When Vendors Attack (Each Other)
In the new edition of Why New Systems Fail , I expanded many sections, including the one about support for enterprise systems. To make a long story short, historically clients have had relatively few options:
- Pay the software vendor 18-22 percent of the original license fee per year.
- Not pay for support (aka, âgoing nakedâ).
- Internally support its applications with a cadre of internal resources. (This is rare but I have seen it.)
The Rise of Independent Support
In recent years, however, a new support option has become particularly popular with many clients of enterprise software vendors: independent support. Companies such as Rimini Street offer organizations running Oracle, PeopleSoft, JD Edwards, Siebel, SAP, and other applications support for about half of what native vendors charge.
You may be asking, âWhy would a company offer support on another companyâs product?â
As with the answer to most questions in life, the answer is âmoney.â
This begs the question, âHow profitable is support to enterprise software vendors?â While estimates vary…
Phil Simon is a recognized technology authority. He is the award-winning author of eight management books, most recentlyAnalytics: The Agile Way. He <consults organizations on matters related to communications, strategy, data, and technology. His contributions have been featured on The Harvard Business Review, CNN, The New York Times, Fox News, and many other sites. In the fall of 2016, he joined the faculty at Arizona State University’s W. P. Carey School of Business.
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