Spinnaker Support and Oracle Third‑Party Support
Executive Summary: Third-party support providers, such as Spinnaker Support, offer CIOs a viable alternative to Oracle’s support services, promising significant cost savings and more personalized service.
This advisory note offers a neutral, yet slightly positive, analysis of Spinnaker Support and Oracle’s third-party support options, outlining the benefits, risks, and best practices to help enterprise IT leaders make informed decisions.
Understanding Oracle Third‑Party Support
What It Is: Oracle third-party support refers to maintenance and support services for Oracle software provided by an independent company, rather than Oracle itself.
Enterprises with valid Oracle licenses can receive assistance (including troubleshooting, bug fixes, and guidance) from these third-party providers without an active Oracle support contract. The key trade-off is that, while you continue to use your Oracle software, you receive support from a different vendor.
Why It Exists: Third-party support emerged as a response to the high fees and rigidity of Oracle’s standard support.
Oracle typically charges ~22% of the license price annually for support and often imposes mandatory upgrades. Independent providers promise the same-day resolution of day-to-day issues – and sometimes a more tailored, responsive approach – at a significantly lower cost.
Over the past decade, this model has transitioned from a niche to a mainstream product. Many organizations now view independent support as a routine cost-optimization lever, especially for stable, mature systems.
Industry Adoption: Once uncommon, third-party support is now used by thousands of companies globally. Gartner research notes that the average client saves about 50% on annual support costs by switching.
Even public entities (universities, government agencies) have saved millions using third-party support while maintaining system stability. In other words, it’s a proven option – not a fringe idea – provided you manage the associated considerations.
Why Enterprises Consider Third‑Party Support
CIOs and sourcing professionals are primarily driven by cost and flexibility when exploring providers like Spinnaker Support.
Key motivations include:
- Significant Cost Savings: The #1 reason is cutting costs. Third-party providers typically charge around half of Oracle’s support fees. This can free up substantial budget (millions for large enterprises) to invest in innovation or other priorities. Additionally, independent support contracts often eliminate annual fee increases that Oracle imposes, helping IT budgets stay flat year over year.
- No Forced Upgrades: Oracle ties support eligibility to product versions, pushing customers to upgrade to newer releases to remain supported. Third-party support imposes no such requirement. You can continue running a stable Oracle version for as long as it meets your business needs. This avoids costly, disruptive upgrades driven by Oracle’s schedule. For example, when Oracle E-Business Suite or Database reaches end-of-support, many companies choose third-party support to safely extend the life of those systems rather than undertake an unnecessary upgrade.
- Extended Support for Legacy Systems: Additionally, third-party providers will continue to support older Oracle products or versions that Oracle has phased out. If you rely on a legacy Oracle application that’s out of official support, a firm like Spinnaker can still support it for years. This ensures continuity for critical legacy systems without paying Oracle’s high fees for extended support (or risking unsupported use).
- Personalized, Responsive Service: Many customers report that independent support feels more customer-centric. Spinnaker Support and Oracle third-party support firms often assign dedicated senior engineers (frequently former Oracle staff) who become familiar with your environment. Issues can be resolved more quickly and with greater context. Unlike Oracle’s ticketing system, where you might be one of thousands of customers in a queue, third-party providers promise direct-to-engineer support and willingness to help with customizations or unique configurations (areas Oracle’s support typically declares “out of scope”).
- Budget for Innovation: By reducing “run” costs, third-party support enables CIOs to reallocate funds more effectively. Enterprises have used the savings to fund cloud migrations, AI and analytics projects, or other strategic initiatives. In one case, a global retailer redirected savings from third-party support into new e-commerce features – accelerating innovation while their Oracle back-end remained fully supported by the independent vendor.
In summary, the value proposition is to spend less and receive equal (or even better) support services, especially for stable systems that do not require constant vendor updates.
Spinnaker Support in Focus
When discussing Oracle third-party support, Spinnaker Support is a leading provider that frequently enters the conversation.
Founded in 2008 and based in the U.S., Spinnaker Support has grown to serve over 1,000+ global clients and is often seen as the chief competitor to Rimini Street (the largest provider in this space).
Spinnaker’s offerings cover Oracle databases and applications (E-Business Suite, JD Edwards, PeopleSoft, Siebel, etc.), as well as other enterprise software like SAP and Salesforce.
Reputation and Differentiators: Spinnaker Support is known for a high-touch service model. They emphasize quality and flexibility, tailoring contracts and support scope to each client.
Many of their staff are former Oracle engineers and developers, bringing deep expertise. Clients frequently praise Spinnaker’s responsiveness and willingness to support customizations that Oracle’s support would decline to provide.
The company has a “boutique” feel compared to Oracle’s one-size-fits-all approach – you’re a priority, not just a support ticket number.
Notably, Spinnaker has also avoided the legal conflicts that have occurred in the third-party support industry. (For context, Oracle pursued lengthy litigation against Rimini Street over IP misuse of Oracle support materials.
Spinnaker, by contrast, adheres to stricter protocols and has maintained a cooperative stance that steers clear of Oracle’s intellectual property.) This has positioned Spinnaker as a safer choice in the eyes of some risk-averse customers.
Gartner’s Market Guide recognizes Spinnaker Support as a representative vendor in this market, reflecting its credibility among enterprise clients.
In short, Spinnaker Support offers a compelling package for Oracle customers seeking an alternative: strong Oracle expertise, personalized support, and significant cost reduction – all while maintaining a relatively positive industry reputation.
Cost and Support Comparison
It’s essential to compare Oracle’s official support with third-party support (e.g., Spinnaker) to understand the differences in cost, service, and obligations.
The table below summarizes key points:
| Aspect | Oracle Premier Support | Third-Party Support (Spinnaker) |
|---|---|---|
| Annual Cost | ~22% of license price (with ~4% yearly uplift) | ~50% lower than Oracle’s fee; often fixed year-to-year |
| Included Upgrades | New version upgrades & patches included while active | No vendor upgrades provided; stays on current version (workarounds for issues) |
| Security Patches | Regular Oracle security patches (quarterly CPUs) | No Oracle patches after contract ends; provider delivers custom fixes and security workarounds as needed |
| Support Scope | Standard break/fix for vanilla software; limited help on customizations | Broad scope – covers customizations, performance tuning, and older versions that Oracle may not support |
| Support Model | Global Oracle support center, ticket-based, varying response times | Dedicated engineer model, often 24/7 direct access, faster response and deep product expertise |
| Contract Flexibility | Rigid terms; all related licenses must stay on Oracle support (“all or nothing” policy) | Flexible terms – support specific products or modules; customizable SLAs and contract lengths |
| Reinstatement Penalty | N/A (you’re already on Oracle support) | If returning to Oracle later, must pay back fees + penalty to reinstate (plan ahead for this cost) |
| Vendor Relationship | Maintains relationship/influence with Oracle (access to roadmaps, etc.) | May strain Oracle relationship (possible pushback or reduced influence once off Oracle’s support) |
Table: Oracle vs. Third-Party Support – Key Differences in Cost and Service
As shown above, the financial benefits of third-party support are clear, but they come with trade-offs in terms of updates and vendor ties. CIOs must weigh these factors based on their organization’s needs.
For instance, if you run highly customized Oracle systems on stable versions, third-party support can deliver major savings and better support for custom code. However, if you require constant new features or compliance patches directly from Oracle, staying on Oracle support (or planning a short-term third-party engagement) might be wiser.
Potential Risks and Challenges
While the benefits are attractive, switching to an independent support provider introduces certain risks and considerations that should be managed:
- Loss of Official Updates: The biggest concern is losing access to Oracle’s official patches, updates, and new releases. Once off Oracle support, you cannot download new patches or upgrade to newer versions without re-subscribing. Over time, this could leave systems vulnerable to newly discovered bugs or security threats. Top third-party providers mitigate this by developing their fixes for critical vulnerabilities and guiding clients on security hardening. Still, in highly regulated industries, auditors might flag missing official patches. Mitigation: Ensure your provider has a robust security response process and bolster your system with strong perimeter defenses and effective monitoring.
- License Compliance and Audits: Third-party support itself is legal (Oracle’s license agreements do not forbid it), but you must remain in full compliance with your Oracle licenses. Oracle may still audit your usage, and some customers feel Oracle becomes more vigilant with those who leave its support. It’s crucial to track your deployments and usage to avoid any “unlicensed usage” findings. Also, plan for the possibility of returning to Oracle in the future – Oracle typically charges back support fees + a reinstatement penalty for the lapsed period if you come back. This one-time cost can be significant, so budget accordingly if there’s any chance you’ll need Oracle’s support again down the line.
- Contractual Constraints: Be aware of Oracle’s contract policies, like the “Matching Service Levels” clause. This policy means you generally cannot drop support on a subset of licenses in a product family while keeping others on Oracle support – Oracle requires all or none to be on the same support level. For example, you cannot easily put half of your Oracle databases on third-party support and keep the other half with Oracle. Violating such rules could result in Oracle refusing to support the remaining products. The implication: moving to third-party support is often an all-or-nothing decision for a given product line. Plan carefully which systems you will transition, and follow Oracle’s rules to the letter for any products you will continue to use with Oracle.
- No New Features: Third-party support focuses on keeping your existing software running smoothly, but it won’t deliver new product features or enhancements. If your business decides it needs a new Oracle module or wants to upgrade to a major new version, you’d have to either resubscribe to Oracle support or purchase new licenses. Some companies manage this by timing their third-party support usage: for example, complete a necessary upgrade under Oracle’s supervision, then switch to independent support during a stable period. It’s essential to align your IT roadmap with your support strategy – if a major Oracle upgrade or integration is on the horizon, consider factoring that into your decision.
- Vendor Relationship Management: Choosing a third-party provider can strain your relationship with Oracle. While Oracle cannot cancel a perpetual license for leaving support, you might lose some soft benefits of being a support customer (like influence in Oracle’s customer programs or special discounts on other products). Oracle’s sales and support reps may also attempt to discourage the switch through fear, uncertainty, and doubt (FUD), suggesting you’ll face dire consequences. It’s wise to prepare a fact-based response for internal stakeholders who might hear Oracle’s warnings. In practice, many companies have navigated this successfully; however, you should be prepared for pushback during license renewal negotiations or audits. Maintaining professionalism and involving legal advisors for any serious disputes is recommended.
- Ensuring Provider Viability: Finally, the third-party provider itself should be vetted. Choose a vendor with a strong track record, sufficient Oracle expertise, and no ongoing legal troubles with Oracle. The goal is to avoid any service disruption or liability. Established firms like Spinnaker Support have a decade-plus history and generally positive reputations, but due diligence is still essential. Check references, review SLAs, and ensure the provider’s support processes (e.g., how they obtain patches or develop fixes) are above-board. A little extra homework up front can prevent headaches later.
In summary, none of these challenges are show-stoppers – thousands of enterprises have successfully managed them – but they do require careful planning and mitigation. With the right strategy (and a reliable provider), you can capture the cost and service benefits of third-party support while managing risks effectively.
Planning Considerations for CIOs
Adopting Spinnaker Support or any Oracle third-party support should be a strategic decision aligned with your IT and business roadmap.
Here are key planning considerations for decision-makers:
- Identify Ideal Candidates: Not every system is a good fit for third-party support. Perform an application portfolio review to pinpoint Oracle systems that are stable, well-understood, and not earmarked for imminent upgrades. These are prime candidates to move off Oracle support. On the other hand, if a system is undergoing a major transformation or you rely on quarterly updates, you might keep that one with Oracle for now.
- Timing and Transition Plan: Plan the switch around critical business cycles. For instance, avoid transitioning mission-critical systems during peak seasons or immediately before a major project launch. Many firms schedule the move to third-party support to coincide with the end of Oracle’s support period or fiscal year, thereby simplifying logistics. Before your Oracle support expires, download all relevant patches, documentation, and knowledge base articles for your products – you’ll want this archive once your Oracle access is cut off.
- Stakeholder Buy-In: Communicate with stakeholders (CFO, business unit leaders, application owners) about the change. Emphasize the financial benefits and how service quality will be maintained or improved. It’s essential to set expectations: new features from Oracle won’t be introduced, but the system will continue to run reliably on its current version. When stakeholders understand the trade-off (saving costs and staying stable vs. paying more for constant changes), they can more easily support the strategy.
- Monitor and Adjust: After moving to a third-party provider, closely monitor support performance. Track response times, resolution quality, and any issues that arise. Many CIOs set up quarterly service reviews with the provider to ensure expectations are met. Also, keep an eye on Oracle’s product announcements independently – even without an active support contract, you’ll want to stay informed about any emerging risks (like new security vulnerabilities or end-of-life notices) relevant to your environment.
- Long-Term Roadmap Alignment: Incorporate third-party support into your multi-year IT roadmap. For example, if you plan to decommission an on-premises Oracle system in three years due to a cloud migration, utilizing third-party support during that interim period can yield significant savings. Conversely, if you foresee needing Oracle’s direct involvement (say, for a future upgrade or a new Oracle cloud service adoption), decide if and when you would rejoin Oracle support. Having a clear exit or re-entry plan ensures you’re not caught off guard. Some organizations allocate a portion of their savings as a contingency fund in case a return to Oracle support becomes necessary in the future.
By carefully considering these factors, CIOs can ensure that third-party support is not just a cost-cutting measure, but a smooth, strategically sound move that aligns with business objectives.
Recommendations
When exploring Spinnaker Support or any third-party support for Oracle, consider these expert tips to maximize success:
- Thoroughly vet providers by comparing their experience, expertise with your specific Oracle products, and client feedback. Ensure the provider has a solid reputation and no history of IP misuse. Talk to reference customers if possible.
- Review Your Oracle Contracts: Check for clauses such as “matching service levels” and understand which licenses must be maintained together. Ensure you give Oracle any required notice of termination for support. Knowing your contractual obligations prevents accidental breaches.
- Secure Your Systems Before Switching: Before leaving Oracle support, apply all last available patches and create backups of software installers, documentation, and knowledge articles. This gives your team and the new provider a strong baseline to start from.
- Plan for Security Updates: Ask the third-party provider detailed questions about how they handle security alerts and critical bug fixes. Internally, beef up your security monitoring since you won’t get Oracle’s patches. Treat security as a joint responsibility with your provider.
- Maintain License Compliance: Conduct an internal license audit to ensure you’re fully compliant with Oracle’s usage terms. Continue tracking usage after switching. Staying compliant removes one of Oracle’s main leverage points (audits) and lets you use your licenses confidently.
- Align with IT Roadmap: Only move systems that make strategic sense. If an Oracle product is slated for replacement or major upgrade soon, consider timing your support switch accordingly (or waiting until after the upgrade). Don’t derail plans for short-term savings – strike a balance between the two.
- Negotiate Flexible Terms: In your contract with the third-party provider, negotiate terms that suit your needs (e.g., 24/7 support, specific SLAs, multi-year discounts, or opt-out clauses). Good providers like Spinnaker are often willing to craft custom terms – take advantage of that to get the service level your business requires.
- Prepare for Oracle’s Response: Educate your procurement and IT teams that Oracle’s account reps may push back. Have a documented business case for why you’re switching (cost savings, etc.), and remain firm but cordial in communicating your decision. If Oracle offers concessions to keep your business, evaluate them objectively – but don’t be swayed by unfounded scare tactics.
- Build an Exit Strategy: Even as you enter a third-party support agreement, plan for how you would revert to Oracle or another solution if needed. This might include budgeting for potential back support fees or ensuring application vendor support (for integrated systems) remains intact. Having a contingency plan provides peace of mind.
Checklist: 5 Actions to Take
1. Assess Your Oracle Portfolio – List all Oracle systems and their support status. Identify candidates for third-party support (stable, over-budget, or near end-of-life systems) and those that should remain on Oracle support (critical systems needing upcoming upgrades). Get a clear picture of where a switch makes sense.
2. Review Contracts and Policies – Dive into your Oracle support agreements. Note any notice periods for cancellation and restrictions, such as the matching service levels policy. Ensure you can cleanly terminate support for the chosen products. Engage your legal or contract team to confirm compliance with all terms when making a switch.
3. Evaluate Third-Party Providers – Research and compare at least a couple of vendors (e.g. Spinnaker Support, Rimini Street, others). Send out an RFP or conduct interviews focusing on their Oracle expertise, support model, security approach, and pricing. Verify their claims about cost savings and request client success stories relevant to your industry.
4. Plan the Transition – Once you select a provider, work jointly to create a detailed transition plan. This should include the final Oracle support end date, last patch downloads, knowledge transfer sessions with the new support team, and defining support processes (such as how to open tickets, severity levels, etc.). Communicate the plan to your internal IT staff so that everyone is aware of how issues will be handled going forward.
5. Execute and Monitor – End the Oracle support contracts for the designated systems and officially cut over to the third-party provider. Monitor the initial months closely, tracking response times, issue resolution quality, and any issues that arise. Hold a post-transition review to capture lessons learned. In the future, set up regular operational reviews with the provider to ensure the partnership continues to meet expectations and delivers the anticipated savings.
By following this step-by-step plan, enterprises can confidently transition to an Oracle third-party support provider with minimal disruption.
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 using a third-party support provider like Spinnaker Support legal and allowed by Oracle?
A: Yes. It is completely legal for Oracle license holders to use third-party support. Your Oracle software licenses are perpetual, so you have the right to run the software even if you stop paying Oracle for support. Oracle’s contracts do not forbid obtaining support from elsewhere. However, Oracle will discontinue its support and updates once you leave, and you must abide by your license terms (e.g., not applying Oracle’s new patches). Oracle may not like it, but it cannot cancel your licenses simply because you switched support providers.
Q2: How much money can we save with third-party support?
A: Typically, enterprises save about 50% of their Oracle support fees annually by moving to a third-party provider. For instance, if you were paying $2M per year to Oracle, you might pay roughly $1M per year to the independent provider for equivalent support – a savings of $1M each year. Additionally, there are indirect savings: no forced upgrades (avoiding capital spend on new licenses/hardware) and the ability to negotiate better deals if you ever consider going back to Oracle (since Oracle might offer discounts to win you back). The exact savings will depend on your Oracle support bill and the provider’s pricing, but it is often substantial.
Q3: How are security patches and updates handled if we drop Oracle support?
A: Once off Oracle support, you won’t receive Oracle’s official patches or updates. Instead, your third-party support provider assumes the role of assisting you in addressing any issues. Reputable providers closely monitor Oracle’s security bulletins and known vulnerabilities. For critical threats, they develop their patches, scripts, or workarounds to protect your systems. While these are not Oracle-issued fixes, they can still effectively secure your environment. Providers also guide you in hardening your system configuration to mitigate risks. It’s important to note that you may be running on an older patch level over time; however, many customers find this acceptable when the system is stable and the provider can resolve issues. For major upgrades or new features, you will need to plan separately (e.g., temporarily rejoining Oracle support or accepting the limitations of running without those new features).
Q4: What happens if we need to upgrade or return to Oracle’s support in the future?
A: You retain the right to upgrade your Oracle software, but without an active Oracle support contract, you lack access to the upgrade software and official help. If a major upgrade becomes necessary, many companies either time the move (perform the upgrade while still on Oracle support, then switch) or plan to pay Oracle’s reinstatement fee to briefly resubscribe and obtain the upgrade. Returning to Oracle’s support is possible at any time, but Oracle will charge you for the gap period. This typically means paying the would-have-been support fees for the years you were away, plus a penalty (often 50% of those back fees). It can be costly, so financially, it’s best to stay with third-party support until you truly need Oracle again. Even then, try to negotiate the reinstatement cost. A careful roadmap can minimize surprises here.
Q5: How will Oracle react when we switch – do we risk being audited or losing other privileges?
A: Oracle’s likely reaction is mostly commercial pressure rather than formal retaliation. You might expect Oracle’s account team to increase outreach, offer special deals to entice you back, or warn about compliance. In some cases, companies that left Oracle support feel that Oracle’s auditors became more active with them, so it’s wise to be well-prepared for an audit (which is good practice anyway). You won’t lose your software licenses, but you will lose access to Oracle’s support portal and any free entitlements that come with support (for example, Oracle occasionally offers free training or beta program access to paying support customers). Also, if you have other Oracle contracts (like cloud services or hardware support), Oracle could be less generous in those negotiations because of the perceived slight. However, many enterprises continue to do business with Oracle in other areas just fine after switching a portion of their support to third parties. The key is to remain compliant, professional, and value-driven in your dealings. Over time, Oracle may adjust its approach, particularly as third-party support becomes more prevalent across the industry.
Read more about our Third Party Transition Service.
