Third-Party JDE Maintenance Business Is Thriving

Published: August 24, 2009

by Alex Woodie

Providers of third-party maintenance services for JD Edwards ERP systems announced significant investments in their businesses recently, pointing to strong growth in the field. Rimini Street announced plans to open new offices in six countries by the end of the year. Meanwhile, a new player in the third-party maintenance racket, Spinnaker has taken a significant share of the market since launching its JD Edwards maintenance business 12 months ago.

Spinnaker quietly entered the third-party maintenance business for JD Edwards in August 2008 as an extension of its supply chain consulting and outsourcing business, which had been around for most of the decade. The company, which is based in the JDE hotspot of Denver, Colorado, hired a good portion of the JD Edwards consulting team from TomorrowNow, the third-party maintenance provider that was shut down after it was acquired by SAP and got caught up in Oracle's lawsuit against SAP.

Like most third-party providers, Spinnaker promises to slash by 50 percent the cost that customers pay for maintenance, support, and tax and regulatory updates for their JD Edwards ERP systems. With offices in Denver, Boston, Singapore, and London, the vendor guarantees response times of 30 minutes or less to customers all over the world. The vendor supports the World and EnterpriseOne JD Edwards systems.

Spinnaker was in San Diego, California, last week for the Quest West JD Edwards conference. There, it announced it had signed more than 100 customers during the first nine months of its JDE offering. What's more, the hectic pace doesn't appear to be letting off. "Spinnaker Support is getting flooded with inquires about our third-party services," says Matt Stava, managing principal and co-founder of Spinnaker.

Meanwhile, one of the big dogs in the third-party racket, Rimini Street of Las Vegas, is about to get even bigger. The company, which offers support for SAP, Siebel, and PeopleSoft systems in addition to JD Edwards World and EnterpriseOne, plans to open new offices in the United Kingdom, the Netherlands, Germany, Singapore, Australia, and Brazil by end of the year.

When operational, the new offices will allow Rimini Street to provide tax and regulatory updates to customers in more than 100 countries. The company currently supports customers around the globe, but they are primarily U.S. companies that need support for their overseas operations. The new offices will expand the tax and regulatory portion of Rimini's business to customers that are based elsewhere.

Rimini has also hired Greg Prow, a global expert in tax and regulatory compliance. Prow will oversee the company's international operation as group vice president of global tax and regulatory strategy & research.

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