Press release

Grupo Ferroeste Saving an Estimated R$2 Million by Switching to Rimini Street Support for its SAP Application

Sponsored by Businesswire

Street, Inc.
(Nasdaq: RMNI), a global provider of enterprise
software products and services, the leading third-party support provider
for Oracle and SAP software products and a Salesforce partner, today
announced that Grupo Ferroeste, Brazil’s leading manufacturer of steel,
fuel and energy, switched to Rimini Street support and is estimating a
R$2 million of savings in total support costs through 2025. Grupo
Ferroeste moved to Rimini Street support for its SAP ECC 6.0 system in
2018. By switching to Rimini Street, the company realized savings of 50
percent in its annual maintenance fees and now receives a premium-level,
ultra-responsive support for its current, robust SAP system for a
minimum of 15 years from the time it transitioned to Rimini Street. In
addition, Grupo Ferroeste has been liberated from the vendor’s dictated
roadmap of continuous upgrades and updates, and is able to move forward
with their own business-driven IT roadmap. As part of their roadmap and
by leveraging their substantial maintenance savings, the company has
restructured its technology department and has planned for several cloud
and digital transformation initiatives.

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Grupo Ferroeste Saving an Estimated R$2 Million by Switching to Rimini Street Support for its SAP Ap ...

Grupo Ferroeste Saving an Estimated R$2 Million by Switching to Rimini Street Support for its SAP Application (Photo: Business Wire)

Improved Support Model Optimizes Efficiency

Grupo Ferroeste was created in the state of Minas Gerais 40 years ago
and includes companies such as AVB,
and CVB.
The company operates mills in the steel, fuel and energy segments,
producing steel, pig iron, alcohol, air gases and cement in a 24×7 model
and cannot afford to be impacted by IT issues. Reducing costs,
increasing productivity and innovating for continued growth are
essential pillars in Grupo Ferroeste’s business strategy. The
organization determined it needed a change to fully meet these goals and
began a series of initiatives to restructure the IT department and
improve internal efficiency.

During this restructure, Grupo Ferroeste realized their enterprise
software vendor maintenance fees were extremely high – about 22% of the
total cost of their license agreements. Furthermore, the service from
the vendor seemed very slow – the vendor would take days or sometimes
weeks to respond to issues raised – and the company was in need of an
agile and efficient partner to support its ERP system. After reviewing
third-party support providers, Grupo Ferroeste was able to show their
board the financial impact and strategic capabilities of working with
Rimini Street. Additionally, the organization spoke with several Rimini
Street clients in Brazil about the benefits of switching from SAP to
Rimini Street for ERP support, and how the move would accelerate Grupo
Ferroeste’s business-driven IT roadmap versus the company being locked
into a vendor-dictated plan. Now, with this improved support model,
Grupo Ferroeste can better focus its resources and direct its
investments toward strategic initiatives and business transformation.

“We needed efficient support as well as a strategic partner to help
accelerate our digital transformation journey, and I was seeing a market
trend of switching to third-party support to alleviate the disadvantages
of vendor control and wanted to take advantage of this opportunity,”
said Enéas de Alcântara Silva, IT manager at Grupo Ferroeste. “The slow
response from the vendor was causing too many delays internally, but now
we have ultra-responsive support from Rimini Street, and have
experienced response times in as little as 1 minute regardless of the
type of problem, which has been a nice surprise. Everything is done
directly with a dedicated, experienced technical specialist, which is a
great differentiator in customer care. If an organization is looking to
move away from vendor maintenance support, I would highly recommend
considering Rimini Street.”

As with all Rimini Street clients, Grupo Ferroeste was assigned a senior
level Rimini Street Primary Support Engineer (PSE) – each Rimini Street
PSE has an average of 15 years’ experience. Grupo Ferroeste also
receives Rimini Street’s industry-leading service level agreement (SLA)
guaranteeing access to a team of local engineers 24/7/365 to address any
support issues, and a 15-minute response time for Priority 1 critical

Reducing Spend with Added Services

In addition to a vastly improved support model and the ability to
optimize IT resources and leverage significant savings, another benefit
of moving to Rimini Street is the Company’s support for Brazil tax,
legal and regulatory updates. These complex updates are provided through
Rimini Street’s innovative combination of patent-pending tax, legal and
regulatory technology, a proven methodology, and ISO 9001-certified
development processes to ensure clients receive accurate, high-quality

“If we had continued with SAP support, we would have to pay additional
consulting costs to adjust to the new tax, legal and regulatory
obligations at the time, such as REINF and Nota Fiscal Eletrônica 4.0,
the Electronic Invoice,” continued Enéas de Alcântara Silva. “And now,
with Rimini Street, these fiscal projects are developed within the
support contract itself, with no additional cost.”

“Grupo Ferroeste has been able to experience Rimini Street’s premium
level support, which was vastly different from what they had experienced
with the original software vendor, and were also able to free up ample
savings to put towards digital transformation,” said Edenize
, general manager, Latin America. “As with so many of Rimini
Street’s clients, Grupo Ferroeste was able to unshackle themselves from
vendor lock-in and put into motion their business-driven roadmap, while
at the same time increasing their productivity internally.”

About Rimini Street, Inc.

Rimini Street, Inc. (Nasdaq: RMNI) is a global provider of enterprise
software products and services, the leading third-party support provider
for Oracle and SAP software products and a Salesforce partner. The
Company has redefined enterprise software support services since 2005
with an innovative, award-winning program that enables licensees of IBM,
Microsoft, Oracle, Salesforce, SAP and other enterprise software vendors
to save up to 90 percent on total maintenance costs. Clients can remain
on their current software release without any required upgrades for a
minimum of 15 years. Over 1,850 global Fortune 500, midmarket, public
sector and other organizations from a broad range of industries
currently rely on Rimini Street as their trusted, third-party support
provider. To learn more, please visit
follow @riministreet
on Twitter and find Rimini Street on Facebook
and LinkedIn.

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