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     Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3375 Registered: 05-2011 Posted From: 65.35.45.47 Rating: N/A |
RMNI provides replacement annual maintenance for Oracle and SAP products. It also offers services for some IBM and Microsoft products and it's a partner with Salesforce in offering AMS services. Annual maintenance is something that software vendors charge a lot of money for every year. Rimini Street comes in and replaces the vendor's maintenance program at half the price while at the same time offering more service. RMNI also does not require any mandatory upgrades or updates for 15 years. This means a customer can keep their existing system and avoid upgrade costs or push them down the road quite a bit. During the pandemic, this has been a very popular option to defer costs that the vendors otherwise would require the customer to undertake. RMNI can push potentially tens of millions of dollars for its larger customers down the road for many years. This includes deferring costs, required upgrades, and migrations that the vendors would otherwise require. The other part of this is that there's just not a lot of value that's related to some of those upgrades. Most of RMNI's clients are large to very large publicly traded entities or governments, so there is significant savings for customers. In terms of catalysts, RMNI argues that its TAM opportunity is huge. Oracle and SAP alone bill out around $30 bln a year in maintenance plus RMNI recently added its AMS service. Between the two of them, that's a $170 bln TAM opportunity. Another catalyst is that RMNI sees a significant amount of upsell opportunity within the existing client base plus there is good opportunity to grow internationally. On a final note, if you want to take a deep dive on Rimini Street, the company is hosting an Investor Day on Feb 1 via live webcast |