Third party Oracle support – Savings or a Trap?

Third-Party Oracle Support – Savings or a Trap?

Third-party support for Oracle promises big savings. But are those savings worth the tradeoffs?

CIOs under pressure to reduce Oracle support costs must weigh the pros and cons.

This guide breaks down 12 steps to help you decide whether third-party Oracle support is a savvy strategy or a costly trap.

Step 1 – Why Oracle Support Costs Keep Rising

Oracle’s support fees increase every year without exception. It’s built into the contract and happens automatically.

The result is a cost that compounds over time and squeezes IT budgets.

License discounts don’t truly reduce support costs. Oracle often calculates support on full list prices, negating those discounts.

Many companies also pay support on “shelfware” – licenses they own but don’t use. This further inflates the annual cost.

In short, Oracle’s support model is engineered to grow revenue, not to adjust downward with usage.

Checklist:

• ✔ Annual uplift applies automatically.
• ✔ Uplift compounds each year.
• ✔ Discounts do not lower support.
• ✔ Shelfware inflates cost.
• ✔ Support funds Oracle margins.

Expert Insight: Oracle support is designed to grow, not adjust.

Step 2 – What Third-Party Oracle Support Actually Is

Third-party Oracle support is an independent alternative to Oracle’s own support.

Instead of renewing Oracle maintenance, you hire an outside firm to support your Oracle software. Rimini Street is one well-known provider of such third-party Oracle support.

These providers handle issues and fixes for the versions you already run. They won’t force you to upgrade just to stay supported.

You typically get named support engineers who know your environment. They even help with customizations that Oracle’s support would decline.

Pricing is flat and predictable, without the automatic yearly increases Oracle imposes.

Checklist:

• ✔ Support for existing versions.
• ✔ No forced upgrades.
• ✔ Named support engineers.
• ✔ Customization coverage.
• ✔ Flat annual pricing.

Expert Insight: Third-party support prioritizes stability over change.

Step 3 – How the Savings Actually Work

Switching to a third-party provider yields immediate cost relief. Annual support fees often drop by about half right away.

No annual uplift means those savings grow over time. With a flat fee instead of 3–4% yearly hikes, the gap widens each year in your favor.

You also stop paying for shelfware or unused licenses. Third-party contracts let you exclude what you don’t need, so that waste disappears.

Overall, your IT budget becomes more predictable. Money once locked into Oracle support can be redirected to other priorities or saved.

Checklist:

• ✔ Costs often drop by half.
• ✔ No annual uplift.
• ✔ Shelfware cost disappears.
• ✔ Budget predictability improves.
• ✔ Cash is freed.

Expert Insight: Savings increase every year after switching.

Step 4 – What You Give Up When Leaving Oracle Support

Leaving Oracle support means losing certain vendor benefits. You will no longer receive new patches or security updates from Oracle.

No major version upgrades will be available either. You must stay on your current versions (which the third-party will support) until you rejoin Oracle support.

You also lose Oracle’s escalation path for critical issues. If a serious bug requires Oracle’s internal intervention, that door is closed.

There is no growth in entitlements or added features. And importantly, your license compliance requirements remain in full force despite leaving Oracle support.

Checklist:

• ✔ No new Oracle patches.
• ✔ No major version upgrades.
• ✔ No Oracle escalation path.
• ✔ No entitlement growth.
• ✔ Compliance still applies.

Expert Insight: These tradeoffs matter most in fast-changing environments.

Step 5 – When Third-Party Support Makes Sense

Third-party support works best in stable environments. If your Oracle systems are steady and meeting needs, they are good candidates.

Older, well-established systems with no urgent need for upgrades are prime for independent support.

Minimal upgrade plans mean you won’t miss Oracle’s new features for a while. And the higher your current support costs, the more appealing a 50% cut becomes.

Organizations with strong internal controls also thrive with third-party support. They manage usage and compliance themselves.

In such cases, service quality remains high, and the savings are worthwhile.

Checklist:

• ✔ Stable workloads.
• ✔ Older systems.
• ✔ Minimal upgrade plans.
• ✔ High support cost.
• ✔ Strong internal controls.

Expert Insight: Stability determines success more than savings.

Step 6 – When Third-Party Support Is a Bad Fit

Not every situation suits third-party support. In some scenarios, the risks of third-party Oracle support outweigh the savings. If your business is rapidly changing or growing, think twice.

Frequent upgrades or the need for the latest Oracle features favor staying with Oracle support.

Heavy cloud migration plans can also reduce the benefit of switching to an interim support solution.

Weak license governance is another warning sign. If you lack discipline in tracking licenses, leaving Oracle support could amplify compliance risk.

Highly regulated industries may mandate official vendor patches for security. In such cases, third-party support might conflict with regulatory demands.

Checklist:

• ✔ Rapid growth.
• ✔ Frequent upgrades.
• ✔ Heavy cloud migration.
• ✔ Weak license governance.
• ✔ Regulatory patch dependency.

Expert Insight: Most failures come from timing, not provider quality.

Step 7 – Compliance and Audit Reality

Your license obligations stay the same after moving to third-party support. Oracle can still audit your usage at any time.

You must remain vigilant about compliance. Track your Oracle deployments and ensure you never exceed your licensed metrics.

Keep evidence of your license entitlements and usage up to date. If audited, you need to prove you are fully compliant without Oracle’s help.

Without Oracle’s oversight, all license management falls on you. Strong governance and regular internal audits become critical.

Choosing independent support does not grant any immunity from Oracle’s enforcement. You must be extra prepared and disciplined.

Checklist:

• ✔ Licenses remain enforceable.
• ✔ Audits can still happen.
• ✔ Usage tracking is required.
• ✔ Evidence must be clean.
• ✔ Governance becomes critical.

Expert Insight: Support choice does not remove compliance obligations.

Step 8 – Negotiation Leverage Explained

Bringing third-party support into the picture changes your leverage with Oracle. Suddenly, Oracle has to earn your business instead of assuming your renewal.

Even hinting at a switch can make Oracle more flexible. They might offer discounts or incentives to keep your support contract.

Your dependency on Oracle drops once a credible alternative exists. Renewal negotiations often improve as Oracle competes to retain you.

In short, having a choice shifts the power balance. Oracle must respond with better terms instead of sticking to its standard playbook.

Checklist:

• ✔ Support revenue is threatened.
• ✔ Dependency decreases.
• ✔ Oracle must compete.
• ✔ Renewal terms improve.
• ✔ Power balance shifts.

Expert Insight: Choice changes Oracle behavior more than arguments.

Step 9 – The Return to Oracle Question

Many fear that leaving Oracle support is irreversible. In truth, you still own your licenses and can return to Oracle support if needed.

Oracle may demand back payments and a reinstatement fee to resume support. But in practice, these fees are negotiable, especially if Oracle wants to win back your business.

Rejoining Oracle support later is treated like a new deal.

That can actually improve your leverage. Oracle is often eager to welcome you back as a customer, which works in your favor.

In short, returning is possible and often easier than Oracle’s scare tactics imply. Don’t let fear of a difficult return keep you from saving money now.

Checklist:

• ✔ Licenses remain owned.
• ✔ Support can be repurchased.
• ✔ Fees are negotiable.
• ✔ Net new dynamics apply.
• ✔ Leverage often improves.

Expert Insight: Fear of return benefits Oracle, not customers.

Step 10 – Hybrid and Overlay Models

Some companies use a hybrid model to balance risk and savings. They keep Oracle support for certain critical systems and use third-party support for the rest.

For example, you might leave an important production database under Oracle support for official patches, while moving other stable applications to a third-party provider.

This addresses any compliance or feature gaps while still keeping Oracle for the few areas that need it. Meanwhile, it significantly cuts costs across the majority of your portfolio.

A hybrid approach works best in mature IT environments with a mix of needs. It does require managing two support relationships, but it can optimize both cost and service quality.

Checklist:

• ✔ Third party as primary.
• ✔ Oracle used selectively.
• ✔ Compliance gaps covered.
• ✔ Spend controlled.
• ✔ Service quality maintained.

Expert Insight: Hybrid models fit mature estates best.

Step 11 – A Practical Decision Framework

Switching to third-party support should never be a rash decision. Develop a structured framework to evaluate it.

Start by assessing the stability of each target system. Also, review its future roadmap. If you need new features soon, that system may not be a good candidate.

Consider your organization’s risk tolerance. Some are comfortable with the trade-offs, while others are more cautious.

Model the costs over five years with and without Oracle support. Make sure the financial case holds up long-term, not just in year one.

Finally, be honest about your license governance maturity. If you have strong processes to manage licenses and audits, you are better positioned to succeed outside Oracle’s umbrella.

If all these factors check out, third-party support can be a sound strategic move. Skipping any of this homework could lead to regrets later.

Checklist:

• ✔ Assess stability.
• ✔ Assess roadmap.
• ✔ Assess risk tolerance.
• ✔ Model five-year cost.
• ✔ Validate governance maturity.

Expert Insight: This decision should never be rushed.

Step 12 – Final Verdict

Third-party Oracle support can deliver real savings. It cuts costs and may even improve certain aspects of service, such as personalized support.

However, it is not a magic bullet and it comes with risks. Those limitations are very real.

Ultimately, fit is everything. For some organizations, this route is a game-changer; for others, it could be a misstep.

The best outcomes come from strategy, not fear. When chosen for the right reasons, independent support empowers you as a customer and puts pressure on Oracle to improve.

In the end, having the choice creates control. It’s about taking back power over your Oracle landscape.

Checklist:

• ✔ Savings are real.
• ✔ Risks exist.
• ✔ Fit matters most.
• ✔ Strategy beats fear.
• ✔ Choice creates control.

Expert Insight: Third-party support is a strategic tool, not a shortcut.

7 Expert Takeaways

• Oracle support costs rise by design.
• Third-party support delivers predictable savings.
• Stability determines success.
• Compliance discipline is mandatory.
• Negotiation leverage improves.
• Returning to Oracle remains possible.
• Strategy matters more than vendors.

Related articles

• Returning to Oracle After Third-Party Support
• Oracle vs Rimini Street: A Legal Battle
• Third-Party Support for Oracle Middleware and Apps
• Is Oracle Third-Party Support Legal?
• Negotiations with Oracle Third-Party Support Providers
• Major Oracle Third-Party Support Providers
• Support Revolution: Oracle Third-Party Support Alternative
• Spinnaker Support and Oracle Third‑Party Support
• Rimini Street vs. Oracle: The Truth About Third-Party Support
• Oracle Third-Party Support Security: Myths, Measures, and Best Practices
• Pros and Cons of Oracle Third-Party Support
• Cost Savings with Oracle Third-Party Support
• Oracle PeopleSoft Support By Third Party
• Transitioning to Oracle Third-Party Support: A CIO’s Guide
• Reducing Oracle On-Premise Support Fees: A CIO’s Guide
• Third-Party Support vs. Oracle Premier Support: A Guide for CIOs and SAM Managers
• Strategies to Reduce Oracle Support Fees Through Third‑Party Support
• Maintaining Oracle License Compliance on Third-Party Support: Audit & License Management Guide
• Negotiating Third-Party Oracle Support Contracts: Key Considerations for CIOs and Procurement
• Avoiding Common Pitfalls When Switching to Oracle Third-Party Support
• Returning to Oracle After Third-Party Support

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