivers proven products that are naturally synergistic with our existing offerings and brings additional deep technical expertise to the world’s largest independent Java engineering team. Together, we will accelerate growth and innovation, expand our roadmap and deliver even greater value to our customers.”

From Payara’s side, the deal marks a shift from partnership to integration.

“This is a major new chapter for Payara,” said Steve Millidge, Founder and CEO, Payara. “After a strong and long-standing partnership with Azul, combining forces is the natural next step and positions us for accelerated growth. Together, we will strengthen mission-critical solutions for enterprise Java customers and deliver greater performance, security and innovation across the Java ecosystem.”

Open Source as an Enterprise Strategy

Both Azul and Payara have long participated in open-source communities such as OpenJDK and the Eclipse Jakarta EE Platform. That alignment matters as enterprises increasingly look to reduce dependence on single-vendor stacks while still demanding commercial-grade support.

Azul says the acquisition expands its reach in the application server segment, adding exposure to an estimated $26 billion total addressable market, projected to grow at a double-digit rate. While the numbers underline the opportunity, the strategic significance lies in control over a larger portion of the Java lifecycle.

The deal also comes on the heels of Azul’s majority investment from Thoma Bravo, reinforcing the company’s intent to scale through both product expansion and consolidation.

Investor View: Enterprise Java Still Matters

For investors, the transaction reflects continued confidence in Java as a long-lived enterprise platform, even as newer languages and frameworks gain attention.

“The acquisition of Payara accelerates Azul’s growth and broadens the company’s reach across the global enterprise Java market,” said Adam Solomon, Partner, Thoma Bravo. “Azul’s category-defining innovations create a significant opportunity for global enterprises to leverage innovative and cost-effective open-source solutions to modernise their Java application fleets and reduce dependencies on proprietary platforms.”

What This Means for Enterprise IT Teams

For CIOs and platform architects, the Azul–Payara combination signals fewer moving parts in managing Java estates. Instead of stitching together runtime, application server, and support layers from multiple vendors, organisations can look to a unified stack built around open standards.

The acquisition does not signal a disruption of existing Java environments. Rather, it reflects a pragmatic acknowledgement: Java remains deeply embedded in enterprise IT, and modernisation is increasingly about stability, governance, and cost control, not wholesale replacement.

A Consolidation Play in a Mature Market

While the Java ecosystem is decades old, it is far from static. Regulatory demands, cloud economics, and security expectations continue to reshape how enterprises run core applications.

Azul’s acquisition of Payara is less about reinvention and more about consolidation — bringing together complementary capabilities to serve enterprises that value predictability as much as innovation.

As application modernisation becomes a long-term, continuous process rather than a one-time project, the enterprise Java market appears to be entering a phase where scale, openness, and integration matter more than novelty.