Spinnaker Says JD Edwards Support Business Growing Fast
April 26, 2011 Alex Woodie
Spinnaker Support, a provider of third-party maintenance and support services, doubled the number of JD Edwards shops it does business with last year and expects the pace of growth to continue this year, the company announced at the recent Oracle user conference.
Denver, Colorado-based Spinnaker Support provides consulting and third-party support services to companies running the JD Edwards World and EnterpriseOne ERP systems that are now owned by Oracle. Like several other third-party support providers, Spinnaker Support has capitalized on the high cost of Oracle maintenance agreements, which is typically equal to an annual payment of 22 percent of the original license fee, and the relatively modest needs of stable JDE shops that mostly need tax and regulatory updates, and an occasional live person to talk to.
While Spinnaker’s bigger competitor, Rimini Street, gets most of the attention in the third-party JDE support space these days, Spinnaker has been scoring its own share of customer wins. Earlier this month, the company announced that its client base continues to grow at an annual pace of 100 percent, for both quarter-to-quarter and year-to-year comparisons, a pace it expects to continue in 2011.
Spinnaker says it’s seeing the strongest demand in level 2 support, managed services for Configurable Network Computing (CNC, the EnterpriseOne network architecture), and consulting. “The number of clients that engage our services is a testament that we have developed a wide offering of JD Edwards services that are in high demand when coupled together,” Spinnaker’s CEO Matt Stava says in a press release.
In particular, Spinnaker’s consulting business has grown “tremendously” since it was launched about a year ago, says Kurt Moydell, VP of consulting at Spinnaker. “The launch of our consulting practice and global expansion into Europe and Asia Pacific contributed to our record growth in 2010,” he says.