Today on CNN comes a story about Oracle. It reflects on the value of software maintenance and highlights companies making an exit to 3rd party suppliers. It has a great title:
“Oracle’s Golden Goose, Maintenance Revenue, Contains Flight Risk”
The premise of the debate is that software vendors have never had it so good but the realities of life at the moment are that now organisations are reviewing value and coming to conclusions. This is leading to some moving to the likes of Rimini Street and to SaaS providers. Internally within organisations these savings can have the same effect as up to ten times the equivalent sales effect so are warmly received by CEO’s.
There is a reality that better procurement prices are the only way out when sales are dropping so I would echo the sentiments of the article that competition is likely within the maintenance zone, especially when the margins are so high.