Eye on Oracle

Jan 11 2012   4:00PM GMT

Third-party Oracle support shows increased interest

Mark Fontecchio Mark Fontecchio Profile: Mark Fontecchio

Rimini Street Inc., a third-party Oracle support provider, this morning posted revenue numbers for the fourth quarter last year and for all of 2011. Both were up about 30% compared to the prior year’s period.

The numbers show that many Oracle (and SAP) end users are trying to get more life out of their software than Oracle and SAP often want. They also show that there are plenty of IT pros out there who have come around to considering and using third-party support, something that really wasn’t considered just a short time ago. Rimini supports Oracle Database and a host of Oracle applications such as E-Business Suite, PeopleSoft, J.D. Edwards and Siebel.

In general, more Oracle end users are considering third-party support providers. In a 2010 survey, 32% of SearchOracle.com readers said they always consider third-party support. That number jumped to 41% in 2011.

According to the numbers, Rimini Street had about $33 million in revenues last year. Now let’s be honest: That is an absolute drop in the bucket compared to Oracle’s overall revenues, and even compared to Oracle’s support revenues. Just to give you an idea, Oracle’s licensing and support revenues last year was close to $16 billion. That’s with a B, compared to $33 million with an M. And if you talk to Rimini executives, they’ll say as much. For them, it just means they still have plenty of room to continue growing.

And if you think Oracle isn’t noticing companies like Rimini, you would be wrong. Oracle is spending a lot of money to sue Rimini Street, claiming Rimini has stolen Oracle software and support materials through Rimini’s clients. Rimini is denying the charges, of course. The lawsuit was initially filed in 2010. There are more hearings set on the case this year.

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