Competition system on corporate SW maintenance…Consecutive domestic corporation foundation
[ Hur Woo Young yenny@ ] | 2017-03-29 10:53:09
Starting next month, SAP and Oracle``s software maintenance business of Enterprise Resource Planning (ERP), SCM (supply chain management) and Customer Relationship Management (CRM) are expected to enter full-scale competitiveness. In October last year, US Rimini Street set up a Korean subsidiary and entered into a price competition.
According to the SW industry on March 28, Spinnaker support, an American professional SW maintenance company, will establish a Korean subsidiary next month. Large corporations with a large number of employees and organizations among domestic and foreign companies mostly use enterprise SWs of SAP and Oracle. Large corporations that build and use enterprise SWs of both companies have to pay 22% maintenance cost for stable operation of system every year.
For example, if a large corporation purchases KRW 10 billion or corporate software licenses are purchased by SAP or Oracle, an annual maintenance fee, which costs KRW 2.2 billion, should be paid separately. IT management costs outweigh the SW licensing costs, and customers are forced to find a second way to reduce costs when a five-year maintenance contract is concluded.
As a result, there has been a special market for SAP and Oracle maintenance and repair services, and Rimini Street and Spinnaker support are increasing their market share. Rimini Street, which is in charge of the SW maintenance of 150 corporations among the top 500 corporations in the United States, established a Korean branch last year and appointed Kim Sang-yeol, the former head of Daebo Information & Communications, as a branch director. Rimini Street, which aims to secure 100 client corporations in three years, is reported to show aggressive initiative.
If Rimini Street has entered Korea through a testing process that has 100 clients in Japan, including Uniqlo, Pioneer, and Orix, then Spinnaker support is about to enter Korean market without prior testing. Spinnaker support has been in the process of establishing a domestic corporation ahead of a meeting on April 4, and it is reported that the company will appoint one of the executives from ASPN, and one of the SAP executives as the invited branch director.
When the maintenance agency market becomes a competitive system, corporate software can be maintained at a lower cost than the copyright company, which can reduce IT costs for large companies in the SW industry. However it is expected that SAP and Oracle``s audit (copyright infringement) activities will be strengthened. A SW official said, "Big companies can reduce the cost of IT costs if they leave maintenance to the agency, but if the system that was installed free of charge in the past is caught in the copyright audit, it should be compensated. SW industry expert said, ‘There is a lack of specificity as long as the maintenance cost of corporate SW is not lowered and the maintenance agency market will become larger over time.’
By Hur Woo Young yenny@
[ copyright ⓒ The Digitaltimes ]
According to the SW industry on March 28, Spinnaker support, an American professional SW maintenance company, will establish a Korean subsidiary next month. Large corporations with a large number of employees and organizations among domestic and foreign companies mostly use enterprise SWs of SAP and Oracle. Large corporations that build and use enterprise SWs of both companies have to pay 22% maintenance cost for stable operation of system every year.
For example, if a large corporation purchases KRW 10 billion or corporate software licenses are purchased by SAP or Oracle, an annual maintenance fee, which costs KRW 2.2 billion, should be paid separately. IT management costs outweigh the SW licensing costs, and customers are forced to find a second way to reduce costs when a five-year maintenance contract is concluded.
As a result, there has been a special market for SAP and Oracle maintenance and repair services, and Rimini Street and Spinnaker support are increasing their market share. Rimini Street, which is in charge of the SW maintenance of 150 corporations among the top 500 corporations in the United States, established a Korean branch last year and appointed Kim Sang-yeol, the former head of Daebo Information & Communications, as a branch director. Rimini Street, which aims to secure 100 client corporations in three years, is reported to show aggressive initiative.
If Rimini Street has entered Korea through a testing process that has 100 clients in Japan, including Uniqlo, Pioneer, and Orix, then Spinnaker support is about to enter Korean market without prior testing. Spinnaker support has been in the process of establishing a domestic corporation ahead of a meeting on April 4, and it is reported that the company will appoint one of the executives from ASPN, and one of the SAP executives as the invited branch director.
When the maintenance agency market becomes a competitive system, corporate software can be maintained at a lower cost than the copyright company, which can reduce IT costs for large companies in the SW industry. However it is expected that SAP and Oracle``s audit (copyright infringement) activities will be strengthened. A SW official said, "Big companies can reduce the cost of IT costs if they leave maintenance to the agency, but if the system that was installed free of charge in the past is caught in the copyright audit, it should be compensated. SW industry expert said, ‘There is a lack of specificity as long as the maintenance cost of corporate SW is not lowered and the maintenance agency market will become larger over time.’
By Hur Woo Young yenny@