Oracle PeopleSoft Support by Third Party: An Enterprise IT Advisory
Oracle PeopleSoft support by third-party providers enables global enterprises to reduce costs and extend the life of their legacy ERP systems.
This advisory note offers CIOs and sourcing leaders an unbiased assessment of the benefits, risks, and recent developments in the third-party PeopleSoft support market.
It offers analysis, real-world insights (including Rimini Streetโs exit from PeopleSoft support), and actionable guidance for making informed decisions about support.
PeopleSoft Support Landscape: Oracle vs. Third-Party
PeopleSoft, a mature Oracle ERP system, remains mission-critical for many large organizations.
Oracle continues to offer Premier Support for PeopleSoft (with commitments to support into the 2030s), but this comes at a high price (typically ~22% of the original license cost per year) and with pressure to adopt updates or cloud alternatives.
In contrast, third-party PeopleSoft support is provided by independent firms (not Oracle) that maintain and troubleshoot PeopleSoft on your behalf, typically at approximately 50% lower cost.
These providers enable companies toย run stable, older versions of PeopleSoft indefinitely, therebyย avoiding forced upgrades.
The trade-off is that you forego Oracleโs official patches and upgrades, relying instead on the third partyโs expertise to deliver bug fixes and regulatory updates.
CIOs need to weigh cost savings and service flexibility against the loss of Oracleโs direct support and innovation pipeline.
Key differences at a glance: Third-party support focuses on maintaining the stability and compliance of your current PeopleSoft system, rather than introducing new features.
Oracleโs support provides continuous updates and new releases, but at a premium cost and often encourages moving to Oracle Cloud apps.
Enterprises must decide which aligns better with their IT strategy and budget constraints.
Why Enterprises Turn to Third-Party PeopleSoft Support
Global CIOs and IT sourcing professionals have increasingly explored third-party PeopleSoft support for several compelling reasons:
- Major Cost Savings: Independent support providers typically charge about half of Oracleโs annual fee. This can free up hundreds of thousands (or even millions) of dollars in the IT budget. For example, an organization paying $2 million per year to Oracle for PeopleSoft maintenance might reduce that to approximately $1 million with a third-party provider. The savings accrue year over year without Oracleโs 3โ4% annual fee increases.
- Extended System Life: Many PeopleSoft environments are stable and heavily customized to business needs. Third-party support lets you avoid expensive upgrades just to stay supported. You can continue running a proven version (even if Oracleโs โPremier Supportโ period has ended) with full assistance. There are no end-of-life deadlines โ support is available as long as you need it for your current version.
- Support for Customizations: Oracleโs standard support covers only the base software. In contrast, third-party providers will help troubleshoot and fix issues with custom code, integrations, and unique configurations. This is crucial for enterprises that have extensively tailored PeopleSoft over the years and require personalized support.
- Focus on Essential Fixes: Third-party PeopleSoft support is often described as โmore responsive and customer-centric.โ With a smaller client base per engineer, providers may offer quicker response times and dedicated engineers who are familiar with your environment. They also prioritize critical patches (e.g., year-end tax updates or security fixes) without pushing optional new features. Many CIOs appreciate this โkeep the lights onโ approach for a mature system where innovation is not a priority.
- Bridge to Future Plans: Organizations planning a future migration (for example, to a cloud SaaS ERP like Oracle Fusion or Workday) use third-party support as a strategic bridge. It allows them to save on Oracle fees and avoid disruptive upgrades while they transition. In essence, independent support buys time and budget flexibility during multi-year IT transformations.
Trade-Offs and Risks to Consider
While the benefits are clear, CIOs must also consider the trade-offs and risks of third-party PeopleSoft support:
- No New Oracle Patches or Versions: Once you leave Oracle support, you lose access to Oracleโs updates, patches, and new version releases for PeopleSoft. Third-party providers cannot ship Oracleโs proprietary patches. Instead, they develop their own fixes or โworkaroundsโ for bugs and compliance changes. Security updates in particular require trust in the providerโs ability to deliver timely fixes, since you wonโt get Oracleโs official security patch updates. If your business later decides it needs a new PeopleSoft feature or upgrade, you would have to return to Oracle (incurring significant fees) or find a new solution.
- License Compliance and Audit: Using third-party support is legal as long as you remain in compliance with your Oracle license agreement. However, it requires diligence. Oracle retains the right to audit your PeopleSoft licenses even if youโre off their support. In practice, companies that drop Oracle support should ensure they are fully compliant (proper user counts, no unauthorized usage) to avoid any audit penalties. There is anecdotal evidence that Oracle may increase license audits for customers who leave its support, so enterprises should be prepared. Itโs wise to archive any Oracle-provided patches and documentation you have rights to before your support lapses, and document everything to stay on the safe side.
- Regulatory Updates & Compliance: Tax, legal, and regulatory (TLR) updates are a vital component for ERP systems like PeopleSoft, particularly in HR, payroll, and finance modules. Oracle delivers frequent TLR patches (e.g., new tax rates, labor law changes) to supported customers. A third-party support vendor must independently provide equivalent updates to ensure your system remains compliant with global laws. Not all providers have the same depth of expertise or resources for this. Delayed or insufficient TLR updates could put your organization at risk of non-compliance. Itโs critical to vet whether a third-party vendor has a strong track record of delivering timely TLR patches (for example, year-end payroll tax updates in all countries you operate in).
- Vendor Viability and Service Quality: When you rely on an independent firm for a mission-critical system, its stability and expertise are paramount. CIOs should assess the providerโs financial health, referenceable customers, and expertise with PeopleSoft. There is a risk of provider instability (as seen recently with a major vendor exiting PeopleSoft support โ more on that next). Also, service levels must be rock-solid: you need confidence that response times, issue resolution, and ongoing guidance will meet enterprise standards. In a third-party support model, youโre substituting Oracleโs large support organization with a smaller specialist firm, so do thorough due diligence.
- Exit Costs and Flexibility: Transitioning to third-party support can create a different kind of lock-in. If you later decide to return to Oracleโs support, be aware that Oracle will charge hefty reinstatement fees (typically 150% of the back support fees) and require payment for the lapsed years of support. In other words, returning to Oracle can be extremely expensive โ a deterrent that effectively locks many customers into staying with the third-party solution until they may eventually migrate off PeopleSoft entirely. This doesnโt mean third-party support is irreversible, but reversing course is usually cost-prohibitive in the short term. Make this decision with a long-term perspective, and negotiate terms carefully (e.g., some providers offer flexible opt-out clauses or transition assistance if your strategy changes).
The Rimini Street Exit and Market Shake-Up
Until recently, Rimini Street was the leading third-party support provider for Oracle products, including PeopleSoft. Rimini Streetโs model (support at 50% of Oracleโs fee, including custom fixes and tax/regulatory updates) attracted many PeopleSoft customers over the past decade.
However, in 2024, Rimini Street announced that it would be winding down its PeopleSoft support services.
This strategic withdrawal (due to company refocusing and financial pressures) sent shockwaves through the PeopleSoft community, as Rimini once derived a large portion of its revenue from PeopleSoft support.
For PeopleSoft customers, Riminiโs exit means that if you were using Rimini Street or considering them, you now need to find an alternative strategy.
This situation illustrates a key risk mentioned above: vendor viability. Even well-established third-party providers can change course, leaving customers scrambling.
Who fills the gap? A few other firms continue to offer third-party support for Oracle PeopleSoft. Notable examples include Spinnaker Support and Support Revolution, among others. These companies are actively courting ex-Rimini clients, promising continued PeopleSoft support (including crucial payroll tax and regulatory updates).
The shake-up has also led some customers to reconsider the third-party route altogether, especially those who felt dependent on Riminiโs unique expertise.
Oracle, for its part, has used this moment to encourage customers to return to Oracle support or migrate to Oracle Cloud solutions, emphasizing Oracleโs long-term commitment to PeopleSoft.
The Rimini Street case serves as a reminder: when choosing any third-party support provider, assess their long-term commitment to the specific software.
Providers may pivot to new services or products, so ensure your vendor has a stable roadmap for PeopleSoft support at least for the duration you require.
Navigating Your Options: Returning to Oracle or Staying with a Third-Party Solution?
If your organization is evaluating PeopleSoft support options now (especially in light of the Rimini Street development), there are two primary paths:
Option 1 โ Return to Oracle Support:
Rejoining Oracleโs fold will restore access to all official updates, patches, and product enhancements. It may be the safer route for compliance and future upgrades, but it comes at a steep price. Oracle will typically require you to pay all back support fees for the period you were away, plus a 150% penalty on top of those fees (reinstatement charge). Companies that left Oracle support to save money can face a multi-year bill in the millions to return. Additionally, Oracle may require you to upgrade to the latest PeopleSoft release or apply all outstanding patches as part of the re-onboarding process. The advantage of this route is full alignment with Oracle: guaranteed timely regulatory updates, security fixes, and a smoother path if you later migrate to another Oracle product. The downside is financial: a potentially budget-busting hit upfront, and then ongoing support fees at the old high rate. For some, itโs simply not feasible. However, if PeopleSoft remains a long-term strategic platform and you need Oracleโs backing (or prefer not to rely on a third party), this option should be considered and costed out. Sometimes Oracle might negotiate on penalties, especially if youโre also considering a cloud transition โ itโs worth exploring if this route interests you.
Option 2 โ Transition to Another Third-Party Provider:
The alternative is to remain on independent support by switching to a different third-party vendor. The good news: several credible firms still specialize in Oracle PeopleSoft support. When transitioning from Rimini Street (or selecting a third-party vendor for the first time), itโs essential to thoroughly vet the new vendor.
Key questions include: Do they have experienced PeopleSoft engineers and tax/regulatory experts? Can they demonstrate a track record of delivering TLR updates across all regions you operate in? What is their service level agreement (SLA) for critical issues? How many other clients does PeopleSoft support, and can you provide references from some of them?
Also, clarify the pricing model โ most charge a flat annual fee, similar to Riminiโs 50% discount model. However, check if additional costs apply for services like international tax updates or major custom enhancements. By doing due diligence, you can secure a third-party partner that meets your needs.
The advantage here is maintaining the cost savings and flexibility of independent support, with hopefully minimal disruption (aside from switching providers). The challenge is to ensure that the new provider truly fills Riminiโs shoes (or even exceeds Oracleโs support in certain ways).
In either scenario, organizations should also consider the broader implications: What is the future of PeopleSoft in your application portfolio? If PeopleSoft is expected to be retired or replaced in a few years, maintaining third-party support may be a sensible approach to minimize spending until then. If, instead, PeopleSoft remains core for the foreseeable future, investing in Oracle support or a robust third-party arrangement (with strong guarantees) becomes more important.
Some enterprises even adopt a hybrid approach: for example, keep Oracle support for absolutely critical modules or geographies, but use third-party support for other, less critical instances to save costs. Creative approaches like this require careful contract management, but they can effectively strike a balance between risk and reward.
To clarify the differences between Oracleโs support and third-party support, here is a quick comparison:
Aspect | Oracle Premier Support | Third-Party Support |
---|---|---|
Annual Fee | ~22% of license value | ~50% of Oracleโs fee (huge savings) |
Yearly Cost Increase | 3โ5% typical escalation | 0% (fixed fee contracts) |
Patches & Updates | All official patches, upgrades provided | No new Oracle patches; provides custom bug fixes and workarounds |
Regulatory (Tax/Legal) Updates | Provided (if on current supported version) | Provided by vendor (for all supported clients, even on older versions) |
Support for Customizations | Limited (standard product issues only) | Yes (will support custom code and integrations) |
Upgrade Rights | Included (entitled to new versions) | Not included (must re-sign with Oracle to get new version) |
Support Timeline | Defined by Oracleโs policy (may require upgrades or extra fees for extended support) | Indefinite on your current version (no forced upgrades ever) |
Recommendations
1. Align with Your IT Strategy: Choose a support model that fits your roadmap. If PeopleSoft is in sunset mode at your company (to be replaced in a few years), third-party support can maximize savings during the wind-down. If itโs a core long-term solution, weigh the stability of Oracle support against the cost benefits of a third-party solution.
2. Do Thorough Vendor Due Diligence: If opting for an independent support provider, rigorously evaluate their PeopleSoft expertise and resources. Look for a proven track record with PeopleSoft clients, strong references, and the ability to deliver global regulatory updates. Ensure they will assign experienced engineers familiar with your PeopleSoft modules.
3. Negotiate Clear SLAs and Scope: Nail down service levels in the contract โ response and resolution times for critical issues, support hours coverage (especially if you operate globally), and what is included (e.g., tax updates, security fixes, custom modifications support). A good third-party contract should also offer flexibility, such as the ability to scale down if you retire modules, and escape clauses if service is subpar.
4. Prepare for Compliance: Before leaving Oracle support, conduct an internal license audit. Address any compliance gaps to avoid becoming an easy target for future vendor audits. Maintain documentation of your licenses and deployments to ensure accurate tracking and record-keeping. Also, have the third-party provider detail how they stay within legal boundaries (for example, not using Oracleโs intellectual property improperly). Knowing your rights (third-party support is allowed) and responsibilities will give you confidence in discussions with Oracle.
5. Plan for Regulatory Updates: Ask any prospective support vendor to explain their process for delivering TLR (Tax, Legal, Regulatory) updates. Who writes the updates? How quickly after a law change (say, a new tax rule) do they release a patch? Consider a trial or detailed demo of a past update. Large enterprises should ensure the vendor has specialists for each regionโs requirements (e.g., US payroll tax vs. EU VAT changes) to avoid compliance blind spots.
6. Consider Hybrid Approaches Cautiously: If splitting support (some with Oracle, some with third-party), be mindful of integration points and differing support processes. For example, if Oracle supports your HR module but Finance is a third-party solution, how will cross-module issues be handled? It can work, but only with a clear delineation of responsibilities. Most organizations either fully commit to a third-party for a product or stick with Oracle, but hybrids can be a temporary tactic if carefully managed.
7. Leverage Timing and Competition: Use the option of third-party support as leverage in negotiations. Oracle sales reps are aware of this threat โ sometimes theyโll offer discounts or add-on services to keep you. Conversely, third-party vendors are aware that Oracle is an alternative. Use this to negotiate better pricing or terms on whichever route you choose. Keep the discussions professional and fact-based (e.g., cite the cost difference or specific service needs) to get the best outcome.
8. Stay Informed on Market Changes: The third-party support landscape can evolve. For instance, with Rimini Streetโs exit from PeopleSoft, other vendors may change their offerings or Oracle might introduce new policies. Stay informed about industry news and consider joining user groups or forums where you can share experiences. This will help you proactively adjust your strategy (e.g., if another provider shows signs of exiting, or Oracle announces new support incentives).
9. Monitor Service Quality Continuously: If you do switch to a third-party, donโt โset and forgetโ the support arrangement. Establish governance by conducting regular service reviews, setting KPIs for ticket resolution, and implementing an internal feedback loop with your support users. Ensure the provider remains accountable. If issues arise, address them early. A proactive partnership approach will yield the best results from third-party support.
10. Have an Exit Plan: In the fast-changing tech world, itโs wise to have a backup plan. If your third-party provider were to change strategy or underperform, what would you do? This could involve maintaining a dialogue with Oracle for potential re-engagement (knowing the costs), or keeping another vendor in mind. While you hope not to need it, having an exit or transition plan ensures that you wonโt be caught off guard in the future.
Checklist: 5 Actions to Take
For CIOs and sourcing leaders ready to act, hereโs a step-by-step checklist:
1. Assess Your PeopleSoft Environment: Document which PeopleSoft modules and customizations you have, their version levels, and how critical they are to the business. Note any upcoming needs (e.g., a required regulatory change or an integration project) that could be impacted by support. This baseline will inform your support requirements.
2. Crunch the Numbers: Work with finance to model the 5-year cost of staying on Oracle support vs. moving to a third-party. Include known Oracle fee increases and any upgrade costs on one side, and third-party fees and any transition costs on the other. Also, estimate the one-time cost to return to Oracle later (reinstatement), as a reference. Having a clear financial picture will ground the decision.
3. Evaluate Providers or Oracle Options: If considering third-party, shortlist reputable vendors (e.g., Spinnaker Support, Support Revolution). Solicit detailed proposals addressing how they will handle your specific PeopleSoft footprint. Simultaneously, engage Oracle โ get a quote for reinstating support or see if Oracle has alternative offers (like a limited support deal or cloud migration credits). Comparing these options side-by-side is crucial.
4. Check Compliance and Contracts: Before signing anything, perform a license compliance audit (internally or with a licensing advisor) to ensure you wonโt hit landmines after leaving Oracle. Review your Oracle contract for clauses regarding support lapse or third-party support (some contracts may not include these clauses, but be sure to check). Also, review the new vendorโs contract terms carefully โ look at termination clauses, liability, and whether they indemnify you in case of Oracle legal challenges (some do). Bring in legal counsel as needed, but remember our focus is avoiding a legal quagmire; itโs about covering your bases.
5. Develop a Transition Plan: If you decide to switch support providers, plan the handover meticulously. Coordinate the end date of Oracle support and the start of the new support to avoid gaps. Download all Oracle support materials youโre entitled to before your access ends. Communicate internally to your IT support teams and end-users about how to contact the new support help desk. Test the new providerโs process with a few sample tickets or scenarios. Ensure that any critical updates (such as tax patches) that are due shortly are scheduled with the new team. A smooth transition will prevent any service disruption.
By following this checklist, youโll minimize the risks and surprises during the changeover and set the stage for a successful support model in the future.
Download Procurement Advisory Playbook: Transitioning from Oracle Support to ThirdโParty Support.
๐ธ Realize Tangible Financial Benefits Beyond Just Cost Savings
- Save 50%+ annually on Oracle support fees โ and avoid costly forced upgrades.
- Extend the life of stable systems without paying for software you donโt need.
- Understand the total cost reduction: license optimization + deferred hardware/software spend.
- Learn how third-party support frees up budget for innovation, not just maintenance.
FAQs
Q1: Is third-party PeopleSoft support legal and allowed by Oracle?
A1: Yes. It is legal to use third-party support as long as you stay within your PeopleSoft license terms. You continue to pay for your Oracle licenses (youโre not renting the software from a third party; you own it). What youโre changing is who provides the support service. Oracleโs contracts do not prohibit third-party support, but they do prohibit sharing Oracle’s intellectual property (patches, source code) with outside parties. Reputable third-party providers respect this and use their own methods to support your system. Many enterprises, including those in highly regulated industries, have successfully utilized third-party support without encountering legal issues. Itโs wise, however, to be prepared for Oracle to be unhappy โ they may try to persuade you otherwise or increase audit scrutiny. With proper compliance, you are within your rights to get support from an independent vendor.
Q2: Can a third-party provider deliver all the necessary tax and regulatory updates?
A2: In most cases, yes โ delivering Tax, Legal, and Regulatory (TLR) updates is a core service of good third-party support firms. Providers like Rimini Street (historically) and others have dedicated teams that monitor legislation and produce equivalent patches for PeopleSoft, such as new tax tables, legal changes (e.g., GDPR updates), and payroll form changes. Itโs important to verify this capability. Ask potential providers for examples of recent TLR updates theyโve issued and how they ensure accuracy. Some smaller third-party firms may focus solely on technical support and not provide complex regulatory updates, so choose one that explicitly offers global compliance coverage. Keep in mind that timing may differ slightly โ Oracle may release a tax update on Day X, and the third-party provider may release their version on Day X+ some days later. Generally, top providers closely match Oracleโs pace. If your business canโt afford any lag in regulatory compliance, clarify the expected SLA for these updates.
Q3: How much cost savings can we expect from third-party support?
A3: Enterprises typically report 50% or more reduction in annual support fees for PeopleSoft by switching to a third-party. Oracleโs standard support fee is around 22% of the license value per year (and often rising each year). Third-party providers usually charge around 50% of Oracleโs fee โ effectively ~11% of license value โ and often lock the rate for some years. Over a 5-year period, this can easily amount to millions saved, especially since you also avoid Oracleโs extra charges for extended support or forced upgrades. Additionally, some organizations save on indirect costs: for example, by not having to perform an upgrade, you avoid that project expense. Itโs essential to obtain a tailored quote for your specific situation, but a ballpark figure of 50-60% savings on support costs is generally common. Those savings can be reallocated to innovation or other priorities, which is a big win for CIOs under budget pressure.
Q4: What happens if we need to upgrade PeopleSoft or if Oracle releases a must-have feature?
A4: This is a crucial consideration. Under third-party support, you do not have rights to new Oracle-provided versions or features. If Oracle delivers a PeopleSoft update (for instance, a new tool or a version 9.3 release) that you decide is necessary, you would have to re-enroll in Oracle support (paying the accumulated fees and penalties) or potentially purchase new licenses for that version. Essentially, choosing third-party support means you are committing to staying on your current PeopleSoft version for a while. Many companies with third-party support freeze their system in a stable state and donโt plan to adopt new features. Instead, they might build small enhancements themselves or use bolt-on tools. If your business regularly requires Oracleโs latest enhancements, third-party support may not be a suitable option. Another scenario: Oracle might announce an end-of-life or no new features for PeopleSoft (though currently, Oracle promises continuous support). If that happens and you want to jump to a new Oracle platform, youโd need to factor in rejoining Oracle support or migrating to a new product as a separate project. In short, third-party support is best for organizations content with their PeopleSoftโs current functionality for the medium term.
Q5: Who are the main third-party support vendors for PeopleSoft now, and what happened with Rimini Street?
A5: As of this writing, with Rimini Street pulling out of PeopleSoft support, the leading independent vendors include Spinnaker Support, Support Revolution, and a few others with regional or specialized presence. These firms have stepped in to offer PeopleSoft support to customers affected by Riminiโs exit. Rimini Streetโs exit (announced in 2024) was a business decision as the company shifted its focus to other products and services. It wasnโt due to lack of demand โ rather, Rimini had been a pioneer and had amassed many PeopleSoft clients, but internal strategy changes led them to wind down that line. This change means customers should double-check the commitment of whichever vendor they choose. Spinnaker, for example, has publicly affirmed continuing support for PeopleSoft and even used Riminiโs exit as a marketing point to assure customers of their dedication. Oracleโs stance is that it continues to support PeopleSoft directly and encourages customers to stay or return to it. In evaluating third-party providers now, ensure they are financially stable, dedicated to Oracle software support, and have no impending plans to pivot away from this service. The third-party support market remains strong, but it pays to be cautious and informed, especially following such a high-profile exit.
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