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Current State of Software Support | Is Third-Party Support Right for You? | Next Steps
Today's stable software platforms require less support and a different approach, yet software vendors continue to offer a one-size-fits-all approach, to increase maintenance fees, and to report record profits. Oracle, SAP and other major software vendors view maintenance revenue as an entitlement, enforcing onerous contract terms to preserve revenue without regard for customer cost containment needs.
Support Costs Are Too High
- Rising annual maintenance fees even as software vendors report record support revenues with profit margins of 90 percent1
- Costly forced upgrades
- IT entitlement costs consume nearly 80 percent of total annual IT budgets
- Lifetime vendor support programs cost more but offer less service over time
Current Platforms Are Stable and Meet Business Needs
- Highly functional and extremely stable
- Scalable technology and field-tested
- Customized to meet your unique needs and requirements
- Mature releases meet the needs of many clients for up to a decade without requiring any costly upgrades
Disappointing Customer Service from Vendor
- Up to 70 percent of users are dissatisfied with current service levels
- Slow response times and limited access to technical experts
- Bug fixes delivered "in the next release"
- High-value enhancements packaged as new licensed product
- Generic, one-size-fits-all approach
Vendor Support Model May Put Your Business at Risk
- Your maintenance fees fund the vendor's next-generation systems that you may never use
- Significant uncertainty in viability of next-generation systems
- Decade or more before next-generation systems are tested and viable
- Customers risk vendor and technology stack lock-in by pre-funding next-generation systems
Amidst escalating concerns with the current state of software support, alternative support is rapidly growing by offering a compelling value proposition and filling an important need in the enterprise software ecosystem. Clients of alternative support and maintenance have achieved proven benefits for many years, validating the third-party support industry.
Is Third-Party Support and Maintenance Right for You? >
1 Oracle Corporation, Q3 Fiscal 2011 Quarter Financial Results, Condensed Consolidated Statements of Operations
On-Demand Webcast:
An Executive Primer on Cutting Costs with Third-Party Software Support
View Webcast
Speakers:
- Ray Wang, Altimeter Group
- Seth Ravin, Rimini Street
- Bob Evans, Global CIO