The Core Difference Between Oracle and Third-Party Support
Oracle’s official support is known for high costs and strict rules (like required upgrades), whereas third-party support offers a cheaper, more flexible alternative.
In simple terms, Oracle keeps you on its roadmap with rising fees, while third-party providers let you maintain your existing software longer at roughly half the cost.
Many CIOs and CFOs are now comparing Oracle Support with third-party support to reduce costs and still receive reliable service. For guidance, review our overview of Oracle third-party support.
Oracle support does provide direct access to patches, updates, and Oracle’s expertise – but it comes at a premium price and annual fee increases. Third-party support, on the other hand, is delivered by independent firms (such as Rimini Street or Spinnaker Support) that specialize in Oracle products.
They promise personalized, responsive service without Oracle’s contract lock-in tactics. Below, we compare these models based on cost, service levels, compliance, and risks to help you determine if third-party support is a suitable option for your organization.
Cost Comparison: Oracle vs. Third-Party Support
Oracle Support Costs:
Oracle typically charges an annual support fee of about 22% of your license purchase price. Additionally, Oracle typically applies yearly uplifts (often 4–8%), meaning your support bill increases annually, even if your usage remains constant.
Over time, these increases add up – for example, an Oracle support bill can roughly double in 5–7 years due to the compounding effect of price hikes. Oracle may also add extra fees if you stay on older software versions (e.g, Extended Support surcharges).
Eventually, you could be paying full price for Sustaining Support while getting no new updates. In summary, staying with Oracle is expensive and gets more expensive each year.
Third-Party Support Costs:
Third-party providers typically charge approximately 50% of Oracle’s support price. If you pay $200,000 per year to Oracle, a third-party might offer equivalent support for around $100,000 – immediate savings of 50%.
Moreover, third-party support fees tend to stay flat year over year (or only rise very minimally with inflation), so you avoid the steady annual uplifts.
Over a multi-year period, the cost difference becomes even bigger because you’re not subject to Oracle’s increases. Another benefit: independent support vendors don’t penalize you for running older versions.
They will support your legacy system at the same rate, whereas Oracle would eventually charge full price but stop delivering fixes.
For most companies, this Oracle support cost comparison is the primary driver, as third-party support can free up a significant chunk of budget that was previously spent on maintenance fees.
Also recommend that you read Top 15 Facts About Moving to Oracle Third-Party Support.
Service Levels and Responsiveness
Oracle’s Support Experience:
Oracle’s support operates on a ticketing system with a tiered hierarchy. You log a case on Oracle’s support portal and often start with front-line staff who follow scripts.
Complex issues are often escalated through multiple layers, which can take considerable time. Oracle does have a global 24/7 operation and defined response targets (for example, a Severity-1 issue might get a response within an hour), but “response” doesn’t always mean resolution – it may just be an initial acknowledgement.
In practice, many customers find Oracle’s support slow and impersonal.
You may work with different representatives each time, and often, Oracle’s solution to complex problems involves applying a patch or upgrading to a newer version.
Also, Oracle’s scope is limited to its standard product. If your issue involves a customization or third-party integration, Oracle typically won’t assist with it (they’ll say it’s outside their support scope).
Third-Party Support Experience:
Third-party support is typically far more high-touch and responsive. Instead of a generic pool, you get a named senior engineer (or a small dedicated team) who handles your issues end-to-end. When you call for support, you’re talking to an expert who often has 10+ years of Oracle experience and already understands your environment (because they’re assigned to your account).
This leads to faster troubleshooting and solutions. Third-party providers also have a broader scope – they will help with customizations, performance tuning, and older versions that Oracle might consider out of support.
Many enterprises report that under third-party support, critical issues that used to take days or weeks with Oracle are resolved in hours. The service feels personalized: you’re not just a ticket number in a huge queue.
Rimini Street vs. Spinnaker Support:
Two leading third-party providers are Rimini Street and Spinnaker Support, both of which emphasize premium service. Rimini Street is the largest player and is often cited for its extremely fast response times and deep Oracle expertise (each client gets a primary engineer).
Spinnaker Support is also highly rated for its expertise in Oracle and a flexible, customer-centric approach; it’s slightly smaller but very well-regarded.
In practice, both companies deliver support that their clients find more responsive than Oracle’s standard support. Rimini Street is often viewed as the pioneer and has a larger global team, while Spinnaker offers a solid alternative with very positive reviews.
The key point is that third-party providers in general pride themselves on superior service quality – their business depends on it – so you can expect a more attentive support experience versus Oracle’s one-size-fits-all model.
Compliance and Risk Considerations
Switching to third-party support does introduce some risks and considerations that you’ll need to manage, but these can be mitigated with proper planning:
- License Compliance: You must remain compliant with your Oracle license terms after your Oracle support contract expires. You still own the software licenses, and Oracle can audit your usage. Some companies worry that Oracle might increase audit scrutiny on those who drop support. To mitigate this, conduct an internal license audit before you switch. Ensure you’re not using any Oracle products or features you haven’t paid for (e.g., extra user counts, processors, or optional modules). Resolve any compliance gaps while you’re still on good terms with Oracle. By the time you move to third-party support, you want your house in order. This greatly reduces audit risk – if Oracle does audit you later, you’ll be confident that everything is compliant.
- “Matching Service Levels” Rule: Oracle has a policy that prohibits partial support drops for a product. In other words, if you have 100 licenses of Oracle Database and want to use third-party support, you have to drop Oracle support on all 100. You cannot have 20 licenses on Oracle support and 80 on a third-party provider – Oracle will not allow a mix for the same product. They enforce this by saying that all licenses of a given program must have the same support status. The implication: plan to remove entire environments or product sets from Oracle support. For example, you might move your PeopleSoft applications and databases to third-party support, while keeping your Oracle middleware on Oracle support (as just one example scenario). You just wouldn’t split support within the same product family. Following this rule avoids any contractual penalties.
- Legality and Intellectual Property: Using third-party support is legal as long as neither you nor the provider violates Oracle’s intellectual property rights. Your Oracle licenses give you the right to run the software indefinitely; support is a separate service. Major third-party providers operate very carefully on this front – after years of litigation (like the Oracle vs. Rimini Street case), they have established methods to support customers without infringing Oracle’s IP. They typically require that you (the customer) have legitimately obtained any necessary Oracle updates or documentation for reference. They then create their patches or fixes. As the customer, you should not share Oracle’s proprietary patches or support materials with a third party unless you have the necessary rights and permissions. However, you usually won’t need to, as the provider will guide you on what’s allowed. Reputable providers also include indemnification in their contracts, meaning they will defend you if Oracle were to challenge the support activities. In practice, thousands of companies, including governments and Fortune 500 firms, now use third-party support safely. Oracle can’t cancel your licenses simply because you left their support. They may not like it, but it’s an accepted option in the market.
- Oracle’s Reaction: Be prepared for Oracle to push back when you announce or inquire about switching. Account reps might warn you of dire consequences (“no more updates!” – which is true, but you’ve accounted for that) or offer short-term discounts to entice you to stay. Remember, Oracle’s support business is very profitable, so they have every incentive to retain you. Stay focused on your business case: you’re likely saving 50% and getting the support service you need. As long as you remain compliant and follow the rules, there’s nothing Oracle can do contractually to stop you from switching. Internally, ensure that your stakeholders understand the plan and its benefits, so that an Oracle sales call doesn’t instill fear. And if you have a good relationship with Oracle otherwise, reassure them you’ll still consider them for future software or cloud needs – you’re just making a cost-based support decision for now. Many companies maintain a cordial relationship with Oracle even after moving some support to a third party.
Updates, Patches, and Security
A big question is how you’ll handle patches and updates without Oracle’s support. The answer is that your third-party provider will take on this role, and you should also adopt a smart strategy for updates:
- No New Oracle Patches: Once you leave Oracle support, you lose access to Oracle’s new patches, bug fixes, and upgrade scripts. Your Oracle support login will be shut off. This means you won’t automatically get the quarterly Critical Patch Updates (security patches) or any future version releases. This sounds risky, but third-party support addresses it in other ways.
- Third-Party Fixes and Workarounds: Third-party providers develop their fixes for issues. For example, suppose a new security vulnerability in Oracle Database is made public. In that case, the third-party team will analyze it and often create a custom patch or workaround to protect your system. They might provide you with a script to run, instruct you to modify a configuration, or apply a third-party security tool – whatever resolves the vulnerability without requiring the official Oracle patch. For functional bugs, they can write code fixes that resolve the issue in your current version. They also provide updates for things like tax and regulatory changes if you use Oracle applications that require those (e.g., payroll updates in PeopleSoft).
- Best Practices: To minimize risk, most companies employ a few key strategies. First, apply all Oracle patches up to the moment you leave Oracle support. Go into the transition fully patched with the latest fixes Oracle offered. Download any documentation or downloads you might need from Oracle’s site while you still have access (for example, a copy of the latest software version you’re entitled to, even if you haven’t installed it – just to have it on file). After switching, work closely with your provider to stay informed about any new threats that may arise. Many third-party providers will send you security alerts and their recommended fix steps on a regular basis. It’s also wise to maintain good security hygiene in general: keep your Oracle systems behind proper firewalls, use intrusion detection/prevention systems, and so on, just as you would if you had Oracle support.
- When You Might Need Oracle Updates: In practice, companies on third-party support often find they can go years without needing anything from Oracle. However, one risk to acknowledge is that if a must-have Oracle upgrade or patch is needed in the future (perhaps due to a regulatory change or a new technology requirement), you would have to decide whether to live without it or possibly re-subscribe to Oracle support for that purpose. Some businesses plan for a contingency, but many never encounter such a scenario during the supported life of their system. If your environment is relatively stable and insulated (e.g., an internal system not exposed to the internet), third-party support can help keep it secure and running smoothly. If your policy is to apply every single patch immediately and stay on the bleeding edge, then third-party support likely isn’t a fit – but most organizations using third-party have determined that a slightly slower update cadence is acceptable given the major cost savings.
Contract and Licensing Implications
Before leaping, check these contract and license details to avoid any gotchas:
- Support Renewal Date & Notice: Oracle support is an annual contract (usually renewing automatically). Find out when your support period ends (for example, every year on July 1 or January 1) and how far in advance you must notify Oracle if you choose not to renew. Typically, it’s 30 days’ notice, but some contracts specify 60 or 90 days. Mark this date and plan your move accordingly. You want to officially terminate Oracle support before the renewal, so you won’t be billed for the next period. Once it renews, Oracle will not provide a refund if you attempt to cancel mid-year. Timing is key – many companies set their third-party support to start the day after Oracle support expires.
- Perpetual License Rights: Ensure that the products you’re moving are under perpetual licenses (most Oracle on-prem licenses are). This means you can legally use the software even without an active support contract. If you have Oracle subscriptions or cloud services, those can’t be switched to third-party services (support is bundled in, or usage rights end when the subscription ends). Target only on-premises, perpetual-license software for third-party support. The good news is that ending support doesn’t end your right to use the software – your licenses remain valid.
- Reinstatement Terms: Be aware of Oracle’s policy if you ever wish to return. Oracle will typically require you to pay all the back support fees for the period you were out, plus a 50% penalty. For example, if you left Oracle support for two years and then decided to return, Oracle would charge two years of fees (for the time you didn’t pay) plus 50% of that total as a one-time penalty, before reactivating support. This is a steep price, and it’s why most companies treat leaving Oracle support as a long-term (if not permanent) decision. It’s not very economical to leave for a short time and come back. Knowing this, select systems to migrate to a third-party that you are confident you can run for an extended period without needing to upgrade through Oracle. Practically, many organizations never return to Oracle support once they switch – they might eventually replace the system with something new, or continue on third-party until the product is retired.
- Contractual “Gotchas”: Aside from the notice period and matching rule already discussed, Oracle’s standard contracts don’t have many other penalties for leaving support. You simply stop receiving new updates and services after your paid period. One thing to check is whether you have any discount agreements that are contingent on maintaining support. For instance, in some deals, Oracle offers an upfront license discount, assuming you’ll pay support for X years. This is not common for enterprise licenses (it’s more common in hardware or smaller deals), but just double-check. Usually, as long as you owned the licenses outright, you can leave support with no further obligation (except not to use Oracle’s support resources, obviously). It’s a good practice to save copies of all your Oracle contracts, invoices, and the last set of Oracle support renewal documents for your records. After you leave, Oracle’s portal access goes away, so have your paperwork straight in case you ever need to reference it.
Who Should Consider Third-Party Support?
Third-party support can be a smart strategy in several scenarios:
- Organizations with stable, mature Oracle systems and no urgent need for new features. If your Oracle Database or ERP system is working well and you’re mostly in “maintenance mode,” paying Oracle’s high fees for minimal updates isn’t cost-effective. Third-party support shines here – you’ll get support to keep things running and save a lot of money, without being forced into upgrades you don’t want.
- Companies under cost-cutting mandates. If your CIO or CFO is pushing to trim the IT budget, maintenance fees are a prime target for reduction. Oracle support is often one of the larger line items in IT spend. Moving to third-party support typically cuts that line item in half. These savings can help meet budget reduction goals or fund other initiatives that have more direct business value. It’s a way to free up funds without losing functionality.
- Those with heavily customized or older Oracle software. Perhaps you’re running Oracle E-Business Suite with numerous custom modifications, or an outdated version of Oracle PeopleSoft that still performs its intended function. Oracle’s support in these cases is less helpful – they’ll often tell you to upgrade or that custom code isn’t supported. A third-party provider will fully support your customizations and legacy versions, allowing you to avoid an upgrade just for support’s sake. If your Oracle environment is unique or two versions behind, third-party support can be a lifesaver (and budget-saver).
- Businesses nearing the end-of-life or transition for an Oracle system. Maybe you plan to decommission an Oracle system in a couple of years (e.g., migrating to a new platform or the cloud), but you’re currently still paying Oracle support on it. Third-party support is ideal for this situation: it maintains the system over the last few years of use at half the cost. You’re not investing big money in a system you’re going to drop anyway. When the time comes to retire it, you’ve saved significantly during the interim period.
Who Might Stick with Oracle Support?
Third-party support isn’t the best fit for every situation. You might stay with Oracle if:
- You need constant innovation from Oracle. Suppose your strategy is to upgrade frequently or you rely on Oracle’s latest features and roadmaps (for example, you always move to the newest database version for performance benefits). In that case, Oracle support is the safer choice. Third-party support keeps you on your current version without access to new releases – which is great for stability and cost savings, but not ideal if you have a business need for continuous upgrades.
- Your environment has strict compliance or support requirements. Some industries or government organizations have policies that require the use of vendor-supported software for full certification or liability reasons. Or perhaps your leadership is extremely risk-averse and simply not comfortable with an external company handling support of a critical system. If having Oracle’s official backing is a requirement – whether for audit compliance or peace of mind – you may decide to remain on Oracle support despite the cost. (In some cases, companies in this situation start with a non-critical system on a third party as a trial to build confidence.)
- You’re heavily invested in Oracle’s cloud or upcoming projects. Third-party support is only applicable to Oracle’s on-premise software. If you’re mostly using Oracle SaaS applications or Oracle Cloud Infrastructure, you’re inherently using Oracle’s support as part of those subscriptions – you can’t substitute that. Also, suppose you’re about to embark on a major Oracle-led project (say, a large upgrade or expansion). In that case, you might consider staying with Oracle support throughout the process to leverage their resources, then re-evaluate afterwards.
- You intend to expand your Oracle licensing. If you plan to purchase a significant amount of Oracle software or increase usage (e.g., entering an Unlimited License Agreement or deploying a new Oracle product) within the next year or two, being an active Oracle support customer can sometimes be beneficial during negotiations. Oracle is generally more accommodating with discounts or concessions when you’re still a current support customer. Leaving support and then negotiating a big new deal later can be done – it just may require a bit more effort. In such growth scenarios, some firms postpone third-party support until after the expansion.
In many cases, organizations adopt a hybrid approach: keep Oracle support for systems where it truly matters, and use third-party support for systems that are stable cash-cows (where cost savings and extended support life are the priority).
This strategy can yield the best of both worlds and is a valid way to dip your toes in third-party support without fully committing all systems at once.
Ensure to read How to Transition from Oracle Support to a Third-Party Provider.
FAQ – Next Steps for Evaluating Third-Party Support
Q1: What should we review in our Oracle contracts before switching to third-party support?
A: Key things to check are your support renewal dates and termination notice requirements, your license type, and any relevant Oracle policies. Determine when your Oracle support term expires and how much advance notice you must give to cancel (e.g., 30 days). Ensure your licenses are perpetual (so you can legally use the software without support). Read the Oracle Technical Support Policies, especially the “Matching Service Levels” clause, so you know not to do a partial drop. Also, note the reinstatement policy (if you ever want to return, you’ll owe back fees + penalty). In short: know your contract end dates, follow the required formalities to cancel, and understand the implications (like losing upgrade rights). If needed, get advice from an Oracle licensing expert – but most of this information is in your current contracts and Oracle’s public support policy document.
Q2: How do we calculate the cost savings from third-party support?
A: The primary savings is about 50% of your annual support fees. For example, if you spend $1 million per year on Oracle support now, third-party support might cost around $500k – saving you $500k per year straight away. Over multiple years, those savings add up (and remember, Oracle would typically be increasing the cost each year if you stayed). Additionally, consider the indirect savings: with third-party support, you avoid costly forced upgrades or hardware refreshes that Oracle might require to stay supported. Those project costs (which can be millions) are savings too. One way to quantify the full benefit is to project your IT costs over, say, five years with Oracle vs five years with a third-party. Include Oracle’s yearly escalation and any looming upgrade expenses on the Oracle side. On the third-party side, assume flat fees and no mandatory upgrades. The difference can be substantial. Many companies find they can save 50–90% over a several-year period when all factors are considered. Even in the simplest terms, a 50% annual reduction is usually a substantial dollar amount that can be reallocated to new initiatives or directly to the bottom line.
Q3: What risks should we plan for when leaving Oracle support, and how can we mitigate them?
A: The main risks and mitigations are:
- License compliance risk: Mitigate by conducting a thorough license audit before departure. Fix any compliance issues (e.g., reduce usage or purchase needed licenses) while you’re still with Oracle. After switching, continue to monitor your Oracle usage to ensure you stay within the licensed limits. This way, an Oracle audit won’t pose a threat.
- Security/patching risk: Mitigate by applying all available Oracle patches just before your support ends (start with a fully patched system). Then coordinate closely with your third-party provider on their process for new vulnerabilities – ask how they deliver security fixes and stay informed. You can also strengthen your system’s security perimeter (network segmentation, strict access controls) to buy an extra safety margin. Essentially, be proactive about security; don’t just assume “no Oracle means no patches.” Third-party support will handle patches, but you should remain engaged in the process.
- Service quality risk: Mitigate by choosing a reputable provider and setting clear expectations. During your evaluation, speak to reference customers in similar industries. Negotiate an SLA that gives you confidence (for example, guaranteed response times). Start the relationship with a detailed onboarding process, so the provider understands your environment. The better prepared they are, the smoother your support will go. Most who switch report equal or better support quality, but due diligence is key upfront.
- Relationship with Oracle: Mitigate by maintaining professionalism at all times with Oracle. Follow the contract when cancelling (so there’s no dispute). You can let your Oracle rep know the door isn’t closed for future business (you’re just optimizing costs for now). Often, after the initial reaction, Oracle will move on. If you do need Oracle for something (such as new licenses), approach it like any other new negotiation. By handling the separation properly, you minimize any long-term friction.
Q4: Can we return to Oracle Support later if needed?
A: You can, but it’s costly and should be viewed as a last resort. Oracle’s policy requires you to pay all the support fees for the time you were off support, plus a 50% penalty, before they take you back. So if you left Oracle support for three years and then decided to return, Oracle would ask for three years of fees (that you didn’t pay) + 50% of that total as a one-time charge. This hefty cost means most companies don’t go back unless it’s necessary. Additionally, to rejoin, you may need to upgrade to a current software version first, as Oracle won’t support very old versions (although the third-party might have been supporting you on an older release). That could mean an upgrade project on top of the fees. In short, rejoining Oracle is possible, but it comes at a financially painful cost. The better approach is to commit to third-party support only for systems you believe you can support externally for the long term. If something changes down the road (say Oracle releases a must-have feature or your situation evolves), you can weigh the option of going back at that time. However, many organizations discover that they can continue on third-party support indefinitely and eventually migrate to something new without ever renewing Oracle support.
Q5: When is the best time to switch to third-party support?
A: At your Oracle support renewal date – that is the ideal time. Plan the move so that your Oracle support contract lapses and your third-party contract begins immediately after. This way, you’re not paying Oracle for unused support. For example, if your support is up for renewal on June 30, arrange for third-party support to start July 1, and send Oracle your cancellation notice by the end of May (assuming a 30-day notice). From a project management perspective, start planning a few months. Use that lead time to evaluate providers, obtain internal approvals, and complete the preparatory steps (such as license audits and patch downloads). Also, avoid switching during a critical business period – choose a relatively quiet time in your IT calendar. Many companies align the switch with their fiscal year or immediately after a major upgrade (if they have just finished an upgrade, they often switch to a third-party solution to avoid the next one). The key is to avoid mid-term cancellations (since Oracle won’t refund you) and to ensure continuity (no gap in support coverage). If you execute the timing well, the transition will be seamless: one day you’re supported by Oracle, the next day by the third-party, and your users shouldn’t notice anything except that IT now has extra budget savings to report.
Read about our Oracle support switch advisory service.
