Comprehensive Guide to Oracle Third-Party Support

What is Oracle Third-Party Support?

  • Outsourcing: Technical support for Oracle software to a provider other than Oracle.
  • License Validity: Oracle licenses remain valid and perpetual.
  • No Oracle Support: No technical support or updates from Oracle.
  • Cost Savings: Typically 50% less than Oracle’s support fees.
  • Providers: Includes companies like Rimini Street and Spinnaker Support.

As organizations seek ways to reduce software license costs, many consider Oracle third-party support from vendors like Spinnaker Support and Rimini Street. Oracle typically charges support fees as a percentage of the net license fee, which increases by 8% annually.

This has led companies to explore third-party support options for Oracle databases and Oracle E-Business Suite (EBS). This article covers what Oracle third-party support is, why companies might choose it, and how to successfully make the switch.

What is Third-Party Support for Oracle?

What is Third-Party Support for Oracle

Third-party Oracle support involves outsourcing technical support for Oracle software to a provider other than Oracle.

Here’s what it entails:

  • Terminating Technical Support with Oracle: Ending the technical support agreement with Oracle.
  • Continuing to Use Oracle Software: Oracle licenses remain valid and perpetual, but Oracle’s technical support is no longer available.
  • Relying on Third-Party Providers: Obtaining support from a third-party provider instead of Oracle.
  • Losing Ability to Apply Oracle Updates: After the technical support agreement expires, you cannot access security patches or new software versions.

Why Consider Moving to a Third-Party Provider?

Why Consider Moving to a Third-Party Provider

There are several compelling reasons for companies to consider third-party Oracle support:

Cost Reduction

  • Significant Savings: Third-party support costs 50% less than Oracle’s support fees.
  • Predictable Costs: Fixed annual fees without the annual 4% increase imposed by Oracle.

Maintenance and Updates

  • Reduced Need for Updates: Companies that do not require Oracle’s security updates or new versions may find third-party support sufficient.
  • End-of-Life Software: Organizations using software versions that Oracle no longer supports can continue receiving support from third-party providers.

Strategic Planning

  • Transitioning Solutions: Companies planning to replace their Oracle-based solutions may no longer need Oracle’s direct support.
  • Effective Cost Management: Businesses that have attempted other cost-saving measures without success may find third-party support a viable option.

How to Move Your Oracle Support Contract to a Third Party

How to Move Your Oracle Support Contract to a Third Party

Switching to third-party Oracle support involves several critical steps:

Step 1: Review Oracle Licensing

Ensure your organization is compliant with Oracle licensing and possesses all necessary licenses. An Oracle licensing advisor can assist with this review.

Step 2: Check Contractual Clauses

Examine your contracts for any clauses preventing you from switching to a third-party provider. This review can uncover potential legal or compliance obstacles.

Step 3: Plan Early

Begin the process at least six months before your Oracle support renewal is due. This allows ample time to complete all necessary steps.

Step 4: Engage an Independent Advisor

Consider working directly with an independent Oracle licensing advisor rather than a third-party provider. Advisors can provide unbiased guidance and ensure the best decisions are made.

Step 5: Certify Oracle ULA

If you have an active Oracle Unlimited License Agreement (ULA), certify it before switching to third-party support to avoid compliance issues.

FAQ

How much does third-party Oracle support cost?

Third-party Oracle support providers typically charge 50% of what Oracle would charge for the same service.

Which Oracle software products do third parties support?

Third-party support providers offer services for Oracle databases, middleware like WebLogic, and Oracle EBS.

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

Oracle will not be upset, but customers should know that switching to third-party support could trigger an audit. However, this is not a common occurrence.

Which are the main Oracle third-party support providers?

The two primary global providers are Rimini Street and Spinnaker Support. It is advisable to speak with both to negotiate the best deal.

Benefits of Third-Party Oracle Support

Cost Savings

  • 50% Reduction in Support Costs: Third-party support typically halves costs compared to Oracle’s direct support.
  • Elimination of Annual Increases: Avoid the 4% annual increase in support fees charged by Oracle.

Flexibility and Control

  • Tailored Support: Third-party providers often offer more personalized and flexible support options.
  • Extended Lifespan for Legacy Systems: Continue receiving support for software versions that Oracle no longer supports.

Strategic Advantages

  • Long-Term Savings: Significant cost savings over time can be redirected to other strategic initiatives.
  • Vendor Independence: Reduces reliance on a single vendor, providing more negotiating power and flexibility.

Potential Risks and Considerations

Lack of Access to Updates

  • No Security Patches: Companies will not receive the latest security patches, which could increase vulnerability.
  • No New Features: Missing out on new features and improvements with Oracle’s updates.

Audit Risk

  • Possible Audit Trigger: Although not common, moving to third-party support can sometimes lead to an Oracle audit.

Vendor Reliability

  • Quality of Support: The quality of support from third-party providers may vary, so it is important to choose a reputable provider.

How We Can Help

Reveal Compliance assists organizations in moving to third-party Oracle support by providing the following services:

Oracle License Review

Our team of experts reviews your Oracle licenses to ensure compliance and identifies any missing licenses before switching to a third-party provider.

Contract Review

We review your contracts with Oracle to ensure no clauses prevent you from switching to third-party support.

Oracle ULA Certification

If you have an active Oracle ULA, we help certify it before switching to third-party support.

Third-Party Provider Selection

We work with you to identify the best third-party provider for your needs and negotiate the best deal on your behalf.

Conclusion

Switching to third-party Oracle support can be a strategic move to reduce costs and increase flexibility. Understanding your organization’s needs, planning the transition carefully, and working with experts can ensure a smooth and successful switch.

With significant cost savings and the potential for more personalized support, third-party Oracle support is an option worth considering for many organizations.

Author

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  • Fredrik Filipsson

    Fredrik Filipsson is an Oracle licensing expert with over 20 years of experience in Oracle license management. He spent 10 years working for Oracle corporation and then 10 years at a consultant leading engagements on Oracle license assessments, audits, ULAs. He is a public speaker and author

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