Tuesday, April 15, 2008
Over at Computer Economics, we've finished the analysis of our survey results on ERP support staffing ratios. Thanks to Spectator readers who helped with the survey.
From the report abstract:ERP systems can be major investments requiring a substantial effort in implementation. Yet many organizations do not realize that the total cost of ownership of an ERP system is composed largely of ongoing support. In this report, we analyze ERP support staffing levels by size of the installation, the scope of functionality implemented, class of software vendor (Oracle and SAP vs. all others), the extent of system modification, the number of ERP versions and instances in production, and the age of the system. In addition, we analyze the allocation of ERP support staff to specific job functions. Based on these statistics, we conclude with recommendations for optimizing ERP staffing levels to better manage costs and improve user satisfaction.The full report, ERP Support Staffing Ratios, is available for purchase. There is also a free executive summary if you follow the link.
Wednesday, April 09, 2008
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.
Court orders mediation in Oracle vs. SAP/TomorrowNow case
Oracle wants to broaden lawsuit against SAP and TomorrowNow
SAP lists TomorrowNow as a discontinued operation
TomorrowNow and the future of third-party support providers
SAP considering sale of TomorrowNow