Anyone looking to reduce Oracle costs will quickly come across the support contract. It amounts to 22% of the license purchase price each year, indexed annually by 8 to 10%. The direct way to counter this, however, is third-party support—that is, support provided by a specialized vendor instead of Oracle. ProLicense, the independent licensing consultancy, compares both approaches and evaluates the real benefits of making the switch.
Oracle support vs. third-party support: The cost difference
The difference starts with the price. Oracle charges 22% per year with ongoing indexation, meaning the fees rise every year. Third-party Oracle support often costs significantly less than half that amount, and there is no annual indexation. Providers handle support for the versions actually in use, often for longer and with greater depth than Oracle’s lifetime support, including tax and regulatory updates. In-house developments and older releases that Oracle has long since discontinued are usually covered as well.
No Oracle patch? No problem
The most common objection concerns security. With the switch, Oracle’s vendor patches are no longer provided. This is manageable, as established third-party providers ensure equivalent security—just through different means. Instead of relying on vendor patches, they use alternative security approaches such as virtual patching, configuration hardening, and continuous monitoring. Doing without new releases isn’t a problem either: Anyone who needs a newer version can purchase it as pre-owned Oracle software from ProLicense. Similarly, additional needs can be met with pre-owned software instead of purchasing expensive new licenses.
“The idea of doing without Oracle patches deters many people—completely unjustifiably. Established third-party providers achieve the same level of security through virtual patching and hardening—just without the vendor patch. And anyone who needs a newer version can get it from us as used software,” says Christian Grave, CEO of ProLicense.
Flexibility instead of a one-way street: Support costs can go down
Perhaps the most important difference is flexibility. With Oracle, support fees go in only one direction: up. The scope of support can hardly be reduced under the matching service levels policy and repricing policy. With third-party support, it’s different. Anyone who uses less Oracle in the future—for example, after switching to PostgreSQL—will only pay support fees for the remaining licenses. The contract can be adjusted to reflect actual usage, usually on an annual basis. This way, costs decrease as needs decrease, rather than continuing to rise. Third-party support is therefore not only more affordable but also the more flexible model.
Oracle support vs. third-party support at a glance
| Criterion | Oracle support | Third-party support |
|---|---|---|
| Annual costs | 22% of the license price, indexed annually by 8 to 10% | often significantly less than half, without indexation |
| Security | Vendor patches on a quarterly basis | Equivalent coverage via virtual patching, hardening, and monitoring |
| New releases | Included in support | Not included; newer versions available via used software |
| Older and end-of-life versions | Only limited lifetime support | Support also available for old and discontinued releases |
| In-house developments | Only limited | Generally covered |
| Lower usage (e.g., switch to PostgreSQL) | Fixed costs or costs that increase due to Oracle policies | Scope and fees can be adjusted based on licenses used; costs may decrease |
| Contract | Tied to the license, permanent | Flexible, usually annual |
The benefits of third-party support and why choose ProLicense
Third-party support significantly reduces ongoing costs, provides equivalent protection for the systems in use, covers even older and end-of-life versions, and adapts to actual usage. However, companies can only reap these benefits if the transition is properly structured in the contract. That’s exactly why ProLicense is needed. Only with sound contract advice can the transition be completed in compliance, without giving Oracle grounds for an audit and without falling into the traps of service level matching and repricing. ProLicense has already helped several large corporations worldwide transition to third-party support and is the leading consultant that helps companies select the right provider and structure their contracts flexibly.
“Third-party support is more cost-effective and flexible, but the transition must be contractually sound. Anyone who makes mistakes here gives Oracle ammunition for the next audit. We have safely guided major corporations worldwide to third-party support and seek out the right provider and the right contract for every client,” says Markus Oberg of ProLicense.
The goal remains the same in every case: minimal costs with full compliance. Anyone who wants to evaluate the switch and find the right provider can contact ProLicense through its Oracle audit and third-party support consulting services or by calling +49 (0) 40-228 6828-0.