SAP And JD Edwards Support Floats Spinnaker’s Boat
October 22, 2012 Dan Burger
The third-party maintenance business continues to be a rose garden for the likes of Spinnaker Support, where Oracle‘s JD Edwards software customers and SAP software customers are happy to have maintenance alternatives. Last week, Spinnaker indicated revenues at the company increased 80 percent and sales bookings were up 154 percent during the first three quarters of 2012.
Because Spinnaker is a private company, it releases financial reports as it wants rather than according to the financial reporting guidelines that public companies adhere to (more or less).
Two weeks ago, Rimini Street, another private company enjoying success primarily as a result of maintenance business picked up from Oracle JD Edwards users, reported huge gains in revenue and new business. (See Rimini Adds Hyperion to 3rd Party Support Business in IT Jungle‘s Four Hundred Stuff for those details.)
Spinnaker, which also considers itself a co-sourcing and consulting services firm for enterprise software, praises the May 2012 launch of its SAP maintenance services, as well as the increasing demand for JD Edwards support services, as responsible for its continued success–although it doesn’t provide figures to demonstrate the level of success each of those categories contributes.
The statement put out by Spinnaker says that “sales bookings are based on non-cancellable contracted revenues, not based on projected future renewal transactions.” Just in case you were wondering.
Matt Stava, managing principal for Spinnaker, was quoted in the press release as saying: “The company continues to see strong growth across all of its JD Edwards and SAP maintenance offerings, and we don’t see this trend changing … even with the litigation issues being experienced by other vendors. Third-party maintenance and support, when performed within the proper parameters, provides great value to companies looking for better service at a lower price.”
There has been ongoing litigation between Rimini Street and Oracle; each has a lawsuit pending against the other regarding business practices.
Earlier this year in an effort to fuel growth, Spinnaker purchased Versytec, which was one of the early third-party maintenance companies to get into the JD Edwards user base that had been unhappy with Oracle’s maintenance fee hikes. Versytec was estimated to have several dozen JD Edwards customers. Following the Versytec acquisition, Spinnaker claimed to have more than 160 JD Edwards customers worldwide.