Press release

Survey of SAP Licensees Reveals Two-Thirds Have No Plans or Are Undecided About Migrating to New S/4HANA Product

0
Sponsored by Businesswire

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 SAP licensees conducted
to better understand their plans for S/4HANA and the impact of SAP’s
planned 2025 end of mainstream maintenance support for Business Suite 7
core applications on their IT roadmap plans. Of the IT leaders surveyed
who are currently running SAP’s Business Suite 7 or older releases,
two-thirds state they either have no plans to migrate to S/4HANA (35%)
or are undecided about moving to S/4HANA (32%). The top reasons cited
include “lack of resources,” “no business justification,” and a
preference to “maximize investment in current applications.” The number
of respondents who stated they have no plans to migrate or are undecided
has risen slightly from a previous survey in 2017 – at that time 65% of
IT leaders stated they had no plans to migrate or were undecided about
S/4HANA. The current survey of SAP licensees was conducted in April 2019
and includes C-level executives, and VPs, directors and managers of IT.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20190619005087/en/

Survey of SAP Licensees Reveals Two-Thirds Have No Plans or Are Undecided About Migrating to New S/4 ...

Survey of SAP Licensees Reveals Two-Thirds Have No Plans or Are Undecided About Migrating to New S/4HANA Product (Photo: Business Wire)

SAP Customers Plan to Run Their Current Applications Beyond 2025

Survey responses confirm that nearly 80% of SAP licensees plan to
continue to run their customized, mature SAP systems to at least or
beyond SAP’s planned 2025 end of mainstream maintenance date for
Business Suite 7. SAP licensees have made significant investments to
implement and customize their highly functional SAP systems that meet
their business needs and these existing systems can serve as their
reliable mission-critical platform for many years to come without
requiring the need to upgrade.

“We were experiencing the push many ECC 6.0 customers face with SAP
trying to move everyone to the S/4HANA platform. When some of the larger
SAP customers also refused to pay for that reimplementation in exchange
for an immature product, we knew that S/4HANA was not a road we wanted
to go down,” said Bob Leek, CIO, Multnomah County. “By switching to
Rimini Street’s support, not only do we receive a far superior level of
service, but we can continue to run our current SAP system for a minimum
of 15 additional years from the time that we switched our SAP support to
Rimini Street in 2016. This takes the pressure off having to migrate to
SAP S/4HANA by 2025 when we see no return on that investment for the
cost and disruption to the business. Additionally, as a result of moving
our support, we have also been able to redirect our staff to focus on
more value-added activities.”

Challenges with SAP Support

When asked about the value of SAP’s support, only 5% of all survey
respondents stated they felt the fees for SAP support are well worth the
value they receive in return. However, respondents also cited several
challenges with SAP’s support, including “lack of support for
customizations,” “issues take too long to resolve,” and “no new
innovations or enough functional enhancements for what we are paying.”
“Lack of expertise or adequate knowledge to resolve issues” also topped
the list. Licensees are often left to self-support issues on their own
by assigning internal resources or working with outside consultants. The
inefficiencies with SAP’s support model can create considerable business
disruption and a poor use of internal resources spent just to keep the
system operational.

“With SAP’s expensive, time-consuming and resource-intensive forced
migration to their S/4HANA product, SAP 4.x and ECC licensees have two
choices – stay on SAP’s vendor-dictated roadmap and continue to invest
in undesired, forced upgrades, or choose a Business-Driven Roadmap
designed specifically around their business objectives,” said Seth
A. Ravin
, Rimini Street CEO. “SAP licensees who switch to Rimini
Street support can extend their existing release lifespan and value for
at least 15 more years, eliminate 2025 deadline fears, maximize savings
and minimize system change risk while being able to invest operational
savings into accelerated innovation. Rimini Street clients also gain
flexibility and time to reassess the viability and business case of a
potential future S/4HANA migration, or choose a next-generation system
that best fits their future needs.”

To access a copy of Rimini Street’s report “How Customers are Responding
to SAP’s Planned 2025 End of ECC6 Mainstream Maintenance Deadline” 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 1,850 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 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 Quarterly Report on Form 10-Q filed on May
9, 2019, and as updated from time to time by Rimini Street’s future
Annual Reports on Form 10-K, 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.