Tuesday, 29 January 2019 11:33

Rimini Street says govt agencies achieve benefits, savings with mass switch from Oracle, SAP Featured

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Rimini Street says govt agencies achieve benefits, savings with mass switch from Oracle, SAP Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Global enterprise software provider Rimini Street says more than 10 Australian Federal and State Government agencies have switched their enterprise software support from Oracle and SAP to Rimini Street.

Rimini Street says among them are the NSW Department of Family and Community Services; Victorian Government Department of Economic Development, Jobs, Transport and Resources; Australian Hearing and Open Universities Australia.

Rimini Street claims these agencies now achieve significant returns on their enterprise system investments, and have realised savings of up to 90% on total maintenance costs compared to what they were paying the software vendors.

“By changing to third-party support, these departments have unlocked substantial funds and have freed up internal resources that can be redirected to innovation initiatives and high-value projects within their organisations,” Rimini Street says.

“Every year, the federal, state and local levels of Australian Government spend hundreds of millions of dollars on their SAP and Oracle maintenance. The vendors’ typical profit margin for annual software maintenance is around 90% and very little of the underlying service is actually provided from within Australia,” said Andrew Powell, general manager, Asia-Pacific, Rimini Street.

“Thankfully these government organisations now have a proven alternative for their enterprise software maintenance. The introduction of stiff competition in this market will drive huge savings across the Australian government, and gives these organisations back the control of their IT roadmaps to ensure they are now business-driven focused, versus dictated to them by the vendor. That is a good thing for all Australians, in fact, it’s a game changer.”

Rimini Street cites a recent global survey, “The State of Innovation,” conducted by Vanson Bourne and sponsored by Rimini Street, that 89% of organisations across the globe agree they should be spending more on innovation, while 77% believe they are spending too much just “keeping the lights on.”

According to the survey, in the public sector specifically, 70% of respondents cited being “locked into vendor contracts that restrict innovation” as an additional top blocker to their innovation efforts. For those public sector organisations who were able to find funds for innovation, 32% already experienced improved productivity, with 35% stating they have experienced an increase in customer satisfaction.

Additionally, Rimini Street says those public sector organisations that have been able to invest in innovation initiatives cited a nearly 15% decrease in the organisations operating costs overall, indicating a measurable return on their investment.

“As they are funded by the public purse, Australian government agencies must demonstrate the money they are spending not only adheres to strict budget guidelines, but also generates real business value,” Powell said.

“This accountability model places pressure on those organisations to not only stretch budgets, but to establish sound strategies for innovation despite their financial pressures.”

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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