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Advisory Programs

Third party support. The 2026 decision framework.

Half price support is real. So is the reinstatement trap. Four questions separate the estates that should switch from the ones that should stay.

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Third party support saves 40 to 55 percent for the right estate and punishes the wrong one through reinstatement penalties. Four questions decide which estate you have.

Key takeaways

  • Third party support prices at roughly 50 percent of Oracle and SAP maintenance list, and the savings held at 40 to 55 percent across terms in our engagements.
  • You keep your perpetual rights and version support; you lose vendor patches, upgrades, and certifications.
  • Reinstatement plus back maintenance is priced to punish returns; price it explicitly before deciding.
  • Four questions screen the decision: version stability, upgrade horizon, audit posture, cloud trajectory.
  • A license position review must precede any exit signal, because audits often follow exit notices.
  • In 8 of 25 evaluations we ran, staying with the vendor was the right answer.

What does third party support actually save?

Third party providers price at roughly half of vendor maintenance list, and the headline holds in practice for stable estates. Rimini Street and Spinnaker Support both anchor at 50 percent against Oracle Premier Support and SAP support offerings list pricing.

The real economics are wider than the fee. Add the deferred upgrade spend, subtract the lost vendor patches, and price the reinstatement risk explicitly.

What you keep, what you give up

  • You keep the perpetual license rights you own and support for the versions you run, often with better response SLAs.
  • You give up vendor patches, version upgrades, and certification updates from the day coverage lapses.
  • You take on reinstatement exposure: returning to vendor support later triggers back maintenance plus penalties by design.

Which estates should and should not switch in 2026?

The decision reduces to four questions: version stability, upgrade horizon, audit posture, and cloud migration plans. Estates stable on all four are strong candidates; a hard no on any one of them defers the move.

The four question screen

  1. Version stability. Can the estate run current versions for 3 to 5 years without vendor patches hurting?
  2. Upgrade horizon. Is there any planned upgrade requiring vendor support within 3 years?
  3. Audit posture. Is the license position clean enough to survive the audit that often follows a support exit?
  4. Cloud trajectory. Does a SaaS or cloud migration retire this estate anyway, making support a bridge cost?

The candidates that score best

  • Mature ERP estates on stable releases with no appetite for the vendor's cloud roadmap.
  • Sunset systems running 2 to 6 years to decommission, where support is purely a bridge.
  • Database estates on older versions the vendor has already moved past.

Vendor support versus third party support, 2026

DimensionVendor supportThird party support
Annual fee22 percent of license list, risingRoughly 50 percent of vendor fee
Patches and upgradesIncludedNot included; custom fixes instead
Version coverageCurrent versions per policyAny version you run, indefinitely
Audit relationshipSupport and sales alignedIndependent of the vendor
Return pathNot applicableReinstatement plus back maintenance penalties

How do you manage the risks if you switch?

Three risks need explicit management: security patching, the audit that often follows the exit notice, and the reinstatement trap. Each has a concrete mitigation, and all three belong in the business case before signature.

Security gets virtual patching and compensating controls from the provider. The audit risk gets a license position review before the exit letter. Reinstatement gets priced as a contingency so leadership signs with eyes open.

How providers differ on security coverage

Virtual patching, configuration hardening, and compensating controls vary materially between providers. Make the security methodology a scored selection criterion with named SLAs, not a slideware assurance.

Where the common advice on third party support is wrong

The standard vendor line is that leaving official support is reckless, and the standard provider pitch is that it is free money. We disagree with both. In roughly 8 of the 25 evaluations Morten Andersen ran in 2024 to 2025, the right answer was to stay with the vendor, because an upgrade inside 3 years or a dirty license position made the exit math fail. In the other 17, savings of 40 to 55 percent held across the term with no operational regression. The buyer side move is to run the four question screen honestly and let the estate, not the sales pitch on either side, make the call.

Finance and IT leaders reviewing a support cost decision model on paper and laptop
The reinstatement penalty, not the annual fee, is the number that should anchor the third party support decision.
25
Support evaluations run 2024 to 2025
40 to 55%
Savings range that held across terms
8 of 25
Cases where staying with the vendor won

Source: Redress Compliance advisory engagement file, 2024 to 2025.

Vendor support is priced for the estate you might become. Third party support is priced for the estate you actually are. Know which one you are buying for.

What to do next

  1. Run the four question screen: version stability, upgrade horizon, audit posture, cloud trajectory.
  2. Review your license position before any exit signal reaches the vendor.
  3. Request proposals from at least two third party providers with named SLAs.
  4. Price the reinstatement scenario explicitly and put it in the business case.
  5. Plan security via virtual patching and compensating controls with the provider.
  6. Time the exit to your support anniversary to avoid paying for coverage you abandon.
  7. Reassess annually; a support decision is reversible at a price, and the price changes.

For the Oracle specific view, read the Oracle third party support guide. For ongoing coverage across your vendor estate, see Vendor Shield and the Renewal Program.

Frequently asked questions

How much does third party support save?

Roughly 50 percent against vendor maintenance list, and in our 2024 to 2025 evaluations realized savings of 40 to 55 percent held across the contract term for estates that passed the four question screen.

What do you lose when leaving vendor support?

Vendor patches, version upgrades, and certification updates from the day coverage lapses. Third party providers compensate with custom fixes and virtual patching, but the vendor roadmap is closed to you.

Can you return to Oracle or SAP support after leaving?

Yes, at a price designed to deter it. Reinstatement typically requires back maintenance for the lapsed period plus penalties, which is why the return scenario must be priced into the original business case.

Does leaving vendor support trigger an audit?

Often enough to plan for it. A support exit signals disengagement, and we treat a license position review as a mandatory step before any exit letter is sent.

Which estates fit third party support best?

Stable ERP and database estates on mature releases, systems with a 2 to 6 year sunset horizon, and estates with no vendor dependent upgrade inside 3 years. Estates failing any screen question should stay, for now.

Third Party Support Guide

The full third party support guide from the advisory team.

The screening model, provider SLA comparison framework, audit preparation steps, and the reinstatement contingency pricing method.

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