Third party Oracle support – Savings or a Trap?

Oracle third-party support is:

• Cost-Saving: Offers substantial savings compared to Oracle’s official support.
• Contract Termination involves terminating the technical support agreement with Oracle but retaining the right to use Oracle software.
• Ideal for Certain Businesses: This is mainly beneficial for companies planning to replace Oracle-based solutions or seeking cost reductions in Oracle support.
• Requires Independent Review: Customers should review their Oracle licensing independently.
• Legally Permissible: Legal as long as companies adhere to Oracle’s licensing terms and conditions.
• Need for Expert Guidance: The complexity of contracts, policies, and licensing necessitates expert assistance.

Download our free white paper to determine if Oracle third-party support is right for your organization and explore best practices for transitioning from Oracle.

What is Oracle Third-Party Support?

Oracle third-party support refers to maintenance and technical assistance for Oracle software provided by independent companies rather than Oracle Corporation​.

These third-party vendors service a range of Oracle products, including databases, middleware, and enterprise applications, to help keep systems stable and secure outside of Oracle’s official support channels.

In practice, this means an organization with Oracle Database or applications like E-Business Suite (EBS), PeopleSoft, JD Edwards, or Siebel can contract a non-Oracle firm to receive help desk support, bug fixes, and other maintenance services.

Typical Services Provided: Third-party support providers aim to replicate and often augment the kind of assistance Oracle offers, minus new product upgrades.

Key services include:

• Technical troubleshooting and issue resolution: Handling day-to-day support tickets, error diagnostics, and break-fix issues across Oracle products. Third-party teams specialize in Oracle systems and offer hands-on support to keep them running smoothly​.
• Custom bug fixes: While third-party providers cannot alter Oracle’s proprietary source code, they develop custom patches and workarounds to resolve software bugs​. For example, if an Oracle EBS module has a known glitch, the third-party support team can provide a fix or script to address it, even if Oracle no longer supplies an official patch.
• Performance and tuning services: Many independent support firms assist with performance optimization – tuning databases and applications to improve system efficiency and throughput​. This is often beyond standard Oracle support, aiming to ensure the Oracle system continues to meet business requirements over time.
• Security advisories and patch management: Third-party providers monitor security vulnerabilities affecting Oracle software and help clients mitigate risks​. They cannot deliver Oracle’s official security patches, but they offer guidance or custom fixes to protect systems. (For instance, if a new Oracle database vulnerability is disclosed, the third-party support team may recommend configuration changes, network defenses, or a custom patch to close the hole.)
• Flexible support models: Unlike Oracle’s one-size-fits-all support, third-party support is often more personalized. Vendors may offer 24/7 support options, assign a dedicated account manager to each client, and tailor Service Level Agreements (SLAs) to the organization’s needs​. This flexibility means support can be aligned with critical business priorities – for example, faster response times for mission-critical systems or support for custom configurations that Oracle’s standard support might exclude.

Read Transitioning to Oracle Third-Party Support: A CIO’s Guide.

Pros of Third-Party Support

Choosing third-party support for Oracle software can offer several advantages for customers, especially those looking to optimize costs or extend the life of their systems.

Notable benefits include:

• Significant Cost Savings: Third-party support is typically much cheaper than Oracle’s annual maintenance fees. Companies often save 50% or more compared to Oracle’s support costs​. These savings can free up budget for other initiatives or IT investments. Example: A mid-sized financial services company found that Oracle’s support fees were consuming a large portion of its IT budget. By switching to a third-party provider, they cut support costs in half and reinvested those funds in new cybersecurity projects.
• Extended Support for Legacy Systems: Third-party vendors will support older versions of Oracle products indefinitely, even after Oracle has ended official support. This allows organizations to continue using stable, legacy versions of databases or ERP applications without forced upgrades​. In other words, you can avoid costly migrations just to stay supported – a third-party provider will keep, for example, an Oracle EBS 11i or an older PeopleSoft release running and compliant with regulations well past Oracle’s end-of-support date.
• Personalized and Responsive Service: Independent support firms pride themselves on customized service. They often assign dedicated engineers who become intimately familiar with your Oracle environment and customizations​. Support interactions can be more responsive and less bureaucratic than logging tickets with Oracle. Clients also have the flexibility to negotiate SLAs that meet specific requirements (e.g., 30-minute response to critical issues, support for custom code), which is generally not possible with Oracle’s standard support packages.
• No Vendor-Driven Upgrade Pressure: Oracle’s sales and support model often incentivizes customers to upgrade to the latest versions or cloud offerings. Third-party support providers, by contrast, have no stake in selling new Oracle licenses. They will support the version you are running as long as you need​. This eliminates the frequent pressure to undertake disruptive upgrades or migrations just to retain support. Businesses can upgrade on their timeline (or not at all) when it makes sense strategically, not just because support is expiring.

Cons of Third-Party Support

Third-party Oracle support encompasses a wide array of services to help businesses maintain and optimize. On the other hand, moving away from Oracle’s official support carries some trade-offs and risks. It’s important to weigh these cons before deciding:

Licensing and Compliance Responsibility:

Oracle’s support includes guidance on license compliance and the right to use certain features. In a third-party support scenario, compliance oversight is entirely the customer’s responsibility. Third-party providers do not manage your Oracle licensing or ensure you stay within bounds​. If Oracle audits your company, any licensing shortfall is your sole responsibility.

This means before and after switching, you must be vigilant about staying compliant (proper user counts, processor licenses, not using features you didn’t pay for, etc.). Non-compliance can lead to financial penalties, and third-party support won’t shield you from Oracle’s audits​. (That said, some third-party vendors do offer advice to help clients remain compliant, but it’s ultimately up to you to avoid violations.)

No Access to Oracle’s Updates and New Features:

Once you are off Oracle support, you no longer receive Oracle’s official patches, security updates, and version upgrades. Third-party providers cannot download or distribute Oracle’s proprietary updates, so any new enhancements or bug fixes from Oracle are off the table. This can introduce security concerns if newly discovered vulnerabilities emerge that only Oracle’s patch can fully fix.

Companies must rely on the third party’s custom fixes or mitigations for such issues, which might lag or be less complete than an official patch​. New features and improvements, such as a new Oracle Database release or an EBS functionality update, will also not be available through third-party support.

Certain Fixes Are Limited (No Source Code Access):

Because independent providers cannot modify Oracle’s actual source code, they might be unable to provide a perfect fix for some deep technical issues​. Instead, they will offer workarounds. For most problems, this is sufficient, but in rare cases, a bug might not be fully resolvable without Oracle’s intervention.

Customers need to understand that third-party support can address most issues, but there is a limitation on code-level changes (an inherent restriction to avoid violating Oracle’s intellectual property rights​.

No Direct Oracle Backing or Escalation:

With Oracle Premier Support, if a severe product flaw or critical outage occurs that only the software vendor can address, Oracle’s engineers would ultimately get involved. With third-party support, Oracle is not involved.

There is no ability to escalate a problem to Oracle’s development team. In practice, this means if there were a show-stopping bug in the Oracle software itself, you would either wait for the third-party to develop a fix or potentially have to re-contract with Oracle in an emergency. For companies in highly regulated or uptime-critical environments, this lack of an Oracle safety net can be a concern.

Read Third-Party Support vs. Oracle Premier Support: A Guide for CIOs and SAM Managers.

Is Third-Party Support Legal?

Yes – it is legal for Oracle customers to use third-party support as long as they adhere to their license agreements. Oracle’s standard license terms allow customers to seek support from outside firms, provided that they do not violate any intellectual property rights.

U.S. courts have affirmed the legality of third-party software support in principle. For example, in the long-running Oracle v. Rimini Street litigation, the federal court explicitly held that nothing in Oracle’s customer licenses forbids hiring a third party like Rimini to provide software updates or fixes​.

This means as a customer, you have the right to maintain your Oracle systems with an external support provider performing the same kinds of maintenance tasks you could do in-house.

However, there are important legal boundaries. The support provider must only use software and materials that the customer is entitled to under their license. Past cases have highlighted what is not allowed.

A notorious example was Oracle vs. TomorrowNow (SAP), where Oracle sued SAP’s subsidiary for illegally downloading Oracle’s support materials to service SAP’s clients. That case ended with significant damages being awarded to Oracle. Similarly, in the Oracle vs. Rimini Street case, Oracle alleged that Rimini copied Oracle software and support libraries in ways that exceeded what customer licenses permitted.

The outcome was a mixed verdict: Rimini Street was found to have infringed Oracle’s copyrights and paid damages, but crucially, the court also confirmed that third-party support is legal if conducted within the bounds of the license rights​.

In other words, the customer’s right to use their licensed Oracle software includes the right to have a contractor or third party assist them. Still, that third party cannot use Oracle’s intellectual property in an unauthorized way (such as using one customer’s software environment to support another customer, which was one infringing practice in the Rimini case).

The takeaway is that as a customer, you will not violate your contract simply by hiring an independent support firm. Reputable third-party providers now operate with methods that respect Oracle’s IP. Oracle cannot cancel your license for using third-party support.

That said, you must remain compliant with your license terms (e.g., only using properly licensed copies of the software, not sharing Oracle’s proprietary patches beyond what you’re allowed, etc.).

All major third-party providers emphasize that they follow the law closely; for instance, they avoid sharing software updates across clients and perform support using tools and documentation each client is authorized to have.

By staying within these lines, third-party support has proven to be legally sound – a fact underscored by over a decade of case law and the continued operation of companies like Rimini Street and Spinnaker Support.rt, thereby avoiding possible legal disputes.

How to Move to a Third-Party Support Provider:

Switching from Oracle’s support to a third-party provider requires planning and due diligence.

Below are the typical steps involved, along with precautions to ensure a smooth transition:

1. Assess Your Support Needs and Pain Points: Evaluate what you currently use Oracle support for and identify where it falls short. Are you mainly logging technical incidents? Do you need frequent patches for regulatory compliance? Or are you paying for support but using it rarely? Identifying the key services you require (and the problems with the status quo) will help determine if third-party support is a good fit and what scope of services to negotiate.
2. Research and Select a Qualified Vendor: Not all third-party support providers are the same. Investigate the leading companies and choose one that best matches your requirements. Factors to consider include their experience with your specific Oracle products, reputation in the market, client testimonials or case studies, and, of course, pricing. For instance, if you run Oracle EBS and PeopleSoft, ensure the provider has expertise in both. Most organizations will solicit proposals from at least Rimini Street and Spinnaker Support, the two largest players, to compare their offerings. Take your time to vet each provider’s capabilities, such as how they handle security fixes or support customizations.
3. Thorough License and Contract Review: Before canceling Oracle support, perform a comprehensive review of your Oracle licensing and contracts​. Verify that you are fully compliant with license terms (number of users, processors, modules in use, etc.). If you find any gaps (for example, usage beyond what you purchased), it’s often wise to resolve those with Oracle before moving to third-party support. In some cases, that might mean purchasing additional licenses or adjusting deployments. Ensuring a clean compliance state removes a major risk of Oracle auditing issues later. Precaution: If you have an Unlimited License Agreement (ULA) with Oracle, you must certify the ULA (finalize the deployment counts) by its end date before switching to third-party support. Failing to do so could leave your license usage undefined and legally problematic.
4. Archive Oracle Support Materials: While still under Oracle support, proactively download and archive all relevant patches, updates, documentation, and knowledge base articles for your products. This is critical because once your Oracle support expires, you will lose access to Oracle’s support portal. Ensure you have the latest available patches for your system and a library of technical documentation. Third-party providers often help create a comprehensive archive of these materials​ , so that both you and the new support team have everything needed to maintain the system in the future.
5. Establish a Transition Plan with the New Provider: Work closely with the chosen third-party support firm to map out the switch-over process​. This transition plan should include clear timelines (e.g., the Oracle support contract expires on X date, and new support begins on X+1 date), roles and responsibilities (who will perform what tasks during the cutover), communication channels, and any necessary onboarding tasks. Typically, a few weeks before Oracle support ends, you will begin engaging with the third-party support team so they can learn about your systems during the onboarding phase and be ready to take over. It’s wise to have a documented plan covering how to escalate issues during the transition and how any open Oracle service requests will be handled.
6. Knowledge Transfer and Onboarding: Share all relevant system information with the third-party provider before their support goes live. This includes an overview of your Oracle architecture (versions, customizations, integrations), copies of system documentation, and a history of past critical issues or patches applied. Many providers will hold onboarding workshops to absorb this knowledge. Ensure that your internal IT team and the third-party support team have direct lines of communication and that access is arranged (if the support provider needs VPN or read-only system access to investigate issues, set that up in advance). A best practice is to introduce the third-party support engineers to your key internal team and perhaps run through a few hypothetical issue scenarios to familiarize them.
7. Cutover and Validate Support Readiness: When your Oracle support lapse date arrives, the third-party support contract should take effect. From that day, any new issues must be routed to the new provider. Ensure that all users and IT staff are aware of the new support contact procedures, including the new help desk portal or phone number. It can be useful to have a kickoff call on the first day of third-party support to ensure everything is in place. Also, verify that the third-party provider’s support portal accounts work for your team and that they have any necessary access to your systems.
8. Ongoing Monitoring and Communication: After the switch, closely monitor the support service for the first few months. Keep track of response times and the quality of issue resolution about the agreed-upon Service Level Agreements (SLAs). Regularly meet with the account manager or support lead from the provider to discuss any concerns and review open cases. This will help iron out any kinks in the service. It’s also advisable to maintain an internal log of any major incidents and how they were resolved, in case you ever need to demonstrate the efficacy of the third-party support (for instance, to internal stakeholders or auditors).

By following these steps and precautions, many companies have successfully transitioned to third-party support with minimal disruption.

For example, one large logistics company that switched to independent support noted that involving key stakeholders early, in IT and finance, and communicating the plan helped gain buy-in, making the transition smooth with no loss of support quality.​

Rimini Street recently announced that it will discontinue providing support for PeopleSoft.

Contracts and Licensing Considerations:

Shifting to third-party support does not mean giving up your Oracle licenses – it only means you stop paying Oracle for support.

As long as your Oracle licenses are perpetual (which most on-premise enterprise licenses are), you retain the right to use the software indefinitely, even without an active support contract.

However, there are several contractual and licensing details to consider:

• Perpetual vs. Term Licenses: Verify that the Oracle software in question is under a perpetual license. Suppose you have any term-based licenses or subscriptions (for example, Oracle Cloud services or term licenses for certain products). In that case, those generally cannot be supported by third parties because your rights to use the software lapse when you stop paying Oracle. Third-party support is typically viable for on-premises, perpetual licenses, where you own the usage rights outright.
• Oracle Support Contract Terms: Review your Oracle support agreement for any clauses about termination or partial termination. Oracle’s contracts often have a “Matching Service Levels” clause, which requires that if you drop support on certain licenses, you must drop it on all other licenses in the same set to remain compliant. In practice, this means you usually cannot keep Oracle support for some of your database licenses while using third-party support for other licenses of that same product – it’s usually an all-or-nothing per product family. Plan accordingly so that you’re not violating such clauses. (Some companies do manage a hybrid strategy by segmenting licenses or using different CSI numbers, but this should be approached carefully with legal counsel if attempted.)
• ULA (Unlimited License Agreement) Situations: As noted, if you are in an Oracle ULA, you must certify your usage at the end of the ULA period before switching to third-party support. After certification (which converts it to fixed perpetual licenses), you can proceed with third-party support on those licenses. During a ULA, you technically have unlimited use but also an obligation to renew support annually, so you’d typically wait until the ULA expires and certify rather than trying to cut support mid-ULA.
• Potential Reinstatement Costs: Be aware that if, in the future, you decide to return to Oracle’s support (for example, to get a new upgrade or because you feel the need for Oracle’s assistance), Oracle imposes hefty reinstatement fees. This could include paying back support fees for the lapsed period, along with any penalties. Essentially, Oracle makes it financially painful to leave and come back. Factor this into long-term cost considerations – ideally, you should switch to a third-party solution only if you plan to use it for an extended period or until you completely decommission the Oracle system.
• Audit and Compliance Vigilance: After moving to third-party support, Oracle’s oversight decreases, as they are no longer actively engaged with you via support. While one might fear that leaving Oracle support will trigger a punitive license audit, industry data and experts suggest that audits are not significantly more likely solely because of switching to a different support. Oracle’s support sales team is separate from its license audit team. Nonetheless, you should operate under the assumption that you could be audited, as any Oracle customer can be. Therefore, maintain good license records and ensure any new deployments or user additions are properly licensed. If you have an independent license consultancy, it may be wise to have them do periodic compliance check-ups. In short, you no longer have Oracle looking over your shoulder on usage, so you must self-govern your compliance to avoid any surprises​.
• Contractual Support Clauses: When you terminate Oracle support, you typically need to provide notice as specified in your contract, often 30 days before the renewal date. If not, it may auto-renew. Coordinate the end of Oracle support with the start of third-party support to avoid any gaps in coverage. It’s also prudent to communicate the change to Oracle only as required (some companies choose to simply non-renew without fanfare). Oracle will usually send a reminder about support renewal. If you choose a third-party option, you simply let it lapse. There is no requirement to inform Oracle who your new support provider is, and Oracle cannot cancel your licenses just because you left their support.

In summary, ensure all your license ducks are in a row. Engage an independent Oracle licensing advisor (not just the third-party provider’s team) to double-check compliance before making the switch.

This independent review helps you avoid biased advice and gives you confidence that you can safely proceed to third-party support without any legal issues.

Third-Party Support Providers (Rimini Street vs. Spinnaker Support):

Over the past decade, a few third-party support firms have established themselves as leaders in supporting Oracle products.

The two most prominent worldwide providers are Rimini Street and Spinnaker Support​. Both offer services across Oracle’s portfolio, as well as support for other enterprise software, such as SAP. However, they have some differences in focus and approach.

Below is a comparison of these providers:

Both Rimini Street and Spinnaker Support have a global presence and a long-standing track record. Rimini Street, founded in 2005, was a pioneer in the third-party support industry and has been involved in major legal rulings that clarify this market.

Spinnaker Support, founded around 2008, has grown steadily and notably has not been embroiled in legal disputes with Oracle, which some customers find reassuring from a risk standpoint.

Beyond these two, there are other niche or regional providers, such as Support Revolution in the UK, as well as several smaller consultancies. However, any organization considering third-party support will likely start by evaluating Rimini and Spinnaker.

When choosing between providers, consider conducting a proof-of-concept or a detailed discussion with each to see how they would address your specific needs. For instance, ask how they would deliver regulatory updates for PeopleSoft payroll in your country, or how they approach a database performance issue.

Also, compare their contract terms and SLAs side by side. In some cases, customers use the competition between Rimini and Spinnaker to negotiate better pricing or terms, as both are eager to win new clients and will often match or beat each other’s offers.

The good news is that both companies have extensive experience and referenceable clients in the Oracle ecosystem, so a well-informed choice can be made by examining their proposals and speaking to existing customers.

Security Patching in a Third-Party Support Environment:

Security is a critical consideration when leaving Oracle support. Oracle regularly releases Critical Patch Updates (CPUs) with security fixes. When using third-party support, you won’t receive these official patches directly. So, how do third-party providers handle security?

Firstly, top providers maintain their own security research and advisory teams. They stay up to date with newly disclosed Oracle vulnerabilities, such as those in Oracle Database or WebLogic server, through public security forums and expert networks.

When a threat emerges, the third-party support team will inform you through security advisories and recommend mitigation steps​. These steps may include configuration changes, applying existing patches that you haven’t yet applied, or implementing network-level protections, such as firewall rules, to block the exploit.

In many cases, third-party vendors also develop custom patches or scripts to address specific security issues​. For instance, if a SQL injection flaw is found in an Oracle EBS module, the third-party provider can create a script or binary patch that closes that vulnerability in your environment.

While they cannot issue an official Oracle patch, they can achieve a similar remedial effect. Providers like Spinnaker and Rimini have developed proprietary tools and methodologies to deliver what is sometimes called “virtual patching” or bespoke fixes for security holes.

It’s important to note that proactive customers will apply all Oracle patches up to the point of leaving support​. That way, you have the last set of Oracle-issued security updates in place.

From that baseline, third-party support picks up. Many companies are considering third-party support and scheduling one final round of Oracle patching (applying the latest available CPU) right before their support ends, to start as securely as possible.

Third-party support can thus keep you secure, but it requires a collaborative and vigilant approach:

• Regular Security Reviews: Conduct periodic security audits of your Oracle systems, either internally or with the vendor’s help​. Just because you left Oracle support doesn’t mean you should fall behind on security monitoring.
• Stay informed about threats: Even if a third party sends advisories, stay connected to Oracle user group bulletins or security mailing lists so you’re aware of what the wider community is seeing. This ensures you can proactively ask your provider about specific vulnerabilities or fixes.
• Test Custom Fixes Thoroughly: When your provider delivers a custom patch or workaround, test it in a non-production environment if possible. Since it’s not an official Oracle patch, due diligence in testing will give confidence before deploying to production. Third-party vendors will usually assist in this testing and deployment process to ensure compatibility​.
• Layered Security: Without Oracle backing you for patches, it’s smart to double down on other security layers. This means ensuring strong network security, such as limiting access to Oracle servers and using intrusion detection, as well as keeping servers up to date with antivirus and endpoint protection. Additionally, virtual patching tools may be necessary. Some clients also use Oracle’s lack of patches as an opportunity to segment or isolate systems further to reduce risk.
• Collaborate with Your Provider: Make security a standing topic in your regular calls with the support provider. Understand their process for creating and delivering fixes, and ensure they are familiar with your internal security policies and change management procedures. A good third-party support partner will have no issue aligning with your security protocols and providing documentation for any custom fixes, which can be useful for audit purposes.

In summary, while you won’t get Oracle’s official security patches, a combination of the third-party provider’s expertise and your security best practices can still maintain a strong security posture. Many organizations in the government and financial sectors have successfully operated on third-party support for years by taking these measures.

Read CIO Brief: Oracle Third-Party Support.

Onboarding to Third-Party Support: Key Phases and Best Practices

Successfully onboarding a third-party support provider involves a few distinct phases. Here’s what to expect and how to ensure each phase goes well:

• Preparation and Planning: Before the contract with the new provider begins, complete most of the planning, as discussed in the “How to Move” section. In this phase, set clear goals and expectations. Define what success looks like in the first 3, 6, and 12 months of third-party support. For example, one goal might be “resolve high-priority incidents within X hours consistently” or “achieve 100% compliance with tax updates for our PeopleSoft HR by year-end.” Having these goals helps align the provider’s team with your business objectives from the start.
• Knowledge Transfer: This is a critical onboarding phase. As soon as the contract is signed (or even slightly before, under an NDA), you will share detailed information about your Oracle environment with the provider. Arrange sessions to brief them on your system architecture, customizations, interfaces, and any known quirks. Provide access to documentation, such as architecture diagrams, configuration files, and summaries of past Oracle Service Requests. The provider will document this and possibly create an internal knowledge base for their team to support your systems. Best practice here is to be transparent and thorough – the more your new support engineers know about your environment, the faster they can resolve issues. Don’t assume something is “obvious”; if it’s important (like “our month-end batch process is mission-critical and touches these 5 Oracle modules”), spell it out.
• Transition (Cutover) Period: As Oracle support expires and the third-party takes over, have a brief overlap if possible. Some companies time it so that the third-party contract begins a week or two before Oracle support fully ends, allowing for parallel access. While Oracle will not officially work on issues once you’ve stopped paying, you can use this overlap for final preparations. More importantly, ensure that on Day 1 of third-party support, all users know where to go for help. Typically, the new provider will hold a kick-off meeting or provide a welcome pack with support contact information, instructions on how to report issues, an escalation matrix, and other relevant details. Internally, update any documentation or intranet pages that instructed staff to contact Oracle support – now it should point to the new provider’s help desk.
• Stabilization and Ongoing Support: In the first few months, monitor how well the provider is meeting the promised service-level agreements (SLAs). It’s best practice to schedule weekly or bi-weekly check-in calls initially. During these reviews, check any tickets that were logged to ensure they were handled to your satisfaction. If any issues arise (e.g., a ticket took too long to resolve), address them early with the provider’s management. Most providers will be eager to make a good impression in the early stage and can adjust their processes to better suit your team if needed. Also, use this period to finalize any remaining tasks, such as deactivating your Oracle support CSI in Oracle’s systems or ensuring that you have archived all necessary Oracle knowledge base articles.
• Optimization and Full Engagement: After a successful onboarding and a few months of operations, you should start seeing the full value of third-party support. Make sure to take advantage of all the services you are entitled to. For example, if the contract includes performance tuning assistance or interoperability support (helping Oracle software work on newer operating systems, etc.), schedule those value-added services proactively. Third-party providers can do more than break-fix – they might help you plan an upgrade path for the future (even if they won’t supply the new Oracle version, they can advise on how long you can stay on the old one safely, and what a transition might entail). Continue to hold periodic service reviews, perhaps quarterly, with executive sponsors involved to ensure support remains aligned with business needs. This is also the phase to document success stories – e.g., “in six months, we saved $X and maintained 99.9% uptime with third-party support” – which is useful for internal validation and could be referenced if Oracle ever tries to win you back.

Throughout all these phases, communication is the linchpin. Establish clear communication channels between your team and the support provider, such as Slack channels or direct phone lines, for addressing urgent issues. Treat the third-party support team as an extension of your IT team – the more collaborative the relationship, the better the outcomes.

Also, ensure that internal stakeholders, such as application owners and business users, are aware that the support provider is now the primary point of contact for Oracle issues. It can take some internal change management to adjust habits, as people may be accustomed to visiting Oracle’s site or logging Oracle tickets. Provide guidance and, if necessary, training on the new process.

Lastly, maintain a contingency mindset: while unlikely, have a backup or contingency plan just in case the third-party support does not meet expectations after a certain period. This could involve retaining the option to return to Oracle support for critical systems or having another provider in mind.

Most organizations find this isn’t needed, but from a governance perspective, it’s wise to consider. Having this plan B (even if you never use it) will further reassure executives that you are managing the risk responsibly.

Read the Top 10 reasons why organizations should consider Oracle Third Party Support.

Recommendations:

For organizations considering or already moving to third-party support for Oracle products, here are some actionable recommendations:

• Do Your Homework on Licensing: Before making any switch, independently audit your Oracle licenses and usage. Resolve any compliance issues with Oracle first, so you transition from a clean, licensed state. This avoids headaches down the road and eliminates one of Oracle’s leverage points (license compliance) should they attempt to dissuade you.
• Weigh the pros and cons for Your Situation: Third-party support offers big savings, but make sure your environment is suitable. If you run relatively stable, mature Oracle systems that don’t require constant patches or new features, third-party support is a great fit. If you anticipate needing cutting-edge updates or have an upcoming Oracle version upgrade planned, consider whether delaying those is acceptable.
• Choose the Right Support Partner: Speak to references and compare providers before signing up. Rimini Street and Spinnaker Support are both strong options – get proposals from both to see who offers the best package for your needs. Look beyond cost; examine how each provider will handle critical tasks like security patching, regulatory updates (if you run financials, HR, etc.), and supporting custom modifications. Pick the provider you feel most confident in, even if it isn’t the absolute cheapest.
• Negotiate a Detailed SLA: Treat the contract with the third-party provider like any important vendor agreement. Negotiate service levels that match or exceed what you had with Oracle. For example, if Oracle responds to P1 issues within an hour, you might want a 30-minute response time in the new contract. Ensure there are provisions for key deliverables, such as annual tax updates for ERP systems or quarterly security reviews. Having a clear, strong SLA will hold the provider accountable and give you recourse, such as the ability to leave or penalties, if they underperform.
• Plan and Start Early: Begin the transition planning at least six months before your Oracle support expires. This lead time is necessary to complete license reviews, evaluate providers, and let internal stakeholders acclimate to the idea. Rushing to make a last-minute switch can lead to oversights. An early start also gives you leverage in negotiating with Oracle – you might even use the impending switch as a discussion point to see if Oracle offers a better deal. However, they may not match the savings of third-party support.
• Involve Stakeholders and Communicate: Getting buy-in from both technical and business stakeholders is crucial. Explain the plan to your CIO, CFO, and any department heads reliant on the Oracle systems. Emphasize the cost savings and how you will mitigate risks. Often, there is initial fear of leaving the “safe harbor” of Oracle – proactive communication and education can alleviate this. Show the team that you have a solid plan for security and support quality. If possible, have the chosen provider participate in a Q&A session with your stakeholders to address any concerns.
• Maintain Rigor in Security and Patching: Once on third-party support, double down on your security processes. Without Oracle’s automatic patches, ensure you apply all alternative fixes diligently and monitor for new vulnerabilities. Require your support provider to brief you regularly on security bulletins. Treat security as a partnership with them – you may even consider using third-party tools or services, such as products that virtually shield unpatched systems, as an extra layer.
• Regularly Reevaluate Value: Lastly, periodically review the outcomes of third-party support. Are the cost savings as expected? Is the support quality meeting or exceeding what Oracle provided? Are there any emerging needs that might require Oracle’s input (e.g., considering a major upgrade or migrating to Oracle Cloud)? By reviewing this annually, you ensure the decision continues to make sense. Most find that the value only grows over time, especially as Oracle raises its support fees. However, staying vigilant will ensure that your support strategy aligns with your evolving business goals.

By following these recommendations, you can make an informed decision about third-party support and maximize its benefits if you proceed. Remember that the goal is to serve your organization’s best interests – whether that’s cutting unnecessary costs, getting better service, or avoiding disruptive upgrades.

Third-party support, when approached carefully, can be a powerful tool for customer advocacy, giving you more control and freedom in managing Oracle systems on your terms, as it failed to meet this target. This kept the vendor accountable and ensured timely support when needed.

Case Study: Transitioning to Oracle Third-Party Support – Central European Company Saves 10M Euro

Background

A prominent Central European company faced a significant financial burden due to Oracle support fees.

After certifying their Oracle Unlimited License Agreement (ULA), they paid 8 million Euros annually in support fees. To reduce costs, they sought to explore alternatives to Oracle’s direct support.

Challenge

The company aimed to drastically reduce its Oracle support expenses without compromising the quality and reliability of support services.

This endeavor required a meticulous examination of their Oracle licensing, compliance risks, and support needs to ensure a seamless transition to a third-party support provider.

Actions Taken

360 Oracle Support Reduction Review

• Redress Compliance undertook a comprehensive review of over ten options for reducing Oracle support fees. This process involved detailed questionnaires and interviews to align the company’s Oracle strategy with potential support solutions.

Oracle Licensing Assessment and Compliance Risk Remediation

• A thorough licensing assessment identified a potential compliance risk of € 400 million. Redress Compliance developed a strategy to mitigate these risks, eliminating the potential financial impact.

Review of Oracle Entitlements

• All Oracle entitlements were reviewed to ensure a smooth transition to third-party support. This step was crucial for understanding the scope of support needed and identifying areas that could benefit from third-party services.

Executive Management Report

• Redress Compliance compiled an exhaustive executive management report. This document synthesized the comprehensive review’s findings, insights, and recommendations, enabling the company’s leadership to make informed decisions about transitioning to third-party support.

Recommendations on Third-Party Support

• Detailed recommendations were provided on navigating the risks and opportunities associated with third-party Oracle support. This guidance included negotiation strategies and insights into maximizing the value of third-party services.

Advisory Services and Transition Support

• Throughout the process, Redress Compliance offered ongoing advisory services. Their expertise was instrumental in selecting a suitable third-party support provider and negotiating the terms of the agreement.

Outcome

By following Redress Compliance’s recommendations and transitioning to third-party support, the company signed an agreement that resulted in savings of 10 million euros over three years, even after accounting for the costs associated with the migration.

This strategic move alleviated the financial strain of Oracle support fees and maintained the high level of support necessary for the company’s operations. Alleviated the financial strain of Oracle support fees and

Conclusion

This case study exemplifies the potential for significant cost savings through careful analysis, strategic planning, and exploring options for third-party support.

With Redress Compliance’s expertise, the Central European company navigated the complexities of Oracle licensing and support structures, achieving substantial financial savings while ensuring its Oracle infrastructure remained robust and fully supported. exploring

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