Transitioning Oracle E-Business Suite to Third-Party Support
Enterprise IT leaders are increasingly exploring third-party support for Oracle E-Business Suite (EBS) to reduce costs and gain flexibility. A recent Forrester study noted that by 2027, companies will save over $5 billion by switching to third-party support. Nearly 80% of CIOs already use independent support providers in addition to or instead of OEM support.
This guide provides a comprehensive strategy for CIOs considering a move from Oracle’s Premier Support to a third-party support provider.
We’ll cover the key differences between Oracle and third-party support, including what to expect in terms of service levels and cost savings, risk management (compliance, security, audits), how to evaluate providers, the transition process, and the long-term implications for licensing and upgrades.
The goal is to equip CIOs with clear, actionable insights to make informed decisions and manage the change with confidence.
Oracle Premier Support vs. Third-Party Support: Key Differences
Transitioning to third-party support is not just a cost play – it fundamentally changes how support services are delivered and what is included.
Below are the key differences CIOs should understand:
- Cost Structure: Oracle’s Premier Support typically costs around 22% of the software license value per year, often with annual priceincreases. Third-party support providers usually charge significantly less – often around 50% of Oracle’s fees – and many keep fees flat or with minimal increases, yielding immediate savings. For example, one company cut its Oracle support bill by 60% by switching, reallocating the savings to new analytics projects. (We’ll dive deeper into cost in the next section.)
- Software Updates & Patches: With Oracle Premier Support, customers receive all official product updates, patches (including quarterly Critical Patch Updates), and upgrades to new versions as they are released. In contrast, third-party support cannot deliver Oracle’s proprietary patches or new version upgrades once you leave Oracle support. Instead, third-party providers develop custom fixes and workarounds for bugs and security vulnerabilities in your current version. Essentially, you are choosing to remain on your existing EBS version for the duration of third-party support, without accessing Oracle’s new features. In contrast, the third-party supplier provides bug fixes, regulatory updates, and security mitigations to keep that version running smoothly. This is ideal for organizations with stable systems that don’t need frequent updates. But it means forfeiting Oracle’s future upgrades unless you later return to Oracle support, which can be costly, as Oracle may charge fees to reinstate lapsed support.
- Service Level Agreements (SLAs) and Responsiveness: Oracle’s standard support model does not guarantee specific response or resolution times for support tickets. Customers log issues via My Oracle Support and may wait in Oracle’s tiered support queues. Third-party support firms differentiate themselves with aggressive service-level agreements (SLAs) and personalized service commitments. For example, independent providers often commit to defined response and resolution times for high-, medium-, and low-priority incidents. Instead of your ticket “bouncing around” Oracle’s support teams with no clear timeline, a third-party vendor will usually assign a dedicated team or senior engineer to own the issue and drive it to resolution within an agreed timeframe. In short, third-party support is higher-touch, often 24/7, with support engineers available on call and tailored Service Level Agreements (SLAs) that Oracle doesn’t provide by default.
- Customization Support: Oracle’s support policies exclude customizations. If your EBS system has custom code or modifications, Oracle may require you to reproduce the issues in a customized environment before they will assist. This is a pain point for heavily customized EBS environments. Third-party support, by contrast, will support your custom code and configurations as part of the standard service. Their engineers troubleshoot issues in your actual customized system and even create fixes for custom code if it’s causing problems. In other words, third-party providers cover the entire environment (custom extensions and the base application), whereas Oracle’s support is narrower in scope, focusing only on vanilla Oracle code. CIOs with significant EBS customizations can expect far more help on that front from a third-party provider.
- Support Approach and Accountability: Oracle’s model is often described as a “software-driven” support approach, emphasizing self-service. Oracle populates its support portal with knowledge base articles and expects customers (and their database administrators, or DBAs) to search for solutions or apply patches on their own in many cases. It’s not uncommon for Oracle to respond to a ticket by pointing you to documentation or suggesting an upgrade that resolves the issue, and then close the ticket. Third-party support, on the other hand, is a “services-driven” model: the provider takes ownership of troubleshooting and resolving the issue for you. As one provider put it, their philosophy is “how can we help?” rather than “do it yourself”. Clients get more personalized attention, with many vendors assigning a dedicated account manager or support engineer to develop familiarity with the client’s environment. Regular check-in meetings, proactive health monitoring, and detailed reporting are commonly included to ensure high-quality support services that go beyond Oracle’s standard break-fix support.
- Contractual and License Considerations: Oracle imposes certain contractual rules that do not apply with third-party support. A key one is the “Matching Service Levels” clause, which prevents partial support drop within a product set. For example, Oracle typically requires that if you have a set of EBS licenses under one agreement, you cannot drop support on only some of them – it’s usually all or nothing. This means a CIO must be prepared to shift an entire application or module off Oracle support all at once. Third-party contracts are more flexible in scope – you can cover only the systems you choose with third-party support. Additionally, if you leave Oracle support, be aware of reinstatement fees: Oracle often charges hefty back-support fees, plus penalties, if you later decide to return to Oracle support. In practice, most organizations treat the move to third-party support as a one-way door, at least for that software version, unless a major upgrade or re-license is planned.
In summary, Oracle’s Premier Support offers the comfort of official updates and the vendor’s backing, but at a high price and with rigid policies.
Third-party support offers a lower cost, more personalized service, support for customizations, and freedom from forced upgrades.
Still, it requires accepting a “frozen” software baseline, meaning no new Oracle patches or releases. Now let’s examine these areas – cost, service, risks, selection, etc. – in detail.
Cost Savings and Financial Expectations
One of the strongest drivers for switching to third-party EBS support is the potential for significant cost savings. Oracle’s annual support fees are a substantial budget line item for CIOs – typically around 22% of the license purchase price per year – and these fees tend to increase over time.
Oracle often implements yearly increases (commonly around 3-5% annually, and in some cases up to 7-8%) on support contracts, as seen in one scenario. Moreover, if your EBS version falls out of Premier Support into Extended Support, Oracle imposes additional surcharges: 10% in the first year of extended support, 20% in the second, and so on.
Over a decade, an Oracle customer can see support bills skyrocket – one example showed that annual Oracle support costs rose 206% over ten years due to compounded increases and extended support fees. In short, staying with Oracle often means paying more each year for diminishing support value, as older versions receive fewer updates.
Third-party support can typically cut these support fees by 50% or more immediately. This is a common benchmark: instead of paying 22% of the license cost to Oracle, a third-party provider might charge around 11-15%, yielding roughly a 50% savings. Gartner has noted that many companies achieve 50–70% cost reduction by switching to third-party support.
For example, a multinational firm that switched saved about half on support and redirected the freed budget to other critical IT projects. Another mid-sized company was able to avoid a costly EBS upgrade and save “hundreds of thousands of dollars” by using third-party support to extend the life of their current system.
These savings are not one-time – they recur every year. Over several years, the cumulative savings can fund major innovation initiatives. A CIO brief reports that one company saved 60% on Oracle support and reallocated that money to new analytics and digital transformation efforts.
From an operational finance perspective, third-party support also increases budgeting certainty. Oracle support costs can be unpredictable, due to periodic hikes or unplanned upgrade costs needed to stay supported.
In contrast, third-party providers usually lock in rates for the contract term and avoid “nickel-and-diming” on extras. You won’t face surprise charges for things like supporting customizations or accessing a higher support tier – the pricing models are generally transparent.
And because third-party vendors support older software longer, you avoid the capital expense of frequent upgrades just to remain eligible for support. Avoiding a forced upgrade can itself save millions in project costs, which is a softer (but very real) financial benefit beyond the support fee reduction.
To ensure financial precision, CIOs should:
- Model the 5-year TCO of staying on Oracle vs. going with a third-party solution. Include Oracle’s likely support increases and any impending upgrade projects on the Oracle side, versus the flat (or lower) third-party fees and delayed upgrade costs. This model often shows a stark contrast in NPV (net present value), favoring third-party support.
- Consider partial moves carefully. Oracle’s licensing rules may require dropping support for an entire product family, such as all EBS modules under a single license set. Savings materialize only if you can drop a significant portion of Oracle fees. Ensure that if you keep some products on Oracle support (and others on third-party) you’re not violating Oracle’s contracts – you may need to go all-in for a given Oracle product set to stop paying Oracle.
- Reinvestment plan. Have a strategic plan for the dollars saved – whether it’s funding a cloud migration, new ERP modules, advanced analytics, or other innovation. Boards and CFOs respond well when cost savings are tied to value-adding reinvestments. Many companies explicitly use third-party support savings to fund their digital transformation roadmaps. As a practical example, a retail chain that saved around 40% by moving EBS to third-party support used the savings to invest in e-commerce enhancements, while still reliably running their EBS for core operations.
In summary, CIOs should expect 50 %+ support cost savings by switching from EBS to third-party support, along with a more predictable support spend over time. This frees up budget for strategic priorities.
However, those savings come with trade-offs in service scope; not paying Oracle also means not getting their updates. Next, we’ll examine how service quality and support coverage differ in this model.
Service SLAs and Customization Support
Cost is only half the equation – support quality and scope are critical for mission-critical systems like EBS. CIOs will be pleased to find that reputable third-party providers often meet or exceed Oracle’s support quality, albeit in different ways.
Here’s what to expect in terms of service levels and support coverage:
- Defined SLAs: Unlike Oracle Premier Support, which provides guidelines but no firm guarantees for response times, third-party support contracts come with negotiated Service Level Agreements (SLAs). For instance, a third-party provider might commit to responding to high-severity issues within 30 minutes and resolving them within a few hours, while resolving lower-severity issues within a few days. Oracle’s support doesn’t offer such guarantees – many Oracle SRs (service requests) have indeterminate timelines. With a third-party vendor, incident response and resolution times are part of the contract, giving the CIO clear expectations for service performance. Ensure that you hash out these SLAs during the provider selection process and include them in the agreement, so accountability is formalized.
- 24/7 and Dedicated Support: Third-party providers know they must justify their value, so they often include 24/7 support coverage as standard, especially for global enterprises. You can expect access to live support engineers at any time of day, whereas Oracle’s standard support might rely on regional business hours unless you pay extra for 24/7 coverage. Additionally, most third-party support firms assign a named account manager or support team to your organization. This means that the people handling your EBS issues become familiar with your environment, customizations, and history, which speeds up the troubleshooting process. Oracle’s support, in contrast, operates more like a call center – each new issue is handled by a different engineer following a script, and complex issues can be bounced between multiple teams with little continuity. CIOs should leverage the dedicated model of third-party support to build a relationship with their support team. Regular governance calls and review meetings are typically offered (e.g., monthly service reviews, quarterly business reviews) to discuss open issues, recurring problems, and system health. This proactive approach can improve uptime and performance beyond what Oracle’s reactive support would achieve.
- Customization and Tailored Solutions: As noted earlier, third-party support shines in environments with heavy customization. If your EBS has custom workflows, extensions, or integrations, the third-party provider will include those in the scope of support. For example, suppose a custom PL/SQL package is causing a performance issue. In that case, a third-party support engineer will debug that code and propose a fix – something Oracle would not do under Premier Support. They create tailored patches that fit your specific system, rather than saying, “That’s custom, we can’t help.” One CIO described Oracle’s approach as “DIY support” – Oracle often points you to knowledge articles for you to solve the issue yourself, whereas the third-party approach is “we’ll fix it for you.” This hands-on support can be a huge relief for lean IT teams. It also means you can safely apply custom modifications to EBS to meet business needs without fearing that Oracle will refuse support; your third-party partner will cover those modifications. Bottom line: Expect a much more solution-oriented service that is willing to dive into your unique setup and resolve issues, regardless of whether they stem from Oracle code or custom code.
- Regulatory and Tax Updates: One concern many CIOs have is whether third-party support will handle updates related to tax, legal, and regulatory requirements for Oracle EBS, such as changes in tax rates, payroll rules, and financial reporting regulations that Oracle typically addresses through patches. Top third-party providers do provide these updates. They usually have teams tracking regulatory changes globally and will create and test the necessary EBS patch or workaround to keep you compliant. For instance, Rimini Street and others regularly deliver tax updates for Oracle EBS HR and Financial modules to their clients, ensuring that payroll and finance remain up to date with the latest legislation. When evaluating vendors, specifically ask how they handle regulatory updates and request examples of updates they delivered in the past year. In practice, third-party support can keep EBS compliant with VAT changes, GDPR requirements, and other regulations, just as Oracle would – the difference is that the third party crafts the solution, as they cannot use Oracle’s code. Many industries, including the public sector and healthcare, have run on third-party support for years without compliance issues, demonstrating that this is a solved problem with the right provider.
- Performance Tuning and Advisory: Third-party support often goes beyond break-fix. Vendors may include performance optimization services and general technical advice for your Oracle environment. For example, they might help with database indexing, workload tuning, or archiving strategies to improve EBS performance – things that Oracle support typically would treat as consulting (not covered by support). Some third-party providers proactively assess your system for recurring issues or inefficiencies and advise on how to improve stability. This is a bonus value that can improve your system’s return on investment (ROI). Be sure to clarify what “extras” are included – e.g., can they assist with minor enhancements or integrations? – as this varies by provider.
Practical expectations: As a CIO, you should expect equal or better resolution times and a more personalized support experience after switching to a third-party provider. It’s wise to establish a governance process, such as holding monthly meetings with the provider’s account manager to review SLA performance and any issues that arise.
Top providers will even give you real-time access to support metrics, such as the number of tickets opened, response times, and whether SLAs are met, via dashboards.
All of this is aimed at ensuring service quality stays high. Many organizations report higher satisfaction after moving to third-party support because their issues get resolved faster and with fewer hoops to jump through.
That said, it’s crucial to pick the right provider and manage some new risks, which we will discuss next.
Risks and Mitigation (Compliance, Security, Audits)
Moving off Oracle’s official support introduces certain risks that CIOs must proactively manage.
Key risks include software license compliance issues, a lack of access to Oracle patches due to security concerns, and potential pushback from Oracle, such as audits or legal threats.
The good news is that these risks can be mitigated with careful planning and the right partner.
Let’s break down the major risks and how to address them:
- License Compliance & Oracle Audits: One of the biggest fears is, “Will Oracle penalize us or audit us if we leave their support?” Oracle is known for using scare tactics in this regard. They may insinuate that switching to third-party support is against the rules or will trigger an audit . In reality, third-party support is legal as long as you stay within your license rights – courts have affirmed customers’ rights to hire an independent provider for software they are licensed to use. Oracle cannot cancel your perpetual license simply because you opt not to renew support. However, Oracle’s contracts do have tricky clauses. For example, the “license set” or matching service levels policy we discussed means you must often drop support for all licenses in a set to avoid breach. Mitigation: Thoroughly review your Oracle license and support agreements before making any move. Engage an Oracle licensing expert or legal counsel to identify any restrictions. Ensure you are not using any Oracle features or products you haven’t paid for (conduct an internal license audit to true-up any unauthorized usage) . Clean up any compliance issues while you are still a customer in good standing, as Oracle may audit and levy penalties for past compliance gaps after you leave. Many CIOs choose to proactively certify their license compliance before the switch to neutralize audit threats. Also, archive all your Oracle support materials – download the latest patches, release notes, and documentation from the Oracle Support portal for the products you’re using while you still have access. You are entitled to keep and use any patches released up to the end of your support contract. Just ensure you don’t download new patches after termination, as this would violate intellectual property rights. By having a library of patches and docs, your third-party provider can reference those if needed. After switching, continue practicing good software asset management – maintain documentation of your licenses and deployments. If Oracle does initiate an audit later, you’ll be well-prepared to demonstrate compliance and show that you haven’t violated any agreements. Thousands of companies have successfully navigated this; the key is to do your homework on licensing upfront. If you do, Oracle has no contractual basis to stop you from using third-party support.
- Loss of Official Updates (Security and Regulatory Risk): Once off Oracle support, you will stop receiving Oracle’s official patches, bug fixes, and security updates. This raises the concern: How can we keep the system secure and up to date? This is arguably the most critical operational risk. Third-party providers address it by delivering their fixes and using alternative methods, such as “virtual patching,” for security. Virtual patching means they don’t have Oracle’s source code fixes, but they mitigate vulnerabilities through configuration changes, custom code, or database triggers and firewall rules that block exploits. Top providers maintain a security team that monitors Oracle’s critical patch updates (which are publicly known) and independently analyzes each relevant vulnerability to devise an equivalent fix or workaround. For example, suppose Oracle releases a CPU patch for EBS addressing a web server flaw. In that case, the third party might create a script to close that vulnerability or recommend a firewall rule to prevent its exploitation.Additionally, third-party vendors continue to support regulatory updates as mentioned earlier (e.g., new tax year rules), which mitigates compliance risk. Mitigation: Vet the provider’s security capabilities. Ask for detailed explanations of how they deliver security patches and their track record. Ideally, choose a provider with security certifications, such as ISO 27001, and proven experience in your industry. You may also implement additional security layers on your side, such as increasing network monitoring, using intrusion detection systems, and performing regular vulnerability scans to double-check that no known issues are left unpatched. It’s wise to document your security process for auditors or internal governance – show that even without Oracle’s patches, you have an equivalent patching program in place through third-party solutions and internal controls. To date, there have been no public cases of a company on third-party support suffering a breach due to missing Oracle patches, including among banks and government agencies that have run on third-party supportfor years. This indicates the risk is manageable with proper vigilance. Nonetheless, as a contingency, know your options: if an critical zero-day threat emerges that the third-party cannot remediate quickly, you could reach out to Oracle (they won’t officially support you, but Oracle does sometimes provide security fixes to all users in extreme cases, or you might temporarily license a cloud service as a workaround). Such scenarios are rare, but having a plan can boost yourconfidence. Overall, maintaining strong security is achievable – just ensure security expertise is a top criterion when choosing your third-party provider.
- Oracle’s Retaliation or FUD: Oracle will not be happy to lose your support revenue, and they have been known to employ FUD (fear, uncertainty, doubt) tactics. Sales reps might imply that using third-party support is “not allowed” (which is false, as discussed) or that you will lose all help forever. They might dangle discounts to entice you to stay, or reference Oracle’s ongoing legal battles with third-party firms like Rimini Street to suggest the third-party model is untrustworthy. In some cases, Oracle has offered customers short-term price relief or added cloud credits to convince them to renew their support instead of leaving. Mitigation: This is more of a political and negotiation challenge. CIOs should educate internal stakeholders (such as procurement, CFO, and legal) ahead of time that Oracle may bring up software audits or legal risks, and arm them with facts (e.g., “Courts have confirmed we have the right to third-party support; we just need to remain compliant with our license”). It’s important to stay firm and not let unwarranted fear sway you. If Oracle offers a discount to stay, evaluate it: sometimes Oracle might cut support fees for a year or bundle in a cloud service. If those offers don’t align with your strategy (or don’t match the savings of third-party support long-term), be prepared to decline. Many organizations have successfully navigated Oracle’s pushback by clearly communicating that the decision is final and was made after careful analysis. Once Oracle realizes you are fully license-compliant and resolute, they typically continue to sell you new products if you want them in the future (Oracle won’t refuse new license sales just because you left support on another product – they still want new business). Thus, maintain a professional relationship with Oracle, but assert your rights confidently. Also, be aware that Oracle Support access will be cut off when you leave – you won’t be able to log new SRs or download patches. Ensure your teams are aware of this and have the new support contacts in place (more on transition planning will be discussed later).
- Dependency on Third-Party Provider Performance: By leaving Oracle, you place a lot of trust in the chosen third-party vendor. If that vendor were to fail to deliver (e.g., slow response, inadequate fixes) or suffer business difficulties, you could be left in a tough spot. This is why due diligence in selecting a reputable provider is critical (see next section). There have been cases in the market where Oracle sued a third-party provider for improper practices. Still, leading providers today operate under well-defined legal boundaries to avoid IP infringement. Still, CIOs should consider a contingency plan: what if the third-party support doesn’t work out? In such a scenario, options include switching to a different third-party firm (there are multiple providers) or, in the worst case, reverting to Oracle (which, as noted, could involve paying back fees). Mitigation: Protect yourself by negotiating escape clauses or performance guarantees in the third-party contract. For instance, a clause that allows you to leave the contract if SLA targets are consistently missed can provide an out. Also, try to sign a manageable term (e.g., 2-3 years, not 5 years upfront, unless there are strong safeguards), so you have flexibility if things change. In practice, dissatisfaction rates are low for the major third-party support firms, and many CIOs report better service than Oracle, but it’s wise to stay prepared. Continually monitor the provider’s performance and gather feedback from your IT team to catch any slippage early.
By addressing these risks head-on – contractually, technically, and with governance controls – CIOs can greatly mitigate the downsides of third-party support.
The key is not to treat the switch as simply a purchase transaction; it’s a strategic shift that requires proper compliance checks, security planning, and stakeholder alignment. When executed carefully, many organizations have found the risks to be very manageable and well worth the trade-off for the cost and flexibility benefits.
Evaluating and Selecting a Third-Party Support Provider
Choosing the right third-party support provider is paramount – not all vendors offer the same level of expertise or service. CIOs should conduct a rigorous evaluation focusing on experience, capabilities, and trustworthiness.
Here are key factors and best practices for selecting a third-party EBS support provider:
- Product and Domain Expertise: Ensure the provider has deep experience with Oracle E-Business Suite, including your specific modules and versions . Check how many EBS clients they support and for how long. A provider might be strong in Oracle Database but less experienced in EBS applications – you want a team that knows the ins and outs of Oracle Financials, Supply Chain, HR, or whichever modules you use. Ask about their bench of experts: do they have former Oracle EBS support engineers or developers on staff? Leading firms like Rimini Street, Spinnaker Support, and Support Revolution specialize in Oracle and even employ former Oracle staff who understand the technology at a source-code level. Depth of expertise will translate to faster issue resolution.
- Service Scope and Flexibility: Look for a provider that offers a service model aligned with your needs – this includes tailored Service Level Agreements (SLAs), 24/7 coverage if needed, and support for any customizations or integrations you have. During the RFP process, provide scenarios to the vendors (e.g., “How would you support our custom bolt-on for EBS procurement?”) and see how they respond. The best providers will demonstrate flexibility and a willingness to customize their service to fit your business, for example, by prioritizing a specific business-critical process. Also, clarify if they support adjacent technologies as needed – for example, will they help with the Oracle database underlying EBS or any middleware, such as Oracle Forms/Reports? Some third-party providers cover the full stack around EBS, which can simplify your support model.
- Compliance and Licensing Knowledge: A top-notch provider should also act as a guide on Oracle licensing compliance, not just a break-fix mechanic. Gauge the provider’s familiarity with Oracle’s support policies and license terms. Do they proactively advise customers on how to remain compliant (e.g., explaining the matching service levels rule, telling you what not to do post-switch)? Spinnaker Support, for example, emphasizes compliance and works closely with clients to ensure that no license terms are violated, thereby reducing audit risk. Ask if the provider has had any clients audited by Oracle after switching and what the outcomes were. A provider that demonstrates strong compliance expertise and a clean legal record (no ongoing IP litigation issues) will give you peace of mind. It’s perfectly appropriate to ask, “Has Oracle ever sued your company or clients, and what was the result?” – this might feel direct, but it’s important. The major providers today have navigated the legal landscape and can explain how they operate within the law.
- Security and Update Methodology: Delve into how the provider delivers patches and updates. Ask for examples of a security vulnerability in EBS and how they were addressed without Oracle’s patch. Reputable providers should have a clear, well-documented process for vulnerability assessment, custom patch development, and quality assurance . Similarly, for regulatory updates, ask how they track and distribute things like global tax changes. Inquire about their testing processes (do they test patches thoroughly in a lab environment similar to yours before recommending them?). The provider should also have security certifications or standards – look for ISO certifications, SOC reports, and other similar indicators that demonstrate mature processes. Also, ensure they have confidentiality and data protection measures, since they may handle your sensitive system data during support.
- Client References and Case Studies: There’s nothing like hearing from other clients. Ask the vendor to provide references, ideally from CIOs or senior IT contacts at companies similar to yours (in the same industry or with a similar ERP footprint). When you speak with those references, ask about their transition experience, the quality of ongoing support, and any issues they encountered. Additionally, check for published case studies. For example, you might find a case study of a retail chain that migrated to a new EBS provider and saved 40%, or a public sector entity that has remained compliant with third-party support.
- . Consistent, positive testimonials about reliability and expertise are a green flag. If a provider is reluctant to give references, that’s a warning sign.
- Global Reach and Language Support: If you operate internationally, verify the provider’s global support capabilities. Do they have support engineers across time zones? Can they converse in the languages your regional teams require? Oracle has a large global support organization, so your third-party choice must be able to cover any gaps there. Most big providers cover over 100 countries, but smaller boutique firms might be region-specific.
- Service Transition and Onboarding: Evaluate how the provider will onboard your company. Do they offer a detailed transition plan (usually at no extra cost) to take over support seamlessly? A good partner will perform a knowledge transfer, learn your configurations, and perhaps do a health check at the start. This plan should include setting up support contacts, escalation paths, and how they will handle any issues in the first week post-cutover. Providers that invest in a smooth onboarding process are preferable to those that just “turn on support” without much preparation.
- Financial Stability and Longevity: Finally, consider the vendor’s stability. Third-party support is a long-term play – you want a provider that will be around for years to come and continuously invest in their capabilities. Check how long they’ve been in business and their growth trajectory. Gartner’s market reports can help here; the third-party support market has been growing at a rate of over 20% annually. If possible, review their financials or at least their customer count. Larger providers, like Rimini Street, a public company, may have more resources, but a focused private provider can offer great service too. Just avoid very small or new entrants that don’t have a proven track record, as they may struggle to fulfill all promises.
Tip: Many organizations issue a formal request for proposal (RFP) for third-party support to compare providers based on these criteria. That can be useful for standardizing questions and ensuring you get apples-to-apples information. The criteria above – product expertise, SLA commitments, compliance guidance, security approach, references, and cost – should form the backbone of your evaluation matrix.
By selecting a provider that scores well on these factors, CIOs set the foundation for a successful transition. The right provider will not only support your EBS reliably but also act as a partner in navigating Oracle-related challenges, such as licenses and security. Once you’ve chosen a provider, the next step is to manage the transition process carefully.
Planning the Transition Process
Switching support providers for a mission-critical system like Oracle EBS is a significant project. CIOs should approach it with a clear plan and change management to ensure no disruption to the business.
Here’s what the transition process generally looks like, and key considerations at each step:
1. Timeline and Preparation: Start planning well in advance of your Oracle support contract expiration. A good rule of thumb is to start preparations at least six months before your Oracle support renewal date. This lead time is crucial for sorting out contracts, gathering necessary resources, and aligning stakeholders. During this phase, develop an exit timeline with milestones.
For example: by Month -6 select provider; Month -5 review licenses and notify Oracle of non-renewal intentions (if required by contract); Month -3 have new provider’s agreement signed; Month -2 download Oracle materials and freeze any non-critical changes; Month -1 communicate new support process to internal teams; Day 0 cutover to new provider.
Coordinating the cutover with the end of your Oracle support term will help avoid overlapping costs (you don’t want to pay Oracle and the third party at the same time, if possible). Many companies time the switch to the day after Oracle support lapses to maximize savings. Mark that date clearly and work backwards to ensure everything is ready.
2. Stakeholder Alignment and Change Management: Involve all relevant stakeholders in the planning process. Procurement will need to handle the new vendor contract and cancel Oracle support. Your legal team should review the third-party contract and any Oracle terms and conditions regarding the termination notice.
The IT support teams must be trained on how to use the new support tools, such as a new ticketing system or hotline. Don’t underestimate internal change management: some staff may be used to calling Oracle for issues; you need to reorient them to call the new provider. Hold an internal kickoff meeting to introduce the third-party support team. They will often be happy to present their process to your IT staff.
Also, notify any managed service partners or integrators you work with that Oracle support is changing. For example, if you have an AMS (Application Management Services) partner, ensure they know to contact the new provider for specific issues. Clear communication will prevent confusion the first time an incident occurs after the switch.
3. Contract Exit from Oracle: Check your Oracle support contract for any required notice period for non-renewal. Oracle typically considers support renewed (and invoiced) automatically unless you notify them within a certain window (often 30 days prior) that you’re discontinuing. Provide that notice in writing as required to avoid unwanted charges. Oracle might respond with attempts to persuade you otherwise – as discussed, stick to the plan. Also, clarify the end date of support in writing to ensure things like access cutoff timing. There is no formal “termination fee” for ending support (you just stop paying at renewal), but again, be mindful of the reinstatement policy: if there’s any chance you might return to Oracle support in the future, document what fees would apply. Oracle’s policy is usually that if you lapse and later want to get back in, you must pay all the fees you missed in the interim, plus a 50% penalty. Knowing this, most companies treat the move as permanent for that system or plan to purchase a new license for any future needs, rather than reinstating.
4. Knowledge Transfer and Archiving: Before the cutover, capture all knowledge and assets from Oracle. Download any patches, updates, documentation, or whitepapers from Oracle Support that are relevant to your EBS environment. You won’t have access after your contract ends. Store these in a secure repository – your third-party provider may request specific patches or documents later to help resolve an issue. Also, document your system configurations and any outstanding issues. It’s wise to have a knowledge transfer session with the third-party provider before they take over. Many providers will have solution architects conduct a deep dive into your environment, including versions, customizations, interfaces, batch jobs, and more, as part of the onboarding process. Ensure your team is available to answer their questions and share any quirks of your system. This up-front knowledge exchange will allow the provider to hit the ground running and avoid any slow learning curve when an incident arises.
5. Cutover Day and Initial Support Period: On the day you switch, Oracle support access will typically be shut off. From that point on, any issues should be directed to the new provider. It’s prudent to schedule the cutover during a low-activity period, such as right after a quarter close, rather than during a critical financial reporting week, to avoid coinciding with any major tasks. Also, consider running a brief overlap or grace period, if possible. Some companies overlap Oracle and third-party support by a few weeks or a month (yes, paying double for that short window) just to ensure nothing falls through the cracks. This is optional, and many people don’t do it to avoid extra costs. However, if your risk tolerance is low, you could arrange for third-party support to start a month before Oracle ends, providing redundant support as a safety net. Assuming you make a clean cut, closely monitor the first few support tickets under the new model. Measure how quickly the provider responds and how well they resolve the issues. It’s normal to have a little adjustment period as they familiarize fully, but any critical incidents should still be handled within SLA. Keep Oracle’s contact information handy only for license or audit issues, not for support, since they won’t be able to help now.
6. Post-Transition Governance: After the initial transition, establish a steady-state governance model with the third-party provider. As mentioned under service expectations, schedule regular service review meetings. These can be held monthly to review ticket status, SLA adherence, etc., and quarterly to discuss strategic issues, upcoming changes, or improvements. Monitor the provider’s performance against the promised SLAs and hold them accountable – most will meet or beat them, but it’s important to track. Also, maintain your internal license compliance discipline. Even though you’re off Oracle support, you should continue to track your usage of Oracle EBS and ensure that you don’t deploy new modules or add additional users beyond what you’re licensed for, unless you procure them properly. Oracle can still audit you years later, so compliance is a continuous process. The difference is that with third-party support, you likely won’t be adding new Oracle software, as you’re trying to prolong the existing system. However, if your business needs require expansion, coordinate with Oracle or plan for how to license any growth separately.
7. Change Management and User Communication: Don’t forget the business user community, especially if they directly interact with Oracle support or have specific expectations. You might want to announce internally that “We have a new support model for our Oracle systems effective X date. You should not see any change in how you report issues – continue to call the IT helpdesk as usual – but behind the scenes, we’ll have a new support partner helping resolve issues faster.” For business stakeholders who worry about losing Oracle’s backing, reassure them that this decision was made to improve support and that the provider is fully capable. You could also mention that other Fortune 500 companies use them, if appropriate. By addressing any internal skepticism early, you’ll build confidence in the new model.
In essence, treat the transition as a project with a dedicated manager, timeline, and risk mitigation plans. Many CIOs also keep Oracle support for an extra quarter as a fallback (or at least budget that contingency), but end up not needing it. If planned well, the switch can be seamless for end-users – the only difference they should notice is possibly faster issue resolution and fewer “please upgrade” responses. The careful upfront work (license review, stakeholder buy-in, knowledge transfer) is what ensures success here.
Impact on Oracle Licensing and Future Upgrades/Migrations
A critical strategic consideration is how third-party support affects your Oracle licensing status and your ability to upgrade or migrate in the future.
CIOs must anticipate the long-term implications, especially if there’s a roadmap to eventually move off EBS (e.g., to Oracle Fusion Cloud or another ERP).
Let’s break down the impacts and strategies:
- Oracle Licensing Status: When you stop paying for Oracle support, you still retain your Oracle EBS licenses (assuming they are perpetual licenses, which are most commonly used in EBS deployments). There is no requirement to give up the software – you have the legal right to run your licensed Oracle software indefinitely. What changes is that you lose the right to new versions and patches as part of support. Importantly, if your business needs to purchase additional Oracle licenses (say you need to add 100 more EBS user licenses due to growth), Oracle will likely sell them to you. Still, they might insist you reinstate support for the whole set. This is a nuanced area: Oracle’s sales approach varies, but be aware that if you expand usage, Oracle could use that as leverage to get you back under support for at least the new licenses (and sometimes they push to cover all licenses). One way to avoid this is to consider buying necessary licenses before leaving support, especially if you anticipate growth, or structuring your license entitlements to include some flexibility. Alternatively, you might negotiate a separate license deal later, but Oracle could charge a premium. Action: Review your current license capacity – do you have headroom for more users or modules if needed? If you foresee expansion, factor that into your decision or have a plan to negotiate with Oracle when the time comes. You could, for example, purchase only what you need and keep those new licenses on Oracle support separately, if the contract allows.
- Upgrades to On-Premises Oracle Software: If you intend to perform an upgrade of your Oracle EBS to a newer release in the future, note that under third-party support, you won’t have automatic rights to new versions. For example, if you’re on EBS 12.2.9 and Oracle releases 12.2.12 with new features, you cannot just download 12.2.12 without active Oracle support. Third-party support typically locks you to your current version, plus any patches you downloaded before upgrading. If you later decide you want to upgrade to a new EBS release or apply a major patch that you didn’t obtain earlier, you would have to recontract with Oracle to get that software, which could involve paying back support fees. Another approach is for some companies to upgrade before switching – e.g., upgrading to the latest stable EBS release while still on Oracle support, then moving to a third-party solution, so they have the newest codebase as a starting point. That is, before switching – e.g., upgrading to the latest stable EBS release while still on Oracle support, then moving to a third-party solution so you have the newest codebase as a starting point. This way, you maximize the usable life of that version under third-party support. Keep in mind that if you ever need to upgrade to a later Oracle release down the road, you will likely have to re-sign with Oracle or purchase a new license, incurring significant costs. Many organizations accept this and decide to upgrade only if and when they replatform entirely, such as moving to the cloud.
- Migration to Oracle Fusion or Other ERP: A common question is how third-party support impacts a plan to move to Oracle Fusion Cloud (Oracle’s SaaS ERP) or another ERP system. The reality is that third-party support can be a strategic bridge to your future state. If you plan to migrate off EBS in a few years, staying on Oracle’s expensive support in the interim may not make sense – you’re paying for upgrades you’ll never deploy. By switching to third-party support, companies can *save money during the interim years and funnel those savings into the migration project. Companies replacing Oracle EBS with another solution often find third-party support an ideal interim step, allowing them to keep the old system running at a lower cost until the new system is live. For example, a mid-sized financial firm knew it would decommission EBS in three years. It moved to third-party support, cut costs by 50%, and used those funds to accelerate its transition to a cloud ERP. The key consideration if moving to Oracle’s Fusion Cloud is timing and support during migration. If your migration is very short-term (e.g., you’ll be on Fusion within 6-12 months), you may want to stay on Oracle support just to have Oracle’s assistance or data conversion tools available. However, most Fusion migrations are multi-year endeavors with essentially new implementations. Oracle does not give “upgrade credits” for on-prem licenses moving to SaaS – it’s a new subscription. So there is little licensing benefit to staying on Oracle support if you’re going to SaaS. Oracle might offer some incentives (like a discounted first-year Fusion subscription if you’re a current support customer), but you can weigh that against third-party support savings. Once on Fusion Cloud, note that third-party support isn’t an option (Oracle Cloud services can only be supported by Oracle). So, if Fusion is the endgame, third-party support is a temporary strategy to ease the transition. Just ensure that your third-party provider supports data extraction and any legacy integration needs during migration; they usually do. If migrating to a non-Oracle system (SAP, Workday, etc.), the argument is similar or stronger: you’re fully exiting Oracle, so third-party support is simply keeping the lights on at half the cost until cutover is done. The bottom line is that moving to third-party support now does not prevent you from pursuing an Oracle SaaS or other ERP in the future – it just requires some planning for the handover. Many CIOs deliberately use third-party support to create a “financeable gap”: they reduce operational costs on the old system for a few years, and those savings effectively help cover the cost of implementing the new system.
- Future Innovation and Compatibility: Consider how long you plan to run EBS without official Oracle updates. Oracle has its “Applications Unlimited” pledge for EBS, meaning that Oracle will continue to support EBS 12.2 indefinitely with ongoing updates. As of now, Premier Support for EBS 12.2 is assured through at least 2033. If your strategy is to stick with EBS on-prem for the long haul, realize that by leaving Oracle support, you won’t get those incremental 12.2 updates or any new features Oracle delivers. You’re essentially betting that what you have is “good enough” for a long time. Many organizations find this to be true – their EBS is mature and feature-complete for their needs. However, keep an eye on external factors that might necessitate changes. For instance, if operating system vendors or database versions evolve, you may need to apply updates for EBS to remain compatible. Third-party providers can often certify or support EBS on new platforms even if Oracle won’t, but it can be a limitation. For example, if a new Windows Server or Oracle Database release is released in 3 years, Oracle would test EBS and possibly provide patches if you are on support. A third-party provider would then handle that testing and any necessary tweaks for you. Mitigation: Work with your provider to create a technology roadmap – ensure they will support your EBS environment on the infrastructure you plan to use, including servers, OS, database upgrades, and browser updates for EBS self-service, among other things. Most will, but it’s worth verifying for long-term planning. Also, consider the lifespan of EBS itself. If you plan to run it indefinitely, that’s fine with third-party help, but also plan for eventual technical debt, as the system may become outdated in terms of user experience or integration capabilities over time. In practical terms, many CIOs use third-party support as a 5- to 10-year strategy. At the same time, they evaluate or implement next-generation solutions at their own pace, rather than as a long-term solution. It gives you breathing room, so you’re not forced into Oracle’s timetable for upgrades or cloud migration.
In summary, moving to third-party support means decoupling your upgrade timeline from Oracle’s schedule. You gain control – upgrade or migrate when it makes business sense, not just because support is expiring.
Your Oracle licenses remain yours, but your ability to install new Oracle software is paused unless you reengage with Oracle. Plan out your likely needs: if you foresee no major new Oracle functionality needed, third-party support can carry you for the long term.
Suppose you anticipate adopting a new Oracle technology, such as Oracle Cloud SCM, while keeping EBS Finance on-premises. In that case, you may maintain a hybrid approach: keep some products on Oracle support while others on third-party support, as long as contracts permit (often by separating license agreements).
Each CIO’s roadmap will differ, but the key is to ensure that the support strategy aligns with the 3- to 5-year application strategy. If there’s misalignment (e.g., you choose a third-party solution but then realize you urgently need an Oracle upgrade), you may face unplanned costs.
So, lock in the strategy with your executive team: Are we going to keep EBS as is for the next few years? If yes, third-party support likely aligns perfectly. If no (we need to upgrade or migrate soon), consider timing the switch carefully or even postponing it until after the critical upgrade.
Long-Term Strategies with Third-Party Support
Adopting third-party support is not just a short-term cost hack; it can be part of a long-term IT strategy.
Here are some strategic considerations and approaches for CIOs using third-party support for Oracle EBS over an extended period:
- Maximize ROI of a Stable System: Third-party support allows you to extend the useful life of your EBS investment far beyond Oracle’s support window. If EBS is stable, meeting business needs, and users are happy, you can potentially run it for a decade or more with continuous third-party support. Many companies have done so with ERP systems (for example, some have run PeopleSoft or JD Edwards with third-party support for over 10 years after Oracle stopped providing support). This can yield a tremendous return on investment (ROI) on the initial software investment. The strategy here is to treat EBS as a stable utility – keep it running reliably at low cost, and direct new investments to systems of differentiation. For instance, you might decide not to customize EBS for new requirements, but instead build bolt-on applications or use cloud point solutions to add new capabilities, while EBS remains the core system of record. Third-party support will keep that core ticking with updates for legal compliance and fixes, so you can focus on innovation elsewhere. This bimodal strategy —stabilizing the core and innovating on the edges —is a realistic approach that many CIOs are now using to balance operational stability and digital innovation.
- Periodic Reevaluation and Market Check: Even after committing to third-party support, it’s wise to reassess every few years. The software market and your business needs will evolve. Schedule a strategic review, every 2-3 years, to decide if EBS is still fitting our needs. Is third-party support still the best fit? You may find that in five years, your company is ready for a next-generation cloud ERP, or conversely, that EBS is still going strong and you’ll continue to use third-party support for another cycle. Also, keep an eye on Oracle’s stance – occasionally, Oracle might introduce new flexible support models or offer a custom deal to win you back. While those offers have historically not matched third-party savings, the landscape can change. By keeping the dialogue open and maintaining a cordial relationship with Oracle account representatives when possible, you may gain insight into any upcoming changes that could benefit you. Essentially, use third-party support to buy flexibility, but remain adaptive to future options, whether that’s returning to Oracle support under more favorable terms or transitioning to something entirely new.
- Leverage Savings for Innovation (Tell the Story): Over the long term, the narrative around third-party support should focus on how it enables innovation. CIOs should track where the saved money is going and what value it’s creating. For example, after 3 years, you might be able to report, “By using third-party support, we saved $X million, which funded our move to a new data analytics platform and the launch of a mobile app for customers.” This story is powerful for the CIO’s credibility and for continued executive support of the decision. It reinforces that third-party support isn’t just a cost-cutting exercise; it’s a value-creation strategy. Many of the reference stories in this space highlight exactly that – companies free up funds to modernize capabilities and drive growth. Keep a scorecard of the strategic initiatives enabled by the support savings, and ensure the board and CFO are aware of them. This will also make it easier to resist any Oracle temptations to return, because you can demonstrate the bigger-picture benefit.
- Manage the Relationship with the Provider: In a long-term arrangement, treat your third-party support provider as a strategic partner. Invite them to planning sessions for your IT landscape; for example, if you are considering a cloud integration that touches EBS, ask for their input on any supportability concerns. Make sure they stay updated as your environment changes (if you add a new module or make a customization change, inform them). A robust partnership can lead to them proactively advising you – some providers might say, “We’ve noticed many clients integrating EBS with XYZ tool, here’s how to do it safely,” etc. Over the years, personnel changes occur on both sides. Ensure continuity by having documented support procedures and, perhaps, a governance document that outlasts individual people. Essentially, nurture the relationship so that the provider is invested in your success long-term. This mitigates the risk of any complacency and ensures you continue to get top-tier service year after year.
- Contingency Planning: Even with a long-term outlook, wise CIOs have a Plan B. Consider scenarios such as the third-party provider being acquired or shifting focus, or Oracle drastically cutting support prices (unlikely, but hypothetically). How would you respond? It could be as simple as “We’d evaluate alternative third-party providers” – there are multiple in the market, and switching between them is generally easier than the initial switch from Oracle. Or if Oracle changed its policies to make returning easier (e.g., waiving reinstatement fees in some future program), you might re-evaluate the cost-benefit at that time. Keep some contingency budget or project timeline slack in case you needed to perform an upgrade or switch support providers down the line. This is not to say you expect failure – just good practice for risk management in a long horizon.
- Stay Informed on Oracle Developments: Even while on third-party support, you should monitor Oracle’s product roadmap for EBS and Oracle’s overall strategy. Oracle may still release minor updates or technology stack certifications that could impact you (even if you don’t apply them, knowing what they are matters). Also, watch Oracle’s focus: if Oracle significantly shifts resources away from on-prem EBS, it might mean fewer innovations you’re missing out on, validating your decision. Conversely, if Oracle were to introduce a groundbreaking feature in EBS or a very attractive cloud migration program, you’d want to know. Your third-party provider often helps with this, as they keep tabs on Oracle announcements to inform their clients. Some third-party firms even provide “advisory services” to keep you updated on what’s happening in the Oracle ecosystem (so you’re not in the dark while outside Oracle support). Use those insights to continually refine your long-term plan.
In essence, third-party support can be a long-term solution or a strategic stop-gap depending on your enterprise objectives. It grants you flexibility: either to run a legacy system as long as it delivers value, or to buy time and budget for a future transformation. CIOs should align this support strategy with their application roadmap, budget cycles, and risk appetite.
Many have found that with proper management, third-party support is sustainable for the long run – it is not just a one-year cost save, but a viable operating model for a stable system. The key is to remain proactive: continually ensure that security and compliance are solid, regularly evaluate the provider, and be ready to pivot if the business strategy changes.
