US customers want to spend less with Oracle, says Rimini Street

The majority of Oracle’s US customers responding to a Rimini Street survey say they are currently or actively planning to reduce their spend with the enterprise software vendor.

Byron Connolly May 03rd 2019 A-A+
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The majority of Oracle’s US customers responding to a Rimini Street survey say they are currently or actively planning to reduce their spend with the enterprise software vendor.

Rimini Street, which provides software maintenance for Oracle and SAP customers, spoke to more than 200 senior tech execs in the US about their relationships with Oracle.

The majority said they were and would be spending less with the top reasons including software and features (61 per cent), the high cost of annual maintenance and support (58 per cent), and Oracle’s aggressive sales tactics and audits (21 per cent).

The majority also said they were continuing to run their existing licensed Oracle applications with half indicating they plan to lift and shift to a hosted cloud environment over time.

Meanwhile, of the respondents who are planning to move their Oracle apps to cloud IaaS, 70 per cent are not choosing the vendor’s cloud offerings, opting instead for solutions offered by Amazon Web Services, Microsoft Azure and Google Cloud.

At the same time, 80 per cent of respondents are not planning to move or are unsure about migration to Oracle SaaS offerings. The top reasons cited for not migrating to the vendor’s SaaS offerings include ‘current applications meet business needs; no justifiable business case (53 per cent); too expensive (30 per cent); and too disruptive to migrate (28 per cent). In addition, 63 per cent of respondents were concerned about being locked-in to Oracle’s cloud should they choose to migrate.

In Australia, Rimini Street has been making headway in the federal government sector, announcing that more than 10 Australian federal and state government agencies had shifted their enterprise software support from Oracle and SAP to Rimini Street.

Some of the agencies included 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 and Oracle have been locked in a copyright legal battle over the past few years. Oracle originally claimed that the maintenance provider had infringement on its copyright in the way it downloaded and stored Oracle software. Rimini Street has since changed how it does it.

In 2016, Oracle was awarded US$50 million in damages in the lawsuit against Rimini Street, which was less than the US$245.9 million Oracle was seeking. But in March, Oracle was ordered by the US Supreme Court to pay back $12.8 million to Rimini Street, a result of the court’s interpretation of the US Copyright Act.