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Alter Your IT Spend from Ongoing Operations to Innovation in 2014 Sebastian Grady President & COO Rimini Street, Inc. CIO Summit, Chicago

Alter Your IT Spend from Ongoing Operations to Innovation ......formerly was 70/30, is 50/50. And we envision opportunities to go even further reversing the original ratio to 30/70

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Page 1: Alter Your IT Spend from Ongoing Operations to Innovation ......formerly was 70/30, is 50/50. And we envision opportunities to go even further reversing the original ratio to 30/70

Alter Your IT Spend from Ongoing Operations to

Innovation in 2014

Sebastian Grady

President & COO

Rimini Street, Inc.

CIO Summit, Chicago

Page 5: Alter Your IT Spend from Ongoing Operations to Innovation ......formerly was 70/30, is 50/50. And we envision opportunities to go even further reversing the original ratio to 30/70

CIO Summit, Chicago, March 2014 Property of Rimini Street ©2014 | Proprietary and Confidential5

A Big Problem CIOs Face Today

• High Cost, Low Value Maintenance Expenses Limit Innovation

20%New IT Initiatives

80%Ongoing Operations

and Maintenance

IT Operating Budget Allocation*

*Gartner; “Gartner's Top Predictions for IT Organizations and Users, 2012 and Beyond:

Control Slips Away”, November 23, 2011

Page 6: Alter Your IT Spend from Ongoing Operations to Innovation ......formerly was 70/30, is 50/50. And we envision opportunities to go even further reversing the original ratio to 30/70

CIO Summit, Chicago, March 2014 Property of Rimini Street ©2014 | Proprietary and Confidential6

70% Of All IT Projects FailMcKinsey Study and Standish Chaos Report

Page 7: Alter Your IT Spend from Ongoing Operations to Innovation ......formerly was 70/30, is 50/50. And we envision opportunities to go even further reversing the original ratio to 30/70

CIO Summit, Chicago, March 2014 Property of Rimini Street ©2014 | Proprietary and Confidential7

Gartner “Top 10” CIO Business and

Technology Priorities in 2013

(Over 2,000 CIOs Surveyed)

Top 10 CIO Business and Technology Priorities in 2013

SaaS = software as a service; IaaS = infrastructure as a service; PaaS = platform as a service

Source: Gartner Executive Programs (January 2013)

Page 8: Alter Your IT Spend from Ongoing Operations to Innovation ......formerly was 70/30, is 50/50. And we envision opportunities to go even further reversing the original ratio to 30/70

CIO Summit, Chicago, March 2014 Property of Rimini Street ©2014 | Proprietary and Confidential8

Plus ca change, Plus c'est la meme chose

¹Source: “Why isn’t IT spending creating more value?, October, 2010

CEOs struggle to understand why total IT costs keep increasing despite

falling IT unit costs, and why IT continually consumes more of the corporate

budget¹.

The more that things change, The more they stay the same

2014 is the Year of Delivering Operational Results.

Page 9: Alter Your IT Spend from Ongoing Operations to Innovation ......formerly was 70/30, is 50/50. And we envision opportunities to go even further reversing the original ratio to 30/70

CIO Summit, Chicago, March 2014 Property of Rimini Street ©2014 | Proprietary and Confidential9

Independent Support – Disrupting ERP

Maintenance Trends

Page 10: Alter Your IT Spend from Ongoing Operations to Innovation ......formerly was 70/30, is 50/50. And we envision opportunities to go even further reversing the original ratio to 30/70

CIO Summit, Chicago, March 2014 Property of Rimini Street ©2014 | Proprietary and Confidential10

“Despite hundreds of billions of

dollars wasted on failed R&D

projects, most market

influencers would agree that

enterprise software vendors

have produced a dearth of

innovation over the past

decade…Innovation came

from the consumer tech side

and next-generation solution

providers.”

– Ray Wang, SoftwareInsider

Freeing Funds for Growth and Innovation

ERP

System

Mobile

Apps

Open

Source

BIIndustry

Apps

SaaS

Page 11: Alter Your IT Spend from Ongoing Operations to Innovation ......formerly was 70/30, is 50/50. And we envision opportunities to go even further reversing the original ratio to 30/70

CIO Summit, Chicago, March 2014 Property of Rimini Street ©2014 | Proprietary and Confidential11

IT Operating Budget Allocation*

Driving Global Expansion and Innovation -

Embraer

“Our original target was to

achieve 25 percent total

savings in our IT budget.

We surpassed that, saving

30 percent. So now our

percentage ratio of IT

maintenance costs to

innovative projects, which

formerly was 70/30, is

50/50. And we envision

opportunities to go even

further reversing the

original ratio to 30/70 ”

– Alexandre Baule´

CIO, Embraer CIO

50%Ongoing Operations

and Maintenance

50%New IT Initiatives

30%New IT Initiatives

70%Ongoing Operations

and Maintenance

Page 12: Alter Your IT Spend from Ongoing Operations to Innovation ......formerly was 70/30, is 50/50. And we envision opportunities to go even further reversing the original ratio to 30/70

CIO Summit, Chicago, March 2014 Property of Rimini Street ©2014 | Proprietary and Confidential12

Value & Client Success Drive Growth

• Introduced

Independent

Support for

PeopleSoft and

JD Edwards

• Expanded

coverage to

Canada

and Europe

• Over 150 clients

• Launched SAP

support

• Expanded

coverage

to Asia Pacific

• Over 225 clients

• Global tax and

regulatory

capabilities

in nearly 200

countries

• Office expansion

to Latin America

• Adams Street

Partners private

equity investment

• Over 275 clients

• 40%+ revenue

growth

• Launched Oracle’s

E-Business Suite

application support

• Filed patent

for proprietary

tax, legal and

regulatory system

• Over 400 clients

• Oracle new sales

increase 200%

YoY

• Launched CNC

Managed

Services for JDE

• Closed first major

U.S. Federal

client

• Rimini Street

founded

• Introduced

third support

for Siebel

•Over 500 clients

• 40% Revenue

growth YoY

• Oracle new sales

growth over 200%

• SAP new sales

growth 165% YoY

• First and only ISO

27001 certified

independent

support provider

• Launched SAP

BusinessObjects

and Oracle Retail

support

IT Vendor

of the Year

Top 12 Most Disruptive

Enterprise IT Vendors

20 Companies to

Watch in 2012

• Over 300 clients

• Signed first seven

figure deal

• General availability

of Rimini Street

Tax Engine

• First and only ISO-

certified provider of

global third-party

enterprise software

support services

Page 13: Alter Your IT Spend from Ongoing Operations to Innovation ......formerly was 70/30, is 50/50. And we envision opportunities to go even further reversing the original ratio to 30/70

CIO Summit, Chicago, March 2014 Property of Rimini Street ©2014 | Proprietary and Confidential13

Choosing Independent support for its ERP application is enabling Valspar

to generate significant savings from its annual support costs and reallocate

a portion of its total global IT budget to focus on strategic growth initiatives.

“By partnering with Rimini Street, Valspar was able to reallocate a portion

of its total global IT budget to growth initiatives with the stroke of a pen”

– Tom Grooms, vice president and chief information officer of Valspar

Questions?

Page 14: Alter Your IT Spend from Ongoing Operations to Innovation ......formerly was 70/30, is 50/50. And we envision opportunities to go even further reversing the original ratio to 30/70

Questions & Answers

Contact Information:

Sebastian Grady

President & COO

[email protected]

Tel: 510-914-1712

General Contact Info:

Tel: 888-870-9692

[email protected]

www.riministreet.com