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Understand Your Support Options and What They

Mean To Your Organization’s Internal Roadmap

Frank RenekeGroup Vice President, Corporate StrategyRimini Street, Inc.freneke@riministreet.com

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Agenda

The Software Maintenance Problem

Real-World Customer Examples

Q&A

Future Proof your Application Strategy

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The Software Maintenance Problem

High Cost, Low Value Maintenance Expenses Limit Innovation

20%New IT Initiatives

80%Ongoing Operations

and Maintenance

*Gartner; “Gartner's Top Predictions for IT Organizations and Users, 2012 and Beyond: Control Slips Away”, November 23, 2011

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Your Enterprise Software World Has Changed

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Vendor support does not address the majority of issues in today’s mature, stable software related to customized code

85%of Priority 1 issues are

related to custom code

Software Vendor Support Not Relevant

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A New Support Model is Needed

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What are Your Total Maintenance Savings?

Future Proof your Application Strategy

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CIO’s Faced With a DilemmaChoosing between Apps Unlimited and Fusion

Vs. Fusion• Using latest technologies and

processes• Needs time to mature• Oracle may eventually “force”

customers to Fusion**• Coexistence best option

Today

Applications Unlimited• Mature and highly functional

applications• High maintenance costs• Expensive to upgrade• Diminishing enhancements• Expected finite timeline*• 73% upgrading just to stay

supported*

* “ERP Upgrades: What’s Your Philosophy?”, OAUG Research Line, February 2012

Fusion Applications

Oracle Fusion Financials Oracle Fusion Procurement

Oracle Fusion Human Capital ManagementOracle Fusion Governance, Risk and Compliance

Oracle Fusion Customer Relationship ManagementOracle Fusion Project Portfolio Management

Oracle Fusion Supply Chain ** “Oracle’s Dilemma: Applications Unlimited Versus Oracle Fusion Applications”, Forrester Research, Inc. February 11, 2013 and OAUG member survey

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Important Report to Help Access your Oracle Strategy

• Oracle’s application revenues have hit pockets of weakness in the past two years*

• Oracle’s clients show limited interest in or adoption of Oracle Fusion*

• To restore application revenue growth, Oracle will have to kick Start Fusion demand*

• The current middle path of talking about Fusion while providing no disincentives against clients staying on existing apps will lead to mediocre growth. Our bet is that Oracle will push Oracle Fusion Applications. *

• Oracle customers must consider all available options **

* “Oracle’s Dilemma: Applications Unlimited Versus Oracle Fusion Applications”, Forrester Research, Inc. February 11 th, 2013** “Oracle Customers must ‘Consider All Available Options’, The Wall Street Journal, June 5th, 2013

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Strategic Choices are NeededShort, Medium and Long Term

Short Term• Ensure systems solidly

support business needs• Adopt innovation to drive

competitive advantage

Long Term• Position organization to

take advantage of best next-generation software platform

• Adopt solutions that are proven

1-3 Years 4 - 6 Years 7 – 15 Years

Medium Term• Maximize return on

investment• Be prepared to adapt to

new trends with solutions from current and new vendors

• Begin positioning for next-gen platform

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Future Proof your Application Strategy

• Each upgrade will further locks you into Oracle’ application and technology stack offering

• Eventual move to next-generation system will be full reimplementation cost; keep options open to retain flexibility and reduce risk.

• Money spent on Coexistence lost?

• Vendor upgrade path requires expensive upgrades and maintenance fees for 5-10 years until future systems are built, widely deployed and tested

Vendor Upgrade

Path

Next-Generations

System Options

$ $ $Upgrade Re-implementUpgrade

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Future Proof your Application Strategy

• Each upgrade will further locks you into Oracle’ application and technology stack offering

• Eventual move to next-generation system will be full reimplementation cost; keep options open to retain flexibility and reduce risk.

• Money spent on Coexistence lost?

• Vendor upgrade path requires expensive upgrades and maintenance fees for 5-10 years until future systems are built, widely deployed and tested

Next-Generations

System Options

Select Best Fit Next-Generation System

Third-Party

Support$

Adopt Innovative Solutions as Needed

Real-World Client ExamplesTotal Maintenance Savings- Client Case Studies

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$900M DISTRIBUTION COMPANY

• This company will save 1.5 times their Oracle annual support fees each year by switching to Rimini Street Support

• The example below highlights how this company will save $508,004 EACH AND EVERY YEAR for the next 10 years for a Total Maintenance Savings of $5,080,040

* $150,000 full loaded FTE cost

• Annualized savings by avoiding or delaying upgrades, not applying EHPs

• 0.5 FTE*

• 0.33 FTEs*

• 50% savings on $446,008

Paying $446,008 in Annual Maintenance Fees

$223,004

$160,000

$75,000

$50,000

$508,004 • Total savings annually

Upgrades

Customization Support

Maintenance Resources

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$11B UNIFIED ENERGY COMPANY

• This company will save more than 1.7 times over their Oracle annual support fees each year by switching to Rimini Street Support

• The example below highlights how this company will save $3,298,000 EACH AND EVERY YEAR for the next 10 years for a Total Maintenance Savings of $32,980,000

* $150,000 full loaded FTE cost

• Annualized savings by avoiding or delaying upgrades

• 2.3 FTEs*

• 3.3 FTEs*

• 50% savings on $1,896,000

Paying $1,896,000 in Annual Maintenance Fees

$948,000

$1,500,000

$350,000

$500,000

$3,298,000 • Total savings annually

Upgrades

Customization Support

Maintenance Resources

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$12B FINANCIAL SERVICES COMPANY

• This company will save 2.5 times their Oracle annual support fees each year by switching to Rimini Street Support

• The example below highlights how this company will save $862,262 EACH AND EVERY YEAR for the next 10 years for a Total Maintenance Savings of $8,622,620

* $150,000 full loaded FTE cost

• Annualized savings by avoiding or delaying upgrades, not applying EHPs

• 0.5 FTE*

• 2.0 FTEs*

• 50% savings on $174,524

Paying $174,524 in Annual Maintenance Fees

$87,262

$400,000

$75,000

$300,000

$862,262 • Total savings annually

Upgrades

Customization Support

Maintenance Resources

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Questions and Answers

Contact Information:Frank Renekefreneke@riministreet.comTel: 925-357-7028

www.riministreet.com Toll Free: 888-870-9692

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