VIEWPOINT
THE RISE OF THIRD-PARTY SOFTWARE SUPPORT TAHER HAJ-YOUSEF, REGIONAL MANAGER FOR RIMINI STREET EXPLAINS WHY THIRD-PARTY SOFTWARE SUPPORT IS GAINING TRACTION AMONG LARGE ENTERPRISE CUSTOMERS
T
he world of enterprise software support is caught in the vortex of disruptive new developments. On one hand, enterprises are under pressure to hold onto costly and dated software support agreements with vendors. On the other, they are challenged to modernise, improve ROI, and allot budgets for more important and strategic goals, such as innovation and growth.
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CXO INSIGHT ME
APRIL 2021
For many years, CIOs have been grappling with the rising cost of maintaining their enterprise software. These systems have matured over time and organisations have built up functionality customised to their business processes. Traditionally, the existing Enterprise Resource Planning (ERP) systems have been maintained through support from vendors with a mandate to maintain updates and upgrades as per the timelines dictated by the vendor. However, the costs
associated with such a working model have skyrocketed. In fact, according to a leading vendor’s own survey, 73% of its customers said they upgraded simply to stay supported, likely because they see no ROI. Gartner’s “IT Key Metrics Data 2021: Executive Summary” revealed that the number one challenge for organisations to drive growth and innovation was the lack of IT budget to invest in new technologies that are crucial to improve their competitive
