Oracle is planning to continue Java development in, primarily, the open through the OpenJDK. However, there are quite a few features planned to remain proprietary, and the code for them will not be contributed to open source. For instance, according to Oracle's Henrik Stahl, aspects of Java such as Java for Business, Oracle's JRockit Mission Control, JRockit Real-time, and JRockit Virtual Edition will be proprietary add-ons that you'll have to pay to use.

This isn't a shock to me. Remember that Oracle owns Java now, and they have the right to do with their IP as they please. I wouldn't be surprised to see other new features, such as advanced garbage collection and other performance improvements, become part of the proprietary Java version in the future also.

On a positive note, Stahl mentions that Oracle estimates that code from JRockit will be the single largest contribution to OpenJDK since its inception. That's a lot of otherwise closed/proprietary code to become open-source. That's a big step for Oracle, in my opinion.

Happy Coding! -Eric