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

Introduction: Many organizations running Oracle software are exploring third-party support providers, such as Rimini Street or Spinnaker Support, as an alternative to Oracle’s own Premier Support. Third-party support refers to independent firms that maintain and troubleshoot Oracle products without Oracle’s direct involvement​.

The allure is clear: significant cost savings (often around 50% off Oracle’s fees) and more flexible, customer-centric service​. However, this model comes with trade-offs – you give up Oracle’s official patches and upgrade rights, and you must navigate license compliance carefully​.

This guide offers a comprehensive overview of third-party Oracle support, including its differences from Oracle Premier Support, pros and cons, key product coverage, Oracle’s customer retention strategies, real-world case examples, cost comparisons, fit assessments, and negotiation tips.

The goal is to empower CIOs, IT decision-makers, SAM managers, and licensing professionals to make an informed decision, in an advisory tone that puts customer interests first.

What Is Third-Party Oracle Support (and How It Differs from Oracle Premier Support)

Third-party Oracle support refers to maintenance and technical support for Oracle software provided by an external vendor, rather than Oracle Corporation. In this model, you continue to use your valid Oracle licenses but rely on a third-party provider for help desk support, bug fixes, and regulatory updates, rather than paying Oracle’s annual support fees.

Crucially, these providers operate independently of Oracle – they do not have access to Oracle’s proprietary support portal or source code. Instead, they deliver support through their own expertise and tools.

How it differs from Oracle Premier Support: Oracle’s Premier Support is the standard vendor support that comes with your Oracle license, typically 22% of the license price per year​. Premier Support includes regular patches, security updates, new version upgrades, and access to Oracle’s knowledge base, My Oracle Support.

By contrast, third-party support costs about half of Oracle’s fees and focuses on keeping your current system stable rather than upgrading it. Key differences include:

• Patches & Updates: Under Oracle Premier Support, you receive Oracle’s official patches, fixes, and quarterly Critical Patch Updates. If you switch to third-party support, you lose access to Oracle’s new patches and updates released after your contract ends​. Third-party providers cannot legally distribute Oracle’s patches, so instead, they develop their fixes or “virtual patches” to address bugs and security vulnerabilities on your existing software version​. This means your system can be kept secure and stable, but you won’t automatically get Oracle’s latest code changes. Companies must weigh the risk of missing Oracle’s patches (especially for zero-day security issues) against the third party’s ability to provide timely workarounds.
• Upgrades and New Releases: Oracle Premier Support entitles customers to upgrade to newer software releases (e.g., moving from E-Business Suite 12.1 to 12.2 or Database 19c to 21c) without buying new licenses. Third-party support does not include rights to new Oracle versions. If you want to upgrade to a later release, you will need to return to Oracle support (often paying backdated fees) or purchase a new license. In practice, organizations with third-party support usually “freeze” on a stable software version for several years. This is ideal if you have no immediate need for new features. But if your business decides it needs a major Oracle upgrade, you would have to plan for resubscribing to Oracle support and incurring the associated costs to get upgrade privileges.
• Support Scope – Customizations: Oracle’s support will only help with issues related to vanilla, out-of-the-box software. Suppose you’ve heavily customized your Oracle system (common with ERP like E-Business Suite). In that case, Oracle often asks you to reproduce problems in an unmodified environment – essentially, custom code is not supported by Oracle. Third-party providers, however, do support customizations as part of their standard service​. Their engineers will troubleshoot your entire environment, including any custom extensions or integrations, and even write fixes for custom code if needed​​. This broader support scope can be a big advantage for organizations with tailored systems that Oracle’s one-size-fits-all support doesn’t adequately cover.
• Knowledge Base & Portal Access: With Oracle Premier Support, customers have access to My Oracle Support (MOS) – Oracle’s proprietary knowledge base, patch downloads, and support portal. When you leave Oracle support, your MOS access is revoked. You can no longer download new patches or view Oracle’s support notes. Third-party providers counter this by giving you access to their own support portals and knowledge repositories. They often hire former Oracle support engineers and build extensive libraries of solutions for Oracle software issues​​. The support experience shifts from Oracle’s self-service knowledge base, where you might be told to read a document or apply a patch, to a more hands-on approach where the third-party support team actively works on your issue. Many customers find this personalized, high-touch support to be more effective in resolving problems.
• Support Timeliness and SLAs: Oracle’s standard support operates on severity levels but doesn’t guarantee specific resolution times in the base support contract. Users frequently report that Oracle support can be slow or respond with generic advice (such as “apply the latest patch” or “upgrade to the next release”) rather than a specific fix. Third-party support firms differentiate themselves with aggressive service level agreements – for example, you may get a guaranteed 15-minute response time for critical issues and dedicated engineers available 24/7. Clients often receive direct access to a named support engineer or team that is familiar with their environment, leading to a faster turnaround. In short, Oracle support can sometimes feel bureaucratic, whereas third-party support focuses on rapid, customer-centric service​​.

In summary, third-party support replaces Oracle’s support for licensed customers, delivering help and fixes for your Oracle systems with a more customer-focused approach.

You trade off the steady stream of official Oracle patches and the option to upgrade freely, in exchange for lower cost, more personalized service, support for customizations, and extended support life for older software​​.

It’s a viable, legal alternative to staying on Oracle Premier Support, especially for organizations that run stable Oracle environments and want to regain control of their IT roadmap.

Oracle Products Covered by Third-Party Support

Third-party support isn’t limited to one Oracle product – it spans a wide range of Oracle’s on-premise software portfolio. Leading independent providers, such as Rimini Street and Spinnaker Support, have offerings across Oracle’s product lines. Notable Oracle products commonly supported include:

• Oracle E-Business Suite (EBS): All major modules of Oracle EBS, including Financials, HR, Supply Chain, Manufacturing, etc., are covered by third-party support, often extending to older releases that Oracle has placed in Sustaining Support. For example, third-party providers will fully support EBS 12.1 or 11i long after Oracle has stopped issuing patches, allowing companies to keep these ERP systems running with updates to tax and regulatory rules.
• Oracle PeopleSoft: Third-party providers support PeopleSoft HCM, Financials, Campus Solutions, and more. Many Oracle customers still run legacy PeopleSoft systems. Third-party support can maintain these systems indefinitely, providing updates for payroll tax, compliance fixes, and customization support. In contrast, Oracle’s support for older PeopleSoft versions may be limited or have expired.
• Oracle JD Edwards: JD Edwards EnterpriseOne and World (acquired by Oracle) are also commonly supported. Third-party support helps JDE customers avoid forced upgrades (for example, to newer releases or Oracle Cloud ERP) by providing bug fixes and localizations on existing JDE versions. This is valuable for manufacturing and distribution companies that rely on stable JDE installations.
• Oracle Database and Middleware: Oracle Database (all versions, from 10g to 19c and beyond) is a popular candidate for third-party support once it reaches end-of-life support. Companies running a stable Oracle DB version can receive third-party security updates and performance tuning assistance. Middleware products, such as Oracle WebLogic, Fusion Middleware, and Oracle Middleware-based products (e.g., OBIEE), can also be supported by some providers. By doing so, organizations avoid expensive Oracle Extended Support fees when their databases or middleware versions reach the end of Premier Support.
• Oracle Siebel CRM: Siebel, another Oracle-acquired application, has a long product history and many versions in use. Third-party support covers Siebel CRM, allowing companies in telecom, finance, and other industries to continue using their tailored Siebel systems without requiring Oracle’s support contract. Providers will support custom Siebel components and even integrate new browser or OS compatibilities as needed, well beyond Oracle’s support timeline.
• Oracle Hyperion and Others: Niche Oracle products, such as Hyperion (EPM/financial planning tools), Oracle Retail, and Oracle Database options (including Exadata software), as well as Oracle middleware tools, are also supported by specialized third-party firms. Essentially, any on-premises Oracle software for which you have a perpetual license can potentially be maintained by a third-party support vendor. This excludes Oracle’s SaaS or cloud subscription products (like Oracle Fusion Cloud applications) – those can only be supported by Oracle itself since you don’t host the software.

Key Point: Third-party support is particularly popular for Oracle’s ERP and database products, including E-Business Suite, PeopleSoft, JD Edwards, Siebel, and Oracle Database. These are often mission-critical systems that companies want to run for an extended period.

If Oracle has declared a version’ end of Premier Support,” a third-party provider will still provide support for that version as long as you continue to use your license​legally. This gives IT leaders an option to extend the useful life of Oracle systems well beyond Oracle’s support deadlines.

Pros of Third-Party Support for Oracle

Switching to third-party support for Oracle software offers several compelling benefits. These advantages drive many CIOs and SAM managers to consider making the move:

• Dramatic Cost Savings: The number one motivator is cost. Oracle’s annual support fees are roughly 20–22% of the license price, and they typically increase each year. Third-party support providers typically charge about 50% of Oracle’s fee for the same product​. This translates into immediate savings of around 50% on your support budget, and potentially more over multiple years, since independent providers usually don’t impose automatic annual increases. For example, one company was able to cut its Oracle support bill by 60% by switching to a third-party provider​​. That freed up hundreds of thousands of dollars, which they redirected into new analytics and digital transformation projects. Over 5 years, the savings from third-party support can easily run into the millions for large Oracle estates, providing CIOs with budget flexibility to fund innovation or other critical IT initiatives.
• Extended Support for Legacy Systems: Third-party vendors will continue to support older versions of Oracle products, effectively eliminating the end-of-support deadlines imposed by Oracle. If your Oracle system is stable and meeting business needs, you no longer have to perform a costly upgrade just because Oracle’s calendar says support is ending. For instance, when Oracle Database 12.1 reached end of life, many customers moved to third-party support rather than being forced to upgrade to 19c or pay Oracle for Extended Support. With third-party support, you can keep running Oracle EBS 11i or PeopleSoft 9.1 for as long as it serves the business – your provider will continue to issue bug fixes, security patches, and tax/regulatory updates even if Oracle has long since moved on. This lets you maximize ROI on existing software and upgrade on your schedule, not Oracle’s. Companies especially appreciate this in cases where upgrades would require major re-testing, new hardware, or business disruption with little functional benefit.
• Better Service and Responsiveness: Many organizations are frustrated with Oracle’s support experience – long response times, repetitive “level 1” troubleshooting scripts, and an emphasis on pointing to documentation or recommending upgrades. Third-party support flips this experience by offering a more customer-centric service. You typically get direct access to senior engineers (often former Oracle experts) who handle your issues from start to finish. Support tickets aren’t bounced around; the person who answers is often capable of resolving complex problems. Providers also contractually commit to stronger Service Level Agreements (SLAs) – for example, 24/7 support with a 30-minute critical response is common. The result is faster issue resolution and higher satisfaction. Many CIOs report that after switching, their IT teams spend far less time managing support escalations because the third-party vendor proactively works on fixes, rather than just deflecting the problem. This improved service can reduce downtime and boost productivity.
• Support for Customizations: As mentioned, Oracle’s standard support will not delve into your custom code or integrations. Third-party support is a lifeline for heavily customized Oracle environments. The provider’s team will support both standard Oracle code and any customizations you have built on top. For example, if you have custom PL/SQL extensions in your E-Business Suite or a modified schema in PeopleSoft, a third-party engineer will take these into account during troubleshooting and may even create a patch to fix an issue in your custom layer. This “one-stop” support for the entire system (including customizations) means you no longer get stuck in a loop where Oracle says, “That’s custom, not our problem.” It significantly improves uptime for customized systems and saves your developers from having to fix every issue alone. Essentially, you’re paying for comprehensive support that covers the real-world state of your software.
• Predictable, Flat Fees (Avoiding Uplifts): Oracle’s support contracts often include automatic annual uplifts (typically a 3-4% per year increase in fees) and can spike if you enter Extended Support. Third-party providers usually offer flat or fixed fees for the term of your contract, with no surprise increases​. This helps with IT budget planning – you can lock in support costs and not worry about inflationary rises or Oracle’s periodic price increases. Some CIOs consider this a quick win for financial planning: it eliminates the “budget creep” of Oracle maintenance and helps keep operating costs flat from year to year.
• Focused Support and Dedicated Account Management: Because third-party firms specialize in support and often limit their client count per engineer, you receive highly focused attention. Providers may assign a dedicated account manager or support lead who becomes intimately familiar with your environment. They often schedule regular check-ins, provide health reports on your Oracle systems, and act more like a partner than a vendor. This relationship-driven approach means the support team understands your IT landscape and business priorities, leading to support solutions that are more aligned with your needs. Many customers describe the third-party support experience as “having an extension of our IT team” rather than dealing with a faceless ticketing system.

In summary, the pros of third-party Oracle support can be boiled down to lower cost, longer support life, and better service. Organizations that have made the switch often find they can redirect a sizable budget to innovation, avoid disruptive upgrades, and get more responsive support on their terms​​. These benefits are most pronounced for those running mature Oracle systems that don’t require Oracle’s constant updates.

Cons and Risks of Third-Party Support

Despite the benefits, CIOs and IT managers must carefully consider the drawbacks and risks of leaving Oracle’s official support.

Here are the key cons and risk factors:

• Loss of Oracle’s Official Updates: The biggest trade-off is that once you leave Oracle support, you stop receiving Oracle’s official patches, fixes, and updates for new versions. Over time, if new bugs or security vulnerabilities emerge, you cannot download Oracle’s fixes for them, as they are only available to active support customers. You must rely on your third-party provider to develop a fix, mitigation, or find workarounds internally. Top third-party providers do invest in creating patches and security updates, but they essentially reverse-engineer solutions since they don’t have access to Oracle’s source code. Security is a particular concern – missing Oracle’s critical patch updates could leave you exposed if not addressed. That said, leading providers have methodologies like “virtual patching” (blocking vulnerabilities at the network or configuration level) and claim to keep clients secure​​. To date, there have been no widely reported security breaches attributed to companies using third-party support (even among banks and government agencies that do so). Still, the risk is there: you’re betting that an independent firm can match Oracle’s security vigilance. In highly regulated environments, auditors might flag that you’re not on the vendor’s patch program, so you’ll need evidence of alternate controls. Mitigation: Ensure the provider has strong security credentials and has a plan (e.g., extra firewalls, intrusion detection) to compensate for any lag in patches​​.
• No New Features or Enhancements: With third-party support, you essentially freeze on your current software version. You won’t get new features, new modules, or performance enhancements that Oracle delivers in future releases​​. For some companies, this is fine – the current system does what’s needed. But suppose your business strategy later requires a new Oracle capability, such as a new analytics module or an integration introduced in a future version. In that case, you’d be stuck until you either resubscribe to Oracle support or implement a workaround. No upgrade rights is a hard stop on adopting new Oracle tech. Some companies mitigate this by timing their move. For example, they might complete a necessary upgrade while still on Oracle support, and then switch to a third-party for the stable period thereafter​. It’s important to realistically assess whether you can live without Oracle’s innovation for the next few years. If your competitors or industry are leveraging new Oracle cloud services or software improvements, not having those could become a strategic disadvantage.
• License Compliance and Audit Risks: Using third-party support is legal as long as you comply with your Oracle license agreement, but it can draw attention to your compliance. Oracle can still audit your use of its software, even if you’re not a support customer (they retain this right for perpetual licenses). Industry observers note that Oracle sometimes increases audit activity on customers who drop support, possibly looking for any non-compliance to levy penalties​​. You need to ensure that your Oracle deployments are within licensed limits, including CPU counts, user counts, and optional features. If not, an audit could result in a costly surprise, and Oracle might use it as leverage to bring you back into a support deal.Additionally, if you ever want to return to Oracle support later, Oracle will typically charge backdated support fees plus a reinstatement fee for the lapsed period​​. This can be very expensive, erasing some of the savings you achieved. Mitigation: Before switching, conduct an internal license audit (or hire a third-party Oracle licensing expert) to ensure you are 100% compliant. Also, plan financially for the possibility of paying reinstatement fees if a future business decision requires you to return
  to Oracle support. Keep documentation of your entitlements and usage to defend against any audits. It’s wise to download and archive all Oracle patches and documentation you’re entitled to while you still have access, creating a library for future reference​​.
• “Matching Service Levels” Contract Restrictions: Oracle’s contracts have a notorious provision often called the License Set or Matching Service Level policy. This means you generally cannot drop support on a subset of licenses for a given product – it’s all or nothing for that product family​​. For example, if you have 100 Oracle Database licenses under one agreement, Oracle may require that either all 100 stay on support or you terminate support on all; you can’t keep 50 on Oracle and 50 on third-party. If you violate this, Oracle could refuse to support the remaining licenses or invoke contract penalties. In practice, this forces you to make a complete switch per product line. You might have to bite off a big chunk (e.g., all of E-Business Suite) at once. It also complicates partial or hybrid approaches, which are discussed later. Mitigation: Review your contracts carefully to identify which licenses are tied together by these clauses​. Structure your support transition so that you only drop support in allowed ways, such as by product module or after separating licenses. In some cases, companies have negotiated exceptions or carved out subsets during renewal, but that requires Oracle’s agreement. Be very cautious doing an unofficial partial drop; get legal advice to avoid breaching contract terms.
• Strained Vendor Relationship: Going to a third-party provider will change your relationship with Oracle. While Oracle cannot cancel your licenses for leaving support (your perpetual license is your property), you may lose certain “goodwill” perks. Oracle sales and account reps often react poorly when a customer leaves – you might experience more aggressive sales tactics or less friendly terms on other deals. Oracle might, for instance, be less inclined to offer discounts on new licenses or cloud services to a customer who left support. There’s also the psychological aspect: you’re essentially telling Oracle that you’re taking your support dollars elsewhere, which can make future negotiations tense.
  Furthermore, Oracle’s support portal and updates will be off-limits, which can feel like a loss of connection to the vendor. Mitigation: Ensure all your Oracle product documentation and contacts are in order before the switch. Be prepared for Oracle’s pushback (more on Oracle’s tactics below). Keep the relationship professional – some companies maintain a minimal Oracle support footprint on a small product to keep a channel open, though this isn’t always necessary. Also, if you still plan to buy other Oracle products or cloud services, anticipate that Oracle will try to bundle those discussions with support – they may say, “We’ll sell you this cloud deal, but only if you put everything back on support.” Knowing this in advance helps you formulate your negotiation strategy.
• Legal Considerations (Provider Conduct): The third-party support industry had a high-profile legal battle: Oracle vs. Rimini Street. Oracle sued Rimini Street for copyright infringement, claiming that Rimini had illegally downloaded Oracle’s software and support materials to service its clients. Courts ruled largely in Oracle’s favor in that case, resulting in injunctions on how Rimini operates​​. The key takeaway is that third-party support itself is legal for customers. Still, providers must operate within the law (using customer-owned copies, not Oracle’s IP beyond what the license allows)​​. Reputable providers have adjusted their processes accordingly. However, as a customer, you should vet your provider’s legal history and methods. If a provider is currently embroiled in lawsuits with Oracle or using questionable techniques to get patches, that could disrupt your service or even implicate your company. Mitigation: Stick to well-known providers with a clean track record. Ask them directly how they obtain updates and ensure it aligns with your license rights. Confirm that courts have not restricted their operations. This way, you avoid indirect liability or sudden support interruptions if Oracle wins an injunction against a provider.

In summary, the cons of third-party support center on foregoing Oracle’s future deliverables, managing compliance vigilantly, and handling the fallout from the vendor relationship​​. None of these are insurmountable – thousands of companies have navigated them successfully – but they require due diligence and planning.

Businesses in heavily regulated industries or rapidly evolving tech domains need to be extra careful to ensure that a third-party model can meet their security and functionality needs. By understanding these risks upfront, you can put mitigations in place, such as security plans and contract reviews, to confidently proceed if the benefits outweigh the downsides.

Oracle’s Response Tactics to Third-Party Support

Oracle is well aware that third-party support siphons off its lucrative maintenance revenue, and it employs various tactics to dissuade customers from leaving or to win them back. If you consider third-party support, be prepared for Oracle to respond in one or more of the following ways:

• Fear, Uncertainty, and Doubt (FUD): Oracle sales reps often launch a FUD campaign at the slightest hint that you might drop support. They may imply that third-party support is “illegal” (which is false – courts have affirmed customers’ rights to third-party support​​), or that your systems will instantly become vulnerable and non-compliant. Expect Oracle to reference the Rimini Street lawsuit as a scare tactic, suggesting that third-party providers can’t be trusted or might lose in court. They might also say things like “Oracle will no longer support you in any way if you leave” or hint that you’ll be first in line for an audit. The goal is to sow doubt. The best counter is to do your homework: know the legal facts (you have the right to third-party support​), talk to reference customers who have switched, and evaluate the security question seriously but objectively. Many large enterprises (including highly secure government agencies) have used third-party support for years without issue​, so Oracle’s doomsday scenarios are often exaggerated.
• Contractual Roadblocks: We discussed Oracle’s matching service-level policies, which require all-or-nothing decisions. Oracle may remind you that if you drop support for one product, they will reprice your others at the next renewal. This means the cost of remaining products on support could increase, so Oracle doesn’t lose revenue. This repricing threat is real – Oracle’s policies say if you terminate support on a subset of licenses, they can raise the fee percentage on the rest to bring the total back to the original amount​​. Essentially, “you can quit, but we’ll make sure we still get the same money from your smaller footprint.” Oracle might not always enforce this strictly, but it’s in their toolkit. To counter this, some customers time their moves to coincide with the natural contract expirations of entire license sets or negotiate written waivers for any repricing if they are doing a partial drop.
• Last-Minute Discounts and Incentives: Despite Oracle’s official stance that they “don’t discount support,” when faced with losing a support customer, they have been known to offer incentives​​. This could be a one-time discount on your renewal, a year of free support for a specific product, or more commonly, credits or discounts tied to the purchase of other Oracle products. For instance, Oracle might say: “If you sign a cloud contract or buy additional licenses, we’ll give you a break on your on-prem support fees.” One real example: as a customer’s support renewal neared, Oracle proposed that if they purchased a small Oracle Cloud subscription, they would be allowed to cancel support on another product without the usual penalty. Oracle sometimes bundles deals, such as extra cloud credits equivalent to a support discount, or applies a higher discount on new license sales, so that your support base cost effectively lowers. These creative offers are aimed at preserving the relationship and revenue by sweetening the deal. If you’re open to staying with Oracle, you can leverage third-party quotes to push Oracle for a better maintenance deal. Just be aware that any such deal might be a short-term win; Oracle could try to claw back revenue later.
• Increased Audit Scrutiny: While suspected compliance issues usually trigger Oracle audits, it is widely believed that customers who drop support are placed in a higher-risk pool for audits. Oracle’s License Management Services might initiate an audit a few months after you decline your renewal, hoping to find unlicensed usage to recoup money. Indeed, not paying support can put a target on your back, since Oracle knows it can only generate additional revenue through an audit true-up. This is why we stressed license compliance: if you leave support, ensure you’re squeaky clean in terms of usage. An audit threat is often hinted at during tough negotiations (“okay, but make sure you’re compliant…”). Treat this professionally – if you get an audit notice, respond cooperatively but carefully, and consider having third-party audit defense experts on standby​​. When you are confident in your license position, Oracle’s audit tactic loses its bite.
• Pressure During Negotiations: Oracle might escalate your case to higher executives or legal counsel to apply pressure. Some customers have reported getting letters from Oracle’s lawyers reminding them of contractual obligations, or calls from VPs urging them to reconsider. This typically happens with very large customers considering third-party support. It’s a form of high-pressure sales – Oracle is essentially doing an all-out retention effort. Stay firm and refer back to your rights and business reasoning. If needed, involve your legal team to respond formally. Oracle cannot legally terminate your existing licenses just because you left support, as long as you remain compliant. So any legal posturing is largely a bluff to scare non-legal professionals.

In summary, Oracle’s responses range from soft incentives (such as discounts and credits) to hardball tactics (such as audits and legal threats). As a customer, you should anticipate these and plan your moves accordingly.

Many organizations use the mere option of third-party support as leverage: by showing Oracle you have a credible Plan B, you might extract a better support deal from Oracle​​. But you must be ready to follow through with switching if Oracle doesn’t bend enough, otherwise the bluff can be called.

The next sections discuss real-world examples and how to assess if third-party support is right for you, which will strengthen your position whether you negotiate with Oracle or proceed with an independent provider.

Real-World Examples of Third-Party Support in Action

Thousands of enterprises worldwide have switched to third-party support for Oracle products, including many household-name companies across industries.

Here we highlight a few anonymized examples and broader trends to illustrate the real-world impact:

• Manufacturing Company Saves 60%: A large manufacturing firm decided to move its Oracle E-Business Suite and Database support to a third-party (Rimini Street). As a result, they reduced annual support costs by 60%, saving millions over several years​​. With those savings, the company was able to invest in modernizing its factory floor IT systems, including IoT and analytics, which had been waiting for funding. Additionally, because their EBS environment was heavily customized, they benefited from the third party’s support of custom code, which improved system uptime and performance. Oracle had previously been unable to help with certain custom-related bugs, causing extended downtime​​. The success of this transition in a mission-critical manufacturing environment gave the IT leadership confidence to consider third-party support for other software as well.
• Global Retailer Funds Innovation: A global retail chain switched from Oracle support to a third-party provider for its PeopleSoft and Oracle Database systems. The budget freed by cutting support fees (~50% savings) was reallocated to new digital transformation initiatives, such as developing an e-commerce platform and mobile customer experiences. According to the CIO, this move “turned a support cost into an innovation engine.” Importantly, the retailer experienced better support service after the switch: they had dedicated engineers who resolved issues faster, which was critical during the holiday shopping season. This example shows how third-party support can align IT costs with business strategy by freeing capital to invest elsewhere while keeping core systems stable.
• Staying on an Old Version: A financial services company was running Oracle Database 11g and Forms-based applications that were deeply embedded in their operations. Oracle’s support for 11g was nearing its end, and the next version upgrade would have required a massive effort to rewrite custom forms and test every transaction, with no new business functionality to show for it. They chose third-party support to avoid a forced upgrade and have now been running on 11g for several years past Oracle’s support life, with no major issues. Their third-party provider supplies security fixes for new vulnerabilities and even updates the system for changes in Daylight Saving Time and regulatory reporting formats. The company estimates that it deferred at least $5 million in upgrade costs by using third-party support, essentially buying time until it decides on a future platform. This case underlines the value of extended legacy support: you can continue running a stable system as long as it delivers value, without being dictated by the vendor’s timeline.
• Public Sector Success: Numerous public sector organizations, including cities, universities, and government agencies, have turned to third-party support to cope with budget constraints. For instance, a mid-sized city government moved its Oracle JD Edwards ERP to a third-party support provider. The immediate savings, roughly $ 300,000 per year, enabled the city to avoid layoffs in its IT department and instead fund a new online citizen services portal. Despite Oracle’s warnings, the city reports that its ERP operations have been steady. They receive timely tax and payroll updates from the third-party provider, which are critical for compliance. This demonstrates that even risk-averse public entities have leaped successfully, often viewing it as a way to do “more with less” in the face of tight budgets.

Beyond individual cases, the overall trend is that third-party support has moved from a niche or last-resort idea to a mainstream strategy. By 2024, roughly 4,000 customers globally were using third-party support for Oracle or SAP, including many Fortune 500 companies​​. Gartner research noted that inquiries about third-party support among its clients increased 50% year-over-year in a recent study. The market for independent support has been growing rapidly, estimated to have tripled in revenue from 2019 to 2023​​, which indicates that what was once considered a risky experiment is now an accepted option for savvy IT leaders.

Importantly, legal validation has reinforced this trend: court decisions in the 2010s and a U.S. federal ruling in 2023 have confirmed that nothing in Oracle’s license agreements prevents a customer from hiring a third party to provide support services​​. This has removed much of the uncertainty; companies can switch knowing they are within their rights as long as they stay within their license usage limits. Oracle still fights hard to retain customers and continues to engage in selective legal battles with providers over specific practices. Still, the existence of successful reference cases in almost every industry has made CIOs more comfortable considering the move.

In short, many organizations have already harnessed third-party support, cutting costs significantly, extending the life of reliable systems, and often reporting improved support experiences. These real-world examples provide evidence that, under the right circumstances, the benefits can be realized without the nightmare scenarios coming true. Next, we will conduct a cost comparison to quantify the savings and then discuss how to determine if your organization is a good fit for third-party support.

Cost Comparison: Oracle Premier Support vs. Third-Party Support

One of the easiest ways to grasp the value proposition of third-party support is to compare the costs side by side. Oracle’s support model is consistent: you pay a percentage of your license value each year (plus any potential increases). Third-party providers break that pattern by charging much less and keeping fees flat. Below is a simplified cost comparison example:

Table: Hypothetical cost comparison for $1M worth of Oracle licenses over 5 years. Third-party support costs roughly half of Oracle’s support and avoids annual increases, resulting in more than 50% savings over five years. (Sources: Oracle Premier Support is ~20-22% of license cost​; third-party support typically charges about half of Oracle’s fee​.)

In practice, the exact numbers will vary based on your negotiated Oracle discount and the third-party provider’s quote, but a savings of 50% or more is consistently reported. For example, if you currently pay $2 million a year in Oracle support across all products, switching could likely reduce that to about $1 million a year, saving $1 million annually. Over several years, those savings compound, and they can be reallocated to IT projects that drive business value instead of simply “keeping the lights on.”

It’s also worth noting that Oracle’s support costs can increase in some scenarios: if your product enters Extended Support, Oracle may charge an additional uplift (10% or more on top of the 22%). And if you attempt to drop some licenses, Oracle’s repricing, as mentioned, could push the cost percentage even higher than 22% on the remaining ones. Third-party support offers a way out of those escalating costs – you typically get a simple, predictable fee that is a fraction of Oracle’s price, with no surprises.

Beyond the direct fees, consider the indirect cost differences as well. With third-party support, you may avoid a costly forced upgrade, saving project dollars, and reduce downtime due to better support responsiveness, saving operational losses. Those are harder to tabulate, but they can be significant. Some organizations have justified the switch by combining the hard savings on fees with the soft savings of not having to, say, re-implement customizations in a new version for several years.

To summarize the cost picture: Oracle Premier Support is expensive and rises over time, whereas third-party support is far cheaper and stable. Many CIOs see the gap and conclude that Oracle is charging a premium that is no longer justified for older, stable systems. The exact financial analysis should be tailored to your environment. Still, virtually all cases of third-party support show a substantial positive return on investment (ROI) when looking solely at support costs over a multi-year period.

Is Third-Party Support a Good Fit? Assessing Your IT Roadmap

Third-party Oracle support is not one-size-fits-all. It shines in certain scenarios and is less appropriate in others. It’s crucial to evaluate your own IT roadmap, application lifecycle, and business needs to determine if you’re a strong candidate for third-party support.

Here are guidelines to evaluate fit:

When Third-Party Support Makes Sense:

• Stable, Mature Environments: If your Oracle applications or databases are in a steady-state – meaning you’ve been running the current versions for a while, they’re meeting business requirements, and you have no pressing need for new features – then you are the ideal candidate. Examples: an Oracle E-Business Suite R12 instance that the company has used for years with lots of customizations, or a stable Oracle Database that supports core operations. In these cases, third-party support allows you to safely extend the life of these systems and save money, without hindering the business (since you weren’t chasing new features anyway). Organizations that view their ERP or database as a commodity, “keeping the lights on” system (rather than a source of competitive differentiation), often fit this profile. They prioritize stability and cost control over adopting the latest technology. For them, third-party support is almost a no-brainer to maximize ROI.
• Near or Post End-of-Support Products: If some of your Oracle products are reaching their end of Premier Support (or are already in Oracle’s Extended/Sustaining Support), third-party support is very attractive. You’re exactly the kind of customer Oracle will pressure to upgrade or pay more for extended support. By switching, you can continue running those “out-of-date” versions with full support from the third party, avoiding an upgrade that may not deliver tangible benefits. For example, companies running Oracle JD Edwards World or older versions of PeopleSoft chose third-party support to cover them when Oracle’s support timeline expired. This is a tactical way to buy time – perhaps you plan to replace the system in a few years, but you need support coverage until then without incurring Oracle’s extended support fees. In short, if Oracle considers your version obsolete, a third party will often still eagerly support it for as long as you need.
• Cost-Driven Decisions: If IT budget pressure is high and you’re tasked with finding savings, maintenance fees are a prime target. Third-party support can often save 50% or more of support costs immediately, which can be a “quick win” for meeting budget reduction goals. CIOs or CFOs looking to free up funds for other initiatives, such as cloud projects or new software, may push for this route. Just ensure the technical stakeholders agree that the reduced support scope is acceptable (no upgrades, etc.). When money is the top driver and your risk assessment shows manageable risk, third-party support is a strong option. It essentially turns a portion of your fixed OPEX into new investable capital.
• Long-Term Transition Off Oracle: Some organizations decide to eventually migrate completely off Oracle products – for example, moving from E-Business Suite to a SaaS ERP (such as Workday or SAP) or from Oracle Database to an open-source database. These migrations are complex and can take years to execute. Third-party support can serve as a bridge during the transition​​. You keep the old Oracle system supported at a lower cost while you invest in the replacement. Once the new system is live, you can drop the Oracle licenses altogether. Companies have used this strategy to avoid paying Oracle while migrating. For instance, a large enterprise that migrated from Oracle ERP to cloud ERP saved millions in support fees over three years by switching to third-party support until the new system was ready. If you have a defined plan to retire an Oracle system down the road, it makes sense not to pay Oracle’s full price in the interim.

When Third-Party Support May Not Fit:

• Upcoming Upgrades or Expansions: If your IT roadmap requires staying current on Oracle tech, you should likely remain with Oracle support. For example, if you plan to upgrade to Oracle EBS 12.2 in the next year, or you’re adopting Oracle Cloud modules that integrate with your on-prem systems, you need Oracle’s support (and rights to new versions) active. Third-party support would cut you off from the very upgrades you intend to use. Similarly, if Oracle has announced a new product feature or module that your business is counting on, you don’t want to be stuck on an older version via third-party support. Rule of thumb: Don’t switch if you have a major Oracle upgrade or implementation in progress or slated soon​​. Finish the project first, then reconsider once you’re in a stable running state.
• Reliance on Oracle’s Roadmap: Some companies are tightly aligned with Oracle’s roadmap – for example, they participate in Oracle’s customer advisory boards, eagerly anticipate quarterly updates (especially in Oracle Cloud applications), or need Oracle’s enhancements for competitive reasons. Suppose you are in an industry where having the latest Oracle software is part of your strategy, such as a cutting-edge tech firm that uses the newest Oracle Database features for improved performance. In that case, leaving Oracle support will be counter-productive. Third-party support is best for “frozen” environments; it’s not meant for those who need continuous vendor innovation. Evaluate how much you value Oracle’s ongoing R&D contributions to your stack.
• Cloud/SaaS Products: As noted, Oracle’s SaaS offerings (Fusion Cloud ERP, HCM Cloud, etc.) cannot be externally supported – you must pay Oracle as long as you use them. If a significant part of your Oracle footprint is in the cloud or you plan to migrate to Oracle Cloud services, third-party support may only apply to the remaining on-premises systems. For example, you might move your databases to Oracle Autonomous Database, a cloud service, which comes with Oracle’s support bundled. In such hybrid cases, you might use a third-party solution for on-premises EBS but keep Oracle support for the cloud portion. Just be mindful of Oracle bundling contracts across cloud and on-prem.
• Highly Dynamic or Regulated Environments: If your Oracle system requires constant updates for compliance or competitive edge, think twice. For example, a financial institution’s trading platform on Oracle that needs every performance patch for an edge, or a payroll system that sees very frequent tax changes beyond what a third party might cover promptly. While third parties do provide tax and regulatory updates (often matching Oracle’s schedule), extremely fast-changing needs could stress the arrangement. Some companies in the pharma or finance industries, under heavy regulation, opt to stay with Oracle support to ensure they receive any surprise compliance updates directly from the source. It’s not that third-party can’t do it, but the risk tolerance in these orgs might be lower. Weigh the criticality of having Oracle-certified updates versus the third party’s promise to deliver equivalent fixes.

To sum up, third-party support is ideal for stable and cost-sensitive environments, where the roadmap focuses more on maintaining existing capabilities than introducing new ones. It’s often said that third-party support is great for running business systems (established, reliable applications). In contrast, if you’re in the middle of “changing the business” with new Oracle tech, you might need to stick with Oracle a bit longer​​.

Assess each Oracle system you have and categorize them by whether they require ongoing Oracle innovation or not. You may find some systems are ready to switch while others should remain under Oracle support. In the next section, we’ll discuss that hybrid approach and how to execute a smooth transition if you decide to proceed.

Guidance on Negotiating with Oracle (If You’re Considering Third-Party Support)

If you determine that third-party support is a serious option, the way you handle negotiations with Oracle becomes critical.

Even if you ultimately switch, you typically have to notify Oracle by not renewing your support, and there may be an opportunity to negotiate better terms before making the switch.

Here are strategies for engaging with Oracle when third-party support is on the table:

• Leverage (Credibly) the Third-Party Option: As mentioned, mentioning that you’re considering third-party support can sometimes prompt Oracle to offer concessions. When you open renewal discussions (ideally a few months before the contract end), calmly let Oracle know that you’re exploring alternatives due to budget constraints and lack of need for upgrades. If they believe you are serious, Oracle might bend its “no discount” rule to keep you. We’ve seen cases where Oracle gave an uncommon support discount or extra services for free once a customer hinted they might leave. Important: Use this tactic only if you are actually prepared to leave. Oracle sales reps are skilled at reading customers – if they sense you’re bluffing (i.e., you actually must have Oracle support for some reason), they may hold firm. But if, for example, you have a quote from Rimini Street in hand and a business case approved by your CFO, mentioning that could strengthen your negotiating position. In essence, you are introducing competition into what is normally a monopoly, and that can change the tone of the negotiation.
• Ask for Specific Concessions: When negotiating, be specific about what would make you stay. For instance, you could ask, “Oracle, if you can match 50% of our current support cost, or freeze increases for three years, we will sign.” Oracle might claim they don’t do that, but if the deal size is significant, they may find a workaround, such as giving a one-time credit. Another angle is to ask for flexibility: e.g., “We only need support on half of these licenses now; can you allow us to drop the rest without penalty?” Normally against policy, but if Oracle knows the alternative is losing everything to a third party, they might be motivated to be flexible. Pro tip: Sometimes bundling the discussion with a new purchase helps. If you are also considering buying new Oracle products or cloud services, use that as a bargaining chip: “We’ll buy X product, but only if you reduce the support fees on Y legacy product.” Oracle can then justify the support concession internally as part of a bigger deal​.
• Start Early and Involve Procurement/Execs: Don’t wait until the last minute. Begin the conversation at least 3-6 months before your renewal, if possible. This gives time to escalate negotiations and for Oracle to seek approvals for any special terms. Involve your procurement and executive sponsors early – a CIO-to-Oracle VP conversation can sometimes break logjams that sales reps can’t. Also, give yourself time to evaluate Oracle’s counteroffer versus the third-party proposal. If Oracle comes back at the 11th hour with a slightly better price, you need time to crunch numbers and decide. An early start prevents being cornered into auto-renewing because time ran out.
• Know Your Contract Details: In any negotiation, knowledge is power. Fully understand your current Oracle support contract, especially the clauses regarding termination, repricing, and reinstatement. If you find, for example, that dropping a certain module triggers a nasty penalty, you might negotiate around that (or plan to drop everything to avoid it). Also, if you suspect Oracle will audit, consider negotiating an audit clause if you decide to stay, such as a short-term audit immunity. Oracle may not agree, but raising these points shows them you’re informed and serious. At the very least, ensure any deal to stay addresses the reasons you wanted to leave, such as cost and support quality. If Oracle only offers a cosmetic change, you might be better off proceeding with a third-party option.
• Plan the Exit (or Renewal) as a Project: Treat the negotiation and potential transition as a project with tasks and owners. If you lean toward leaving, your “negotiation” with Oracle is essentially giving notice according to contract terms – ensure you do that properly to avoid unwanted auto-renewals. Oracle usually requires written notice 30-90 days in advance to terminate support; be aware of this date and don’t miss it. If you do strike a deal to stay, ensure that all terms are captured in writing (via a contract amendment) before the renewal date. Verbal promises or emails from sales reps are not enough – have it in the contract to avoid misunderstandings later.
• Stay Professional (Don’t Burn Bridges): Even if Oracle employs hardball tactics, keep your interactions professional. You may need Oracle in the future, either for a new purchase or if you decide to return to support. Communicate that this is a business decision driven by value to your organization. Sometimes Oracle reps take it personally when a customer leaves – that’s their issue, not yours. Document all interactions, especially if any Oracle employee makes troubling statements (e.g., baseless legal threats or misinformation about third-party support). In extreme cases, involve your legal team to respond or to ensure Oracle’s conduct stays in check. However, most negotiations, while tough, remain civil, and Oracle may accept your decision and outline the steps for termination.
• Negotiate Re-entry Terms (If Possible): One sticking point is the high cost of coming back to Oracle support later. While Oracle’s official policy is to charge back fees, you could try to negotiate a gentler re-entry during these talks. Perhaps ask for a clause that if, within X years, you choose to return, Oracle will waive or cap the reinstatement fee. Oracle may resist, as they want to deter you from leaving at all. But it doesn’t hurt to ask, especially if you’re a major customer.In some cases, Oracle has offered a sort of “safety net” to unsure customers: e.g., a right to reinstate support for a predefined fee. This could make your management more comfortable with trying third-party support, knowing there’s an agreed path back. If Oracle won’t budge, then factor that risk into your plan and set aside a contingency budget in case you have to reinstate it down the road
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In essence, when negotiating with Oracle regarding third-party support, be firm yet fair. Oracle will try to keep your business – that’s expected. Your job is to critically evaluate if their retention offer is worth it or if you are better off proceeding with the third-party.

By preparing thoroughly (having all the facts, knowing your options, and engaging early), you put yourself in the best position to either get a much better deal from Oracle or make a confident transition.

Finally, whether you stay or switch, consider it a win that you took the time to examine your options. Even the exercise of comparing Oracle vs third-party can lead to internal insights about your IT strategy and cost structure.

Many organizations use it as a catalyst to clean up compliance issues, revisit whether they need certain software, and push Oracle for more value. In that sense, you take back control of the situation, which is exactly what a CIO or SAM manager aims to do.

Recommendations for CIOs and SAM Managers

In conclusion, if you’re considering third-party support for Oracle products, here are specific, actionable recommendations to guide your decision and execution:

• 1. Perform a License & Compliance Audit: Before altering your support, ensure you have a complete view of your Oracle licenses and usage. Reconcile what you own versus what’s deployed. Identify any compliance risks (e.g., unlicensed options enabled, user count overages) and remediate them proactively​​. Engage Oracle licensing experts or SAM consultants if needed. Being clean on licensing removes a major worry (and target) if Oracle audits you after you switch.
• 2. Identify Stable vs. Strategic Systems: Categorize your Oracle portfolio into stable systems, which keep the lights on, versus those that are strategic and innovative. Target stable systems for third-party support – typically older ERP, CRM, or database systems that aren’t slated for new features. For the strategic ones (where you’ll need upgrades or cloud integration), plan to keep Oracle support until they reach a steady state as well. This segmentation can maximize savings while minimizing risk. Remember, you can adopt a hybrid approach (some systems support Oracle, some support third-party) as long as you respect the contract rules.
• 3. Obtain Third-Party Support Quotes and References: Reach out to leading third-party providers (e.g., Rimini Street, Spinnaker Support, Support Revolution) and get detailed proposals for supporting your environment. Compare not just costs, but also the scope of services and SLA commitments. Ask for customer references in your industry or of a similar size. Hearing from peers who have made the switch will provide insight and confidence. Verify the provider’s credentials: years in business, number of Oracle clients, security certifications (ISO 27001, etc.), and whether they’ve had any legal run-ins with Oracle (ensure any past issues are resolved and injunctive orders are being followed)​​.
• 4. Build a Solid Business Case: Using data from the third-party quotes and your cost figures, create a business case that outlines the 5-year cost savings, the impacts on IT (including pros and cons), and how risks will be mitigated. Include the potential costs of switching back (reinstatement fees) for completeness. A quantified business case will help get executive buy-in. For example, clearly show: “We will save $X million over five years, which we will reinvest in ABC initiatives. Here’s how we’ll handle security and compliance to address the risks.” Having this in hand also bolsters your stance in any negotiation with Oracle or internal skeptics.
• 5. Time Your Move Strategically: Plan the timing of any switch to third-party support carefully. Align it with your support renewal cycle and avoid mid-term changes that could invoke Oracle penalties. Typically, you would time the cutover to coincide exactly with when your Oracle support expires (to avoid paying for overlap). Also consider Oracle’s fiscal year timing – Oracle reps may be more willing to negotiate near the end of their quarter, whereas giving notice right after a renewal might trigger an audit at Oracle’s discretion. If you need to complete an upgrade or critical project first, do that on Oracle support, then switch. Essentially, choose a cutover date that minimizes business disruption and contractual complications.
• 6. Inform and Align Stakeholders: Treat this as a significant IT initiative. Communicate with all stakeholders – IT ops, security, application owners, procurement, finance, and executive sponsors. Everyone should understand why you’re considering third-party support and what the plan entails. For instance, ensure the CISO’s team is comfortable with the security approach for third-party support. Educate application owners that they won’t get new features for a while, but will get better support for what they have. When stakeholders are aligned, the transition will go smoother and you’ll face less internal resistance.
• 7. Negotiate with Oracle (Don’t Skip the Conversation): Even if you fully intend to switch, it’s wise to engage in dialogue with Oracle before finalizing. There’s a chance Oracle will make a retention offer that changes the math. Enter that discussion with a clear ask (e.g., cost reduction or other value-added benefits). If Oracle meets your requirements, weigh that against the third-party option. If they don’t, you have the justification to proceed. In any case, keep the interaction professional: formally inform Oracle of your decision within the required notice periods if you leave, or get any new terms in writing if you stay. Document any promises. By negotiating, you either improve your situation with Oracle or reinforce the logic to leave – it’s a no-lose proposition if handled correctly.
• 8. Prepare for Transition Execution: If you decide on third-party support, prepare a detailed transition plan. Coordinate with the new provider on the cutover date and procedures. Download all patches, updates, and knowledge base articles you might need from Oracle’s portal before your access ends​. Set up the support channels with the provider, including contacts and escalation paths. Update your systems to point to any new update sources, if applicable. Some providers supply their update scripts. Inform end-users or helpdesk of new support processes (e.g., “call X number for Oracle issues now”). Essentially, treat it like switching a managed service provider – thorough onboarding with the new vendor is key to avoid any lapse in support coverage.
• 9. Fortify Security Posture: One of the biggest ongoing responsibilities after switching is maintaining security without Oracle patches. Work with your third-party provider to understand their security update process and timeline for critical vulnerabilities​​. Augment this with your measures: for example, increase network monitoring, ensure all Oracle systems are protected by up-to-date firewalls, and consider implementing virtual patching at the network layer to address database threats. Regularly review Oracle’s public security bulletins. Oracle publishes security alerts publicly, even if patches are restricted – your provider will likely do the same. This dual attention (between the provider and your internal team) will keep your Oracle environment safe. Also, maintain compliance documentation – keep records of how you apply fixes or workarounds for audit purposes.
• 10. Monitor and Reassess Periodically: After moving to third-party support, don’t just “set and forget.” Monitor the support performance and business impact. Are issues getting resolved promptly? Are there any emerging needs for an upgrade that you didn’t anticipate? Have your cost savings assumptions held? Schedule a formal review at least once a year to determine if this strategy still makes sense. If, for example, Oracle comes out with a new version that suddenly becomes very attractive to your business, you might revisit the idea of rejoining Oracle support or some hybrid model. On the other hand, if the third-party support is delivering well, use those results to potentially expand it to more areas or negotiate even better rates in the next contract. Staying vigilant will ensure you continue to get the intended value and can course-correct if needed.

By following these recommendations, SAM managers and CIOs can confidently evaluate and, if suitable, execute a move to third-party Oracle support. The key is careful planning, clear communication, and maintaining a strong position.

As a customer, you have more options now than in the past – whether it’s negotiating better terms with Oracle or switching to an independent support model. Use that to your advantage and optimize costs, aligning your IT support strategy with business goals. In doing so, you’ll avoid the common pitfalls and achieve a positive outcome, turning what was once a hefty maintenance expense into an opportunity for savings and agility.

Recommendations Summary: Third-party support for Oracle can save money and improve support quality, but it requires ensuring license compliance, accepting a “no-upgrades” period, and mitigating security risks. Ideal candidates are organizations with stable Oracle systems looking to cut costs. To proceed, gather quotes, build a business case, negotiate with Oracle for any last concessions, and plan the transition diligently.

Always keep your long-term IT roadmap in mind – third-party support should be a tactical move that supports your strategy, whether that’s maintaining legacy systems or freeing up budget for innovation. With proper due diligence and execution, third-party support can be a powerful tool for CIOs to regain control of Oracle costs and support on their own terms.​