SAP and Oracle promptly lose a share in the market of support of ERP

It is more and more enterprises using ERP (enterprise resource planning) of a system, consider the possibility of transition to service from the third companies providers of IT services. It is said in the research Constellation Research.

57% from 244 polled respondents in the second quarter noted the current year interest in services of tretyestoronny service companies in comparison with 42% last year and less than 20% in 2009, the CEO of research company Ray Wang said.

More than 90% of the companies called the main reason of the interest in support of IT systems "on the party" desire to reduce costs. 80% were recognized that them the dissatisfaction with quality of service from vendors moves.

Large solution providers, such as SAP and Oracle, receive the lion share of revenue from expels of the existing clients for technical support and updating of software products. The companies like Rimini Street acting in this case as the third party in relation to decision makers to their clients cannot provide identical service, but promise more effective help and cost reduction.

By and large, the ERP systems implemented by the companies of the Global 2000 level at the moment contain 11-12 years of operation and need permanent technical maintenance, tying customers to the vendors. At the same time use of support of the tretyestoronny companies allows the companies to save IT budgets and to use this difference for product introduction of SaaS (software as a service), adding new functionality to already used solutions.

Naturally, the companies like Rimini Street cannot expect all market of support as the large production modules and modules which are responsible for supply chains will always be the fiefdom of mega-vendors, the president of Rimini Sebastian Grady says.

The enterprises which select support on the party should be convinced that they downloaded all required modules and necessary documentation to them which after migration can become unavailable, reminds Vang. To the companies which to be afraid to terminate communication with vendor for concerns that the way back will not be, the expert advises not to take the fears into consideration. "I participated in negotiations concerning 1100 contracts, and I do not remember a case that the vendor told: "your business is not interesting to me any more", - he said.

However, loss of a market share for benefit of the companies like Rimini Street does not suit such players as Oracle. In 2007 Oracle submitted a claim against SAP, having accused its division TomorrowNow which was engaged in support of Oracle applications, of downloading big the number of the closed documents. Last year the court admitted guilt of SAP and obliged the company to pay compensation in the amount of $1.3 billion. In 2009 Oracle had also legal proceedings with Rimini Street headed by the co-founder of TomorrowNow Seth Ravin.

Market observers believe that to Oracle and its competitors in the support market: Rimini Street, Cedar Crestone, to netCustomer and others – it will be necessary to set parity due to development of accurate and transparent rules of the game.