Executive Summary

Oracle support costs represent a significant portion of many organizations’ IT budgets, about  20-22% of their original license investment annually, with regular price increases. If you hope to both improve your Oracle services and receive technical support, using third-party alternatives is a wise choice.

For organizations with stable Oracle environments, third-party support can reduce your expenses by 50-75% and still offer the same or an even higher level of service. However, it is important to plan well, understand all the licensing issues, and implement strategic risk management. 

This guide provides a methodical framework for assessing, implementing, and maintaining third-party support relationships to maximize value while minimizing potential risks.

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Understanding Third-Party Support for Oracle

Alternative support providers offer services such as technical support, resolving issues, and maintenance for Oracle software products. Oracle’s support model requires you to continually upgrade your systems and pay more each year, but third-party providers provide personalized assistance on your existing software.

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The fundamental premise is straightforward: your Oracle perpetual licenses and their corresponding Oracle Support are two distinct entities with some contractual relationships that can be separated. You can maintain your perpetual license rights while terminating Oracle Support and transitioning to a third-party alternative.

The Oracle Support Cost Challenge

Oracle’s support model typically follows these patterns:

• Annual support costs start at 22% of your original license investment.
• Annual increases of 3-4% are common, with some customers experiencing even higher rates.
• Support costs compound over time, creating a significant financial burden.
• The same support fee applies regardless of how actively you use the software.
• All products in a license set must maintain the same support level (the “Matching Service Level” requirement).

Due to these circumstances, many companies are adopting third-party approaches as part of their plan to optimize their Oracle costs.

Pros and Cons of Third-Party Support

Advantages

• Significant Cost Savings: The biggest benefit is saving money. You can usually cut costs by 50% or more compared to what you pay for Oracle Support—some companies even save up to 75%. Since support fees take up a large chunk of what you spend on Oracle, these savings can really make a difference in your IT budget.
• Enhanced Service Quality: Many third-party service providers focus on giving more personalized and quicker responses. Many customers mention that they find their responses are quicker, senior engineers respond promptly, and the issues are solved properly.
• Extended Lifespan for Stable Systems: If your Oracle system is stable and working well, third-party support can help you keep using it longer without needing to upgrade. This lets you get the most value from the money you already spent.
• Customization Support: Third-party providers usually support custom setups that Oracle may not cover. This helps many businesses fix a common problem and get support for systems that don’t fit Oracle’s standard rules.
• Flexibility: Support contracts usually come with better terms. You might get shorter commitment periods, clear and upfront pricing, and service options that you can adjust to fit your business needs.

According to Gartner’s 2024 report on IT Cost Optimization, “Organizations using third-party support for enterprise software reduce support costs by an average of 60% while maintaining acceptable service levels for stable implementations.” (Gartner, “Cost Optimization Strategies for Enterprise Applications,” March 2024)

Disadvantages

• Version Freeze: Once you terminate Oracle Support, you lose access to future patches, updates, and new versions of the software. Your organization is essentially “frozen” at the last available version before support termination.
• Potential Audit Risk: Companies transitioning to third-party support often face an increased likelihood of an Oracle license audit. The license agreement terms still apply to the de-supported perpetual licenses, requiring continued compliance vigilance.
• No Access to Oracle Support Portal: You lose access to My Oracle Support (MOS), Oracle support knowledge bases, and Oracle-provided patches or updates.
• Reinstatement Costs: If you decide to return to Oracle Support in the future, reinstatement fees and back support payments may apply, potentially offsetting some of your realized savings.
• Limited Technical Resources: While these third-party companies have skilled technical workers, they don’t have the same internal access to Oracle’s code as Oracle’s own support teams do.

Forrester’s analysis suggests that “Organizations should carefully weigh short-term cost savings against potential long-term implications, particularly for mission-critical applications or those requiring regular updates to maintain security compliance.” (Forrester, “The Total Economic Impact of Third-Party Enterprise Software Support,” February 2025)

Major Third-Party Support Providers

Rimini Street

Overview: Founded in 2005, Rimini Street is the largest and most established third-party Oracle support provider.

Strengths:

• Extensive experience with Oracle products
• Global presence with 24/7/365 support capability
• Average response time of less than 5 minutes for critical issues
• Support for customizations is included at no additional cost
• Guaranteed support for a minimum of 15 years

Considerations:

• History of legal challenges with Oracle
• Higher price point compared to some competitors
• It may not be ideal if you’re planning near-term major upgrades

Spinnaker Support

Overview: Spinnaker Support was established in 2008 to provide support for Oracle applications and technology globally.

Strengths:

• Strong financial stability and steady growth
• Integrated managed services and consulting offerings
• Highly rated customer satisfaction
• Flexible support contracts
• Unique “blend and extend” strategies for mixed support environments

Considerations:

• Smaller market presence compared to Rimini Street
• Less extensive litigation history with Oracle (which some view as an advantage)
• Geographic coverage is not as extensive as Rimini Street

Support Revolution

Overview: A newer entrant based in the UK with a growing global presence.

Strengths:

• Competitive pricing, often lower than other providers
• Strong focus on Oracle E-Business Suite and Oracle Database
• European presence and familiarity with EU regulations
• Transparent transition methodology
• Offers unique transition support options

Considerations:

• Less established track record
• Smaller team and resource pool
• More limited global coverage
• Newer to the US market

A Methodical Framework for Third-Party Support Assessment and Transition

Switching to third-party support must be planned and carried out carefully. Here’s a comprehensive methodical framework that you should consider:

Phase 1: Initial Assessment (3-6 months before planned transition)

1. Oracle Environment Assessment
   • Catalogue all Oracle products, versions, and customizations.
   • Document current support utilization patterns and support needs.
   • Identify which applications are stable vs. those requiring active development.
   • Assess security, compliance, and regulatory requirements.
2. Strategic Alignment Evaluation
   • Determine a long-term roadmap for each Oracle product.
   • Identify applications eligible for third-party support based on stability and upgrade plans.
   • Align support strategy with overall IT and business objectives.
   • Consider cloud migration plans and how they impact support decisions.
3. License Position Analysis
   • Conduct a comprehensive Oracle license compliance review.
   • Document all license entitlements and deployments.
   • Identify any compliance gaps that should be addressed before terminating Oracle Support.
   • Analyze contractual obligations and restrictions regarding support.
4. Financial Assessment
   • Calculate current Oracle Support costs and projected increases.
   • Request and compare quotes from multiple third-party providers.
   • Develop a 5-year TCO comparison model between Oracle and third-party options.
   • Quantify both hard and soft costs/benefits of the transition.

Phase 2: Preparation (2-3 months before transition)

1. Content Preservation
   • Download and archive all relevant Oracle documentation, knowledge base articles, and support materials.
   • Ensure you have access to all product installation media and the latest available patches.
   • Archive all product versions you’re entitled to, even if not currently deployed.
   • Document workarounds, fixes, and solutions from prior Oracle Support interactions.
2. Technical Readiness
   • Perform health checks on all Oracle systems.
   • Apply critical patches before terminating Oracle Support.
   • Resolve any outstanding support tickets with Oracle.
   • Document system configurations, integration points, and dependencies.
   • Establish internal support processes to complement third-party support.
3. Provider Selection
   • Conduct detailed evaluations of potential providers.
   • Check references specific to your Oracle products.
   • Review the provider’s financial stability and legal standing.
   • Evaluate geographic coverage and language support capabilities.
   • Assess cultural fit with your organization.
4. Contractual Review
   • Have legal counsel review Oracle contracts for support termination implications.
   • Scrutinize third-party provider contracts for SLAs, liability, and scope commitments.
   • Consider contract length and exit provisions carefully.
   • Negotiate favorable terms, including flexible payment schedules.

Phase 3: Execution (1-2 months)

1. Communication Plan
   • Develop a stakeholder communication strategy.
   • Brief internal teams on the transition timeline and process.
   • Establish clear escalation paths during the transition period.
   • Prepare communication to Oracle regarding support termination.
2. Oracle Support Termination Process
   • Follow the correct procedures for Oracle Support cancellation.
   • Ensure you have written confirmation of support termination.
   • Document the exact support end date for compliance purposes.
   • Verify that any contractual notice periods are satisfied.
3. Knowledge Transfer
   • Conduct transition workshops with the third-party provider
   • Share system documentation, customizations, and support history.
   • Establish support ticket processes and contact protocols.
   • Ensure system access is properly configured for the new provider.
4. User Preparation
   • Train internal teams on new support procedures.
   • Update support documentation and contact information.
   • Establish internal governance for the new support relationship.
   • Run tabletop exercises for critical support scenarios.

Phase 4: Ongoing Management

1. Relationship Governance
   • Implement regular service review meetings.
   • Monitor and enforce SLA compliance.
   • Maintain clear escalation paths for critical issues.
   • Develop a scorecard to assess provider performance.
2. Compliance Management
   • Maintain ongoing license compliance.
   • Implement proactive audit readiness measures.
   • Document all system changes that might impact licensing.
   • Retain evidence of compliance with license terms.
3. Risk Mitigation
   • Maintain security patches and updates through the third-party provider.
   • Implement compensating controls where needed.
   • Regularly reassess the risk profile of your Oracle estate.
   • Maintain an exit strategy in case circumstances change.
4. Strategic Planning
   • Regularly review support strategy against business objectives.
   • Plan for eventual system replacements or migrations.
   • Consider selective returns to Oracle Support if needed.
   • Leverage savings strategically for innovation initiatives.

Managing Oracle-Related Risks

Transitioning to third-party support does introduce certain risks that you must manage proactively:

Audit Risk Management

Oracle license audits often follow support termination. Prepare by:

• Conducting a pre-emptive internal license audit with expert assistance
• Documenting all deployments and license entitlements
• Implementing robust license management practices
• Developing an audit response plan
• Maintaining comprehensive evidence of compliance

Redwood Compliance specializes in helping organizations prepare for and respond to Oracle audits, with particular expertise in post-Oracle Support scenarios.

Legal Risk Mitigation

While third-party support itself is legal, certain practices may violate Oracle’s intellectual property rights:

• Ensure your provider doesn’t access or share unauthorized Oracle intellectual property.
• Review the legal history of your chosen provider.
• Understand the distinction between support and unauthorized reproduction.
• Maintain proper documentation of all support activities.
• Consider indemnification provisions in your support contract.

Technical Risk Handling

Without access to Oracle patches, you must implement alternative approaches:

• Work with your provider to develop functional equivalents to Oracle patches.
• Implement additional security measures around Oracle systems.
• Consider application firewalls or other compensating controls.
• Maintain regular security assessments.
• Develop incident response plans for critical systems.

Business Continuity Planning

Establish contingency plans for various scenarios:

• Document procedures for critical system issues.
• Maintain relationships with Oracle expertise outside your provider.
• Develop fallback plans for potential provider failure.
• Consider escrow arrangements for critical custom code.
• Establish clear metrics for when to reconsider Oracle Support.

Cost Management Strategies with Third-Party Support

To maximize the financial benefits of third-party support:

1. Strategic License Portfolio Management
   • Identify licenses eligible for third-party support.
   • Consider consolidating or retiring underutilized products.
   • Separate mission-critical from non-critical applications in your strategy.
   • Use savings to fund innovation or transformation initiatives.
2. Contract Optimization
   • Negotiate multi-year agreements with price protection.
   • Consider upfront payment discounts when financially appropriate.
   • Include performance incentives tied to measurable outcomes.
   • Ensure contracts include knowledge transfer provisions.
3. Support Tiering
   • Implement different support levels based on system criticality.
   • Consider self-support for non-critical systems.
   • Develop hybrid models with selective Oracle Support for specific products.
   • Build internal capabilities to complement third-party support.
4. Value-Added Services Assessment
   • Evaluate managed services offerings from your provider.
   • Consider strategic consulting services for optimization.
   • Assess the value of additional services beyond core support.
   • Calculate ROI for specialized services offered by providers.

The Legal Landscape

The legality of third-party support has been established through multiple court rulings. However, certain aspects remain contentious:

• Oracle v. Rimini Street: It was determined that providing third-party support is legal, but actions such as unauthorized downloading and sharing of software or exchanging support materials with various customers went against Oracle’s rights. Rimini has made the necessary changes to comply with the rules set by the court.
• Oracle v. TERiX: This helped make it clearer what’s okay and what’s not when providing software support. TERiX ended up settling the case and agreed to cease certain practices.
• Intellectual Property Considerations: Courts have often said that customers can pick who helps support their software. But the companies that provide that support have to follow the rules and respect the software maker’s rights and licenses.

The main point is that using third-party support is completely legal if it’s done the right way. But you should check carefully to make sure the support company follows all the rules and laws.

Executive Recommendations

Based on extensive industry experience, we recommend you consider the following approach to third-party support:

1. Take a Portfolio Approach
   • Not all Oracle products are equally suitable for third-party support.
   • Consider a hybrid approach where appropriate.
   • Prioritize stable, mature applications with limited change requirements.
   • Maintain Oracle Support for products requiring frequent updates or facing imminent upgrades.
2. Invest in Preparation
   • Getting ready ahead of time is critical to a successful transition.
   • Allocate sufficient time and resources to the assessment phase.
   • Don’t underestimate the importance of content preservation.
   • Conduct a comprehensive license compliance review before proceeding.
3. Manage the Relationship Actively
   • Third-party support requires more active governance than Oracle Support.
   • Establish clear performance metrics and review processes.
   • Maintain direct relationships with provider leadership.
   • Implement formal escalation procedures for critical issues.
4. Build Internal Capabilities
   • Develop internal expertise to complement third-party support.
   • Document institutional knowledge about your Oracle environment.
   • Create centers of excellence for critical applications.
   • Maintain some Oracle expertise within your organization.
5. Maintain Strategic Flexibility
   • Preserve the ability to return to Oracle Support if needed.
   • Keep abreast of Oracle’s roadmap and offerings.
   • Regularly reassess your support strategy.
   • Develop long-term plans for eventual application modernization.

The Critical Role of License Compliance

Before switching to third-party support, it’s important to do a thorough check first to make sure all your licenses are in order. This process:

• Identifies and addresses compliance gaps before Oracle becomes incentivized to audit
• Provides documentation of your compliance position at the time of support termination
• Establishes a baseline for ongoing compliance management
• Helps quantify the actual support requirements for your environment

Redwood Compliance specializes in helping organizations assess their Oracle license position prior to third-party support transitions. We make sure organizations clearly know their rules and risks before they make big changes to their support.

Frequently Asked Questions

Does Moving To Third-Party Support Violate My Oracle License Agreement?

No. Your perpetual license rights remain intact when you terminate Oracle Support. The license and support are separate agreements, though there are some interdependencies you should understand before making the switch.

How Much Can We Realistically Save With Third-Party Support?

Most organizations save between 50-75% compared to Oracle Support costs. A 5-year analysis typically shows cumulative savings of 60-70% when accounting for Oracle’s annual increases versus fixed third-party pricing.

What Happens If We Need to Upgrade After Moving to Third-Party Support?

If you want to use the latest versions, you may have to go back to Oracle Support and pay another fee. Because of this, third-party support is ideal for applications that will not need many updates in the future.

Will Oracle Audit Us If We Move to Third-Party Support?

The chances of a company having an Oracle audit increase if they cancel Oracle Support. Still, if companies take the necessary steps and manage their compliance well, they can handle this risk effectively.

Can Third-Party Providers Deliver Security Patches?

Yes. While they cannot distribute Oracle’s patches directly, they can develop functional equivalents that address security vulnerabilities. Many providers actually offer more comprehensive security patching than Oracle, including for versions no longer supported by Oracle.

How Difficult Is the Transition Process?

If planned and executed correctly, most organizations face little disruption during the transition. A good amount of preparation is important before the transition happens.

What If Our Third-Party Provider Goes Out of Business?

This risk should be addressed in your planning. Options include returning to Oracle Support (with potential reinstatement fees), transitioning to another third-party provider, or implementing self-support for an interim period.

Conclusion

Using third-party support is a good way to get the most out of your Oracle system while maintaining necessary support. If properly managed, such an approach leads to lower costs, improved services and longer useful life for your existing Oracle applications. Check Oracle “Processor” License Counting Cheat Sheet

The key to success is to prepare well, choose the right provider, and ongoing management of the support relationship. Be sure to organize your needs, choose a risk limit and set out your technology goals for the future.

If you’d like, you’re welcome to schedule a free 1-hour consultation to talk about your unique Oracle support needs and learn how Redwood Compliance can guide you through the switch to third-party support—while keeping your licenses fully compliant.