This blog was originally published in July 2020 and was updated in July 2026
Why keep paying more for software support that delivers less flexibility and slower resolution? Third-party support gives organizations a proven way to cut costs, avoid unnecessary upgrades and get more responsive service. Learn more about third-party support, its benefits and how it differs from vendor support.
What is third-party support? A simple definition
Third-party support is software support and maintenance for applications, databases and infrastructure. It replaces vendor support that is often packaged with the software purchase. Third-party support clients typically select this option to attain more comprehensive and responsive support than their vendor provides.
Third-party software support offers comprehensive product support (sometimes called “Level 4” support) that includes:
- Troubleshooting
- Integration
- Interoperability
- Performance
- Break/fix support
- Expert guidance for databases and software systems
Additional features include dedicated primary support engineers, support for custom code, tax, legal and regulatory updates and guaranteed response, communication and resolution SLAs.
A (not-so) brief history of third-party support
Third-party support for applications, ERP and databases from vendors such as Oracle and SAP has been a viable alternative to annual vendor maintenance and support contracts for years. That market was disrupted in 2005 as new business models and third-party support providers got started.
Some organizations jumped at the chance to reduce annual support expenses and gain better, broader coverage. Those early adopters of third-party software support paved the way for billions of dollars in total savings across thousands of organizations over two decades.
Third-party software maintenance and support services have grown in popularity in the last few years. There are many reasons for this acceleration of interest in third-party support — they all stem from the fundamental differences between vendor and third-party support.
Vendor support vs third-party support
Third-party support and vendor support share some similarities. Both help an organization minimize business disruption and maximize business value from the software applications it uses to run the business. Where they primarily differ is in their business model, scope of support and upgrade requirements. Here are the main differences between third-party support and vendor support:
| Vendor support | Third-party support | |
|---|---|---|
| Software lifecycle support | Will end support or significantly reduce the scope of support for certain products or releases | Ability to provide rolling 15-year commitment to supporting existing software releases |
| Upgrades and migrations | Often requires upgrades or migrations to maintain full support or access new fixes | Does not require upgrades, migrations or re-platforming to maintain full support |
| Customization support | Typically limited or no support for customizations | Provides full support for existing customizations at no additional cost |
| Response and resolution times | SLAs may exist but are generally not defined and escalation is often required for faster handling and resolution | Guaranteed SLAs and resolution times |
| Coverage scope | Support coverage is dependent on the tier. Certain tiers do not provide broad coverage (i.e., Oracle Sustaining Support). | Broad coverage including performance support, bug fixes, root cause resolution, advisory services, interoperability and integration support, security services and customization support |
| Security and compliance support | Not always included, depending on the tier. Security and compliance support may not be included in some tiers. | Often includes proactive security services such as vulnerability analysis and mitigation guidance |
| Cost structure | High ongoing maintenance costs with potential for vendor profit margins up to 90%+ | Significant cost savings on annual support fees, as well as a reduction in IT staff costs |
| Managed services integration | Managed services are typically separate and are not included in support services | Able to bundle support and managed services for unified service delivery and faster resolution |
Keep in mind that not all third-party support providers are the same. Our checklist outlines what you need to look for when selecting a third-party support provider, so you have the data you need to make the right support decision for your business.

Why do organizations switch to third-party software support from vendor support?
There are many reasons organizations favor third-party software support over vendor support. These reasons include cost savings, faster resolution times, the need to extend the life of their software releases beyond what the vendor can offer and greater flexibility.
Cost savings
Cost is one of the major differences between software vendor support and third-party support services. Most organizations that switch to third-party software support realize up to 50% savings on annual support fees. Additional costs, such as continuous upgrades, can be reduced or avoided, potentially yielding up to 90% in total annual savings. This includes the costs of supporting customizations (software vendors typically don’t cover them), overlay or self-support to cover gaps in vendor support, and forced upgrades or migrations just to stay on a fully supported release.
Faster resolution times
When mission-critical systems experience downtime, rapid support response times are crucial. Vendor support often cannot provide fast resolution times and clients are often directed to self-service portals to find the answer to their question, delaying resolution. Third-party support providers have expert engineers who are guaranteed to respond and resolve critical issues within a specific number of hours. This provides greater confidence and peace of mind for organizations.
The need to extend the life of software systems
Third-party software support can extend the life of software releases by providing support for many years, and even after the vendors stop providing full support. This allows organizations to maximize the lifespan of their technology investments and ensure minimal disruption to critical business processes.
Greater flexibility
Clients of third-party support for enterprise software, such as SAP, Oracle and VMware products, have more agility and freedom to pursue and fund innovation. When an organization is no longer bound to a vendor-driven roadmap, it can redirect budget and resources toward its own business priorities.
IT roadmaps: vendor-dictated or business-driven?
There was a time, perhaps a decade or two ago, when ERP applications from Oracle and SAP were gaining significant new functionality with every major release. The platforms were still growing into the full footprint of financials, operations, CRM, supply chain management and human capital management they intended to cover. Then they matured and stabilized while the functionality expansion slowed. These suites of applications are now working behind the scenes in organizations around the world and across most industries. They are the software workhorses of modern business.
Why are organizations expected to keep paying the same — or more — for annual support when the applications are no longer new, unstable or rapidly changing?
Because the vendors haven’t let licensees off the hook. They continue to charge more and more for support while requiring the licensees to stay on current releases with continuous upgrades just to stay fully supported — even if it doesn’t provide meaningful updates and security patches. In “sustaining support,” support privileges are even further reduced, yet the annual cost remains the same, typically 22% of license fees plus annual uplifts.
While it’s true that staying on the vendor’s annual maintenance contract gives licensees the rights to future enhancements, what the software vendor decides to put into any particular release may or may not be important to them. This is what a vendor-dictated roadmap looks like. Continued investment in full support provides access to enhancements, but organizations have limited control over their direction or relevance.
Key takeaways
Third-party support provides an enhanced support and services experience that can be more comprehensive than software vendor support. It reduces costs immediately, avoids unnecessary disruptions and allows greater freedom to pursue business innovation priorities.
There — just under 1,300 words. And speaking volumes.
