Business Wire

Report: Third-party Support Helps SAP Customers Get Control of Their ERP Strategy and Associated Costs

Share

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, has announced the availability of a 2022 Valoir Research report titled “Maximizing SAP Value with Rimini Street,” which explains the many benefits of utilizing third-party SAP support services. The 2022 report is a follow-on piece to the 2020 report, “Assessing an SAP-Rimini Street Strategy.” The latest version provides an update on ERP implementation plans and drivers and acknowledges SAP’s continuous effort to improve S/4HANA.

“Our customer relationships have become more strategic over time as enterprises strive to drive value from legacy assets while planning and executing thoughtfully for the future,” said Seth Ravin, CEO and chairman of the board at Rimini Street. “Valoir confirmed this trend in both the 2020 and 2022 reports when it interviewed our customers. It also discovered some interesting SAP customer types who are approaching S/4HANA differently.”

The 2020 report defined the SAP-Rimini Street landscape

SAP appears eager to replace traditional on-premises ERP with its cloud ERP product, otherwise known as S/4HANA. Since ERP is a core suite of enterprise applications running mission-critical workloads, it cannot be “ripped and replaced” with a more modern version of the software, so companies must decide whether they want to move to S/4HANA or not, and if they do, what the migration strategy should look like. As the 2020 report notes, “A move to S/4HANA is not simply an upgrade: it is a new implementation effort, with a new platform and database. Valoir estimates that the migration effort, beyond the business disruption, would cost customers currently paying $1 million annually in SAP support and maintenance from $15 to $30 million to migrate to and operate S/4HANA.”

Two Rimini Street customers Valoir interviewed for the 2020 report said they did not believe S/4HANA was mature enough to adopt because it lacked the breadth of features present in the on-premises ERP suite. The third said it needed to improve its processes and rationalize the move to prepare for “a big transformation.” The customers interviewed for the report offered three distinct reasons for using third-party support. Specifically, they were using Rimini Street services to:

  • Defer the S/4HANA decision because it involved significant investment and business disruption;
  • Leverage existing SAP investments for innovation rather than waiting for S/4HANA to deliver innovation; or
  • Plan a move to S/4HANA when the product is more mature and shows clearer value.

Essentially, third-party support facilitates a rational ERP strategy that does not necessarily have to be limited to one product or vendor.

The 2022 report explains how enterprise ERP strategies have evolved

SAP is now positioning S/4HANA as an important element of customers’ digital transformation strategies. However, many SAP customers don’t want the adoption time frame dictated by SAP, so many have turned to third-party support which gives them time to decide what their long-term ERP strategy should be, how it should be implemented and when. In the meantime, they may also assess non-SAP ERP solutions.

In 2022, SAP-Rimini Street customers fell into four groups:

  • Early adopters of S/4HANA who use Rimini Street for its SAP expertise and service offerings, including managed and security services. They are using Rimini Street to manage their entire SAP portfolio, including cloud applications, to streamline vendor and service provider management and focus their internal resources on digital transformation and innovation.
  • Planners who see the benefits of S/4HANA and are willing to adapt their functional requirements to what the platform offers. In some cases, this includes a hybrid strategy in which S/4HANA is used for some critical business functions and the on-premises version which continues to support others. Many planners are using the application support cost-savings to fund their eventual S/4HANA project.
  • Evaluators who believe there are benefits to S/4HANA but want to take the time to prove it’s the right cloud ERP solution. They are also considering the cost and technology implications of moving from an on-premises application to a cloud application because they want to be sure they can use S/4HANA as an enabler of digital transformation, not just a replatforming effort.
  • Skeptics who don’t perceive the benefits of S/4HANA or who believe the cost, risk and disruption associated with a new ERP deployment outweighs any benefits.

Irrespective of approach, all SAP-Rimini Street customers have been able to gain control of their SAP application lifecycle, reduce risks and maximize returns on their SAP investments while delivering on digital transformation and innovation. Other benefits Valoir identified include a 50% reduction in application support fees versus the annual SAP maintenance fees, up to a 75% reduction in total internal application support costs and the ability to achieve business continuity while maximizing the value of their SAP investment. The skeptics are using the savings to fund innovation in mobile, analytics, human capital management (HCM) and other areas of innovation around their SAP core.

“In 2022, SAP-Rimini Street customers have some best practices in common. They have moved to third-party support to avoid upgrade costs, increase staff productivity and retention,” said Rebecca Wettemann, CEO and Principal Analyst at Valoir Research. “They are also utilizing third-party support strategically so they can devote adequate time and effort to planning before the move. Many of them have decided to take advantage of additional Rimini Street services to simplify vendor management and reduce the time their staff spends on resolving issues that span multiple applications or go beyond the SAP footprint.”

A webcast discussing the report findings will be available on September 1, 2022, from 1:00PM to 1:30PM EDT. Register to hear more about third-party support and how it’s enabling CIOs to innovate around the edges of their high-performing SAP systems and engage and retain key talent. Attendees will receive an early release copy of the report.

About Rimini Street, Inc.

Rimini Street, Inc. (Nasdaq: RMNI), a Russell 2000® Company, 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 offers premium, ultra-responsive and integrated application management and support services that enable enterprise software licensees to save significant costs, free up resources for innovation and achieve better business outcomes. To date, over 4,800 Fortune 500, Fortune Global 100, midmarket, public sector and other organizations from a broad range of industries have relied on Rimini Street as their trusted application enterprise software products and services provider. To learn more, please visit http://www.riministreet.com, follow @riministreet on Twitter and find Rimini Street on Facebook and LinkedIn. (IR-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, the amount and timing of repurchases, if any, under our stock repurchase program and our ability to enhance stockholder value through such program; the impact of our credit facility’s ongoing debt service obligations and financial and operational covenants on our business and related interest rate risk, including uncertainty from the discontinuance of LIBOR and transition to any other interest rate benchmarks; the duration of and operational and financial impacts on our business of the COVID-19 pandemic and related economic impact, as well as the actions taken by governmental authorities, clients or others in response to the continuance of the pandemic; catastrophic events that disrupt our business or that of our current and prospective clients, including terrorism and geopolitical actions specific to an international region; 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 any new 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, including under our credit facility; our ability to maintain an effective system of internal control over financial reporting and our ability to remediate any identified material weaknesses in our internal controls; changes in laws and regulations, including changes in tax laws or unfavorable outcomes of tax positions we take, or a failure by us to establish adequate reserves for tax events; competitive product and pricing activity; challenges of managing growth profitably; the customer adoption of our recently introduced products and services, including our Application Management Services (AMS) offerings, in addition to other products and services we expect to introduce in the future; the loss of one or more members of Rimini Street’s management team; our ability to attract and retain qualified personnel; uncertainty as to the long-term value of Rimini Street’s equity securities; the effects of seasonal trends on our results of operations, including the contract renewal cycles for vendor supplied software support and managed services; our ability to prevent unauthorized access to our information technology systems and other cybersecurity threats, protect the confidential information of our employees and clients and comply with privacy and data protection regulations; and those discussed under the headings “Risk Factors” and “Cautionary Note About Forward-Looking Statements” in Rimini Street’s Quarterly Report on Form 10-Q filed on May 4, 2022, 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.

© 2022 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.

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

Natalie Silva
Rimini Street, Inc.
+1 210-517-1655
pr@riministreet.com

About Business Wire

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Global Tourism Surging Ahead of Economic Growth, With Visits to Hit 30 Billion by 20344.7.2025 02:00:00 EEST | Press release

The World Economic Forum has today published a new report forecasting that the travel and tourism industry is projected to serve 30 billion tourist trips by 2034. Travel and Tourism at a Turning Point: Principles for Transformative Growth, produced in collaboration with Kearney and the Ministry of Tourism Saudi Arabia, reveals a projected $16 trillion contribution to global GDP by the same year—representing more than 11% of the total world economy, according to World Travel & Tourism Council estimates. The report also found that the sector is expanding 1.5 times faster than the global economy, generating significant commercial opportunities as long as the mounting challenges of climate change, labour shortages and infrastructure gaps are addressed. Inbound and outbound trips increasing fast Asia is on track to become the world’s fastest-growing tourism economy, with the direct travel and tourism GDP contribution expected to exceed 7% across the region by 2034. Notably, India and China

The 2025-2026 World Branding Awards Animalis Edition Honouring Leading Pet and Animal Brands Globally3.7.2025 22:00:00 EEST | Press release

The 2025-2026 World Branding Awards Animalis Edition marked its fifth instalment, bringing together leading pet and animal brands from all around the world. These brands were celebrated for their outstanding achievements, earning recognition as National, Regional, and Global Winners. The awards ceremony, held at Vienna's prestigious Hofburg Palace, welcomed winners across diverse categories, including pet food, retail, wellness, pet exhibitions, and aquatic products. Mounia Berrada-Gouzi expertly hosted the evening, which culminated in a grand celebration of brand excellence. “The Animalis Edition of the World Branding Awards recognises brands that have achieved the highest distinction—genuine recognition in the hearts and minds of consumers. Tonight, we honour those whose names resonate globally, whose values inspire loyalty, and whose presence defines excellence in the pet and animal industry,” said Richard Rowles, Chairman of the World Branding Forum. Out of over 950 brands nominate

Venture Global Announces 20-Year Sales and Purchase Agreement with PETRONAS3.7.2025 15:59:00 EEST | Press release

Today, Venture Global, Inc. (NYSE: VG) announced the execution of a new 20-year Sales and Purchase Agreement (SPA) with PETRONAS LNG Ltd. (PLL), a subsidiary of the Malaysian state-owned oil and gas company, PETRONAS. Under the terms of the SPA, PETRONAS will purchase 1 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from Venture Global’s third facility, CP2 LNG, for 20 years. This builds upon Venture Global’s existing agreement with PETRONAS for 1 MTPA of LNG supply from Plaquemines LNG. PETRONAS, a world-class partner in the LNG industry, joins other CP2 LNG customers in Europe, Asia and the rest of the world in a strategically important project to global energy supply and security. To date, approximately 10.75 MTPA of the 14.4 MTPA nameplate capacity for CP2 Phase One has been sold. About Venture Global Venture Global is a long-term, low-cost provider of U.S. LNG sourced from resource rich North American natural gas basins. Venture Global’s business includes assets ac

Frost & Sullivan Recognizes Novotech as 2025 Global Biotech CRO Company of the Year3.7.2025 15:05:00 EEST | Press release

In recognition of its innovation, client-focused delivery, and global impact, Novotech has been awarded the 2025 Global Biotechnology Contract Research Organization (CRO) Company of the Year by Frost & Sullivan. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250703950144/en/ Novotech Wins Global CRO Award Novotech is a globally recognized full-service clinical CRO and scientific advisory firm, trusted by biotech and small- to mid-sized pharmaceutical companies to advance their drug development programs at every phase. With a global footprint spanning Asia-Pacific, North America, and Europe, Novotech supports over 5,000 clinical trial sites and a distributed team of experts delivering seamless, end-to-end solutions across geographies. “Novotech is redefining biotech-focused clinical research through AI-driven innovation, global expansion, and a client-embedded partnership model. With a clear vision to be the CRO of choice for

Tinnitus Research: Novel Compound AC102 Makes Constant Ear Noise Disappear in Preclinical Model3.7.2025 13:02:00 EEST | Press release

The novel compound AC102 almost completely reversed tinnitus in a preclinical model after a single dose. At the same time, the damaged connections between the auditory nerve and inner ear sensory cells were restored. These findings were recently published in the prestigious International Journal of Molecular Sciences in a joint study conducted by Erlangen University Hospital and Berlin-based drug developer AudioCure. As there is currently no causal treatment for tinnitus, there is a high medical need. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250702168211/en/ In 10-20% of tinnitus cases, the noise in the ear is so severe that it significantly impairs the quality of life of those affected. (Source: AI-generated) In the current study, AC102 was administered to the middle ear of one experimental group after acoustic trauma, while a second group received a placebo. Although both groups initially showed signs of tinnitus, th

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom
World GlobeA line styled icon from Orion Icon Library.HiddenA line styled icon from Orion Icon Library.Eye