Options grow for third-party SAP application support

10.05.2012

Software vendors derive lucrative profits from annual software maintenance contracts and are no doubt loath to see the third-party support market grow. Its rise has possibly been tempered by the high-profile lawsuits Oracle filed against a former SAP subsidiary, TomorrowNow, and Rimini Street.

TomorrowNow provided lower-cost support for Oracle software. SAP ended up admitting liability for illegal downloads made by TomorrowNow workers from Oracle's support site, which resulted in a US$1.3 billion jury award in November 2010. That award was struck by a judge, and now Oracle is seeking a new trial on damages.

Rimini Street's CEO, Seth Ravin, co-founded TomorrowNow. While Oracle has alleged that Rimini Street incorporates the same "corrupt business model" as TomorrowNow, Rimini Street maintains that it acts within the boundaries of their customers' license agreement with Oracle. That suit has yet to go to trial.

A Spinnaker executive told IDG News Service in an interview earlier this year that the company has "stark" differences in the way it conducts business compared to Rimini Street and therefore is not swayed by the prospect of litigation.

Meanwhile, privately held Rimini Street has repeatedly reported substantial growth, with a current customer count of 475, even as the Oracle suit progresses.