Strategies to Reduce Oracle Support Fees Through Third‑Party Support

Strategies to Reduce Oracle Support Fees Through Third‑Party Support

Oracle’s software support fees have become a significant burden for many enterprises, often consuming large portions of IT budgets with annual cost increases and perceived low value.

This article explores how organizations can dramatically reduce Oracle support costs by switching to independent third-party support providers, like Gartner-style strategic guidance.

In the short term, third-party support offers immediate savings of 50% or more on annual fees, freeing up funds that CIOs and CFOs can redirect to innovation and modernization.

In the long term, it provides independence from Oracle’s roadmap and policies, allowing companies to avoid forced upgrades and vendor lock-in while running their Oracle systems stably for as long as needed.

Crucially, enterprises can continue using their licensed Oracle software legally after leaving Oracle’s support, leveraging alternative support for maintenance and issue resolution.

Moving to third-party support should be approached as a strategic decision aligned with overall IT and business goals.

This executive advisory outlines the rising costs and challenges of Oracle’s support model, the emergence of third-party support firms (e.g., Rimini Street, Spinnaker Support, Support Revolution) that deliver robust service at lower cost, and key insights for maximizing benefits and minimizing risks.

We then provide practical solutions, a step-by-step approach to evaluate and execute a support switch, and top recommendations to ensure success. Finally, we include tailored advice for the CIO, CFO, IT Asset Managers, and Procurement professionals to address their concerns.

By carefully planning a transition to third-party support, organizations can achieve short-term cost relief and longer-term strategic flexibility, all while maintaining continuity and support quality for their Oracle environments.

Background and Trends

Oracle’s Technical Support contracts – typically charged at 22% of the original software license price annually – have long been a lucrative and growing revenue stream for Oracle. Many customers face automatic 3-5% (or more) annual uplifts on support fees (Oracle recently even reserved the right to raise support costs to 8% annually).

The result is that support costs often increase inexorably, far outpacing inflation and squeezing IT budgets. At the same time, CIOs often struggle to see commensurate value from these fees.

It’s a common complaint that Oracle’s support provides minimal proactive help, slow response times, and essentially just “break-fix” service with no support for customizations. Oracle’s support business operates at roughly a 94% profit margin, underscoring how little Oracle spends relative to what customers pay.

A related frustration is Oracle’s rigid policies: for example, customers cannot drop support on only a subset of licenses they own for a given product (the “matching service levels” rule), meaning you must pay for support on all licenses in a product family or none.

This all-or-nothing approach, combined with Oracle’s co-terming and bundling support contracts, limits flexibility and often forces companies to keep paying for support on shelfware or unused licenses.

Third-party support providers have emerged over the past decade as a compelling alternative to Oracle’s support. Vendors like Rimini Street, Spinnaker Support, and Support Revolution (among others) specialize in providing significantly lower-cost maintenance and support services for Oracle’s products.

These independent firms offer support for a wide range of Oracle software, including Oracle Database, Fusion Middleware, E-Business Suite (EBS), PeopleSoft, JD Edwards, Siebel, and Hyperion, typically at 50% of Oracle’s equivalent support fees or less.

They also differentiate by providing service-level agreements (SLAs) for response and resolution, dedicated support engineers, and support for customizations and older product versions that Oracle may no longer fully support.

Switching to third-party support has gained momentum as organizations seek to regain control over IT spending and roadmaps. Many enterprises are keeping their Oracle software licenses but exiting Oracle’s support program to cut costs and avoid being forced into upgrades. Economic pressures (such as the need to fund digital transformation or react to financial downturns) have accelerated this movement.

Gartner and other analysts have noted a surge in third-party support adoption across Oracle and other “mega-vendors. ” One report suggests businesses can halve their enterprise software maintenance costs by using third-party support.

Thousands of organizations – including large Fortune 500 firms, public sector agencies, and mid-market companies – have successfully made this switch.

Oracle’s response has been to tighten renewal policies (e.g., introducing mandatory advance notice periods and auto-renewal clauses to lock customers in) and continue legal battles against providers like Rimini Street.

However, those lawsuits, while imposing some process restrictions on providers, have not stopped the rise of third-party support; customers’ fundamental right to seek third-party support has been upheld in court rulings.

In short, many CIOs see third-party support as a viable strategy to reduce costs dramatically while maintaining support coverage, and as a step toward long-term freedom from Oracle’s high-cost, high-control support regime.

20 Key Insights

1. Immediate 50 %+ Support Cost Savings: Switching to a third-party support provider typically yields at least a 50% reduction in annual Oracle support fees. For example, if you’re paying Oracle $1 million annually, a third-party contract might cost around $500k for equivalent (or better) support. Many providers guarantee these savings; some clients even report 60 %+ savings depending on their situation. This frees a significant budget in the first year of switching.
2. Up to 90% Total Maintenance Savings: Beyond the yearly fee cut, companies save on costs like forced upgrades, additional modules, and self-support efforts. Avoiding Oracle-recommended upgrades (often only done to stay supported) means avoiding those project costs. Studies have shown that when factoring in these avoided expenses over several years, organizations can realize total cost reductions approaching 90% of what they would have spent staying on Oracle’s support. In essence, third-party support lets you run existing systems longer without costly changes, dramatically lowering the total cost of ownership (TCO).
3. Perpetual License – Continued Use Legally Allowed: Ending your Oracle support subscription does not mean stopping using the Oracle software. Oracle licenses are generally perpetual, so you retain the legal right to run your software version indefinitely (as long as you comply with license terms). You won’t receive new updates or patches from Oracle after your support expires. Continuing to use Oracle applications and databases after terminating support is fully allowed – thousands of companies do this with third-party support backing them. In short, you’re paying for support services, not the right to run the software (which you’ve already purchased).
4. No Automatic Audit Trigger: A common fear is that Oracle will retaliate or immediately audit a customer who drops Oracle Support. Moving to third-party support does not automatically increase your audit risk. Oracle audits tend to be driven by changes in your usage, new purchases you didn’t make, or sales tactics, not simply because you switched support providers. Oracle can audit any customer (even those still on support) at any time per license agreements, so staying on support is no guarantee against audits. The key is to remain in license compliance (see insight #8) so that an audit, if it comes, finds no issues. Many third-party support customers report no change in Oracle’s audit behavior; some even argue you’re less visible to Oracle once you stop engaging on support renewals.
5. Freedom from Forced Upgrades: Third-party support allows you to avoid or defer upgrades that Oracle might otherwise push for. Under Oracle support, when a product version’s support period expires, Oracle often pressures customers to upgrade to a newer release to continue receiving full support. This can force companies into expensive, disruptive upgrades to stay “supported,” even if the current system is stable and meets business needs. With third-party support, you can run your existing Oracle versions for 5, 10, or even 15+ years with full support coverage, only upgrading on your timeline when it makes sense for the business. No more upgrade-for-support cycles – you regain control of your upgrade strategy.
6. Extended System Lifespan: Relatedly, third-party support providers will support older Oracle versions indefinitely, far beyond Oracle’s official end-of-life dates. Oracle’s “Premier” and “Extended” support for, say, an ERP or database version might end after a few years, after which Oracle offers only Sustaining Support (with no new fixes). In contrast, a third-party support vendor commits to providing bug fixes, security patches, and tax/regulatory updates for your legacy versions as long as you need. You can safely continue operating an Oracle E-Business Suite 12.1 instance or Oracle Database 11g, well past Oracle’s support cutoff, without losing support help. It decouples software life from vendor support life, allowing you to maximize ROI on existing systems.
7. Support for Customizations and Custom Code: Third-party support includes full support for your customizations, configurations, and integrations, which Oracle’s standard support typically does not cover. Oracle Support often deflects issues caused by custom code or modifications, whereas providers like Rimini Street explicitly promise to help troubleshoot and fix issues even if they stem from customizations. This is a huge benefit for Oracle ERP/CRM customers, who often have heavily customized systems – the third-party support team will work on those custom elements as part of the support contract, rather than telling you “that’s not supported.”
8. Compliance After Support – Don’t Download New Oracle Patches: The primary license compliance consideration when leaving Oracle support is to avoid using Oracle’s intellectual property that you are no longer entitled to. Once off support, you should not download or apply Oracle’s new patches, upgrades, or support materials (which require an active support agreement). Doing so would violate Oracle’s support policies and could trigger an audit or legal action. However, you are entitled to keep and use any patches or updates released before your support termination that you legitimately downloaded while under support. It’s recommended that you download the latest available updates for your products right before your support expires to have them on hand if needed later. As long as you don’t illicitly obtain new Oracle patches after your support ends, using third-party support is fully compliant with your license. Third-party providers develop fixes and workarounds to address new issues without relying on Oracle’s code.
9. Oracle’s Audit Stance Remains Unchanged: To reiterate, Oracle’s audit rights and practices remain the same after you switch to third-party support – you aren’t in breach of contract simply by not renewing support. Oracle cannot terminate your licenses or sue you because you left their support; they can only audit for actual license over-use or unauthorized use of support materials. If your license deployment is clean and you follow the rules (per insight #8), an audit (should one occur) will have no findings. Some industry experts note that Oracle often has more insight into your environment when you’re an active support customer (through support requests, etc.). In contrast, after leaving, you have fewer touchpoints with Oracle. The bottom line: don’t let fear of an audit deter you from a support switch – instead, manage the audit risk by ensuring license compliance, which you should be doing regardless of support status.
10. Oracle Sustaining Support vs Third-Party SLA: When Oracle ends Premier/Extended Support for a product version, customers are left with Sustaining Support, essentially maintenance in name only. Oracle Sustaining Support provides no new patches, no regulatory updates, and no bug fixes for outdated versions; it only gives access to the existing knowledge base and the ability to call support, who often can only suggest an upgrade. And yet, customers continue paying the full support fee for this minimal service. Third-party support is a far superior option in such cases: for the same or lower cost, you get active support with SLAs and even custom bug fixes for your older software. In other words, third-party support can effectively replace Oracle’s Sustaining Support with a much more useful support model, keeping legacy systems viable without upgrades.
11. “One-Way Door” – Rejoining Oracle Support Is Costly: Be aware that if you cancel Oracle support and later decide you need to go back to Oracle (say to get back on Oracle’s upgrades), Oracle will charge hefty “reinstatement” fees. Typically, you would have to pay for all the back years of support you missed (often at list price) before Oracle will take you back. This policy makes rejoining Oracle support financially unattractive after a few years away. You should treat the move to third-party support as a long-term or permanent strategy for those licenses. In most cases, organizations that switch rarely return to Oracle support, either staying on third-party until they eventually retire or replace the systems, or negotiating a new license purchase if they absolutely must upgrade using Oracle in the future. Plan as if there is no easy undo button – which isn’t a problem if you’re happy with the third-party service, but it’s a point to consider in your decision. (Notably, Oracle sometimes uses this “one-way door” argument as a scare tactic at renewal time.)
12. Predictable Support Costs (No Inflating Maintenance): Unlike Oracle’s support, which, as noted, tends to rise ~8% annually and can jump even higher, third-party support contracts are generally flat or have very limited increases over time. Many third-party providers lock your fee for several years or cap any annual increase to a small percentage tied to inflation. The result is cost predictability. You won’t get surprise hikes or face sudden jumps when moving into an “Extended Support” phase (Oracle often charges extra for extended support on older versions). This stable cost structure makes budgeting easier and protects your savings year over year. In contrast, staying on Oracle support almost guarantees steadily climbing expenses.
13. Broad Coverage Across Oracle Portfolio: Third-party support vendors cover virtually all major Oracle product lines under one support umbrella. If your enterprise uses Oracle Database, Oracle middleware, and multiple Oracle applications (EBS, PeopleSoft, JD Edwards, etc.), a single third-party provider can support all of those. This contrasts with Oracle, where different product teams might handle each, and some older products might be end-of-support. With one provider supporting the breadth of your Oracle stack, you may also get cross-technology expertise, which is useful since issues often span database, application, and custom code. Moreover, leading third-party providers also support products from other vendors (like SAP, IBM, Microsoft), so they can become a one-stop support shop for multiple platforms. This consolidation can streamline vendor management and simplify support coordination in heterogeneous environments.
14. Improved Service Levels and Responsiveness: A key driver for many who switch is the qualitative improvement in support experience. Third-party support firms pride themselves on providing personalized, prompt service – for example, assigning a dedicated Primary Support Engineer (or a small team) to your account who is deeply familiar with your systems. When you log an issue, you often get an immediate response from a seasoned engineer, not a tier-1 agent reading from a script. Guaranteed SLAs are typically part of the contract (e.g., 15-minute response for critical Priority 1 issues, and defined resolution targets), in contrast to Oracle’s support, where response times can be vague and resolution may be simply a future patch. Clients frequently report faster issue resolution and a more proactive, customer-centric approach with third-party support. Instead of bouncing between multiple Oracle support tiers and waiting days for callbacks, your issues are addressed by an expert who often can find a workaround or fix in a shorter time. Higher satisfaction with support helps IT maintain system uptime and user productivity.
15. Flexibility and Control Over Roadmap: By freeing you from Oracle’s support timeline, third-party support also gives you greater control over your IT roadmap. You can decide if and when to adopt new Oracle releases or migrate to cloud solutions without the looming threat of support deadlines. This independence lets CIOs plan transformations on their schedule. For instance, you might choose to remain on a stable Oracle ERP version for five more years while you evaluate SaaS alternatives – something Oracle would discourage, but third-party support enables. You’re no longer compelled to follow the vendor’s dictated path (like rushing onto Oracle Cloud apps or the newest database version) just to stay supported. In strategic terms, this reduces vendor lock-in and increases your negotiating leverage: Oracle knows you have an alternative. This can encourage Oracle to offer better deals should you consider returning for new purchases.
16. Tax, Regulatory, and Security Updates Still Covered: A concern for application customers (especially in ERP, HR, and finance) is getting updates for changing tax laws, payroll regulations, or financial compliance if Oracle isn’t providing them. Top third-party support providers develop and deliver their own tax and regulatory updates to clients as part of the service. For example, they will provide patches or scripts to update payroll calculations for new tax rates or financial reporting changes mandated by law. This means you comply with legal/regulatory requirements even on older Oracle software. Similarly, for security, third-party firms offer solutions to address vulnerabilities – they might create custom fixes, provide mitigation steps, or even deliver security patches developed in-house, since they cannot access Oracle’s proprietary patches While Oracle often insists only they can provide proper updates, in practice, third-party vendors have a good track record of keeping systems secure and compliant (often supporting customers in highly regulated industries). Ensure that any provider you consider has a program for tax and regulatory updates for your software (most do, for major Oracle ERP products).
17. No Vendor Bias – Support Your Unique Environment: Oracle’s support organization aims to get you to adopt Oracle’s latest products and cloud services. In contrast, an independent support provider has no agenda other than keeping your current systems running smoothly. They will support custom integrations, recommend optimizations or workarounds that aren’t tied to selling you something new, and even help you run Oracle on non-Oracle infrastructures (many support customers run Oracle databases on AWS, for example, which Oracle wouldn’t directly assist with). This neutrality means advice and problem resolution are focused solely on what works best for your IT environment, not what aligns with Oracle’s sales goals. Clients often find that third-party support engineers will go the extra mile to solve issues (even if it means debugging custom code or heterogeneous system issues). In contrast, Oracle support might say “not our product” or “upgrade to the next version” as the answer.
18. Legal Validation of Third-Party Support: After years of litigation, it’s now clear that customers have the legal right to use third-party support for Oracle software. Court rulings (in the Oracle vs. Rimini Street cases) affirmed that nothing in Oracle’s license agreements prevents a customer from hiring an outside firm to assist with support. The caveat is that the third-party provider must operate within the law (e.g., not illegally copy Oracle’s software or patches). The ongoing lawsuits have largely concerned how the provider obtains and uses Oracle’s intellectual property, not customers’ right to seek alternative support. For clients, the takeaway is that using third-party support is lawful. Oracle cannot void your licenses or sue you simply for choosing a different support vendor. The worst Oracle can do is refuse to provide you with new software updates (which is expected when you leave their support). While contentious, Rimini Street’s legal battles have paved the way for everyone else by clarifying the dos and don’ts. So you should feel legitimate in making this choice – it’s an established practice, not a legal gray area.
19. Oracle’s Renewal Tactics – Beware of FUD: When it comes time to renew Oracle support, be prepared for Oracle to employ pressure tactics to dissuade you from cancelling. Common tactics include: spreading FUD (Fear, Uncertainty, Doubt) about third-party support (e.g. “they can’t deliver security patches”, “it’s risky/illegal” – claims which are exaggerated or false), offering short-term discounts or promotions if you stay (e.g. a one-time support fee reduction or cloud credits), or escalating the issue to senior Oracle executives to negotiate with your C-suite. Oracle might also quietly remind you of the costly reinstatement policy to make leaving seem irreversible (insight #11). It’s important not to be swayed by misinformation – do independent research (analyst reports, peer references) to make an informed decision. Oracle likely won’t tell you that many customers have successfully switched and are satisfied. Nor will they volunteer that Oracle’s own Sustaining Support leaves you without new fixes (insight #10) – they may paint worst-case scenarios of going unsupported. By understanding these tactics, you can counter them with facts (for example, knowing that third-party providers support security and legal patches, and that your licenses remain valid). Have a clear internal message about why you’re considering third-party support (e.g., “to reallocate savings to digital transformation while maintaining service levels”) to keep stakeholders confident when Oracle applies pressure at renewal time.
20. Cloud and Modernization Strategy Alignment: Third-party support can be strategic in cloud migration and application modernization plans. If your enterprise intends to migrate away from some Oracle systems to SaaS or other cloud platforms in a few years, staying on Oracle support in the interim can feel like wasted spend – you’re paying full price even as you prepare to decommission the software. Switching to third-party support during this transitional period lets you save money that can fund the migration project, while still getting support on the legacy system until it’s retired. Additionally, third-party support frees you from Oracle’s schedule, so you can delay upgrading an on-prem Oracle application and instead focus on implementing the new cloud solution, without worrying that the old system will become unsupported. Even for those moving to Oracle Cloud Infrastructure or Oracle Fusion apps, third-party support for the legacy Oracle system can provide a cost-effective bridge. In other words, support savings can be redirected to innovation – cloud migration, new analytics, or other modernization, helping build the business case for those initiatives. Just ensure timing is aligned: e.g., if you need Oracle’s assistance to migrate data to a new Oracle SaaS app, plan the support switch afterward, or use a third-party for the tail period when the old system runs read-only alongside the new.

These key insights illustrate that third-party support is not just a cost play but a catalyst for flexibility and strategic advantage. Enterprises should weigh these factors against their own requirements and risk profile.

The next sections outline concrete steps and recommendations for successfully evaluating and implementing a third-party support strategy.

Solutions and Options

Switching from Oracle’s support to a third-party provider requires careful planning.

Below are practical steps and considerations to evaluate your options and execute the transition effectively:

1. Review Your Oracle Support Contracts and Policies:

Conduct a thorough audit of your existing Oracle support agreements. Inventory all support contracts, their renewal dates, and the products covered. Check if your contracts include a notice period for cancellation – Oracle has introduced clauses requiring, for example, 30-90 days’ advance written notice to end support.

Mark these dates to avoid missing a window (failure to give notice might auto-renew your support). Also, identify any license sets and bundling: determine which licenses are tied together under the “matching service levels” rule. If you have multiple Oracle products co-terminated on one support renewal, know that Oracle may require you to drop support for all of them as a group (or they may reprice the remaining ones at a higher rate if you drop some).

It’s crucial to understand the contract rules to plan which support contracts you can terminate without unexpected penalties. Engage your vendor management or legal team to review the Oracle Technical Support Policies document – especially the sections on support termination, partial reductions, and reinstatement fees – so you know your obligations. In summary, get a clear picture of “what, when, and how” you can exit Oracle support for each license set.

2. Assess Internal Support Needs and Usage:

Evaluate how much value you’re getting from Oracle support today and what your ongoing needs are. For each Oracle product, ask: How often do we log support Service Requests (SRs)? What issues do we rely on Oracle, such as critical break/fix, minor how-to questions, and security patches?

You may discover that some systems rarely need vendor support, making them good candidates to switch immediately. Also, examine your patching and upgrade history: if you haven’t applied an Oracle patch or upgrade in a long time (perhaps because things are stable), you might not miss Oracle’s updates soon.

Conversely, identify any upcoming needs that only Oracle could fulfill (for instance, if you absolutely must upgrade to a new Oracle version next year for business reasons, or you need a specific new feature). Those could be scenarios where staying on Oracle support a bit longer might be warranted, or you plan the switch after that event.

Essentially, segment your Oracle portfolio by low-risk systems (stable, no immediate changes planned) versus higher-risk (if any), where Oracle’s direct support might still be crucial in the short term. Most often, organizations find that most of their Oracle estate runs mature, stable products that do not truly require Oracle’s intervention – these are prime for third-party support.

3. Engage Third-Party Support Providers for Evaluation:

Start conversations with one or more reputable third-party support vendors to explore what they can do for you. Many providers offer a free assessment or consultation, where they will review your Oracle environment (at a high level) and discuss how they would support it.

They can help identify any challenges (for example, if you’re using a very unusual product or heavily customized environment, ensure the provider has experience with it). Solicit information on their services and SLAs – e.g., response times, how they handle critical issues, what specific updates (tax, legal, security) they provide for your applications, and how they support customizations.

It’s wise to issue an RFP or compare a couple of vendors regarding capabilities and price. Ask for client references or case studies in your industry or a similar scope – talking to existing customers will give insight into their performance. This engagement also allows the third-party firm to do an initial license check: they might highlight if anything in your Oracle footprint could pose a compliance issue (they often have licensing expertise).

By the end of this step, you should have a clear picture of which third-party provider you favor and how much you’d save. You’ll also learn that “yes, they can support my Oracle systems effectively” – many providers will outline a transition plan and ongoing support plan customized to your needs.

4. Analyze Risk and Plan Mitigations:

With the information in hand, perform a risk-benefit analysis for moving each Oracle system to third-party support. On the benefit side, quantify the savings and any service improvements (better SLA, support for custom code, etc.).

On the risk side, consider any potential downsides: for example, if you stop getting Oracle patches, do you have a mitigation for security? (Providers will usually explain their alternative security measures – include those in your analysis.) If you think Oracle might audit, are you prepared? (We address license cleanup in the next step.) If you have an upcoming project involving Oracle (like a major version upgrade or integration), decide if it should be completed under Oracle’s support or if a third party can handle it.

Identify scenarios where third-party support is low-risk, typically stable systems with infrequent patches, versus higher-risk scenarios, perhaps a mission-critical system that currently receives quarterly security patches.

For any higher-risk area, talk to the provider about how they mitigate that (for example, third-party firms often have their security team and can deliver patches or configuration changes to close vulnerabilities).

Most customers find that the risks can be managed with proper planning or are not as significant as Oracle claims. Document these findings and ensure stakeholders (application owners, security team, etc.) are comfortable with the plan.

Knowing that thousands of other companies, including those in regulated industries, have successfully done this helps alleviate concern – third-party support is a well-trodden path now, not an experimental idea.

5. Decide on Scope: Full vs. Partial Shift:

You do not necessarily have to move all Oracle products to third-party support at once. Based on your analysis, you might choose a phased approach – for example, switch your Oracle E-Business Suite and PeopleSoft ERP support to a third party this year (high savings, low risk), but maybe keep Oracle Database support for one more cycle if you still want Oracle’s patches for now.

Or vice versa, you might drop database support if your databases are stable and behind firewalls, but keep a niche product on Oracle support until it’s retired. Work within Oracle’s contract constraints: if products are on separate support agreements (separate CSI numbers), you have more flexibility to do some now and some later.

If they are bundled, you might need to separate them at renewal (Oracle can sometimes split contracts if requested, or you may have to move all in that bundle). The key is that you have options to tailor the scope – some organizations do a big-bang switch of everything to third-party to maximize savings, while others gradually approach, product by product.

Be sure to coordinate the timing with renewal dates to avoid overlapping costs. It’s not advisable to pay Oracle for support and a third party simultaneously for the same licenses (except perhaps a brief transition overlap if needed).

Also, if you have Oracle Unlimited License Agreements (ULAs) or other special contracts, factor those in – usually, you’d wait until a ULA is certified or expires before moving to third-party, for example. In summary, define exactly which Oracle support contracts you will terminate and when, and which (if any) you’ll retain for now, aligned to your business priorities.

6. Clean Up Licensing and Downloads Before the Switch:

Conduct a license posture cleanup before ending Oracle support. This means verifying that your use of Oracle software is fully within your licensed entitlements. It’s wise to do an internal license audit (or hire a license expert) to check for over-deployment, multiplexing issues, virtualization configurations that Oracle might dispute, etc.

Resolve any compliance gaps before you exit support – either by shedding usage, buying additional licenses, or documenting why you’re compliant – so that if Oracle audits in the future, you are confident in your position.

This preemptive step removes one of Oracle’s potential weapons (non-compliance findings).

7. Coordinate the Transition and Communication:

Plan the handover carefully to avoid any support gap. Ideally, schedule the new third-party support contract to begin immediately after Oracle support expires (e.g., if Oracle support ends on June 30, have the third-party start on July 1).

These providers are very familiar with onboarding new clients who are coming off vendor support; they will typically do a kickoff, collect information about your systems, and sometimes have a short overlap period where they get up to speed (some may offer to start learning your systems even while you’re finishing Oracle support, under NDA, so that they are ready on Day 1).

Internally, prepare your IT staff and end-users for the change. They should know how to contact the new support (e.g., new ticketing portal or phone number) and what types of issues to go to them for (essentially everything you’d go to Oracle for, and possibly more since they handle customizations).

It’s often useful to do a dry run or orientation with the new support provider – for example, have them on standby during a maintenance event or have them review a few past tickets to demonstrate their problem-solving. Meanwhile, you’ll need to formally communicate your intent not to renew specific support contracts with Oracle. Follow the process in your contract (usually an email or portal submission to the Oracle Support Renewals team by the notice deadline).

After cancellation, Oracle may reach out (as mentioned, possibly with retention offers or questions why). It’s usually sufficient to state that you’ve made a strategic decision not to renew those support services. Be polite but firm. You do not have to disclose that you’re going to a third party (though Oracle will likely assume it).

A unified message – e.g., “We are optimizing our support spend and have alternative support arrangements” – can help diffuse aggressive sales tactics. Once the switch date arrives, ensure all Oracle support accounts are transitioned (Oracle will terminate your access to support systems) and your team fully engages with the third-party provider for any needs.

Following these steps, organizations can confidently navigate the shift to third-party support. The options you craft (which products to switch, timing, and provider choice) should align with your business priorities, risk tolerance, and IT roadmap.

Many have found that third-party support expands as confidence grows, even if initially used for a subset of systems.

The next section provides top recommendations to maximize success and value in this journey.

Top 10 Recommendations

1. Inventory and Track Support Contracts:

Create a detailed list of all Oracle support contracts, including contract numbers (CSI), the products and license counts covered, annual costs, and renewal dates. Mark critical dates (especially any notice deadlines for cancellation) on your calendar. This inventory is the foundation for planning an exit strategy and avoiding unwanted renewals.

2. Analyze Cost vs Benefit:

Perform a cost-benefit analysis for switching each Oracle product to third-party support. Calculate the expected savings (at least 50% of support fees, plus avoided upgrade costs) against any costs (such as the third-party fee and one-time transition costs). Include qualitative benefits like improved service and strategic flexibility. Use this analysis to build an internal business case demonstrating the ROI of the move.

**3. Stop Automatic Renewals and Negotiate Manually: Disable any auto-renewal settings

in Oracle’s renewal portal or contracts, so that support will not renew by default without your explicit approval. Oracle’s auto-renewal is meant to trap you into paying. Instead, opt for manual renewals to intentionally decide to renew or cancel each year. This forces Oracle reps to engage, letting you negotiate or terminate on your terms. Never let a support contract renew “silently.”

4. Notify Oracle of Non-Renewal on Time:

When you switch, send Oracle the required cancellation notice well in advance. Oracle often requires 30-90 days written notice before the support period ends. Missing this can lock you in for another year, so execute the notice according to the contract (usually an email or formal letter to the Oracle Support Renewal team). Keep proof of submission. If you know the notice period, ask Oracle or check your last renewal agreement online.

5. Engage a Trusted Third-Party Support Partner:

Do your due diligence and select a third-party support provider that fits your organization. Evaluate their experience with your specific Oracle products and their support model (SLA commitments, support hours, global coverage), and get references. Once chosen, partner closely with them in planning the transition—they can provide templates and guidance since they’ve done it many times. Ensure a contract is signed with them to commence when Oracle support ends, so there’s seamless coverage.

6. Reallocate Savings to Innovation:

Proactively plan how to use the funds freed from support savings. A strong recommendation is to channel a portion of the saved dollars into modernization projects – for example, cloud migrations, application upgrades (when you choose to do them), or new digital initiatives waiting for budget.

By tying support savings to innovation, you improve IT capabilities and make it easier to justify the move to third-party support in discussions with executives (especially the CFO). Essentially, make support exit a funding source for strategic projects.

7. Prepare for Oracle Pushback – Have Your Messaging Ready:

Anticipate that Oracle will likely respond with arguments or incentives to dissuade you. Craft a clear message for internal stakeholders and Oracle reps about why you are making this change. Emphasize that this is a strategic decision to optimize costs and that you’ve ensured continuity of support through a reputable provider.

If Oracle offers discounts or threatens dire consequences, be ready to counter with facts (e.g., “Our licenses remain valid, we have security covered, and the savings are better invested in the XYZ project”).

It’s important to get executive buy-in early (CIO, CFO, etc.), so that if Oracle contacts your leadership, everyone is on the same page. With solid reasoning and stakeholder support, Oracle’s pressure tactics are less likely to derail your plan.

8. Segregate and Simplify Contracts (if possible):

If you are not switching all products simultaneously, try to decouple bundled contracts. Work with Oracle (ideally before you give notice, perhaps during a prior renewal) to separate products onto distinct support agreements.

This will give you flexibility to drop some while retaining others. For example, database licenses could be on one CSI and applications on another. Avoid multi-product bundles in the future.

This way, you can execute a phased third-party support adoption without violating Oracle’s “all-or-nothing” policy within a bundle. Having a clean separation also simplifies future license negotiations.

9. Verify License Compliance and Document Everything:

Conduct a thorough license audit and resolve compliance issues before leaving Oracle support. If you find any usage that exceeds entitlements, address it (either by reducing usage or negotiating licenses while you still have Oracle’s ear). After that, maintain detailed documentation: keep copies of all your Oracle license agreements, proofs of purchase, and records of Oracle’s correspondence.

Post-support, you want to be well-prepared to demonstrate compliance in case of an audit. Also, record what patches and updates you downloaded and when.

This documentation ensures that if Oracle ever challenges you, you can show that you have only used legitimately obtained materials. Essentially, Oracle support should be left with a “clean bill of health” and a binder of evidence to back it up.

10. Treat Third-Party Support as Part of Your IT Strategy:

Finally, integrate third-party support into your broader IT strategy and governance. Assign an owner (maybe IT Operations Manager or Vendor Manager) to oversee the relationship with the new provider, just as you would with any key IT vendor.

Track support performance via agreed-upon metrics (response times, issue resolution quality) and hold periodic service reviews. Also, keep an eye on your long-term application roadmap: For systems currently on third-party support, plan how long they will remain in use and what the eventual disposition will be (modernize, replace, retire).

Use the breathing room that third-party support gives you to make thoughtful, business-driven decisions on these systems’ futures, rather than reactive decisions driven by expiring support. Essentially, make third-party support a tactical tool within your portfolio management – it can buy you time, save money, and increase leverage. Treat it with the same rigor and strategic viewpoint as any major IT initiative.

Following these recommendations can help organizations achieve significant cost reductions and strengthen their IT strategy. Each recommendation reinforces that dropping Oracle support in favor of a third party is a manageable, strategic move when done with proper diligence and planning.

Role-Specific Considerations

Different organizational stakeholders will have distinct priorities regarding reducing Oracle support fees.

Below are tailored insights and focus areas for each role to ensure the initiative addresses their concerns:

CIO:

• Align with IT Strategy: Position the support switch to enable your broader IT vision (e.g., funding digital transformation, enabling cloud migration, or freeing resources for innovation). Emphasize how it helps avoid vendor lock-in and gives IT more control over the application roadmap.
• Avoid Disruptive Upgrades: Highlight that third-party support lets IT avoid forced upgrades purely for support reasons. This means fewer large-scale upgrade projects consuming resources. The CIO can reassure the business that you will only upgrade when it delivers value, not because Oracle’s timeline dictates it.
• Maintain Stability and Quality: Ensure the CIO that system stability remains paramount. Third–party providers are committed to keeping the existing systems running smoothly. Service levels are contractually guaranteed (unlike Oracle’s). The CIO should monitor support SLAs and can expect equal or better uptime and incident resolution performance. Overall, frame this as a strategic move to maintain high service quality at a lower cost, enabling strategic innovation investments.

CFO:

• Quantify Savings and ROI: The CFO focuses on the financial impact. Prepare clear numbers showing the immediate cost savings (e.g., “50% off support fees equals $X million annually”) and the multi-year benefit. Include avoided costs (like not spending on hardware or consulting for upgrades). Show how these savings dramatically improve the total cost of ownership of the Oracle systems.
• Budget Reallocation: Explain how support savings will be reallocated to strategic projects or the bottom line. The CFO will appreciate that you’re turning a run-rate cost into funding for innovation or cost reduction elsewhere. For example, “We will use the $500k/year saved to accelerate our cloud migration, which has its ROI.” This turns a cost-cutting exercise into a value-creation story.
• Handle Oracle’s Retention Attempts: Inform the CFO that Oracle might reach out with special deals or scare stories. CFOs may get calls from Oracle executives offering a big discount if they renew, or warning of compliance risks. Ensure the CFO is prepared with the fact that thousands of companies have done this successfully and that the legal right to third-party support is established. If Oracle offers a last-minute discount, the CFO should weigh it against the long-term independence gained by switching – a short-term rebate may not be worth remaining in the costly support trap. Essentially, equip the CFO to stand firm, knowing the long-term financial advantage is on your side.

IT Asset Management (ITAM):

• Verify Entitlements Pre-Switch: ITAM should thoroughly audit and confirm all Oracle license entitlements and deployments. This ensures you know exactly what you own and are using. True-up any discrepancies before the switch. ITAM can produce a compliance report that gives leadership confidence that “we are in good shape to leave Oracle support.”
• Understand Contractual Terms: ITAM professionals should investigate the support contract details, such as the matching service levels policy, any attached discounts, and the termination terms. They will be key in advising if, for example, dropping one product’s support could affect discounts on another. Evaluate bundling impacts and plan accordingly (as noted, sometimes separating contracts is needed). ITAM should also manage the formal process of terminating support (sending notices and tracking acknowledgments from Oracle).
• Track Usage and Patches: Post-switch, ITAM should maintain records of which patches/updates were last applied and ensure no new Oracle-provided patches are introduced without a support agreement. They can also track how often issues arise and how the third-party provider is handling them. ITAM becomes the guardian of compliance and the point of contact for any audit inquiries. By staying organized and keeping documentation (licenses, proof of support end dates, etc.), ITAM helps protect the organization when dealing with Oracle after the switch.

Procurement:

• Orchestrate the Exit Timing and Agreements: Procurement should manage the notification timeline and execution of new contracts. This includes sending the formal cancellation notice to Oracle (on company letterhead if needed) and ensuring Oracle confirms receipt. It also involves finalizing the contract with the third-party vendor, ensuring it aligns so there’s no gap in service. Procurement can schedule the new provider’s start date exactly when Oracle’s ends and negotiate favorable payment terms (perhaps multi-year lock-in of rates).
• Competitive Sourcing: Leverage Procurement’s expertise to run a competitive evaluation or RFP among third-party support providers. Even if you have a preferred vendor, getting multiple quotes can ensure you get the best price and service commitments. Procurement can define the service requirements and ensure the providers address all key points (SLA, liability, scope of support, etc.) in their proposals. This process will add rigor and transparency to the decision, which executives appreciate.
• Use Negotiation Leverage: The mere option of third-party support gives Procurement strong leverage in any last discussions with Oracle. If Oracle returns with a retention offer, Procurement should compare it against the third-party offer. Often, Oracle still cannot match the savings, or might bundle something you don’t truly need. Procurement can tactfully let Oracle know that the organization is serious about alternative support – sometimes this might yield additional concessions (for example, Oracle might offer a license discount on a separate purchase if you retain support). However, be cautious: Oracle’s tactics could delay your decision past the notice deadline. The procurement’s role is to stay firm on the timeline and ensure that any negotiation doesn’t accidentally result in the cancellation window being missed. Ultimately, once the decision is made, Procurement executes it smoothly and keeps relationships professional, since you may still deal with Oracle for licenses.

By addressing the concerns of each role in this manner, you create a united front. The CIO sees strategic alignment, the CFO sees financial benefit, ITAM ensures compliance, and Procurement handles the execution and leverage.

This cross-functional approach greatly increases the likelihood of a successful transition away from Oracle’s high-cost support and towards a more efficient third-party support model.