Support fees

Third party Oracle support – Savings or a Trap?

Support fees

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 mainly benefits companies planning to replace Oracle-based solutions or seeking cost reductions in Oracle support.
  • Requires Independent Review: Customers should independently review their Oracle licensing.
  • Legally Permissible: Legal as long as companies adhere to Oracle’s licensing terms and conditions.
  • Need for Expert Guidance: Contract, policies, and licensing complexity necessitate expert assistance.

What is third-party Oracle support?

third-party Oracle support

Oracle third-party support is an alternative model for Oracle products provided by companies other than Oracle itself.

This type of support is gaining traction among businesses seeking cost-effective and flexible support solutions for their Oracle software.

Here are its key aspects:

  • Cost-Effective Alternative: Third-party support typically offers significant cost savings compared to official Oracle support packages.
  • Extended Support for Legacy Systems: It is particularly beneficial for organizations using older Oracle software versions no longer supported by Oracle.
  • Customized Service: These providers often offer more personalized services tailored to the specific needs of a business.
  • Independent of Oracle: Third-party support is provided independently of Oracle, and it includes services such as technical support, bug fixes, and security advisories.

What is Included in Third-Party Oracle Support

What is Included in Third-Party Oracle Support

Oracle 3rd party support provides an alternative to official support from Oracle, encompassing several critical services and features:

Essential Services and Features:

  1. Technical Support: Third-party providers offer technical support for Oracle products, often including hands-on troubleshooting, issue resolution, and general guidance.
  2. Custom Bug Fixes: While they can’t alter the source code of Oracle products, some third-party providers develop custom fixes for users’ bugs or issues.
  3. Performance Optimization: Assistance with optimizing the performance of Oracle software, including database tuning and system configuration recommendations.
  4. Security Advisory Services: Many third-party support vendors offer security advisory services, including vulnerability assessments and recommendations for maintaining system security.
  5. Flexible Support Models: The types of support can vary, with some providers offering 24/7 support, dedicated account managers, and customized support plans tailored to specific business needs.

What is Not Included in Third-Party Oracle Support

What is Not Included in Third-Party Oracle Support

However, there are limitations to what third-party support can provide, notably:

  1. No Access to Official Oracle Updates and Patches: Third-party support cannot provide the official updates and patches released by Oracle, which may lead to potential security risks and compatibility issues.
  2. Limited in Making Source Code Changes: They are not authorized to change the Oracle software source code, which might limit the scope of certain bug fixes.
  3. No Direct Oracle Assistance: As these providers are independent of Oracle, they can’t escalate issues to Oracle or access Oracle’s internal support resources.
  4. Potential Licensing Compliance Issues: There may be risks associated with licensing compliance, and businesses must ensure they adhere to Oracle’s terms and conditions.

When opting for third-party support for Oracle products, businesses must carefully weigh the comprehensive support and cost savings against these limitations, especially the lack of official updates and potential compliance risks.

Main Oracle Third-Party Support Providers

Main Oracle Third-Party Support Providers

Oracle third-party support providers have established themselves as leading alternatives to official Oracle support:

  1. Spinnaker Support is known for offering comprehensive support services for a wide range of Oracle products, including Oracle E-Business Suite, Oracle Database, and Oracle JD Edwards.
  2. Rimini Street: A prominent provider renowned for its extensive support services, especially for Oracle’s enterprise software like Oracle E-Business Suite, PeopleSoft, and Siebel CRM.
  3. Support Revolution: Provides Oracle support services focusing on reducing costs and extending the lifespan of existing software investments.
  4. Claremont: Specializes in Oracle E-Business Suite, offering tailored support packages to meet the specific needs of businesses.
  5. Original Software: Known for its focus on Oracle JD Edwards products, offering specialized support services.

These providers cater to a diverse range of Oracle customers, from small businesses to large enterprises, offering flexible and often more cost-effective support solutions than Oracle’s official support.

Their services are particularly valuable for organizations looking to maintain their existing Oracle software investments while controlling support costs.

Which companies should consider Oracle 3rd Party Support?

Which companies should consider Oracle 3rd Party Support

Companies all face different requirements, but here is a general list of reasons to consider third-party Oracle support.

  • You have decided to replace your Oracle-based solution. Until you leave the Oracle-based solution, you do not need to call Oracle support or apply further security patches.
  • You have exhausted all other alternatives to reducing your Oracle costs, including license optimization and downgrading to lesser versions.
who should move to third party

Managing Third-Party Support and Security

Effective Management Strategies:

  1. Conduct Thorough Due Diligence: Before selecting a provider, thoroughly evaluate their capabilities, reputation, and compliance with Oracle’s licensing terms.
  2. Establish Clear Service Level Agreements (SLAs): Ensure SLAs clearly outline the scope of support, response times, and escalation procedures.
  3. Regular Security Audits: Conduct regular security audits to identify any vulnerabilities that might arise due to the lack of official Oracle updates and patches.
  4. Stay Informed about Oracle Updates: Follow Oracle’s official releases to identify potential security or functionality gaps.
  5. Plan for Contingencies: Develop a contingency plan if the third-party provider cannot fulfill their support obligations or needs to switch back to Oracle’s support.

Managing third-party support requires a balanced approach that weighs cost savings against potential risks, particularly regarding security and compliance.

Pros and Cons of Third-Party Oracle Support

pros and cons oracle third party support

Pros:

  1. Cost Savings: Typically more affordable than official Oracle support, offering significant financial benefits.
  2. Extended Support for Legacy Systems: Often supports older versions of Oracle software that Oracle no longer supports.
  3. Personalized Service: Third-party providers may offer more personalized and responsive support services.
  4. Flexibility: Can be more flexible in terms of service agreements and offerings.

Cons:

  1. No Official Updates and Patches: Lack of access to official Oracle updates and patches may pose security risks.
  2. Potential Licensing Issues: Risk of non-compliance with Oracle’s licensing terms, potentially leading to legal issues.
  3. Quality Concerns: Support quality may vary, and some providers might not have the same level of expertise as Oracle.
  4. Dependency: Reliance on a third party for critical support could be risky if the provider encounters business issues.

Oracle Products Supported by Third-Party Providers

Third party support for Oracle offers assistance for a wide range of Oracle products, enabling organizations to maintain and optimize their software outside the official Oracle support framework.

The Oracle products that can be moved to third-party support include:

  1. Oracle Agile PLM: Product Lifecycle Management software.
  2. Oracle ATG Web Commerce & Endeca: E-commerce and search analytics solutions.
  3. Oracle Database: A comprehensive and integrated set of database solutions.
  4. Oracle Demantra: Demand management and supply chain management solutions.
  5. Oracle E-Business Suite: An integrated set of business applications for automating CRM, ERP, and SCM.
  6. Oracle Hyperion: Financial management and analytics applications.
  7. Oracle Fusion Middleware: A collection of standards-based software products that includes tools for developing, deploying, and managing enterprise applications.
  8. Oracle Siebel CRM: Customer Relationship Management software.
  9. Oracle Retail: Retail management and supply chain solutions.
  10. Oracle PeopleSoft: Human resource management systems and financial management solutions.

Organizations can often find cost-effective and tailored solutions for these Oracle products by opting for third-party support, mainly when their official Oracle support is no longer viable or financially feasible.​

FAQ on Oracle third-party support

What is the cost of third-party Oracle support?

Third-party Oracle support providers typically charge 50% less than Oracle would charge for support.

Which Oracle software products can be supported by third parties?

Third-party support is available for Oracle database, middleware (such as Weblogic), and Oracle applications such as Siebel, EBS, JD Edwards, and Agile.

Will Oracle object if I switch to third-party support?

No, Oracle will not be upset if you move to third-party support, as the company has different sales organizations. It is rare for the organization managing support renewals to initiate Oracle audits, and audits of customers who switch to third-party support are negligible.

Who are the main providers of third party Oracle support?

The two global providers of third-party Oracle support are Rimini Street and Spinnaker Support.

Several local providers offer similar services. It is recommended to speak to both providers to get the best deal.

How do I switch to third-party Oracle support?

Review your Oracle licensing and contracts before switching to a third-party provider to ensure compliance. It is recommended to start the process at least six months before your Oracle support renewal is due.

If you have an active Oracle ULA, you must certify it before moving to third-party support. It is essential to work with an independent Oracle licensing advisor and not someone affiliated with the third-party provider, as their advice may not be unbiased.

Is Oracle Third-Party Support Legal?

Yes, Oracle’s third-party support is legal. The Oracle license agreement allows customers to use third-party support providers if they comply with Oracle’s licensing terms and conditions.

What are customers' most common mistakes when switching to third-party support?

Customers should not solely rely on the third-party provider’s licensing assessment, as it may not be unbiased. They should also be cautious of third-party provider partners, as their advice may not be neutral or impartial.

Why should Oracle customers review their licensing before switching to third-party support?

Customers should review their Oracle licensing before switching to third-party support because they may need to purchase additional licenses before switching.

If they are found non-compliant with their Oracle licensing terms, they may be required to buy rights to become compliant before moving to third-party support.

Can I switch to third-party support if I have an active Oracle ULA?

Customers with an active Oracle Unlimited License Agreement (ULA) must certify the agreement before moving to third-party support.

It is recommended that the terms and conditions of the ULA be reviewed to ensure compliance before making the switch.

What Is possible to negotiate with Oracle Third-Party providers?

You can negotiate the amount you pay; the 50% of what you paid Oracle is highly negotiable. This article has a few good tips on how to deal with it. You can also negotiate decreased clauses.

Can we move our Oracle PeopleSoft to support by a third party?

Yes, Peoplesoft, supported by third-party providers is one of the most common transitions.

5 Reasons Why Companies Move to Third-Party Support

  1. Reduced Costs: The primary motivation is often the significant cost reduction compared to Oracle’s official support.
  2. Stable Environments: Companies with stable Oracle environments may find less need for continuous updates and direct support from Oracle.
  3. Legacy System Support: For organizations using older Oracle versions, third-party support can continue to assist after official support ends.
  4. Predictable Budgeting: Third-party support agreements can offer more predictable and straightforward budgeting options.
  5. Customized Support Needs: Some companies prefer the tailored support services that third-party vendors can provide, which may better align with their needs.

How to move to a third-party support provider

third party support oracle

Is Oracle Third-Party Support Legal?

Yes, Oracle third-party support is legal. Businesses have the right to choose their support provider for Oracle products under certain conditions:

  • Compliance with Licensing Terms: Organizations must adhere to Oracle’s licensing terms and conditions. Third-party support is legal as long as these terms are respected and no licensing violations occur.
  • No Direct Oracle Updates: While third-party support is legal, these providers cannot offer direct updates or patches. Businesses must rely on the third-party support provider’s ability to address issues and provide custom solutions.
  • Independent Service Providers: Third-party support companies operate independently of Oracle and offer services based on their expertise and resources.

Archiving Process, Downloading Security Patches and Updates

When working with third-party Oracle support providers, the archiving process and obtaining security patches and updates require a distinct approach, differing from the standard Oracle support model.

Here’s an overview of how these aspects are typically managed:

Archiving Process

  • Understanding the Importance: The archiving process involves the systematic cataloging and storing of software versions, updates, and documentation. It is crucial to maintain a record of all software changes and updates.
  • Methodology: Third-party support vendors may assist in setting up an archiving system that efficiently stores and categorizes all relevant software information. This can include past versions of software, patches applied, and all pertinent documentation.
  • Access and Retrieval: Effective archiving ensures that any required version or document can be quickly retrieved for reference, audits, or compliance purposes. This is especially important for legacy systems not actively supported by Oracle.

Downloading Security Patches and Updates

  • Challenge with Third-Party Support: One limitation of third-party support is the lack of direct access to Oracle’s official updates and security patches.
  • Custom Patch Development: Third-party providers often develop custom patches to address specific security vulnerabilities or software bugs instead of official Oracle patches. These are tailored to the client’s environment and needs.
  • Security Advisory: Third-party vendors typically offer ongoing security advisories, informing clients about potential vulnerabilities and suggesting mitigating actions or custom solutions.
  • Patch Testing and Deployment: They may also assist with patch testing and deployment strategies to ensure minimal disruption and maximum compatibility with the existing Oracle environment.

Best Practices

  • Regular System Reviews: Review your Oracle systems to identify security gaps or areas needing updates.
  • Stay Informed: Keep informed about the latest security threats and general updates in the Oracle ecosystem, even if you rely on third-party support.
  • Collaboration with the Vendor: Work closely with your third-party support provider to understand their process for creating custom patches and handling security updates.

In summary, while the archiving process and handling of security patches and updates with a third-party Oracle support provider involve distinct methodologies, these are critical for maintaining system integrity, security, and compliance.

Effectively managing these processes requires a collaborative approach between your organization and the third-party vendor.

Negotiating with Third-Party Oracle Support Vendors

Negotiating with Third-Party Oracle Support Vendors

Negotiating with third-party support vendors can lead to significant cost savings and better service terms.

  1. Start with Expecting Savings: Most third-party providers start their pricing at around 50% off what you would pay to Oracle. However, there’s often room to negotiate even better rates.
  2. Negotiate with Multiple Providers: Engage with several third-party vendors to compare their services, costs, and terms. This will provide negotiation leverage and ensure you get the best possible deal.
  3. Highlight Your Needs and Usage: Clearly outline your support needs, software usage, and specific requirements. This information helps tailor the support package to your needs and may influence pricing.
  4. Ask for Custom Solutions: Third-party vendors often provide customized solutions. Request specific services or customizations that align closely with your business requirements.
  5. Long-Term Planning: Ideally, begin this process 6-12 months before your Oracle renewal date. This timeframe allows for adequate research, negotiation, and transition planning.
  6. Evaluate Service Levels and Response Times: In addition to cost, assess the quality of service, especially the provider’s response times and resolution capabilities.
  7. Understand Transition Process: Get clarity on the transition process from your current support to the third-party provider, ensuring minimal disruption to your operations.

By strategically negotiating with third-party Oracle support vendors, businesses can achieve cost savings and a support service tailored to their specific needs and operational goals.

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

case study Transitioning to Oracle Third-Party Support – Central European Company Saves 10M Euro remove oracle and any oracle logo

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 Euro annually in support fees. In pursuit of cost savings, 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 third-party support.

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 highlighted a potential compliance risk of 400 million euros. Redress Compliance developed a strategy to mitigate these risks, reducing the potential financial impact to zero.

Review of Oracle Entitlements

  • To ensure a smooth transition to third-party support, all Oracle entitlements were reviewed. 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 third-party support options.

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

Redress’s Oracle Third-Party Support Transition Service

Redress offers a comprehensive service to help your company transition safely to Oracle third-party support.

Here’s how we can assist:

  • Oracle License Assessment: We thoroughly review your current licenses and contracts to identify compliance issues.
  • Customized Transition Plan: We provide a tailored plan for your move to third-party support, which includes recommended providers and a transition timeline.
  • Oracle Communication Assistance: We guide you through the process of communicating with Oracle about your switch to third-party support. This includes advice on terminating existing support agreements and managing ongoing communication with Oracle.
  • Risk Mitigation: Our service is designed to give you peace of mind by ensuring compliance with Oracle licensing terms, thereby minimizing the risk of legal action or fines.
  • Customizable Service: We tailor our third-party Oracle License Compliance Service to meet each company’s unique needs.

Expert Help Guiding You to Savings?

Are you considering a switch to Oracle third-party support?

Let Redress guide you through the transition safely and effectively.

Our expert team is ready to comprehensively assess your current Oracle licensing and contracts and develop a customized transition plan for your business.

Contact us

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Author

  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.

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