LAS VEGAS--(BUSINESS WIRE)--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%).
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)
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.