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How to Cut Oracle and SAP Maintenance Costs by 50%with Third-Party SupportThe CIO EventWhittlebury Hall19th March 2013
Discussion Today       Rimini Street - Quick Overview        Current State of the Enterprise Software Market        You No...
Rimini Street- Quick Overview3   The CIO Event, Whittlebury Hall   Property of Rimini Street ©2013 | Proprietary and Confi...
Rimini Street – An OverviewWe believe every enterprise software customer should have a choice ofannual support providers  ...
Value & Client Success Drive Growth                                                  Top 12 Most Disruptive               ...
Over 550 Clients    69 of Fortune 500, 15 of Global 1006    The CIO Event, Whittlebury Hall      Property of Rimini Street...
Current State of the Enterprise Software Market7   The CIO Event, Whittlebury Hall   Property of Rimini Street ©2013 | Pro...
The Big Problem    • High Cost, Low Value Maintenance Expenses Limit Innovation                                       IT O...
Your Enterprise Software World Has Changed9    The CIO Event, Whittlebury Hall   Property of Rimini Street ©2013 | Proprie...
Software Vendor Support Not Relevant     •       Vendor support does not address the majority of issues in today‘s mature,...
ERP Cartel Has Vested Interest in Maintaining Maintenance Status Quo11   The CIO Event, Whittlebury Hall   Property of Rim...
You Now Have a Choice12 The CIO Event, Whittlebury Hall   Property of Rimini Street ©2013 | Proprietary and Confidential
A More Responsible and Relevant Support Model  13   The CIO Event, Whittlebury Hall   Property of Rimini Street ©2013 | Pr...
Support Comparison Highlights Standard Support Programme Feature                         Rimini Street                Vend...
Fundamentally Different Support Philosophy Rimini Street is passionate about providing clients the most responsive and eff...
Tale of Two Clients16 The CIO Event, Whittlebury Hall   Property of Rimini Street ©2013 | Proprietary and Confidential
Saving £10m in 10 Years With Rimini Street£1.4bn UK MANUFACTURING COMPANY                                                 ...
Total Maintenance Savings Detail £ 1.4bn UK MANUFACTURING COMPANY•      This company will save more than 1.48 times over t...
Saving $33M in 10 Years With Rimini Street$11B UNIFIED ENERGY COMPANY  Background       Dissatisfied with High Support Co...
Total Maintenance Savings Detail $11B UNIFIED ENERGY COMPANY•      This company will save more than 1.7 times over their O...
What the Experts Say21 The CIO Event, Whittlebury Hall   Property of Rimini Street ©2013 | Proprietary and Confidential
―You Do Have a Choice…. Negotiation Leverageto Cut Your Oracle/SAP Support Costs‖      • ―You now you have a choice where ...
Savvy Customers No Longer Pay Oracle or SAPFull Price for Annual Maintenance       • ―As customers explore 3PM options, th...
Get Your Proposal Today. Never Pay Full Price Again                                         Submit Online Or Call 1+ 702-9...
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Sebastian Grady, President & COO at Rimini Street - How to Cut Oracle and SAP Maintenance Costs by 50% with Third-Party Support

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Sebastian Grady, President & COO at Rimini Street spoke at the CIO Event, March 2013

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Sebastian Grady, President & COO at Rimini Street - How to Cut Oracle and SAP Maintenance Costs by 50% with Third-Party Support

  1. 1. How to Cut Oracle and SAP Maintenance Costs by 50%with Third-Party SupportThe CIO EventWhittlebury Hall19th March 2013
  2. 2. Discussion Today Rimini Street - Quick Overview Current State of the Enterprise Software Market You Now Have a Choice Tale of Two Clients What the Experts Say Q&A2 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  3. 3. Rimini Street- Quick Overview3 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  4. 4. Rimini Street – An OverviewWe believe every enterprise software customer should have a choice ofannual support providers • Rimini Street support replaces your software vendor annual support ―The leading provider for third-party maintenance • Best value in enterprise software support services is Rimini Street.‖ • Award-winning client service and responsiveness • 50 percent savings on annual support fees • Avoid costly, required upgrades Paul Hamerman, VP, Forrester • Premium support programme with additional support features Research included at no extra cost • 7 product lines ―Application Upgrades: How To Make Upgrade Decisions When • Siebel, PeopleSoft, JD Edwards, Oracle E-Business Suite, Oracle Business Value Proves Elusive‖, Database, Hyperion and SAP June 25, 2010 • Global service offering • Contracted support in more than 70 countries across four continents • Tax, legal, and regulatory capability nearly 200 countries • Third-party support industry leader 4 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  5. 5. Value & Client Success Drive Growth Top 12 Most Disruptive IT Vendor Enterprise IT Vendors of the Year 20 Companies to • 550 clients and Watch in 2012 growing • $550M contract backlog • Over 450 clients • Tripled Oracle • 130% growth in new sales YOY new sales bookings over • Over 350 clients bookings the past year • 40%+ revenue • $400M contract • Tripled SAP • Over 275 clients growth backlog revenue over the • Global tax and • $220M Contract • Nearly 15 year past year • 100+ clients regulatory Backlog average contract • Opened • Launched CNC • Introduced third- • Sales bookings capabilities length Pleasanton • Launched Oracle ‗s Managed• Rimini Street party support for exceed $86 to 190+ countries founded Operations E-Business • Quadrupled Services for JDE PeopleSoft and million Centre • Office expansion Suite application international sales JD Edwards • Closed first major • Launched SAP to Europe, support bookings• Introduced third- • Expanded U.S. Federal support Latin America, party support for coverage to • Filed patent • General availability client Asia Pacific of Rimini Street Siebel Canada • Expanded for proprietary and Europe coverage • Adams Street tax, legal and Tax Engine to Asia Pacific Partners private regulatory system • First and only ISO- equity investment certified provider of global third-party enterprise software support services 5 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  6. 6. Over 550 Clients 69 of Fortune 500, 15 of Global 1006 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  7. 7. Current State of the Enterprise Software Market7 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  8. 8. The Big Problem • High Cost, Low Value Maintenance Expenses Limit Innovation IT Operating Budget Allocation* 20% New IT Initiatives 80% Ongoing Operations and Maintenance *Gartner; ―Gartners Top Predictions for IT Organizations and Users, 2012 and Beyond: Control Slips Away‖, November 23, 20118 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  9. 9. Your Enterprise Software World Has Changed9 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  10. 10. Software Vendor Support Not Relevant • Vendor support does not address the majority of issues in today‘s mature, stable software related to customised code 85% of Priority 1 issues are related to custom code10 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  11. 11. ERP Cartel Has Vested Interest in Maintaining Maintenance Status Quo11 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  12. 12. You Now Have a Choice12 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  13. 13. A More Responsible and Relevant Support Model 13 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  14. 14. Support Comparison Highlights Standard Support Programme Feature Rimini Street Vendor Named, Regional Primary Support Engineer for Each Client Named, Global Account Manager for Each Client 24/7 Support with Guaranteed 30 Minutes or Less Response Global Tax, Legal and Regulatory Updates Installation & Upgrade Process Support Configuration Support Operational Support Application & Repository Fixes Documentation Fixes Customisation Fixes Performance Support Interoperability Support 50% Annual Cost Savings Flexible Coverage Periods & Payment Terms14 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  15. 15. Fundamentally Different Support Philosophy Rimini Street is passionate about providing clients the most responsive and effective enterprise software support in the industry delivered through direct, personal relationships with highly experienced expert engineers • Engineers Assigned Directly to Each Client- Every client is assigned a Primary Support Engineer (PSE) with an average of 10 years of real-world experience IT Vendor of the Year • 30-Minute Guaranteed Response – With average engineer to client response time of 3 ½ minutes • Every Issue is Important – Our PSEs immediately begin working on your issue like it‘s a severity 1 without requiring clients to jump through hoops to justify first • Relevant Service – PSE relationship enables additional support features including support for customisations at no additional charge • Engineer Compensation Based on Client Success – Compensation based on client satisfaction and retention15 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  16. 16. Tale of Two Clients16 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  17. 17. Saving £10m in 10 Years With Rimini Street£1.4bn UK MANUFACTURING COMPANY This £1.4bn ManufacturingBackground Company is one of the world‘s Dissatisfied with High Support Costs—‘Paying £700K Annually And Rising‘ pre-eminent branded snacks Faced With Forced Upgrades—‘Mammoth £ 2-3m Projects every 4-5 Years‘ businesses. They produce Burdened with Enhancement Packs—‘Absolutely NO benefit, ZERO‘ some of the best known and Moderate-Highly Customised—Outsourced to TCS, Fixed Price Contract loved sweet and savoury snacks. Their unrivalledThe Rimini Street Value portfolio of brands has been Slashed Maintenance Fees — ‗Saving £ 350K in maintenance fees annually‘ meeting consumer needs for well over 100 years. Avoided Upgrades/Enhancement Packs— ‗Avoided £ 2-3m in Upgrades‘ Custom Support Savings Potential— ‗About half an FTE‘ • Industry: Manufacturing Maintenance Resources —Hard Savings and Opportunity Costs- TCS • Employees: 8,300  ‗Did not backfill 1 FTE since RSI‘ • Revenue: £1.4bn  ‗This person was dedicated to researching issues, searching solutions‘. • SAP Applications: SAP ECC 6.0, Recipe  ‗I was involved in EVERY case as SAP support process did not work‘ Management, SAP HR- Payroll  ‗Hard to quantify my time and frustration, certainly an opportunity cost‘ • Support Partner: Tata Consulting Services • Regions Supported: United Kingdom ―If you pay £ 700K a year, you at least expect the process to work. With Rimini Street, we are now reinvesting the £ 350K annual savings in capital projects. More power to the IT Director as he justifies to the business‖ UK IS Controller 17 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  18. 18. Total Maintenance Savings Detail £ 1.4bn UK MANUFACTURING COMPANY• This company will save more than 1.48 times over their SAP annual support fees each year by switching to Rimini Street Support• The example below highlights how this company will save £ 1,040,000 EACH AND EVERY YEAR for the next 10 years for a Total Maintenance Saving of £ 10,400,000 Paying £ 700,000 in Annual Maintenance Fees £ 350,000 • 50% savings on £ 700,000 • Annualised savings by avoiding or £ 300,000 delaying upgrades, not applying EHPs Upgrades £ 290,000 • 2.9 FTE* Customization Support £ 100,000 • 1 FTE* Maintenance Resources £ 1,040,000 • Total savings annually* £ 100,000 fully loaded FTE cost18 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  19. 19. Saving $33M in 10 Years With Rimini Street$11B UNIFIED ENERGY COMPANY Background  Dissatisfied with High Support Costs—‘Paying $2M Annually‘ $11B unified energy  Faced With Forced Upgrades—‘Which we really didn‘t want to do‘ company engaged in  Burdened with Service Packs—‘Pain associated was too great‘ electric power production  Heavily Customised, High Custom Support Costs—‘We custom and retail electric designed a lot of our functionality‘‘ distribution operations. The Rimini Street Value • Industry: Electric Utilities  Slashed Maintenance Fees — ‗Saving $1M in maintenance fees annually‘ • Revenue: $11B  Avoided Forced Upgrades — ‗Saved $7-8M per system- HCM and FIN‘ • Fortune 500  Custom Support Savings Potential— ‗That is $500K/annually ~5 FTEs‘ • Applications: PeopleSoft FSCM  Maintenance Resources —Hard Savings and Opportunity Costs—SAIC 8.4, HCM 8.3 & 8.8, EPM 8.3 & 8.8  ‗We are saving at least 3.5 FTEs. Just 2 issues with Rimini Street • Database: Oracle saved us 100s -1000 hours in one year‘. • Countries Supported: United  ‗We are saving about 300K implementing tax updates‘ States  ‗30% of the time we fixed the issues ourselves. Now Rimini Street is.‘ • Headquarters: New Orleans, LA ―Rimini Street was one of the most impactful projects for us. An accomplishment on top of the charts. Even a million dollars goes a long way in saving several jobs. One of the best things we have done from a support perspective.‖ Business Unit CIO, Corporate Services 19 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  20. 20. Total Maintenance Savings Detail $11B UNIFIED ENERGY COMPANY• This company will save more than 1.7 times over their Oracle annual support fees each year by switching to Rimini Street Support• The example below highlights how this company will save $3,298,000 EACH AND EVERY YEAR for the next 10 years for a Total Maintenance Savings of $32,980,000 Paying $1,896,000 in Annual Maintenance Fees $948,000 • 50% savings on $1,896,000 • Annualized savings by avoiding or $1,500,000 delaying upgrades Upgrades $500,000 • 3.3 FTEs* Customization Support $350,000 • 2.3 FTEs* Maintenance Resources $3,298,000 • Total savings annually* $150,000 full loaded FTE cost20 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  21. 21. What the Experts Say21 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  22. 22. ―You Do Have a Choice…. Negotiation Leverageto Cut Your Oracle/SAP Support Costs‖ • ―You now you have a choice where you obtain software support. In the past, you could only get support from the software vendor. Without competition, your negotiation options were minimal. Now that 3PSMPs have given you an alternative, you can use the threat of moving to them to help you negotiate a better deal with your software vendor..‖ • You do have a choice. Having a choice means you now have negotiation leverage. Negotiation leverage means you can cut your Oracle or SAP support costs.‖ Forrester, “The Emerging Third-Party Software Support Marketplace: Questions And Answers” October 22, 2012 PICK UP A COPY ON YOUR WAY OUT 22 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  23. 23. Savvy Customers No Longer Pay Oracle or SAPFull Price for Annual Maintenance • ―As customers explore 3PM options, they will increasingly use a competitive proposal in contract negotiations, regardless of whether the customer chooses to remain with the software vendor or switch to a third-party provider.‖ • A majority of respondents found using a competitive quote effective in contract negotiation. Respondents who secured a proposal from a third-party maintenance provider on average received a 13.7 percent discount on annual vendor maintenance fees. Ray Wang, “The Positive Pricing Impact Of Third Party Maintenance For Oracle and SAP Customers,” Constellation Research, March 19, 2013 Download at: PICK UP A COPY ON YOUR WAY OUT www.riministreet.com/leverage 23 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  24. 24. Get Your Proposal Today. Never Pay Full Price Again Submit Online Or Call 1+ 702-939-9671 www.riministreet.com 24 The CIO Event, Whittlebury Hall Property of Rimini Street ©2013 | Proprietary and Confidential
  25. 25. Questions & Answers

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