Third-party Oracle support – Savings or a Trap?

Third-party support Oracle has become standard for companies to look at to achieve cost savings on software licenses. As companies are looking at cost savings on software licenses, Oracle is usually one of the vendors at the top of their target list. Oracle support fees are based upon 22% of net license fee paid and the support fees increase by 4% year on year. In the past few years, it’s become accepted to move the Oracle technical support contract to a third party support providers, such as Spinnaker Support and Rimini Street. Options available to customers are moving to Oracle database third party support as well as Oracle ebs third party support. This article will also tell you what will Oracle reaction be if you decide to move to third-party oracle support.

What is third-party Oracle support?

When you move your Oracle technical support contract to a third party Oracle support provider and these are the actions and results of this move.

• The company is terminating their technical support agreement with Oracle.
• The Oracle customer can continue using the Oracle software as the licenses arenot terminated and Oracle licenses are perpetual.
• The company can no longer call Oracle for technical support and need to call the third-party provider for Oracle support.
• The company will no longer be able to apply security patches or upgrade the Oracle software with patches or versions that are released past the date when technical support is expired.

Which companies should consider 3P Oracle support?

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

01

You have decided to replace your Oracle based solution. You have no need to call Oracle support or apply further security patches until you leave the Oracle based solution.

02

You have exhausted all other alternatives to reducing your Oracle support, including Oracle license optimization and downgrading to lessor versions. Read this article for ideas on what to try before moving to a third party Oracle support provider.

03

Companies that have no need for Oracle security updates or new versions and wish to reduce their Oracle support costs by 50%.

How to qualify if you should consider third party support

When you move your Oracle technical support contract to a third party Oracle support provider and these are the actions and results of this move.

How much does third party Oracle
support cost?

• Their business idea is that they charge 50% of what Oracle would charge you.

Which Oracle software products do third parties support?

• No, Oracle will not be upset if you move to third-party Oracle support. Mainly because there are different sales organizations at Oracle. The organization that is managing support renewals rarely initiate oracle audits. We have seen more audits on customers that have left for Oracle 3P party support, but its negliable.

Will Oracle be upset if I move to third-party oracle support ?

Oracle database third party support is available, as well as support for middleware, such as Weblogic and Oracle ebs third party support exists as well.

Oracle third party support providers

• There are 2 global Oracle third party support providers, that is Rimini Street and Spinnaker support. There are then several local support providers offering similiar services.
• Both providers have similiar business models and you should always speak to both parties to negotiate the best deal for your company.

How do you move to Oracle third party support?

• Review your Oracle licensing, you cannot move to a third party Oracle support provider if you are non-compliant and missing Oracle licenses.
• Review your contracts, to make sure you do not have any clause preventing your move to a third party provider.
• Remember that a move to a third party Oracle support provider takes time and you need to start the process at least 6 months before your Oracle support renewal is due.
• We often come across companies who have used a third party provider to review their Oracle licensing or a partner that is incentivized by the third party provider. They are often minimizing any Oracle licensing and contractual issues, which is why its important that you work with an Independent Oracle licensing advisor and not someone who will steer you into one direction.
• If you have an active Oracle ULA, you need to certify it before you can move to third party support.

What are the most common mistakes that customers make?

01

You should not trust that the third party support provider assess your licensing, they are obviously biased towards you moving to them no matter the results of the licensing assessment.

02

You should not trust that a partner of the third party support provider will provide neutral and unbiased licensing and contractual advise.

If you need further assistance, Redress can help you with

Understand what cloud products you need to purchase, if you are an existing Oracle EBS customer, we can help you map your current on-premises usage with the right cloud services.
Redress can help you design the cloud agreement making sure that you minimize any waste as you implement Oracle HCM.

Are you looking at third party Oracle support? Do you want an independent advisor to assess your Oracle licenses and contracts before moving to a third-party Oracle support provider? We can help you review both Oracle database third party support provider as well as Oracle EBS third party support provider. It is very important that you review your licenses and contracts before making a move to Oracle 3P party support, if you are found to be non-compliant you need to pay reinstatement fee along with backdated support for the years you did not pay support. Contact us to learn more how we can help your company in this journey to save money on your software licenses.

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