Rimini Street vs. Oracle: The Truth About Third-Party Support

Rimini Street vs. Oracle: The Truth About Third-Party Support

Executive Summary: Third-party support for enterprise software has been a contentious topic ever since the high-profile Rimini Street vs. Oracle legal saga.

In reality, the courts have affirmed that third-party support is legal for Oracle (and other) software licensees, even though one provider’s methods were found unlawful.

This advisory overview cuts through the hype and fear, explaining how Rimini Street won the larger battle of legitimacy, what the Oracle case really means, and how CIOs can leverage third-party support safely and cost-effectively.

Background: Why Oracle Sued Rimini Street

Rimini Street, founded in 2005, pioneered third-party support services for Oracle products (like PeopleSoft, JD Edwards, and Siebel) at a fraction of Oracle’s support fees. By 2010, Oracle filed suit, accusing Rimini Street of copyright infringement and improper use of Oracle’s intellectual property.

Specifically, Oracle alleged that Rimini:

• Used Oracle customers’ login credentials to download software updates beyond what each client’s license allowed.
• Created an internal library of Oracle software and reused patches developed for one client to service others (so-called “cross-use”).
• Employed automated tools to mass-download Oracle support materials, occasionally straining Oracle’s systems.

Oracle’s concern was that Rimini’s business model—supporting Oracle customers without Oracle’s involvement—undercut Oracle’s lucrative maintenance revenue and possibly violated license terms. Rimini Street countersued, claiming it was operating within its clients’ rights. This clash set the stage for a protracted legal battle lasting over a decade.

Legal Verdict: Third-Party Support Upheld as Legal

After years of litigation, the outcome delivered a nuanced message. The courts ruled that Rimini Street infringed Oracle’s copyrights through some of its processes, resulting in damages and a permanent injunction against certain practices.

However, equally important, the case confirmed the legality of third-party support itself for software license holders.

In other words, Rimini Street had to change how it delivered support, but the idea that an independent company can provide support to Oracle customers was never outlawed:

• Customers’ Right to Choose: Oracle licensees are allowed to opt not to renew Oracle’s support and instead hire third-party support or provide self-support. Choosing an alternate support provider does not void your license.
• Third-Party Providers Can Operate: Companies like Rimini Street (or its competitors) can legally offer support services for Oracle/SAP software if they abide by license rules. The court and even Oracle executives acknowledged that third-party support “done properly” is permitted under the law.
• Intellectual Property Boundaries: The injunctions in the case simply set boundaries – e.g. a third-party provider cannot copy Oracle’s software or updates en masse or share them between customers. Support must be provided using legitimately obtained materials for each specific customer.

In essence, the verdict drew a line between illegal methods and a legal business model. Rimini Street ultimately adjusted its support processes to comply and continues to serve customers.

In fact, by 2019, Rimini noted that Oracle had lost almost all of its claims in court, except for minor “innocent” infringements – a signal that the third-party support model had prevailed.

Recent developments (including a 2025 settlement between Oracle and Rimini) further removed uncertainty, with no blanket prohibition on independent support services.

Myths vs. Reality: Vendor FUD and Competitive Spin

The Rimini Street vs. Oracle saga created significant noise in the industry. Oracle, as well as other third-party support firms, have sometimes used the case to spread FUD (Fear, Uncertainty, Doubt) or to win business by positioning themselves favorably.

It’s critical for CIOs to separate myths from facts:

• Myth: “Third-Party Support is Illegal.”
  Reality: False. It’s perfectly legal for enterprises to get support from third parties. The courts did not ban third-party support – they simply required providers to avoid infringing activities. Even Oracle’s leadership stated the case was about Rimini’s conduct, not about outlawing third-party support. Many providers (e.g., Spinnaker Support, Support Revolution) operate successfully without legal issues by following the rules.
• Myth: “You’ll Lose Your Oracle License if You Leave Oracle Support.”
  Reality: Not true. Your software licenses are perpetual (for most enterprise software) – you keep the right to use the software. What you lose is access to Oracle’s updates and direct help. Oracle can’t cancel your license for dropping maintenance, but they may enforce policies (like charging back-support fees if you return for upgrades later).
• Myth: “Third-Party Providers Steal Intellectual Property.”
  Reality: Reputable third-party vendors now have compliant methodologies. The Rimini case highlighted what not to do (e.g., no wholesale copying of vendor materials). Competing firms often tout that Oracle has never sued them. The takeaway: if you choose a provider that sticks to clean practices (using your licensed materials and tools on your behalf), IP theft is not an inherent part of third-party support.
• Myth: “Oracle Support is Safer and of Better Quality.”
  Reality: Oracle’s support is the safe default for receiving official patches and updates. However, many customers complain of high costs and mediocre service (slow response, support staff just referring to manuals). Third-party support, although it does not provide new Oracle patches, often offers more personalized and responsive service, support for customizations, and support for older releases that Oracle may not fully cover. In terms of risk, a third-party provider’s support can be safe and high-quality—just vet their track record.

Vendors (and even third-party competitors) may exaggerate the Rimini case results. Oracle sales reps might imply that any use of third-party support risks lawsuits, which is misleading.

Meanwhile, some independent vendors point to Rimini’s missteps to assure customers, “We do it the right way.”

As a CIO, focus on the facts: third-party support is a lawful option, and due diligence is key in choosing a trustworthy provider.

Comparing Oracle vs. Third-Party Support

Why do enterprises consider third-party support in the first place? Cost savings and service differences are the main drivers. Oracle’s annual support fees are notoriously high – typically about 22% of the software license price every year – and often increase annually.

In contrast, third-party support providers generally charge 50% or less of Oracle’s fees, yielding immediate savings.

Below is a comparison of Oracle’s vendor support versus independent third-party support:

Key point: If your Oracle systems are stable and meeting needs, third-party support can slash costs while keeping systems running smoothly.

But if you rely on constant new features or upgrades, staying with Oracle (or planning a future re-subscription) might be necessary. Many organizations use third-party support as a temporary measure to save money on mature systems while they plan for modernization or transition to cloud alternatives.

Key Considerations for CIOs Evaluating Third-Party Support

Adopting third-party support is a strategic move that should align with your IT roadmap and risk tolerance.

CIOs and sourcing leaders should consider the following before making the switch:

• Lifecycle and Roadmap: Identify which software products are in a steady state (no major upgrades planned, no new features needed). Third-party support makes sense for these stable, older platforms where innovation has stalled. If you plan to upgrade to a major new Oracle release or cloud service soon, factor in the need for Oracle support at that time.
• License Compliance: Ensure you have all the proper software licenses and documentation. Third-party support providers will typically require that you be a valid licensee. You’ll also need to download and archive any Oracle patches or updates you’re entitled to before leaving Oracle support (since you lose access afterward). Staying compliant is paramount; reputable providers will guide you on this and avoid any actions that breach your license agreements.
• Provider Selection: Do thorough due diligence on third-party support vendors. Key questions: Have they been involved in any legal disputes with Oracle? What is their support methodology to avoid IP infringement? Look for providers with a proven track record of legality and strong industry references. Providers like Rimini Street, Spinnaker Support, and others have numerous enterprise clients – check independent reviews or Gartner reports for impartial insight.
• Service Needs: Compare the support experience. If your organization requires hands-on, functional, and technical support (for example, assistance with custom modifications, faster response times, or dedicated engineers), third-party firms often excel in these areas. On the other hand, if you cannot tolerate not getting the latest Oracle patches (e.g., for security compliance on a database), you might limit third-party support to certain layers or accept a hybrid model.
• Risk Mitigation: Prepare an exit strategy and an ongoing governance plan. This means: plan how you would re-enroll in Oracle support if needed (budgeting for potential reactivation fees), and ensure you have processes for getting critical updates elsewhere (some third-party providers create tax/legal updates for ERP, or you might develop minor fixes in-house). Also, be ready for Oracle’s tactics – they may increase audit scrutiny or push aggressive cloud migration deals when you leave their support. Solid software asset management and executive backing for the decision will help manage these pressures.

By considering these factors, CIOs can make an informed choice.

Many enterprises report positive outcomes after switching to third-party support – typically 50%+ cost savings and satisfactory service – but it requires aligning the decision with the company’s IT strategy and maintaining compliance discipline.

Recommendations (Expert Tips)

For organizations considering or already using third-party support, here are practical tips to ensure success and maximize value:

1. Target the Right Systems: Apply third-party support to stable, mature systems that don’t require frequent vendor updates. This avoids hindering any innovation while still reaping savings on maintenance.
2. Negotiate with Leverage: Use the option of third-party support as leverage in negotiations with Oracle. The threat of switching can often prompt Oracle to offer discounts or more favorable terms on support or cloud migration services.
3. Vet Providers Thoroughly: Select a third-party support provider with a strong reputation and a proven compliance record. Verify that they have robust processes to stay within legal boundaries (no unauthorized copying of software). Request customer references from similar industries or regions.
4. Audit Your Licenses: Before switching, conduct an internal license audit (or use a third-party licensing expert) to ensure you are fully compliant. Resolve any uncertainties about your entitlements to avoid issues later if Oracle audits you.
5. Secure Critical Updates: If you’re leaving Oracle support, make sure to download all the latest patches and documentation from Oracle’s portal while you still can. Establish how you will handle new security vulnerabilities or tax/regulatory updates – whether through your provider’s updates, in-house efforts, or by accepting certain risks until an upgrade.
6. Monitor Provider Performance: Treat the third-party support engagement like any managed service – set clear Service Level Agreements (SLAs) and monitor response/resolution times. Ensure there is regular communication and that the provider continues to meet your business needs over time.
7. Keep Oracle in the Loop (Strategically): Inform your Oracle account team of your decision to not renew (once final) in a professional manner. Maintain a cordial relationship if possible – you may need Oracle’s cooperation in the future (for new licenses or a cloud transition). At the same time, be firm in your decision, and be ready to dispel any false scare tactics with the facts you know about legality and your preparedness.

Checklist: 5 Actions to Take

If you’re ready to explore third-party support for Oracle software, use this simple checklist to proceed methodically:

1. Assess Your Portfolio: List which Oracle systems you have, their current support costs, and upcoming needs. Identify candidates suitable for third-party support (usually stable, no planned upgrades).
2. Gather Entitlements: Collect all license agreements and support contracts. Confirm you have rights to the software versions you use and note any clauses about support lapse or third-party support (most Oracle contracts don’t forbid it, but be aware of reinstatement clauses).
3. Research Providers: Investigate leading third-party support vendors. Conduct independent analyst research (e.g., Gartner’s market guide), review case studies, and engage in preliminary discussions to gain an understanding of their services and compliance approach.
4. Develop the Business Case: Calculate potential savings (50% of support fees or more) and weigh them against any costs (e.g., potential reactivation fees later, internal effort for updates). Include qualitative benefits, such as improved support quality or a freed-up budget for innovation. Present this to stakeholders for buy-in.
5. Plan the Transition: Once you have chosen a provider, schedule the switch to coincide with your Oracle support renewal dates. Allow time to download patches and knowledge from Oracle, brief the new support team on your environment, and communicate to internal teams on how to engage with the new support. Also, inform Oracle of non-renewal as required. Execute the cutover and closely monitor the new support service during the initial period.

By following these steps, you can minimize disruptions and ensure a smooth transition to third-party support, unlocking savings while maintaining well-supported systems.

Download Procurement Advisory Playbook: Transitioning from Oracle Support to Third‑Party Support.

💸 Realize Tangible Financial Benefits Beyond Just Cost Savings

• Save 50%+ annually on Oracle support fees — and avoid costly forced upgrades.
• Extend the life of stable systems without paying for software you don’t 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 software support for Oracle products legal?
A: Yes. Third-party support is legal and recognized in court. Oracle customers have the right to choose independent support services. The Rimini Street vs. Oracle case confirmed that as long as the support provider respects the software license terms (e.g., not illegally copying Oracle’s code), there is nothing unlawful about using a third-party instead of Oracle’s own support. Many companies, including large enterprises and governments, are successfully utilizing third-party support within legal boundaries today.

Q2: What exactly did Rimini Street vs. Oracle prove or change?
A: The case clarified two things: First, it penalized Rimini Street for certain methods (like re-using Oracle’s materials across clients) that violated Oracle’s copyrights. Second, and most importantly for others, it affirmed that the concept of third-party support remains permissible. Oracle did not shut down Rimini’s business; after the case, Rimini and others continue to offer support, now with clearly defined dos and don’ts. The case proved that third-party support can exist, but providers must adhere to the rules.

Q3: What are the main benefits of third-party support for CIOs?
A: The primary benefit is cost savings – typically 50% off your annual support bills, which can be millions of dollars for a large Oracle estate. Additionally, third-party providers often deliver more personalized and responsive service. They will support customizations and older versions that Oracle may push you to abandon. CIOs also gain flexibility – you’re no longer tied to Oracle’s upgrade timelines or forced cloud migrations just because support is expiring. In short, it can free up budget and keep legacy systems running smoothly without vendor pressure.

Q4: What are the risks or downsides to using a third-party instead of Oracle?
A: The trade-offs include losing direct access to Oracle’s updates, patches, and product enhancements. If a serious security flaw arises, you can’t immediately get a patch from Oracle while off support – you rely on your third-party provider’s workaround or must consider other mitigations. There’s also the consideration of vendor relationship: leaving Oracle’s support might mean less influence or account attention from Oracle. Finally, you must trust the third-party provider’s capability and integrity; if they misstep legally, it could cause complications (though you can mitigate this by choosing a reputable firm and ensuring your licenses are in order).

Q5: Can I switch back to Oracle support in the future if needed?
A: Yes, you generally can return to Oracle support if required, but it may come at a cost. Oracle typically imposes a reinstatement fee or requires paying the support fees for the gap period when you were not on Oracle support, especially if you want to upgrade to a newer version. It’s essential to consider this when planning. Some companies use third-party support for several years of savings, and later, if an upgrade is needed, they budget for a one-time cost to reinstate Oracle support (or purchase new licenses). Ensure compliance with your licenses during the gap; this way, the door remains open to return if necessary.

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