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Rise of Oracle and SAP third-party support

Balancing tight budgets at the same time as adopting innovative solutions that enable businesses to thrive is a central aim of procurement professionals

One way to innovate is to migrate on-premise enterprise software to the cloud. However, software-as-a-service solutions to replace highly functional, heavily customised on-premise applications are not ready. Third-party software support allows companies to retain their on-premise enterprise software, improve service quality and save money that can accelerate innovation.

Although a number of leading software vendors are ending the life of primary software versions, they will not have a fully functioning cloud-based replacement for seven to ten years. The third-party Oracle and SAP support market provides a bridge for companies that want to keep what they have until cloud offerings mature.

“Large enterprises, even those which have historically been slow to consider third-party Oracle and SAP support, are now engaging with us,” says Kurt Moydell, senior vice president of global sales and marketing at Spinnaker Support, a leading global provider of Oracle and SAP third-party support and managed services.

We have the expertise and experience in navigating challenges, and in answering the hard questions

According to research firm Gartner, the third-party Oracle and SAP market is on track to reach $8 billion by the end of 2022, an annual growth rate of 26 per cent. As the third-party support model has matured and it has become clear high-quality services can be delivered at an often significantly reduced price, a diverse range of businesses are now considering the advantages of this model.

Mr Moydell believes the central benefits of the third-party support model are clear. “At the simplest level, it’s superior support for a fraction of the cost. The financial benefit is obvious and it’s meaningful,” he says. Companies can take advantage of the third-party model by redirecting the cost-savings into innovation initiatives to improve their business position.

Cancer Research UK, a Spinnaker Support customer since 2017, says: “We continuously seek innovative ways to keep our costs down to free up more funding for research projects that will discover ways to prevent, diagnose and treat cancer. The transition to Spinnaker Support results in high-quality service at a substantially lower price point.”

Companies that switch to Spinnaker Support report an average saving of 62 per cent over Oracle and SAP maintenance fees. Beyond these top-line savings, firms can also gain extra cost-reductions from avoiding unneeded version upgrades. But an often overlooked benefit from third-party services is the ability to redirect employees’ time to future projects, rather than having to self-maintain the systems in place.

Spinnaker Support works closely with procurement professionals who are interested in the third-party support model and advises them to engage all stakeholders early in the due diligence and evaluation process.

“We have the expertise and experience in navigating challenges, and in answering the hard questions. From my perspective, it’s never about convincing, but rather educating and proving the third-party support model delivers on its promise,” says Mr Moydell.

Over the past decade, Spinnaker Support has helped thousands of companies evaluate third-party support by undertaking a comprehensive assessment of what exactly the firm’s support needs are and then makes sure there’s an alignment with the services provided by Spinnaker Support. More than 1,100 customers have signed up with Spinnaker Support since its inception.

“We assess historical support cases, validating licences and actual utilisation of the software, both now and in the future. We use this and other parameters as a baseline to estimate what the ongoing maintenance needs will be and determine the most appropriate fee structure,” says Mr Moydell.

Spinnaker Support’s consultative approach, from the first conversation to the last, is what sets it apart. From the founding of the company in 2008, the goal has been to provide support that is personalised, responsive, comprehensive and flexible.

For more information please visit spinnakersupport.com or call 020 8242 1785

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