Oracle Licensing

What is Oracle Third-Party Support?

Key Points About Oracle Third-Party Support

  • Independent Vendors: Support by companies other than Oracle.
  • Cost Advantage: Up to 50% cheaper than Oracle’s official support.
  • Custom Solutions: Custom bug fixes and security patches.
  • Extended Legacy Support: Continued support for older Oracle versions.
  • Personalized Services: Tailored SLAs and dedicated support teams

What is Oracle Third-Party Support?

Oracle third-party support is an alternative to Oracle’s official maintenance and technical assistance. It is offered by independent vendors rather than Oracle Corporation itself.

These vendors provide support services for Oracle products, including databases, middleware, and enterprise applications. This form of support is designed to ensure the stability, performance, and security of Oracle systems without relying on Oracle’s official support channels.

As companies look for ways to optimize their IT spending, many choose third-party support as a more cost-effective alternative to Oracle’s support contracts.

In this article, we will define Oracle’s third-party support, explain how it differs from Oracle’s official support, explore the benefits, and discuss considerations when switching to a third-party provider.

Definition of Oracle Third-Party Support

Third-party Oracle support refers to maintenance, troubleshooting, bug fixes, and advisory services provided by companies other than Oracle Corporation. These third-party vendors manage a variety of Oracle products and offer specialized services to maintain system stability, ensure good performance, and enhance security.

Companies providing third-party Oracle support include well-known vendors such as Rimini Street, Spinnaker Support, and Support Revolution. These companies specialize in providing ongoing assistance to organizations that use Oracle products at a lower cost than Oracle’s official support programs.

How Third-Party Support Differs from Oracle’s Official Support

How Third-Party Support Differs from Oracle's Official Support

Oracle third-party support differs significantly from Oracle’s official support in a few key areas, including cost, access to proprietary updates, and the level of customization offered.

1. Cost Advantage

Perhaps the most significant reason organizations opt for third-party Oracle support is its cost advantage. Official Oracle support contracts are known for their steep pricing, with annual support fees typically around 20% to 22% of the software license cost. Third-party support generally costs 50% less than Oracle’s official support.

  • Example: A large healthcare organization switched to Rimini Street for Oracle E-Business Suite support and reported annual savings of 50% on their support fees. These savings allowed them to reinvest the funds in other critical business areas, including modernization and innovation projects.

Third-party support can effectively reduce costs for companies seeking to control IT expenses without sacrificing essential system stability.

2. No Proprietary Updates from Oracle

One key difference between third-party and Oracle’s official support is access to updates. Third-party providers cannot access Oracle’s proprietary updates, patches, or new releases. Instead, they offer custom solutions, including bug fixes, security patches, and workarounds, to ensure the software remains stable and secure.

  • Custom Bug Fixes: Rather than relying on Oracle’s proprietary updates, third-party providers deliver customized bug fixes that address known issues. This ensures the system remains operational without needing access to Oracle’s official updates.
  • Security Patches: Third-party vendors develop their security patches to protect against vulnerabilities. This approach allows businesses to keep their systems secure despite not receiving official Oracle patches.

For many organizations, the lack of access to Oracle’s proprietary updates is not a major concern, particularly if they are using stable software versions that do not need frequent updates. Some companies find it advantageous to avoid Oracle’s forced upgrades and focus only on the fixes and patches that directly affect their system’s stability.

3. Customization and Personalization

Another major difference between third-party and Oracle’s official support is the level of customization and personalization offered.

  • Tailored Services: Third-party support providers offer tailored services aligning with a business’s needs. Unlike Oracle’s standardized support structure, third-party vendors are flexible and willing to create customized Service Level Agreements (SLAs).
  • Dedicated Support Teams: Many third-party providers assign dedicated support teams who understand the client’s specific environment. This provides a more personal and responsive support experience than Oracle’s often generalized approach.
  • Business Prioritization: Businesses using third-party support can set specific priorities for what issues should be addressed first. This is especially beneficial for companies that require immediate action on critical issues rather than waiting for Oracle’s official response timeline.

Benefits of Oracle Third-Party Support

Benefits of Oracle Third-Party Support

Third-party support for Oracle products offers several compelling benefits, making it an attractive choice for many businesses. These benefits go beyond cost savings and include increased flexibility, better customization, and extended support for older versions of Oracle software.

1. Significant Cost Savings

One of the most attractive benefits of third-party support is the significant cost savings. Companies can save anywhere from 50% to 70% on their annual support costs by choosing a third-party vendor compared to Oracle’s standard rates.

  • Example: A mid-sized retail company saved $500,000 annually by moving its Oracle Database and Oracle Middleware support to Spinnaker Support. The money saved was used to fund new business initiatives and technological upgrades.

2. Continued Support for Legacy Versions

Another key advantage of third-party support is their willingness to support older versions of Oracle software, even after Oracle has ended official support for those versions.

  • Avoiding Forced Upgrades: Oracle tends to end support for older versions of its products, pushing customers toward upgrades. This can be both disruptive and costly. In contrast, third-party providers continue to support these legacy systems, allowing businesses to continue using their existing versions without having to invest in expensive upgrades.
  • No Business Disruption: Companies can avoid unnecessary system changes and focus on their core business activities without worrying about forced migrations.

3. Personalized and Responsive Support

Personalized support is a core feature of third-party Oracle services. These vendors offer support that is specifically tailored to each organization’s requirements.

  • 24/7 Dedicated Support: Many third-party vendors provide 24/7 dedicated support with faster response times compared to Oracle’s traditional ticket-based system. This is especially useful for businesses that rely on uninterrupted access to their systems.
  • Assigned Account Managers: Customers often receive an assigned account manager who understands the nuances of their Oracle environment. This makes troubleshooting more efficient and allows for faster resolution of issues.

Key Considerations Before Switching to Third-Party Support

Key Considerations Before Switching to Third-Party Support

While the benefits of third-party support are compelling, several considerations must be made before making the switch. Organizations must evaluate their requirements, assess risks, and ensure they are fully informed about what is involved.

1. Lack of Oracle-Provided Patches and Updates

As mentioned earlier, third-party support providers cannot deliver Oracle’s proprietary patches and updates. This may be a concern for organizations that rely heavily on Oracle’s ongoing improvements or who need the most up-to-date versions of Oracle products.

  • Mitigation Strategy: If staying current with the latest Oracle features and enhancements is not critical, third-party support can be an excellent cost-saving option. For most stable Oracle deployments, custom bug fixes and patches are sufficient to keep the system secure and operational.

2. Compliance and Licensing

Moving to a third-party support provider requires understanding Oracle’s licensing rules and compliance obligations. Oracle may not always favor customers leaving their official support programs, and there can be complications related to software audits and compliance.

  • Licensing Expertise: Working with licensing experts who understand Oracle’s terms and conditions is crucial to ensure compliance when transitioning to third-party support.

3. Long-Term Strategic Fit

Switching to third-party support should align with your organization’s long-term IT strategy. If your business plans include staying with Oracle products for the foreseeable future and if you want to take advantage of new functionalities, official Oracle support may be necessary.

  • Assess Business Goals: Determine whether third-party support’s flexibility and savings align with your organization’s goals. If reducing costs and extending the life of existing systems are priorities, third-party support may be a strong strategic fit.

When Should You Consider Third-Party Oracle Support?

There are several scenarios in which switching to third-party Oracle support makes the most sense. Below are common use cases where organizations find third-party support particularly valuable:

1. Cost-Reduction Initiatives

If your organization is looking for ways to reduce IT spending, third-party support can be an ideal solution. By cutting support costs in half, companies can allocate those funds to other vital projects, such as digital transformation or customer experience enhancements.

2. Stable, Mature Software Environments

For organizations using stable versions of Oracle products that do not require constant updates or new features, third-party support is often a better option. The cost of Oracle’s official support may not be justifiable if no new upgrades or patches are required.

3. Avoiding Forced Upgrades

If Oracle’s push for forced upgrades is disruptive, third-party support providers can help maintain the current version of the software without forcing unnecessary migrations. This is especially valuable for companies that want to avoid the costs and risks of moving to a new software version.

Frequently Asked Questions (FAQs)

What is Oracle’s third-party support? Oracle third-party support refers to maintenance and technical assistance provided by independent vendors for Oracle products, offering a cost-effective alternative to Oracle’s official support.

Third-party support is typically 50% cheaper than Oracle’s official support fees, offering significant cost savings for businesses.

Can third-party support provide Oracle software updates? No, third-party support providers do not have access to Oracle’s proprietary updates or patches. Instead, they provide custom fixes and security patches to maintain system stability.

Why do companies choose third-party support for Oracle products? Companies opt for third-party support to achieve cost savings, receive personalized support, and extend the lifespan of legacy Oracle products without forced upgrades.

What types of Oracle products can be supported by third-party vendors? Third-party vendors support various Oracle products, including databases, middleware, and enterprise applications such as Oracle E-Business Suite.

What are the key benefits of third-party support? Key benefits include cost savings, tailored SLAs, dedicated support teams, and continued support for older software versions that Oracle no longer supports.

Can third-party support offer the same level of personalization as Oracle? Yes, third-party providers offer more personalized support than Oracle, including tailored SLAs, dedicated account managers, and flexible services.

Is third-party support suitable for all Oracle environments? Third-party support is ideal for stable, mature environments where access to Oracle’s proprietary updates is less critical. It is especially valuable for businesses that wish to avoid forced upgrades.

How can third-party support help with legacy Oracle products? Third-party support providers continue to offer maintenance and assistance for older versions of Oracle software, even after Oracle has ended official support for those versions.

Are there any compliance issues to consider with third-party support? Compliance with Oracle licensing can be a concern. It is crucial to work with licensing experts to ensure that all licensing requirements are met when transitioning to third-party support.

How do third-party providers create security patches without Oracle’s access? Third-party providers create custom security patches by analyzing vulnerabilities and providing solutions tailored to the customer’s Oracle environment, ensuring security despite not having Oracle’s proprietary patches.

What should I consider before switching to third-party support? Consider the lack of Oracle updates, potential compliance risks, and whether your organization’s long-term IT strategy aligns with third-party support offerings. Licensing expertise is also key during the transition.

How can I ensure compliance when switching to third-party support? Consult with Oracle licensing experts to fully understand Oracle’s terms and conditions, ensuring all requirements are met and compliance risks are minimized during the switch.

What is the main difference between third-party and Oracle’s official support? The primary differences are cost, access to Oracle updates, and customization. Third-party support offers lower costs and more tailored services but lacks access to Oracle’s proprietary updates.

Who are the leading providers of Oracle third-party support? Leading providers include Rimini Street, Spinnaker Support, and Support Revolution, all of which offer comprehensive support services for various Oracle products.

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

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