Enterprise software costs are rising, yet CIOs are still expected to deliver high performance, uptime and agility with no additional resources. Adding to mounting economic pressures and digital transformation demands, software vendors are aggressively pushing for costly upgrades and cloud migrations. These replatforming projects not only disrupt operations but also drain budgets and monopolize resources, causing direct conflict with board expectations to lower overhead expenses and redirect funds toward innovation and AI-driven transformation.
Regardless of your industry or focus — be it managing public sector frameworks or overseeing enterprise infrastructure — implementing ERP cost optimization strategies can help reduce overhead while maintaining or even improving performance of your business-critical systems. Proven by thousands of organizations across the world, optimizing ERP spend can deliver powerful outcomes for your team and accelerate innovation where most needed — without disruption.
The true cost of the traditional enterprise software model
On the surface, ERP costs may seem predictable and straightforward, but the reality is far more complex. Beyond licenses and infrastructure, hidden expenses — such as vendor‑imposed upgrades, unplanned downtime and operational inefficiencies — can quietly drain budgets and consume resources. These concealed costs often outweigh the obvious ones, eroding ROI and leaving little room to fund the innovation and AI‑driven transformation that boards are demanding.
Examples include:
- Support and licensing fees – Support fees for existing systems are often rigid and expensive, with limited flexibility and coverage, while subscription-based licensing via the SaaS model results in loss of cost control and increased prices year after year.
- Infrastructure costs – On-premises environments demand ongoing investment in hardware, hosting and maintenance, whereas cloud comes with steep, incremental costs for storage, performance and replication that can catch leaders by surprise and drain IT budgets.
- Hidden costs – Downtime and inefficiencies due to lackluster support are ERP hidden costs that can significantly decrease ROI over time, as is the inevitable vendor lock-in that puts organizations into a never-ending cycle of expensive, disruptive upgrades.
Debunking ERP cost myths
Many CIOs hesitate to challenge the status quo because of long-standing assumptions about ERP. These myths often keep organizations locked into costly models and unnecessary upgrades. Let’s separate fact from fiction.
- Myth 1: Cutting spend means cutting corners.
Approached strategically, ERP cost optimization can enhance service levels, agility and user satisfaction. By identifying areas where alternative solutions could be applied, you can ensure your bases are covered and generate better results while still reducing overhead.
Real-world example: Cadbury, the iconic confectioner, is a prime example of cutting spend without cutting corners. The company faced rising operational costs and inefficiencies across its supply chain. Instead of taking potentially problematic shortcuts, Cadbury implemented SAP ERP to streamline multi-node resource management and revamp warehouse and distribution processes. The result was lower operating costs, improved production efficiency and better service levels — all while maintaining quality and agility to meet growing demand.
- Myth 2: You must upgrade to stay supported.
Third-party support models can help you stay secure and compliant without forced upgrades — saving money and avoiding disruption. Further, you can retain your existing enterprise software for longer, increasing your ROI.
Real-world example: The University of Melbourne broke free from Oracle’s forced upgrade cycle by moving to Rimini Street for support. This allowed the institution to stay fully supported and compliant without upgrading, while maintaining security through Rimini Protect™ and compatibility via Rimini Connect™. The shift eliminated costly, low-value upgrades and freed budget for innovation, enabling the university to improve digital services for 55,000 students and 10,000 staff.
- Myth 3: Only the vendor can ensure performance and security.
Independent providers often deliver faster response times, more personalized service and more robust security than traditional software vendors. Choosing the right third-party provider can help decrease costs without introducing risk.
Real-world example: Ricoh, a global leader in imaging and digital solutions, needed to maintain security and performance while planning a move away from Oracle. Instead of costly vendor upgrades, Ricoh chose Rimini Street’s Rimini Support™ and Rimini Protect™, gaining real-time, zero-day vulnerability protection, advanced application and database security and personalized support from senior engineers. This approach saved Ricoh several billion yen in upgrade costs and ensured faster response times and stronger security than the vendor model, allowing the company to focus resources on its next-generation ERP strategy without disruption.
5 strategic levers to increase ERP cost savings
Cutting enterprise software costs without sacrificing performance isn’t about drastic measures — it’s about smart, strategic moves. Here are five proven levers that leading CIOs are using to increase ERP cost savings and unlock innovation — without sacrificing performance.
- Third-party support – Choose a globally proven partner such as Rimini Street to help reduce total maintenance costs by up to 90% while avoiding unnecessary upgrades and vendor lock-in.
- Cloud-smart infrastructure – Adopt a hybrid or modular ERP model for incremental modernization and cost optimization.
- Targeted performance tuning – Use AI-driven analytics to enhance system responsiveness without a major investment.
- License rationalization – Identify shelfware and renegotiate contracts to unlock immediate savings.
- Operational optimization (beyond “process”) – Systematically optimize business processes, software configuration, the broader technology stack and day‑to‑day operations. Automate repetitive tasks, retire or consolidate low‑value customizations and integrations, standardize where possible and align operating procedures to data‑driven best practices — reducing cost while improving speed, resilience and governance.
Putting ERP cost optimization into meaningful action
The winning pattern is clear: CIOs are extending the life of stable core platforms, avoiding unnecessary upgrades and reinvesting ERP cost savings into targeted innovation — especially data, analytics and AI — that moves the business needle.
Here’s what is powering the shift:
- Agentic AI – More than just dashboards, these autonomous and semi‑autonomous agents surface insights, orchestrate workflows and suggest (or execute) the next best actions. Leveraging agentic AI enables predictive maintenance, smarter forecasting and faster close cycles — without enterprise software replatforming.
- Modular/composable ERP architectures – With this plug‑and‑play model, you can add, swap or decouple capabilities via APIs and event streams. By composing best‑fit services and technologies around a stable core, you can reduce dependency on monolithic upgrades and scale innovation around the edges.
- ESG‑integrated platforms – You can embed sustainability and compliance into everyday operations with auditable data, automated disclosures and real‑time metrics — such as energy, scope data and supplier risk. This reduces reporting effort, mitigates risk and unlocks green‑ops efficiencies.
Key takeaways
By implementing smart, practical ERP cost optimization strategies, you can increase ERP cost savings without affecting performance or incurring risk. Rimini Street offers targeted support, solutions and consulting designed to help CIOs uncover hidden inefficiencies, reduce enterprise software spend and accelerate innovation. Whether you’re looking to assess your ERP software implementation, license usage, technical health, security, business processes or operations — or explore modular ERP strategies and AI — connect with our deep bench of knowledgeable ERP experts delivering real successes for clients. Learn more and schedule a call with the Rimini Consult™ team here.
