Enterprise software switch is saving dollars

More than 10 Australian federal and state government agencies have now switched their enterprise software support for Oracle and SAP products to third-party support provider Rimini Street.

Agencies including the NSW Department of Family and Community Services and the Victorian Department of Economic Development, Jobs, Transport and Resources have realised savings of up to 90% of total maintenance costs by switching to third-party support, the company said.

According to Rimini Street General Manager for Asia-Pacific Andrew Powell, the company’s progress in the Australian market signifies the introduction of competition of the supply of software maintenance and support.

Every year, the federal, state and local levels of Australian Government spend hundreds of millions of dollars on their SAP and Oracle maintenance. The vendors’ typical profit margin for annual software maintenance is around 90% and very little of the underlying service is actually provided from within Australia,” he said.

“Thankfully these government organisations now have a proven alternative for their enterprise software maintenance. The introduction of stiff competition in this market will drive huge savings across the Australian government, and gives these organisations back the control of their IT roadmaps to ensure they are now business-driven focused, versus dictated to them by the vendor.”

According to a global survey commissioned by Rimini Street and conducted by Vanson Bourne, a significant majority of public sector organisations across the globe believe they are spending too little on innovation and too much on “keeping the lights on”.

“As they are funded by the public purse, Australian government agencies must demonstrate the money they are spending not only adheres to strict budget guidelines, but also generates real business value,” Powell said.

“This accountability model places pressure on those organisations to not only stretch budgets, but to establish sound strategies for innovation despite their financial pressures.”

Image credit: ©iStockphoto.com/alengo

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