Executive Summary
Third-party support for Oracle software refers to independent providers that offer maintenance and technical assistance for Oracle products in place of Oracle’s support. Many CIOs are evaluating this alternative to cut costs and gain flexibility.
Third-party support can reduce annual support fees by ~50% while extending the useful life of Oracle systems beyond Oracle’s official support timelines. It also promises more personalized service – for example, direct access to seasoned engineers – which can improve support quality and satisfaction.
These benefits come with trade-offs: organizations forgo Oracle’s future patches and upgrades and must remain compliant with license terms to avoid legal or security issues.
Strategically, CIOs should weigh the cost savings and service improvements against the risks of losing Oracle updates and navigating Oracle’s retention tactics.
With proper planning and governance, third-party support can unlock savings to fund innovation while keeping core systems stable.
Oracle Third-Party Support
Third-party support is essentially maintenance and support for Oracle software delivered by a provider independent of Oracle. Instead of paying Oracle’s annual support (typically ~22% of license cost), a customer contracts a third-party firm (such as Rimini Street, Spinnaker Support, or others) to handle help desk inquiries, bug fixes, and regulatory updates for their Oracle systems.
The core support activities are similar – customers log issues and get fixes – but the model differs from Oracle’s official support in key ways. Notably, third-party providers charge significantly less (often half of Oracle’s fees) and operate without Oracle’s direct involvement.
They cannot access Oracle’s proprietary code or patches, so they develop custom fixes and workarounds for bugs and security vulnerabilities instead of applying Oracle-issued updates.
Third-party vendors offer more flexible, personalized service (tailored SLAs, dedicated support engineers) than Oracle’s one-size-fits-all support.
Leading third-party support companies like Rimini Street and Spinnaker Support specialize in Oracle and SAP environments, employing ex-Oracle experts who understand the software deeply. They support a range of Oracle products (databases, E-Business Suite, PeopleSoft, JD Edwards, etc.), often continuing support for older versions that Oracle considers end-of-life.
Organizations consider moving to third-party support largely because they are dissatisfied with Oracle’s high fees and restrictive policies. Oracle’s support model only fully supports current software releases, effectively forcing costly upgrades when older versions reach end-of-support.
Many companies upgrade not for new features but simply to stay supported – one survey found that 73% of Oracle customers upgraded primarily due to “end of support,” not because they needed additional functionality.
Third-party support offers a way out of this cycle. It lets companies avoid forced upgrades and continue running stable, legacy Oracle systems with support for as long as needed. In short, third-party support swaps Oracle’s vendor-driven roadmap for a customer-driven support approach: the business decides when (or if) to upgrade while saving money and often getting more attentive support in the interim.
Key Benefits of Third-Party Support
CIOs exploring third-party support for Oracle should focus on four main benefits:
- Cost Savings: Third-party support can dramatically lower support costs by 50% or more compared to Oracle’s annual support fees. Instead of paying Oracle’s ~22% of license value every year (often with automatic increases), companies see immediate budget relief – Gartner notes many firms achieve 50–70% savings by switching, freeing funds for other initiatives. For example, one company cut its Oracle support bill by 60%, reallocating the savings to new analytics projects. These savings over multiple years are a primary driver for considering third-party support.
- Extended Support for Legacy Systems: Third-party providers will indefinitely support older versions of Oracle software, eliminating the need for forced upgrades. Oracle typically sets a date when a product release leaves Premier/Extended Support, pressuring customers to upgrade or lose support. In contrast, third-party support has no set end-of-support dates – vendors continue to provide fixes and compliance updates for as long as the client runs the system. This allows organizations running stable, mission-critical Oracle applications to extend their product’s lifespan beyond Oracle’s timeline. For example, when Oracle Database 12.1 reached the end of Oracle support, many customers shifted to third-party support to avoid an urgent (and expensive) upgrade. The ability to skip or delay upgrades means companies upgrade on their schedule based on business need, not vendor dictates.
- Better Service Quality: A common complaint with Oracle support is slow, bureaucratic service – routine tickets can bounce between junior technicians with scripted responses. Third-party support firms differentiate themselves with a higher-touch support model. Clients receive more personalized attention, often with direct access to senior engineers with deep Oracle expertise. Issues are addressed by experienced staff rather than being stuck in tiered queues. Third-party vendors also offer more aggressive SLAs for response and resolution times, sometimes 24/7, tailored to the customer’s needs. The result is often faster issue resolution and higher customer satisfaction than the Oracle support experience. Many CIOs value this improved service level, as it reduces downtime and frustration for their IT teams.
- Customization Support: Oracle’s support policies notably exclude customizations – if you’ve modified your Oracle software (common in ERP systems), Oracle may refuse to help unless you reproduce the issue on an unmodified environment. Third-party providers, by contrast, will support custom code and tailored configurations. Their engineers will troubleshoot issues in the client’s customized system and even create fixes for custom code if it’s causing problems. This is a significant benefit for organizations that heavily customize their Oracle applications. Instead of being told “that customization is your responsibility,” customers get help maintaining and tweaking their unique extensions. Third-party support covers the whole environment (standard Oracle software + customizations), whereas Oracle’s support scope is narrower.
Risks and Challenges
While the benefits are compelling, CIOs must also consider the risks and challenges of leaving Oracle’s umbrella:
- Oracle’s Tactics to Discourage Leaving: Oracle is notorious for employing contractual, technical, and legal tactics to retain support customers. One key hurdle is Oracle’s “matching service levels” policy – contractually, Oracle prohibits dropping support for only part of a product license set. For instance, if a company owns 100 Oracle Database licenses under one agreement, Oracle may require all 100 to remain on Oracle support (or none); you can’t halve your support and go third-party for just some licenses without breaching terms. This forces an all-or-nothing decision by the product line. Oracle sales reps often invoke fear, uncertainty, and doubt (FUD) to dissuade departures, suggesting that leaving support will trigger audits or claiming it’s not allowed. They might threaten software license audits, which can unnerve executives with the prospect of hefty true-up fees. Oracle can indeed audit customers’ license compliance, but switching support is not a valid cause for an audit – audits typically occur if Oracle suspects actual compliance issues. Oracle may also entice customers by offering discounts, adding cloud subscription credits, or leveraging its legal battle with providers (like Rimini Street) to imply that third-party support is risky. CIOs should be prepared for Oracle to push back hard. Nonetheless, thousands of organizations have switched despite Oracle’s tactics by knowing their contract rights and ensuring they are license compliant.
- Loss of Future Upgrades: Moving to third-party support means forfeiting access to Oracle’s official product updates, patches, and new version releases. Once off Oracle support, you no longer receive the quarterly Critical Patch Updates (CPUs), bug fixes, or new features that Oracle releases. Third-party providers issue their fixes for known bugs and may offer workarounds, but they cannot provide new Oracle versions or proprietary patches. In practice, this trade-off tends to be acceptable for organizations running mature systems that don’t require new features frequently. However, it could become a limitation if the business later upgrades to a new Oracle release – you would likely need to return to Oracle support (often at significant cost) or self-upgrade without Oracle’s help. Essentially, you are choosing to remain on your current Oracle software version (with minor fixes) for the duration of third-party support. CIOs should ensure that the functionality in place now will suffice for the foreseeable future since innovation from Oracle will not reach them during the third-party support period.
- Security Considerations: A major concern is keeping Oracle systems secure without Oracle’s regular security patches. Oracle’s support entitles customers to critical security patches and vulnerability fixes. Third-party support customers must rely on alternative security strategies. Top third-party providers have developed processes like “virtual patching,” intrusion detection, and proactive monitoring to protect systems. Instead of applying Oracle’s code fixes (which they can’t access), they analyze vulnerabilities and create remedial steps– configuration changes, custom scripts, or firewall rules that block an exploit signature. Many also provide security advisories and 24/7 monitoring to rapidly detect and respond to threats. While this approach can effectively mitigate risks, it requires trust in the third-party provider’s security expertise. To date, no major security incidents have been publicly attributed to companies on third-party support, including banks and government agencies that have operated for years without Oracle’s patches. Nonetheless, CIOs should vet any third-party vendor’s security credentials (e.g., ISO 27001 certification, track record) and possibly implement additional security measures (such as stronger network controls or independent vulnerability assessments) to maintain a robust security posture without Oracle’s updates.
- Compliance and Licensing Risks: Organizations must ensure they fully comply with Oracle’s license terms to avoid legal trouble before switching. Third-party support is legal for Oracle licensees – courts have affirmed that customers have the right to hire a third party to support software they are licensed to use. However, you must remain within the bounds of your license agreement. This means reviewing all contracts for restrictions (such as the “license set” rule mentioned above) and not using Oracle software beyond what you’ve paid for. Conducting an internal license audit (or engaging a licensing expert) before leaving Oracleis wise. Ensure all deployments are properly licensed and documented, and remediate any potential compliance gaps in advance. Also, download and archive any Oracle patches or documentation you are entitled to while still under Oracle support – you’ll want a library of these materials since you won’t have Oracle Support portal access later. After switching, Oracle may still audit your usage, so maintaining proof of compliance is crucial. Moving to third-party support does not violate Oracle’s contracts or intellectual property rights if done correctly. Still, any misuse of Oracle software (e.g., using features beyond your license or sharing patches improperly) could invite penalties. In short, due diligence on licensing is essential to a smooth transition. Companies that plan properly have successfully navigated audits post-transition, but those that neglect this step could face compliance disputes.
Who Should Move to Third-Party Support?
Not every Oracle customer is a good candidate for third-party support. It tends to fit certain scenarios better than others:
- Ideal Candidates: Organizations with stable, mature Oracle environments no longer undergoing frequent changes are prime candidates. If your Oracle systems run reliably on an older version and provide the needed functionality, third-party support lets you keep them as-is for years without forced upgrades. This is common in industries where the ERP or database is “good enough,” the company prioritizes stability and cost savings over new features. Companies that have completed their major Oracle implementations and customizations and are now mainly in a maintenance mode often find third-party support attractive. They can significantly cut costs while continuing to receive support for legacy versions.Additionally, organizations facing an Oracle support contract renewal they deem too expensive – especially if they don’t anticipate needing Oracle’s help on new projects – might opt to switch. Another ideal profile is a company with Oracle products approaching end-of-life in Oracle’s eyes (or already in Sustaining Support), because third-party support can extend the life of those products without an upgrade. In sum, if you don’t need Oracle’s ongoing product enhancements and your focus is on maximizing ROI of the existing system, third-party support is worth considering.
- When It’s Not a Good Fit: Conversely, companies that rely on cutting-edge Oracle capabilities or have aggressive upgrade plans should think twice. If your IT strategy involves adopting Oracle’s latest features, versions, or cloud services, staying on Oracle support might be necessary to access those. For example, a business that plans to move to Oracle Fusion Cloud or upgrade to the newest Oracle Database in the next year will want to remain in Oracle’s good graces and have access to upgrade scripts, new licenses, and official support during that transition. Similarly, third-party support could hinder you if you heavily depend on Oracle’s roadmap (e.g., awaiting a promised new module or critical patch from Oracle). Organizations in the middle of major Oracle projects, upgrades, or expansions are usually better off staying with Oracle support until those are completed. Also, some Oracle products don’t lend themselves to third-party support – notably Oracle’s cloud SaaS offerings (which can only be supported by Oracle) or rapidly evolving technologies. If a system requires constant vendor updates for security or compliance (for instance, a payments module with monthly regulatory updates), verify that a third party can adequately supply those updates before switching. In short, if your environment is highly dynamic or tied closely to Oracle’s innovation, the third-party route may not align with your needs. It’s often said that third-party support is ideal for “running the business” systems that are steady, whereas “changing the business” initiatives (new implementations, cutting-edge tech) might still need Oracle’s involvement.
Market Trends in Oracle Third-Party Support
Growing Adoption: Once a niche idea, third-party support for enterprise software has become a mainstream strategy. Today, nearly 4,000 customers use third-party support for Oracle or SAP products worldwide, proving it a viable alternative.
Industry analysts report that adoption is accelerating: Gartner projected that the third-party software support market would triple from $351 million in 2019 to over $1 billion by 2023. Inquiries about third-party support have also surged – Gartner noted a 50% increase in client inquiries year-over-year, reflecting growing interest. The reasons align with the benefits discussed: every year,
Oracle’s support gets more expensive (with annual uplifts), while the incremental value of staying on Oracle support diminishes for older systems. More IT leaders are realizing they can save 50%+ and still get necessary support, including extras like custom code support and tax/regulatory updates that Oracle often doesn’t provide.
This trend has been bolstered by success stories from prominent companies that have switched and by the evolving credibility of third-party providers. What was once considered a risky move is now increasingly standard for cost-conscious, savvy CIOs.
Legal and Industry Shifts: Oracle’s aggressive stance against third-party support has somewhat softened in impact after years of legal battles. A landmark moment was the resolution of Oracle’s lawsuit against Rimini Street in the mid-2010s, which removed much of the “FUD” (fear, uncertainty, doubt) in the market about legality.
In that case, courts affirmed that Oracle’s customers can have a third party support their software if license conditions are met. Recent court rulings continue to uphold the legitimacy of third-party support. For example, a 2023 U.S. federal court decision explicitly stated that nothing in Oracle’s licenses prevents customers from hiring a third party to perform support services (like updates or fixes) that the customers themselves could do under the license.
These legal clarifications have given more confidence to organizations considering a switch – the practice is lawful, and providers just need to operate within proper bounds. Oracle, of course, hasn’t given up trying to retain customers (and still pursues some legal action against support providers for specific practices), but the cloud of customer uncertainty has lifted.
In parallel, the enterprise software industry is shifting: Oracle and other vendors are pushing cloud subscriptions and investing less in on-premises product support. This “cloud-first” focus by Oracle means customers running legacy on-prem Oracle systems often feel left behind. In some cases, third-party support may deliver better service for these stable systems since Oracle is channeling its R&D and attention elsewhere.
As on-premise Oracle customers face diminishing support value and pressure to move to Oracle Cloud, many opt to stick with their current systems supported by a third party, buying themselves time and control.
Alternatives to Consider: Third-party support is one strategy to reduce reliance on Oracle, but it’s not the only one. Some organizations use it as a stepping stone in a broader plan to migrate off Oracle software entirely. The savings and breathing room provided by third-party support (no urgent upgrades, lower costs) can be reinvested into evaluating alternative platforms or cloud solutions.
In some cases, companies decide to replace the Oracle system with a different product that better fits their long-term roadmap rather than pay any support fees at all (for example, moving from Oracle E-Business Suite to a SaaS ERP like Workday or from Oracle Database to an open-source database). Such migrations are non-trivial and can take years, so third-party support is necessary to sustain the existing Oracle system during the transition period.
A famous example of breaking dependency is Amazon’s internal IT: Amazon’s consumer business migrated its databases off Oracle entirely to its own AWS services, eliminating Oracle license and support costs. However, not every organization has the appetite for a large-scale replacement.
The key is that CIOs now have multiple options to manage the lifecycle and cost of Oracle systems – renegotiate with Oracle for better terms, move to third-party support, or phase out Oracle products altogether – and these options can be combined (e.g. use third-party support for a few years while a new system is implemented).
The growing acceptance of third-party support has also given companies more leverage in negotiations with Oracle, as Oracle knows customers have a viable Plan B.
Key Considerations for CIOs
Careful planning and governance are crucial for a smooth transition to third-party support.
Before leaping, CIOs should ensure they have a clear strategy and address a few critical areas:
- Plan a Clear Exit Strategy: A transition from Oracle to third-party support should be treated as a strategic project. Start planning well before your Oracle support contract expiration – experts suggest beginning preparations at least 6 months before the renewal date. This provides time to sort out licensing questions, gather Oracle updates, and line up the new support provider. Develop a detailed cutover plan for how and when you will terminate Oracle support and switch to the third party (often timed to avoid overlapping payments). Involve key stakeholders across IT, procurement, finance, and any business units affected. Ensure everyone understands the plan and their roles (for example, procurement may need to handle contract changes, and security teams need to be ready to work with the new provider). It’s also wise to define service level agreements (SLAs) with the third-party vendor upfront, so you know exactly what response times and resolutions to expect. Treat this like an important vendor transition – with project management and executive oversight – to prevent any support gaps or surprises.
- Review Contractual Obligations and Legal Implications: Review all your Oracle licenses and support agreements before deciding to leave. Understand clauses like the License Set and Matching Service Levels policies that Oracle uses to lock in support. You may need to terminate support for an entire product family at once to stay compliant (as mentioned, you generally can’t partially drop support on a subset of licenses without breaching the contract). Plan the scope of your third-party support move accordingly (e.g., you might move your Oracle Database and Middleware, but keep Oracle-support for a SaaS product you have since that can’t be moved). It’s highly recommended that you audit your current Oracle usage and licenses as part of this process. Ensure that all deployments are accounted for and within your licensed rights. Contact an independent Oracle licensing expert to validate your compliance positionif possible. This will help avoid any gotchas, such as an out-of-compliance product that could trigger an audit dispute after you leave Oracle support. Also, consider any reinstatement penalties: if you think you might ever go back to Oracle support, know Oracle’s policies (they often charge back support fees to reinstate lapsed support). Clarifying these contractual details and potential fees will inform your negotiation and exit timing. In summary, know your contracts inside out and get legal/licensing advice if needed so you can exit Oracle’s support on your terms without entanglements.
- Develop a Security and Compliance Plan: Losing Oracle’s patch pipeline means you need a robust plan to keep systems secure and compliant. Work closely with your chosen third-party provider to understand how they deliver security updates. Top providers should articulate a clear methodology for vulnerability management (e.g., creating and testing critical fixes or “virtual patches” for new threats). Ensure the provider offers regulatory updates if applicable (for instance, tax and legal changes for Oracle EBS HR/payroll systems). Internally, review your security posture: you may want to implement additional network monitoring or intrusion detection that complements the third party’s efforts. It’s also important to ensure that compliance processes remain intact. For example, if you operate in a regulated industry, document how to apply necessary updates without Oracle’s official patches (auditors will ask for this). Many companies have successfully maintained security on third-party support, but it requires vigilance. Ask potential providers about their track record: Have any of their clients suffered breaches due to missing Oracle patches? According to industry reports, no widespread incidents have been tied to third-party support clients, but as a CIO, you should still perform due diligence. Request references or case studies from similar clients in your industry. Ultimately, you want a comfort level to ensure your systems remain secure and compliant under the new support model. This might also include having an internal contingency plan. For example, if a critical zero-day threat emerges, know how the third party will respond and how you might involve Oracle in a worst-case scenario (some firms keep a minimal Oracle support subscription for critical systems as a fallback, though this can be complex with contract rules).
- Consider a Phased or Hybrid Support Model: A “big bang” switch of all Oracle systems to third-party support isn’t always necessary – or prudent. You can adopt a hybrid approach where certain systems stay on Oracle support while others move to third-party, depending on their strategic importance and update needs. For instance, you might keep an Oracle database that you plan to upgrade to Oracle’s cloud next year under Oracle support (to leverage Oracle’s assistance and ensure eligibility for the upgrade), but move an older Oracle E-Business Suite instance to third-party support to save costs on that stable system. This kind of segmented approach can optimize both risk and cost. Be mindful of Oracle’s matching service level policy, which means you cannot split support within the same product family – but you can certainly split by product or environment. Many enterprises choose a phased transition: they might first pilot third-party support on a non-production or less critical system or stagger the move product by product as contracts come up for renewal. Oracle’s contracts often align with the fiscal year-end, so you could plan to migrate different systems in waves. A hybrid strategy also allows you to evaluate the third-party provider’s performance on a smaller scale before committing fully. Just ensure that partial moves don’t inadvertently violate contract terms (get Oracle to clarify or agree if you’re uncertain). In negotiations, sometimes Oracle will allow exceptions or carve-outs if you reduce scope. Tailor the support mix to your portfolio – it’s not one-size-fits-all. The goal is to maximize value: use third-party support where it makes sense (cost savings, no downside on missing updates) and stick with Oracle support where you need their ongoing delivery (cutting-edge products or forthcoming upgrades). This hybrid approach can deliver the best of both worlds if managed carefully.
By considering the above factors, CIOs can make an informed, strategic decision on third-party support. The choice to leave Oracle’s support ecosystem is a significant move, but many enterprises are now making it to unlock cost savings and take back control of their IT roadmaps.
Success requires due diligence on licensing, a strong partnership with a reputable third-party provider, and alignment across the organization.
For the right candidates, third-party support can transform Oracle maintenance from a costly obligation into an opportunity. It frees up budget and resources to drive innovation while still keeping critical systems running smoothly.
The CIO’s role is to balance the benefits against the risks, plot a clear course for transition, and ensure that the support model chosen aligns with the company’s business objectives and risk profile.
With proper planning and execution, third-party support for Oracle software can be a powerful lever for IT optimization and strategic flexibility.
