Rimini
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
revealed the findings from its recent survey of Oracle licensees
conducted to better understand the state of their relationship with the
vendor, their application strategies and their future cloud plans. The
report highlights that the majority of Oracle customers surveyed are
currently or actively planning to reduce their spend with the vendor,
with the top reasons including the high cost of the software and
features (61%), the high cost of annual maintenance and support (58%),
and Oracle’s aggressive sales tactics and audits (21%).
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Report highlights why licensees are rethinking their Oracle relationship and cloud strategy (Photo: Business
Wire)
Majority Continue to Run Current Licensed Oracle Applications
The report also cites that the majority of respondents continue to run
their existing licensed Oracle applications, maximizing their current
investments, with half of those respondents planning to lift and shift
to a hosted cloud environment over time.1 The report titled,
“Why Enterprises are Rethinking Their Oracle Relationship and Cloud
Strategy,” is based on responses from CIOs, CFOs, IT VPs, procurement
leaders, and IT directors and managers from a broad range of industries
and company sizes.
For Those Considering Cloud Options, Most Not Choosing Oracle IaaS
and SaaS Cloud
Of the survey respondents who are planning to move their Oracle
applications to cloud Infrastructure-as-a-Service (IaaS), 70% are not
choosing Oracle’s cloud offerings but have opted instead for solutions
among Amazon Web Services, Microsoft Azure and Google Cloud.2
At the same time, 80% of respondents are not planning to move or are
unsure about migrating to Oracle Software-as-a-Service (SaaS) offerings.
The top reasons cited for not migrating to Oracle SaaS include “Current
applications meet business needs, no justifiable business case” (53%),
“Too expensive” (30%), and “Too disruptive to migrate” (28%). In
addition, over 63% of respondents expressed concern about being
locked-in to Oracle’s cloud should they choose to migrate.
Issues with Oracle Maintenance and Support
Also straining the relationship between Oracle and its customers,
according to respondents, is the cost of the vendor’s annual software
maintenance and support, in contrast to the perceived benefit of that
support, with 46% citing “high costs” as the number one challenge with
Oracle’s maintenance today. Additional challenges cited by respondent
Oracle users include the need to upgrade to the next release in order to
resolve issues (30%), no support for customizations (27%), and
escalating to an experienced engineer (24%). In addition to the
challenges associated with Oracle’s maintenance and support, more than
70% of survey respondents wish they got more from Oracle software
enhancements or are dissatisfied with the value they receive from Oracle
software enhancements.
The risks and concerns highlighted by survey respondents with regard to
their Oracle relationship and strategy, including the high cost of
maintenance, the lack of innovation coming through from Oracle, and the
fear of Oracle lock-in, are all indications of push back on the vendor’s
dictated roadmap of mandatory upgrades to remain fully supported, and
continuous patches and updates – all of which take significant time,
money and personnel. Instead, respondents are looking to take back the
control of their enterprise system and embark on an IT strategy based on
a business-driven roadmap focused on business, not vendor objectives.
“We were over licensed and struggling under the burden of high support
costs, and in addition were not getting our critical maintenance issues
resolved quickly,” said Mike Conroy, director of TechOps, Rent-a-Center.
“By moving to Rimini Street, we now receive an ultra-responsive, premium
support which has alleviated our internal resources to focus on more
strategic initiatives; we have also realized substantial cost savings
that we can apply towards business transformation. Moving forward, our
IT strategy is now planned around our current and future business needs,
including choosing to move to the cloud when it makes sense for our
business, versus following the vendor’s roadmap.”
All Rimini Street clients receive the Company’s award-winning support –
which includes support for customizations and tax, legal and regulatory
updates – and are assigned a seasoned Primary Service Engineer (PSE) who
has an average of 15 years’ experience in the clients’ enterprise
software. Additionally, the Company’s ultra-responsive support is backed
by a service level agreement (SLA) which guarantees 15-minute response
times for all critical issues, and a 30-minute response time for
priority 2 cases.
“With some Oracle enterprise platform releases ending full support by
2025, coupled with the risks and concerns of following a vendor dictated
strategy, customers are re-evaluating their relationship with Oracle,”
said Seth
A. Ravin, Rimini Street CEO. “Oracle licensees are feeling empowered
to execute on their own business-driven roadmap for the future that is
guided by what their business requires, rather than based on where the
vendor wants them to go. By choosing Rimini Street’s premium level
support, our clients are able to focus more time, budget and resources
on driving business transformation and competitive advantage versus
being held back by the ongoing costs and resource requirements of a
vendor-dictated roadmap.”
To download a copy of the report, “Why Enterprises are Rethinking Their
Oracle Relationship and Cloud Strategy,” please click here.
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 1,800 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 http://www.riministreet.com
follow @riministreet on
Twitter and find Rimini Street on Facebook
and LinkedIn.
(C-RMNI)
Forward-Looking Statements
Certain statements included in this communication are not historical
facts but are forward-looking statements for purposes of the safe harbor
provisions under The Private Securities Litigation Reform Act of 1995.
Forward-looking statements generally are accompanied by words such as
“may,” “should,” “would,” “plan,” “intend,” “anticipate,” “believe,”
“estimate,” “predict,” “potential,” “seem,” “seek,” “continue,”
“future,” “will,” “expect,” “outlook” or other similar words, phrases or
expressions. These forward-looking statements include, but are not
limited to, statements regarding our expectations of future events,
future opportunities, global expansion and other growth initiatives and
our investments in such initiatives. These statements are based on
various assumptions and on the current expectations of management and
are not predictions of actual performance, nor are these statements of
historical facts. These statements are subject to a number of risks and
uncertainties regarding Rimini Street’s business, and actual results may
differ materially. These risks and uncertainties include, but are not
limited to, changes in the business environment in which Rimini Street
operates, including inflation and interest rates, and general financial,
economic, regulatory and political conditions affecting the industry in
which Rimini Street operates; adverse developments in pending litigation
or in the government inquiry or any new litigation; the final amount and
timing of any refunds from Oracle related to our litigation; our need
and ability to raise additional equity or debt financing on favorable
terms and our ability to generate cash flows from operations to help
fund increased investment in our growth initiatives; the sufficiency of
our cash and cash equivalents to meet our liquidity requirements; the
terms and impact of our outstanding 13.00% Series A Preferred Stock;
changes in taxes, laws and regulations; competitive product and pricing
activity; difficulties of managing growth profitably; the success of our
recently introduced products and services, including Rimini Street
Mobility, Rimini Street Analytics, Rimini Street Advanced Database
Security, and services for Salesforce Sales Cloud and Service Cloud
products, in addition to products and services we expect to introduce in
the near future; the loss of one or more members of Rimini Street’s
management team; uncertainty as to the long-term value of Rimini
Street’s equity securities; and those discussed under the heading “Risk
Factors” in Rimini Street’s Annual Report on Form 10-K filed on March
14, 2019, and as updated from time to time by Rimini Street’s future
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other
filings by Rimini Street with the Securities and Exchange Commission. In
addition, forward-looking statements provide Rimini Street’s
expectations, plans or forecasts of future events and views as of the
date of this communication. Rimini Street anticipates that subsequent
events and developments will cause Rimini Street’s assessments to
change. However, while Rimini Street may elect to update these
forward-looking statements at some point in the future, Rimini Street
specifically disclaims any obligation to do so, except as required by
law. These forward-looking statements should not be relied upon as
representing Rimini Street’s assessments as of any date subsequent to
the date of this communication.
© 2019 Rimini Street, Inc. All rights reserved. “Rimini Street” is a
registered trademark of Rimini Street, Inc. in the United States and
other countries, and Rimini Street, the Rimini Street logo, and
combinations thereof, and other marks marked by TM are trademarks of
Rimini Street, Inc. All other trademarks remain the property of their
respective owners, and unless otherwise specified, Rimini Street claims
no affiliation, endorsement, or association with any such trademark
holder or other companies referenced herein.
1 Rimini Street report: “Why Enterprises are Rethinking Their
Oracle Relationship and Cloud Strategy,” April 2019.
2 Rimini Street: “Rimini Street Survey Explains Why
Enterprises are Rethinking Their Oracle Relationship and Cloud
Strategy,” April 2019.
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