Spinnaker Touts Growth in Third-Party ERP Support Business
February 12, 2013 Alex Woodie
2012 was a good year for Spinnaker Support, which provides third-party support services for customers running JD Edwards EnterpriseOne, JDE World, and SAP ERP software. The company claims that it grew revenues by 38 percent in 2012 compared to 2012, while sales bookings are up more than 100 percent.
“2012 was a year for tremendous growth and accomplishments for Spinnaker Support,” states the company’s CEO Matt Stava in a press release. “Our team has grown in ways we could have only dreamed of a few years ago and our current pipeline is three times larger than it was this time last year.”
These are good times to be in the third-party support business. Spinnaker and its larger competitor Rimini Street continue to report excellent results. It doesn’t hurt that thousands of JD Edwards EnterpriseOne and World customers currently under Oracle maintenance contracts will lose their mainstream support if they don’t upgrade their old JDE products by the end of the year.
It also doesn’t hurt that SAP recently announced it will raise maintenance fees from 18 to 19 percent, which is effectively a 5.5 percent increase in annual maintenance fee expenditure for customers. This will help drive more customers to third-party maintenance providers, like Spinnaker.
“I am excited for what will transpire in 2013,” Stava said. “The ending of support for multiple SAP and JD Edwards application versions, the maturity of the third-party maintenance space, and the demand for a Vertex Q Series solution have created a huge new business pipeline.”