Rimini Street has decided to pass on the opportunity buy TomorrowNow, SAP's third-party support business for Oracle. Rimini Street offers similar third-party maintenance services to Oracle customers running PeopleSoft, J.D. Edwards, and Siebel products. Such services reportedly can save customers as much as 50% compared to the vendor's maintenance fees.
Why did Rimini Street pass on the opportunity? Apparently, many TomorrowNow clients are already jumping ship to Rimini Street anyway, as the result of Oracle's lawsuit against SAP and TomorrowNow alleging theft of intellectual property.
"We see no need to pay for what we are already receiving, without any legal, structural or operational baggage related to TomorrowNow," said David Rowe, in an email message to me this morning. "For example, if you look at SAP's most recent Annual Report, the TomorrowNow subsidiary had an operating loss of about US $35 million in 2007. Our resources are better focused on the success of our existing and new clients."
The shift of TomorrowNow clients to Rimini Street contributed to the latter's reported 100% growth in first quarter bookings and revenue, according to Rowe.
A press release on Rimini Street's website has more on this subject.
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