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.
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.
Introduction to Oracle Third-Party Support
Oracle third-party support has become an increasingly attractive option for companies seeking to reduce software maintenance costs while maintaining high support levels.
Third-party support refers to maintenance services provided by independent vendors who are not affiliated with Oracle itself but specialize in supporting Oracle’s products.
This type of support has become popular due to its substantial cost benefits, flexible, customized services, and ability to extend the life of Oracle software.
Growing Popularity of Third-Party Support
The growing demand for third-party support is driven by several factors, including:
- Cost Savings: Official Oracle support can be prohibitively expensive, especially for companies running multiple Oracle products or those with limited IT budgets.
- Flexibility: Third-party providers often offer more personalized, adaptable services than Oracle’s standardized packages.
- Long-Term Support for Legacy Systems: Many companies still rely on older versions of Oracle software that Oracle no longer supports. Third-party providers fill this gap, extending the support lifecycle for these legacy systems.
What is third-party Oracle support?
Definition of Oracle Third-Party Support
Oracle third-party support refers to maintenance and technical assistance companies other than Oracle Corporation provide. These third-party vendors manage Oracle products such as databases, middleware, and enterprise applications, providing support that ensures system stability, performance, and security.
How Third-Party Support Differs from Oracle’s Official Support
Third-party Oracle support differs from official Oracle support in several key ways:
- Cost Advantage: The most noticeable difference is the cost. Third-party support is generally 50% or more cost-effective than Oracle’s official support fees, making it a viable choice for businesses seeking to reduce expenses.
- No Proprietary Updates: Unlike Oracle, third-party providers cannot access Oracle’s proprietary updates and patches. Instead, they provide custom bug fixes and other workarounds to maintain software stability and address issues.
- Customization and Personalization: Oracle’s official support is standardized and often lacks flexibility. Third-party support providers, on the other hand, offer more tailored services. They allow businesses to set specific priorities, create customized service level agreements (SLAs), and receive dedicated support tailored to their needs.
Types of Services Provided by Third-Party Support
Third-party Oracle support encompasses a wide array of services to help businesses maintain and optimize their Oracle environments:
- Technical Support: Third-party providers offer hands-on troubleshooting, issue resolution, and technical assistance for various Oracle products.
- Custom Bug Fixes: While they cannot modify Oracle’s source code, third-party support providers can create custom patches and fixes to resolve software bugs.
- Performance Optimization: Third-party vendors often provide performance tuning and system optimization services to improve Oracle software efficiency.
- Security Advisory and Patch Management: Although they lack access to official Oracle patches, third-party support firms can offer security advisories, assess vulnerabilities, and help develop custom security solutions to address risks.
- Flexible Service Models: Unlike Oracle’s rigid service models, third-party vendors often offer 24/7 support, dedicated account managers, and bespoke SLAs tailored to a business’s unique requirements.
For instance, a company running Oracle E-Business Suite (EBS) may find official Oracle support too costly, given its current budget. It could transition to a third-party provider like Rimini Street or Spinnaker Support, which specializes in providing reliable technical assistance at a fraction of the cost with tailored SLAs to match its specific needs.
Why Consider Third-Party Oracle Support?
Organizations are opting for third-party Oracle support for several compelling reasons. These include financial benefits, extended product lifespans, more personalized services, and legal considerations that ensure compliance.
Cost Savings and Financial Advantages
One of the main reasons companies consider third-party support is the substantial cost savings it offers. Oracle’s official support fees can be a significant financial burden, especially for companies running multiple Oracle products or those with tight IT budgets.
Key Financial Advantages:
- Up to 50% Reduction in Support Costs: Third-party support typically costs half of what Oracle charges, translating to substantial savings.
- Predictable Budgeting: By switching to third-party support, companies can lock in predictable support costs, freeing up the budget for critical projects like IT modernization or innovation initiatives.
Example: A mid-sized retail company using Oracle Database may find official Oracle support too costly. Moving to a third-party support provider saved approximately 40% of its annual support costs, which it reinvested in upgrading its IT infrastructure.
Extended Support for Legacy Oracle Products
Another significant advantage of third-party Oracle support is its ability to extend the lifecycle of legacy Oracle products. Oracle often ends support for older software versions, pushing customers to upgrade to newer releases, which can be costly and time-consuming.
Benefits of Supporting Legacy Systems:
- Avoid Forced Upgrades: Companies can avoid expensive and disruptive upgrades when their current software meets their needs.
- Extended Use of Stable Environments: Many businesses have customized Oracle environments that are stable and reliable. Switching to third-party support allows them to continue using these systems without interruption.
Example: A large manufacturing company that relies on an older version of Oracle JD Edwards chose third-party support because Oracle had ceased official support for that version. The third-party vendor provided ongoing maintenance and bug fixes, enabling the company to run its business-critical systems smoothly.
Personalized Services vs. Oracle’s Standardized Offerings
Oracle’s Standardized Offerings
Oracle’s official support is based on a one-size-fits-all model. Service packages are standardized and not easily customized to suit each customer’s needs, which can be problematic for businesses with unique configurations or specific requirements.
Advantages of Third-Party Personalized Services
- Custom SLAs: With third-party support, companies can define their Service Level Agreements (SLAs), which means that response times, issue resolution methods, and overall support coverage are designed according to the company’s specific needs.
- Dedicated Account Managers: Many third-party providers assign dedicated account managers to work closely with customers, ensuring continuity of service and a deep understanding of each company’s environment and challenges.
- Proactive and Tailored Solutions: Instead of generic answers, third-party providers focus on proactive and customized solutions that help improve system performance and prevent future issues.
Example: A financial services company using Oracle PeopleSoft faced recurring performance issues that Oracle’s standard support could not resolve to their satisfaction. Switching to a third-party provider allowed them to receive dedicated assistance and a customized SLA prioritizing performance optimization.
Legal Considerations and Compliance
Switching to third-party Oracle support is entirely legal, but companies must comply with Oracle’s licensing terms. Third-party support providers operate independently of Oracle, meaning companies must take responsibility for managing their licensing agreements properly.
Steps to Ensure Compliance:
- License Review: Before switching to a third-party provider, thoroughly review existing Oracle licenses to ensure all terms and conditions are met.
- Independent Licensing Audit: Hiring an independent Oracle licensing expert can help identify potential compliance issues and mitigate the risk of non-compliance during and after the transition.
- Understanding Licensing Terms: Check to ensure the licensing terms allow you to use a third-party provider for support without violating Oracle’s rules.
Example: A large enterprise considering a switch to third-party support hired an independent Oracle licensing consultant to review its agreements. This helped them identify potential areas of non-compliance and remediate them before transitioning to Spinnaker Support, thereby avoiding possible legal disputes.
What is Included in Third-Party Oracle Support?
Oracle third-party support providers offer various essential services that help maintain and optimize Oracle software environments without requiring customers to rely on Oracle’s official support.
These services are tailored to meet unique business needs and are typically more cost-effective. Below are the main features included in third-party Oracle support:
Technical Support Services Provided
Third-party support vendors provide comprehensive technical assistance for Oracle products. This includes resolving issues related to system performance, database management, and application errors. They offer hands-on troubleshooting to ensure minimal downtime and maintain system stability.
Examples of Technical Support Services:
- Troubleshooting software errors and identifying root causes.
- Guiding configuration and system setup.
- Assisting with compatibility issues and integrations with other enterprise systems.
Custom Bug Fixes and Patch Development
While third-party providers cannot modify Oracle’s proprietary source code, they develop custom fixes to address software performance bugs. These custom patches are designed to work around Oracle’s software’s limitations, ensuring that systems remain functional and secure.
Examples of Custom Fixes:
- Creating scripts to mitigate database errors that Oracle’s official patches would otherwise address.
- Providing hotfixes for system glitches that may affect daily operations.
Performance Optimization and Advisory Services
Performance optimization is a key component of third-party Oracle support. These vendors help businesses fine-tune their Oracle environments to achieve maximum efficiency. This includes optimizing database performance, resource allocation, and advising on best practices for system maintenance.
Examples of Optimization Services:
- Database tuning to ensure queries are executed efficiently.
- Optimizing system configuration to improve response times and resource usage.
- Provide regular performance assessments and advice on how to avoid bottlenecks.
Flexible Support Models and SLAs
One primary advantage of third-party Oracle support is its flexibility. Vendors offer various support models catering to each client’s needs, including customized Service Level Agreements (SLAs) that outline response times, availability, and support depth.
Examples of Flexible Support Models:
- 24/7 Support: For critical environments requiring constant monitoring and immediate intervention.
- Dedicated Account Managers: Assigned to work closely with clients and develop a deep understanding of their Oracle setup.
- Customized SLAs: Tailored agreements specifying response times and escalation procedures, ensuring the level of support matches the business’s priorities.
Rimini Street recently announced that they will discontinue providing support for Peoplesoft.
What is Not Included in Third-Party Oracle Support
While third-party Oracle support provides many benefits, it also has some limitations compared to Oracle’s official support services. Understanding these gaps is crucial for businesses considering a switch.
Lack of Access to Official Oracle Updates and Patches
Third-party support providers cannot access Oracle’s proprietary patches, updates, or new feature releases. This means clients do not receive Oracle’s security updates directly, which could introduce risks if vulnerabilities are not adequately managed.
Implications:
- Companies must depend on custom patches from third-party vendors to address security vulnerabilities.
- There may be a delay in addressing certain software issues due to the lack of official patches.
Limitations on Changing Oracle’s Source Code
Third-party vendors cannot modify Oracle’s source code. This limitation affects their ability to provide certain fixes requiring code-level changes, meaning that some bugs may require alternative workarounds rather than direct solutions.
Implications:
- Certain issues may not be fully resolved but can be mitigated through workarounds.
- Businesses must understand that their third-party provider is limited to customization options that do not infringe on Oracle’s intellectual property.
No Direct Oracle Assistance or Escalation
Since third-party support is independent of Oracle, they cannot escalate issues to Oracle’s internal teams. This means that any critical issues that require Oracle’s intervention may require additional negotiation or switching back to Oracle support for resolution.
Implications:
- Lack of direct Oracle involvement may concern businesses with highly complex environments needing official Oracle intervention.
- Escalation paths are limited to the capabilities of the third-party provider.
Potential Risks and Compliance Issues
Switching to third-party support involves some compliance considerations, especially regarding Oracle’s licensing terms. Businesses must comply with their existing licensing agreements, as third-party providers do not manage licensing.
Implications:
Companies must conduct due diligence to avoid contractual disputes with 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.
Potential risk of non-compliance if Oracle audits reveal licensing issues.
Main Oracle Third-Party Support Providers
Several third-party support providers have emerged as leaders in offering cost-effective, reliable support for Oracle products. These companies have distinguished themselves through their extensive experience, client success stories, and the quality of their support services.
Overview of Leading Providers
- Rimini Street: One of the most well-known names in third-party Oracle support, Rimini Street offers comprehensive support for Oracle Database, E-Business Suite, PeopleSoft, and JD Edwards. Rimini Street provides personalized service, custom patches, and expert technical support.
- Spinnaker Support: Spinnaker Support provides similar services to Rimini Street but also emphasizes compliance and risk mitigation. They support Oracle Database, JD Edwards, and Oracle Fusion Middleware. Spinnaker’s focus on risk management makes it a preferred choice for companies concerned about compliance issues.
- Support Revolution: Support Revolution is another major player that provides third-party support for Oracle and SAP. They focus on helping clients reduce costs while providing extended support for legacy Oracle products no longer covered by Oracle’s official support.
Differentiators Between These Providers
- Rimini Street: Known for its comprehensive range of supported Oracle products and strong focus on customer satisfaction. Rimini Street often provides a dedicated account manager, ensuring each client receives personalized attention.
- Spinnaker Support differentiates itself by focusing on compliance and risk management. It works closely with clients to ensure that licensing terms are upheld, reducing the risk of compliance issues during Oracle audits.
Key Considerations When Choosing a Support Provider
When selecting a third-party support provider, businesses should consider the following factors:
- Range of Supported Products: Ensure the provider has experience with the specific Oracle products your business relies on.
- Customization and Flexibility: Look for a provider offering tailored SLAs and a service model that aligns with your needs.
- Compliance Expertise: A good third-party support provider should understand Oracle licensing and be able to offer guidance on maintaining compliance.
- Customer Testimonials and Case Studies: Review case studies and customer testimonials to gauge the provider’s reliability and expertise in managing Oracle environments.
Which companies should consider Oracle 3rd Party Support?
Third-party Oracle support isn’t the best fit for every organization, but it can be an ideal solution in certain scenarios.
Below are some types of companies that should consider making the switch:
Companies Replacing Oracle-Based Solutions
Businesses planning to phase out Oracle and replace it with another solution may find third-party support a great interim step. Since they are moving away from Oracle products, they do not need to continue with Oracle’s costly official support during the transition period. Instead, third-party support allows them to maintain their current systems until the new solutions are fully implemented.
Organizations Seeking to Reduce Oracle Maintenance Costs
Cost reduction is a major driver for organizations that reduce their IT spending. Third-party support is often much more affordable, allowing companies to reallocate funds to initiatives like cloud migration, process automation, or expanding infrastructure.
Example: A mid-sized financial services company found that Oracle support costs consumed a large portion of its IT budget. Switching to a third-party provider halved support costs, allowing the company to invest in new IT security initiatives.
Stable Oracle Environments Without the Need for Frequent Updates
Third-party support can be a perfect fit if a company’s Oracle environment is stable and does not require frequent updates or upgrades. These environments can continue to operate efficiently without Oracle’s frequent updates, and third-party vendors can ensure that any minor issues are quickly addressed.
Case Studies of Successful Transitions
- Retail Chain: A large retail chain moved its Oracle E-Business Suite to third-party support when it realized it no longer needed regular updates. The switch resulted in 40% cost savings, and they continued to receive reliable support, including custom fixes.
- Healthcare Company: A healthcare provider transitioned to third-party support for its Oracle PeopleSoft implementation. The transition allowed the provider to continue using its well-established system while significantly reducing support costs.
Read the Top 10 reasons why organizations should consider Oracle Third Party Support.
Managing Third-Party Support and Security
Switching to third-party Oracle support can provide significant cost savings and other benefits, but it also brings new challenges in terms of security and compliance.
Proper management practices are essential to ensure your Oracle environment remains secure and compliant, even when transitioning away from official Oracle support. Below are some important aspects to consider:
Conducting Regular Security Audits
Maintaining the security of your Oracle environment should be a top priority when moving to third-party support. Regular security audits help ensure that all systems are up-to-date and free of vulnerabilities, particularly since official Oracle patches are no longer available.
- Internal Audits: Conduct regular internal systems reviews to ensure security protocols are followed. This should include reviewing system configurations and access controls.
- Third-Party Audit Services: Engage independent security experts to assess your Oracle environment and identify vulnerabilities. This can provide an unbiased assessment of potential risks.
- Ongoing Monitoring: Implement automated tools to monitor security threats in real-time. This will help quickly detect and respond to any suspicious activity.
Example: A mid-sized enterprise that transitioned to third-party support scheduled quarterly security assessments with a certified external auditor to ensure their Oracle systems remained secure and met industry compliance standards.
Handling Oracle’s Licensing Terms
Moving to third-party support means taking on responsibility for managing your Oracle licenses and ensuring compliance with Oracle’s terms. It’s essential to understand your current licenses and what rights they provide.
- Review License Agreements: Review your Oracle license agreements thoroughly to understand usage rights, restrictions, and renewal terms. This will help you avoid inadvertent non-compliance.
- Work with Licensing Experts: Consider hiring an independent expert to help navigate Oracle’s complex licensing landscape. They can help identify potential compliance risks and ensure you adhere to the appropriate terms.
- Audit Preparedness: Prepare for potential Oracle audits by maintaining up-to-date documentation of your licenses and usage. This will help mitigate risks associated with Oracle’s stringent auditing practices.
Example: A financial services company hired an independent licensing expert to review its Oracle agreements before switching to third-party support. This proactive step helped the company address compliance gaps and avoid future audit penalties.
Planning for Contingencies if Third-Party Support Falls Short
No support provider is perfect, and third-party Oracle support is no exception. Planning for contingencies is critical in case the support falls short or the third-party vendor faces challenges.
- Backup Plan: Develop a contingency plan if the third-party provider cannot fulfill its obligations. This could involve maintaining minimal official Oracle support for critical systems or using another provider as a backup.
- Clear Escalation Paths: Define clear escalation paths within your SLAs so you know who to contact and what actions will be taken if issues arise.
- Evaluate Alternatives: Evaluate alternative support providers and stay informed of their offerings if a transition is required.
Example: A healthcare provider maintained a small subscription to Oracle’s official support for mission-critical applications while relying on third-party support for other systems. This helped them ensure continuous support coverage in case of issues with their third-party vendor.
Pros and Cons of Third-Party Oracle Support
Deciding to switch to third-party Oracle support involves weighing several benefits and drawbacks. Here, we break down the key pros and cons to help you make an informed decision.
Pros
- Significant Cost Savings: One of the most compelling reasons companies switch to third-party support is the substantial cost reduction. Businesses can save up to 50% or more compared to Oracle’s official support fees, freeing up the budget for other strategic initiatives.
- Tailored Services and Dedicated Support: Unlike Oracle’s standardized support packages, third-party vendors offer personalized service. They often provide dedicated account managers who work closely with your team to understand the nuances of your Oracle environment. This enables them to deliver customized support solutions that meet your specific needs.
- Support for Older, Legacy Oracle Products: Many organizations rely on older versions of Oracle software that Oracle’s official channels may no longer support. Third-party vendors can extend the lifespan of these systems, allowing businesses to maintain their legacy products without being forced into costly upgrades.
Example: A manufacturing company running an outdated version of Oracle JD Edwards found third-party support invaluable. It allowed them to keep using a stable system while avoiding the high costs of upgrading to newer versions.
Cons
- No Access to Oracle Updates: Third-party providers cannot access Oracle’s proprietary updates, patches, or new feature releases. This can introduce potential security risks or leave gaps in functionality if new vulnerabilities arise that cannot be patched using official means.
- Potential Compliance Risks: Licensing compliance is another potential downside. Moving to third-party support requires a thorough understanding of Oracle’s licensing terms to avoid compliance pitfalls. Non-compliance could result in audits and penalties, especially if Oracle decides to review licensing agreements.
- Dependency on Third-Party Expertise: Your business depends on the provider’s expertise once you switch to third-party support. While these vendors are usually highly skilled, they do not have the same access to Oracle’s internal resources, which could be a limitation if complex issues arise that require proprietary knowledge.
Oracle Products Supported by Third-Party Providers
Third-party support for Oracle offers assistance for a wide range of 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:
- Oracle Agile PLM: Product Lifecycle Management software.
- Oracle ATG Web Commerce & Endeca: E-commerce and search analytics solutions.
- Oracle Database: A comprehensive and integrated set of database solutions.
- Oracle Demantra: Demand management and supply chain management solutions.
- Oracle E-Business Suite: An integrated set of business applications for automating CRM, ERP, and SCM.
- Oracle Hyperion: Financial management and analytics applications.
- Oracle Fusion Middleware: A collection of standards-based software products that includes tools for developing, deploying, and managing enterprise applications.
- Oracle Siebel CRM: Customer Relationship Management software.
- Oracle Retail: Retail management and supply chain solutions.
- 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.
How to move to a third-party support provider
Moving to third-party Oracle support can be a strategic decision but requires careful planning to ensure a smooth transition.
Here are the key steps involved:
Steps Involved in Switching to Third-Party Support
- Assess Your Current Oracle Support Needs: Understand what support your organization needs. Identify pain points with Oracle’s official support and evaluate whether third-party support could more effectively address these needs.
- Select a Third-Party Vendor: Research available third-party support vendors and choose one that fits your requirements. Consider factors such as experience, client testimonials, scope of services, and pricing.
- Prepare for Licensing Review: Conduct a thorough review of your Oracle licenses to ensure compliance. Moving to third-party support means that compliance is now your responsibility, and it’s crucial to avoid any lapses that could lead to disputes with Oracle.
- Establish a Transition Plan: Work with the third-party provider to create a clear transition plan. This should include detailed timelines, responsibilities, data handover processes, and the services you expect from the vendor.
Reviewing Oracle Licenses and Compliance
Before switching to third-party support, a comprehensive licensing review is critical. This review ensures that:
- All Licenses Are Properly Accounted For: Verify the current status of your licenses, including whether they are still compliant with Oracle’s terms.
- No Compliance Gaps Exist: Identify areas where licensing issues could arise and resolve them before switching.
- Consult an Expert: Hiring an independent Oracle licensing expert can provide peace of mind by ensuring compliance with all requirements and reducing the risk of penalties or future audits.
Best Practices for Preparing for a Smooth Transition
- Start Early: Begin planning the transition at least six months before your Oracle support renewal date. This ensures ample time to resolve any compliance issues and make necessary preparations.
- Involve All Stakeholders: To ensure that all departments are aligned, include IT, finance, and procurement teams in discussions about the transition.
- Define SLAs: Clearly define the Service Level Agreements (SLAs) with the third-party vendor to ensure that your expectations around response times and support quality are met.
Typical Challenges and How to Mitigate Them
- Compliance Issues: The most common challenge is ensuring licensing compliance. Engage with a licensing expert to preemptively address any potential issues.
- Resistance to Change: Internal resistance can arise from concerns about leaving Oracle’s support. Mitigate this by educating stakeholders about the benefits of third-party support and how it will not compromise support quality.
- Vendor Coordination: Transitions may involve multiple vendors. To reduce the risk of service interruptions, establish a clear point of contact with the third-party provider who can manage coordination.
Example: During a transition, a large logistics company found that involving key internal stakeholders early in the process helped reduce resistance. By clearly communicating the benefits and detailing how support quality would be maintained, they gained buy-in from their IT and finance teams and successfully switched to third-party support.
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 that Oracle does not actively support.
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 support vendors can lead to significant cost savings and better service terms. A favorable contract is crucial when considering third-party Oracle support.
Here are some key strategies to ensure you get the best value.
Tips for Negotiating Favorable Terms
- Benchmark Costs: Compare costs across different providers to understand the market rates. Use this data to negotiate better rates.
- Ask for Discounts: Don’t hesitate to ask for discounts, especially if you plan to commit to a multi-year contract. Vendors are often willing to lower costs in exchange for longer commitments.
- Include Performance Clauses: Ensure the agreement includes performance-based clauses that tie payment to the vendor’s ability to meet specific metrics.
Example: A telecom company negotiated a three-year deal with a third-party vendor with a 25% discount due to the longer contract duration. The company also included service-level guarantees to ensure responsiveness.
How to Compare Vendor Offerings
- Scope of Services: Compare each vendor’s range of services, including patching, performance optimization, and advisory support.
- Industry Experience: Choose a vendor with proven experience in your industry. This ensures they understand your unique challenges.
- Customization Ability: Evaluate how well the vendor can tailor their support to meet your specific requirements, such as custom SLAs and dedicated account management.
Example: A financial institution compared the offerings of Rimini Street and Support Revolution. They chose Support Revolution because it offered customized compliance monitoring services tailored to their stringent regulatory requirements.
Understanding SLAs and Getting the Most Value from the Contract
- Define Clear SLAs: Ensure the Service Level Agreement (SLA) clearly outlines response times, escalation processes, and coverage hours. This assures that your systems will be supported as needed.
- Include Penalties for Non-Compliance: To protect your business, negotiate penalties for failing to meet SLA terms. This encourages the vendor to maintain high service standards.
- Negotiate Flexibility: Ensure the contract allows you to adjust the level of support over time if your needs change. This could include scaling support up or down, depending on your Oracle environment.
Example: A logistics company ensured that their SLA included a maximum of four hours of response time for critical issues, with penalties if the vendor 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. They sought to explore alternatives to Oracle’s direct support to reduce costs.
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
- 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 agreement’s terms.
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
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. The organization managing support renewals rarely initiates 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. To get the best deal, it is recommended that you speak to both providers.
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. They may need to purchase additional licenses before doing so.
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.
To ensure compliance, it is recommended that the terms and conditions of the ULA be reviewed 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.
Read more about our Third Party Transition Service.
