Street Wise Newsletter

August 2018

SAP customers have spent millions of dollars and countless hours implementing, customizing and tuning their SAP Business Suite software — software that is mature, robust and strategic to the business. With an impending desupport date of 2025, SAP customers are forced to assess if they should reimplement on S/4HANA sooner rather than later.

So how do customers evaluate if moving to SAP’s S/4HANA business suite is the right move for them? SAP’s SAPPHIRE NOW conference just concluded and their message was clear: the future is with SAP S/4HANA and SAP Cloud, with little investment in existing applications, but is there a reasonable assurance of value, or would it just mean unnecessary cost, risk and disruption for licensees?

In this issue of Street Wise, Rimini Street clients are answering these questions in creative ways. The theme we are hearing over and over again is, “We just don’t see a solid business justification for S/4HANA at this time; let’s take some of our SAP maintenance budget and reallocate it to innovation that will add real value to the business, now.”

S/4HANA may be a fit for some SAP customers. Rimini Street supports clients on Business Suite and S/4HANA today, and we will support customers no matter their path forward. But for most, it’s still way too early and far too risky to deploy S/4HANA immediately. Read through our article highlighting four clients that evaluated S/4HANA, and the client stories below to see how real-world SAP licensees are liberating funding and resources for innovation today.


– David Rowe, SVP & CMO

 

SAP Licensees Take a “Wait and See” Approach to S/4HANA

A growing number of SAP Business Suite licensees find themselves at a crossroads.

Most SAP licensees are satisfied with their current SAP Business Suite applications that are stable, mature and core to the business. They’re unwilling to undertake the cost and risk of a disruptive reimplementation to S/4HANA. Without a clear business case and ROI around the yet-unproven S/4HANA, most companies are taking a wait-and-see approach.

In this article, we profile how SAP customers PBF Energy, Pall Corp., Atento and Superior Uniform continue to run their stable and mature ECC platform while evaluating S/4HANA as the solution continues to mature, and the results they’re realizing by partnering with Rimini Street for third-party support.

SAP Licensee Road Map Helps Companies Considering S/4HANA

Companies considering a re-implementation to S/4HANA can now take advantage of Rimini Street's SAP Licensee Release Road Map to help evaluate the best available options

The tool includes scenario modeling and costs based on Rimini Street's ROI Calculator for SAP S/4HANA business suite, and was developed using publicly available information from SAP SE and others, combined with input and guidance from leading experts, and feedback from licensees who conducted their own S/4HANA assessments. The calculator can be customized to each organization's requirements.

To learn more, please send me an email at drowe@riministreet.com, and I will be happy to schedule a quick call with you.

Limited Value from Vendor Annual Support Drives Switch

Japan's Solar Frontier adopted Rimini Street for SAP ERP support and reduced IT spend, while driving business efficiency and their ability to invest in strategic areas of the business, like data analysis. "At first, we only looked at the cost merits of Rimini Street, but we soon came to understand that their support quality is much better compared to SAP," said the department manager of IT Planning & Promotion.

Energy Company Buys More Time to Evaluate Next Move

Cape's CIO tells CIO UK that, besides significantly prolonging the company's ERP life cycle and avoiding expensive upgrades, switching to Rimini Street also meant not having to move to SAP S/4HANA in the near term. "This [move to Rimini] allowed us time to carefully select which product and platform is suitable for the long-term requirements of Cape."

Korea-Based Manufacturer Finds a True Partner

SIFLEX was a satisfied SAP ECC user, yet decided it was time to take action against high annual maintenance and support costs, and slow or inadequate vendor response. Read on to learn more about the results of their switch to Rimini Street.

Keys to Improving SAP ROI

A recent study suggested most SAP projects have a 50% chance of failure. But the risk of having incorrect SAP licensing, or not justifying the high and rising costs of upgrades and annual maintenance fees could be far higher, according to an article by ComputerWeekly.

Forbes Interview with Rimini Street CEO

A recent interview with Seth Ravin highlighted the state of the third-party support market and how Rimini Street's role has evolved since going public last year. Check out the article and get insight into Seth's vision to meet the transforming needs of CIOs globally, starting with our recent announcement to support SaaS apps beginning with Salesforce.

Check Out Our New Blog

Rimini Street recently launched its blog, Word on the Street. Visit often as we address many of the issues, challenges and topics that are top of mind for CIOs today, including how to drive innovation agility, tips from an expert on SAP indirect access issues and what other IT leaders are doing to address GDPR compliance requirements.

Fiscal Q1 Earnings

Rimini Street's first full quarter of reporting as a public company resulted in a 22% increase in net revenue to $59.8M, gross profit percentage of 60.6% for the quarter and active clients numbering 1,581 as of March 31st. Other highlights included:

  • Appointed Hyungwook "Kevin" Kim as South Korea Country Manager
  • Saved clients over $3 billion in total maintenance costs to date since inception
  • Closed more than 7,000 support cases across 49 countries, with an average client sat rating of 4.8 out of 5 (where 5.0 is "excellent")

In case you missed it, other notable news from 2018 included:

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