The easiest way is to set up a custom EBS https://confluence.atlassian.com/display/BAMBOO/Configuring+elastic+instances+to+use+the+EBS .
Once OnDemand updates to 4.1 (which should happen soon, but I cannot give a precise date yet), JDK7 (both Oracle and Open) will be available on the standard image.
I think it's worth setting up an EBS anyway just to know how it's done - you'll need that sooner or later.
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