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?
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?
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
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.
