Is Third-Party Support the Right Fit for You?

3 Facts About Enterprise Software Support

According to Gartnerⁱ, software and SaaS is the second largest cost in the IT budget after personnel salaries and benefits.

Gross margin made from on-premise support fees, used to pay for cloud product development.

When the cumulative support fees you have paid exceed the original license purchase price.

What is Third-Party Support?

DEFINITION:
Third-party support is the replacement of technical support by a vendor that is not the original software publisher.

For example, Spinnaker Support replaces Oracle- and SAP-provided support, offering customers the benefits described below.

Third-Party Support is more:

RESPONSIVE ›

Average < 10-minute responses, from Level 4 senior support engineers

COMPREHENSIVE ›

Support for break/fix, security, custom code, interoperability, GTRC, and more

AFFORDABLE ›

Average 62% hard savings, with more soft savings possible

The Alternative Support Market is Booming

Gartner has predicted that the third-party software support market will TRIPLE by 2023.ⁱⁱ

How Do the Two Models Compare?

Services

THIRD-PARTY SUPPORT

ORACLE / SAP

Concierge, dedicated live support

Self-service oriented, emphasis on internal team researching

Primary Support Contact

Dedicated senior engineer with assigned team

Typically junior engineer to start

Customizations and Interoperability

Support all issues

Usually do not support, requiring customer to carry the cost or forgo

Ability to Escalate

All issues closely monitored, done proactively without requests

Not monitored, request made actively by customer

Tax and Regulatory Compliance

Tailored specific to each customer's needs

Included, one-size-fits-all

Security and Vulnerability

Full-stack intrusion detection, virtual patching, and compensating controls

Patches only

Savings

At least 50% of publisher costs, average savings with Spinnaker Support is 62%

None and typically with no discounts given

Upgrades

Access to an archive of all upgrade rights, made prior to switchover from publisher

Included, although few available for older products or final phase of publisher support

Is Third-Party Support Legal? You Bet.

Acknowledgment ›

Executives from both Oracle and SAP have publicy acknowledged that third-party support is legally viable when their intellectual property (IP) rights are respected and observed.

violations ›

Some third-party vendors, like Rimini Street, have incurred legally-mandated financial penalties for violating IP rights. A web search will provide details.

protection ›

Third-party support providers must operate in a way that protect the IP rights of the publisher. Spinnaker Support, for example, is fully compliant with IP rights.

Is Third-Party Support Right for You?

Run through this quick checklist to determine if your organization is a suitable candidate for third-party software support:

1. Is your enterprise software stable and you do not anticipate making a major upgrade?

YES

YES

NO

NO

2. Do you operate highly customized software, where it is difficult to upgrade or patch?

YES

YES

NO

NO

3. Are you migrating to another application or environment and want to save on support costs?

YES

YES

NO

NO

4. Is your organization seeking short-term financial relief?

YES

YES

NO

NO

5. Are you no longer receiving security patches from the original publisher?

YES

YES

NO

NO

If you answered "yes" to at least one of these questions, then it's time to consider third-party support.

Reach out to us today! We can help:

^#1

Explain the advantages of third-party support

^#2

Estimate savings and timelines for your business case

^#3

Review your licensing and contracts to avoid audit exposure

^#4

Confirm that we operate with integrity and are the best in our market

Take These Steps to Choose the Right Third-Party Support Vendor

^#1

Build a business case that identifies the expected savings and outlines the onboarding process.

^#2

Review your licensing and contracts - or have the vendor do so - to avoid audit exposure.

^#3

Select a vendor that can satisfy the business requirements for all needed support services.

^#4

Validate that the vendor offers flexible commercial contracts to meet your specific and changing needs.

^#5

Confirm that the vendor's delivery practices, processes, and methods do not violate the software publisher's intellectual property rights.

^#6

Verify that the preferred partner has an acceptable financial, operational, and legal risk profile.

©2020 Spinnaker Support, LLC. | All Rights Reserved