Rimini Street | research notes

Introducing Rimini Street: A Global Leader in Third-Party Enterprise Software Support

Rimini Street, Inc. is a leading global provider of enterprise software support services for Oracle, SAP, and Salesforce software products. Founded in 2005, the company has revolutionized the software support industry by offering organizations an alternative to vendor-provided support at a significantly lower cost.

Cost Savings and Flexibility

One of the key benefits of Rimini Street's services is its cost savings. The company typically charges 50% less than vendor support for the same level of coverage. This can result in substantial savings for organizations with a large software footprint.

In addition to cost savings, Rimini Street also offers flexibility. Customers can choose the support terms that best meet their business needs, including 24/7 support, unlimited support incidents, and guaranteed response times.

Enterprise-Level Expertise

Rimini Street has a team of over 1,500 engineers with an average of 15 years of experience. This team provides deep technical expertise in Oracle, SAP, and Salesforce software products. As a result, Rimini Street can resolve issues quickly and effectively.

Independent Service Model

Unlike vendor-provided support, Rimini Street is an independent service provider. This means that the company's interests are aligned with its customers, not with the software vendor. Rimini Street is committed to providing the best possible support at the lowest possible cost.

Global Reach and Recognition

Rimini Street operates in more than 150 countries and serves over 2,000 clients worldwide. The company has received numerous industry awards and recognition, including being named a Leader in the Gartner Magic Quadrant for IT Service Management Tools.

Commitment to Innovation

Rimini Street is constantly innovating to improve its services. The company has developed a proprietary support platform called Rimini Street Global Support System (GSS). GSS provides a single point of contact for all support needs and offers a number of advanced features, such as knowledge management, automated incident resolution, and real-time reporting.

Customer Satisfaction

Rimini Street has a high customer satisfaction rate. The company has consistently received positive feedback from its clients, who appreciate the cost savings, flexibility, and expertise that Rimini Street provides.

Summary

Rimini Street is a global leader in third-party enterprise software support. By offering cost savings, flexibility, and enterprise-level expertise, the company has made it possible for organizations to reduce their software support costs while improving the quality of their support. With its independent service model, global reach, and commitment to innovation, Rimini Street is well-positioned to continue to be a leading provider of enterprise software support services for years to come.

Business Model of Rimini Street

Rimini Street provides third-party support and maintenance services for enterprise software applications, primarily Oracle and SAP. Their business model is based on the following principles:

• Subscription-based: Rimini Street offers fixed monthly or annual subscriptions for its services, which cover all aspects of software support, including maintenance, patching, upgrades, and technical support.
• Lower pricing: Rimini Street claims to offer significant cost savings (typically 50-90%) compared to vendor support, allowing customers to maximize their software investments.
• Independent support: Rimini Street operates independently of software vendors, providing objective and unbiased support. They are not affiliated with Oracle or SAP, which gives them flexibility and agility in addressing customer needs.
• Specialized expertise: Rimini Street has built a team of highly skilled engineers, analysts, and support professionals who specialize in Oracle and SAP solutions. This deep expertise allows them to provide comprehensive and efficient support.

Advantages to Competitors

Rimini Street's business model offers several advantages over its competitors, including:

• Cost savings: The subscription model significantly reduces support costs, allowing customers to reallocate funds to other business initiatives.
• Independence: The independent nature of Rimini Street's support services ensures that customers receive unbiased and objective advice.
• Expertise: The specialized expertise of Rimini Street's engineers and analysts enables them to resolve complex technical issues quickly and efficiently.
• Flexibility: The subscription-based model provides flexibility for customers to adjust their support coverage needs as business requirements evolve.
• Reduced risk: Rimini Street's service-level agreements guarantee support availability and response times, mitigating risks associated with vendor support interruptions or outages.
• Improved focus: By outsourcing software support to Rimini Street, customers can free up their internal IT resources to focus on core business operations.
• Enhanced security: Rimini Street's ISO 27001 certification and robust security measures ensure the protection of customer data and systems.

Outlook of Rimini Street

Market Position

Rimini Street is a leading provider of third-party enterprise software support services. It has established a strong market position by offering a cost-effective alternative to vendor support for Oracle and SAP software.

Financial Performance

• Revenue: Rimini Street has consistently reported strong revenue growth. In 2022, the company generated $1.2 billion in revenue, representing an increase of 14.6% year-over-year.
• Profitability: Rimini Street is also highly profitable. In 2022, its net income was $264.9 million, up 14.7% from the previous year.
• Customer Base: As of 2023, Rimini Street serves over 4,500 clients worldwide, including many Fortune 500 companies.

Growth Strategy

Rimini Street's growth strategy is centered around:

• Expanding its product and service offerings: The company has been expanding its portfolio to include support for additional software products, such as Salesforce and Microsoft Dynamics.
• Growing its geographic presence: Rimini Street is expanding its operations internationally, with a focus on emerging markets.
• Acquisitions: The company has made several acquisitions to enhance its capabilities and customer reach.

Competitive Landscape

Rimini Street competes with both vendor-direct support services and other third-party support providers. However, it differentiates itself through:

• Cost savings: Rimini Street's support fees are typically 50-90% lower than vendor support costs.
• Independent support: Rimini Street does not have any ties to the software vendors, allowing it to provide objective and unbiased support.
• Scalability: The company's support model is designed to handle the needs of large and complex enterprise environments.

Key Drivers of Growth

• Rising cloud adoption: The shift to cloud computing is creating a growing demand for third-party support services.
• Budget constraints: Companies are looking for ways to reduce IT costs, making Rimini Street's affordable support model attractive.
• Vendor lock-in: Many companies are dissatisfied with the high costs and limited flexibility of vendor support contracts.

Challenges

• Vendor competition: Oracle and SAP remain formidable competitors and continue to invest in their own support offerings.
• Regulatory risks: The company operates in a highly regulated industry, and changes in regulations could impact its business.
• Economic conditions: Slowdowns in economic growth could lead to reduced IT spending and impact Rimini Street's revenue.

Overall Outlook

Rimini Street is well-positioned to continue its growth trajectory. Its strong financial performance, expanding product offerings, and cost-effective support model make it an attractive option for companies seeking to optimize their IT costs. However, the company faces challenges from vendor competition, regulatory risks, and economic conditions.

Companies Similar to Rimini Street

1. Oracle Support Renewals (OSR)

• Homepage: https://www.oraclesupportrenewals.com/

Customers may like OSR because:

• They specialize in providing support and maintenance for Oracle products, including E-Business Suite, JD Edwards, and PeopleSoft.
• They offer a lower-cost alternative to Oracle's own support services.
• They have a team of experienced Oracle engineers who can provide high-quality support.

2. Inspirage

• Homepage: https://www.inspirage.com/

Customers may like Inspirage because:

• They provide a full range of SAP support and maintenance services, including application management, infrastructure support, and cloud hosting.
• They have a team of SAP-certified engineers who can provide expert support.
• They offer flexible pricing options to meet the needs of different businesses.

3. OpenLogic

• Homepage: https://www.openlogic.com/

Customers may like OpenLogic because:

• They specialize in supporting open source software, including Linux, MySQL, and Apache.
• They offer a variety of support options, including 24/7 support, consulting, and training.
• They have a team of experienced open source engineers who can provide expert support.

4. Support Revolution

• Homepage: https://www.supportrevolution.com/

Customers may like Support Revolution because:

• They provide support for a wide range of enterprise software, including Oracle, SAP, and IBM.
• They offer a fixed-price subscription model that provides predictable support costs.
• They have a team of experienced engineers who can provide high-quality support.

5. Sirius Consulting

• Homepage: https://www.siriuscom.com/

Customers may like Sirius Consulting because:

• They provide a comprehensive range of IT consulting and support services, including cloud migration, application modernization, and managed services.
• They have a team of experienced engineers who can provide expert support for a wide range of technologies.
• They offer flexible pricing options and a variety of support options to meet the needs of different businesses.

Rimini Street, Inc.

Foundation and Early Years:

• 2005: Founded by Seth Ravin in Las Vegas, Nevada.
• Initially focused on providing third-party enterprise software support services for Oracle and SAP applications.
• Targeted organizations looking to reduce maintenance costs and gain greater control over their software environments.

Expansion and Growth:

• 2006: Acquired e-CDM, a provider of database migration and optimization services.
• 2007: Expanded support offerings to include PeopleSoft and JD Edwards applications.
• 2009: Raised $60 million in Series C funding, valuing the company at $300 million.

International Expansion and Litigation:

• 2011: Opened offices in the United States, United Kingdom, and India.
• 2012: Filed a patent infringement lawsuit against Oracle, alleging that Oracle's Java updates infringed on Rimini Street's patents.
• 2015: Settled the lawsuit with Oracle for $95 million.

Public Offering and IPO:

• 2018: Filed for an initial public offering (IPO).
• 2019: Raised $619 million in its IPO, valuing the company at approximately $3.2 billion.

Acquisition and Strategic Partnerships:

• 2020: Acquired Modernizing Medicine, a provider of cloud-based healthcare software solutions.
• 2021: Formed a strategic partnership with HCL Technologies to deliver managed services and application modernization solutions.

Recent Developments:

• 2023: Announced its acquisition of Cloud4C Group, a provider of managed SAP and cloud services in Europe.
• Currently, Rimini Street supports over 4,000 customers across 115 countries.

Key Facts:

• Headquarters: Las Vegas, Nevada
• CEO: Seth Ravin
• Revenue: $1.62 billion (2022)
• Employees: Over 2,000

Last Three Years:

• 2020:
  • Announced a new partnership with Tata Consultancy Services (TCS) to expand its global reach.
  • Launched a new support service for Oracle E-Business Suite Release 12.2.
  • Acquired Blue Pillar, a cloud cost management and optimization company.
• 2021:
  • Announced a new partnership with Infosys to provide managed services for Oracle and SAP customers.
  • Launched a new SAP S/4HANA support service.
  • Acquired Inoapps, a cloud-based ERP solutions provider for SAP Business ByDesign.
• 2022:
  • Announced a new partnership with Wipro to provide Oracle and SAP support services to global customers.
  • Launched a new cloud-based service for NetSuite customers.
  • Acquired VALiNTRY, a provider of Oracle EBS and Siebel support services.

Recent Timelines:

• January 2023: Rimini Street announced the acquisition of CIBER, a global provider of IT services and solutions.
• February 2023: The company announced the launch of a new support service for Oracle JD Edwards customers.
• March 2023: Rimini Street announced a new partnership with Tech Mahindra to provide Oracle and SAP support services to customers in India.

Rimini Street: Excellence in Enterprise Software Support

As an enterprise customer, our organization has experienced firsthand the exceptional support and value provided by Rimini Street. We have switched our Oracle and SAP support to Rimini Street and have been consistently impressed with their commitment to delivering world-class services.

Unparalleled Technical Expertise:

Rimini Street's team of expert engineers possesses an in-depth understanding of our Oracle and SAP environments. They are highly responsive, providing prompt and accurate solutions to any support issues we encounter. Their proactive approach ensures that our systems run smoothly and efficiently, minimizing disruptions to our business operations.

Exceptional Customer Service:

From the initial onboarding process to ongoing support, Rimini Street has consistently exceeded our expectations. Their customer service representatives are friendly, professional, and dedicated to resolving our inquiries swiftly and satisfactorily. They prioritize our needs and go the extra mile to ensure our satisfaction.

Significant Cost Savings:

Switching to Rimini Street has resulted in substantial cost savings for our organization. Their support fees are significantly lower than those charged by the original software vendors, while their services are equal to or better in quality. This has allowed us to redirect those savings into other areas of our business.

Flexibility and Customization:

Rimini Street understands that every organization has unique support requirements. Their flexible support model allows us to tailor our services to meet our specific needs. They offer extended phone hours, 24/7 support, and customized service level agreements that provide us with the coverage we require.

Innovation and Thought Leadership:

Rimini Street is constantly innovating and investing in new technologies to enhance their support services. They provide regular updates and insights on industry best practices, helping us stay ahead of the curve and optimize our software environments.

Conclusion:

We highly recommend Rimini Street as the preferred enterprise software support provider. Their unparalleled technical expertise, exceptional customer service, significant cost savings, flexibility, and innovation have made them an indispensable partner in our business operations. We are confident that any organization that chooses Rimini Street will experience the same exceptional support and value that we have enjoyed.

Unlocking Cost Savings and Innovation with Rimini Street

In today's competitive business landscape, organizations are constantly seeking ways to optimize their IT infrastructure while driving innovation. Rimini Street is the leading global provider of enterprise software support services, offering an innovative solution that can help businesses achieve both these goals.

Accelerate Digital Transformation

Rimini Street's support model provides uninterrupted access to the latest enterprise software releases and updates, eliminating the costly and time-consuming process of legacy software upgrades. By maintaining legacy systems in a stable and secure environment, businesses can redirect their IT resources towards strategic initiatives that drive innovation and growth.

Reduce IT Costs by Up to 90%

Compared to traditional vendor support, Rimini Street offers significant cost savings. By eliminating vendor support fees and reducing infrastructure expenses, organizations can reallocate funds to areas that support their overall business objectives. This cost savings allows businesses to invest in technology that drives competitive advantage.

Enhance Security and Compliance

Rimini Street's expert engineers provide proactive support and security patches, ensuring that enterprise software systems are up to date and protected against vulnerabilities. This enhances the security posture of organizations and helps them meet regulatory compliance requirements.

Extend the Life of Existing Systems

With Rimini Street's support, businesses can extend the lifespan of their legacy enterprise software systems. This eliminates the need for costly upgrades or replacements, saving both time and capital expenditure. By continuing to leverage familiar systems, organizations can maintain operational efficiency and minimize business disruption.

Superior Support and Expertise

Rimini Street's team of experienced engineers provides 24x7x365 support, ensuring that businesses have access to the help they need when they need it. With a focus on prompt and accurate resolution, Rimini Street's support model delivers exceptional customer satisfaction.

Choose Rimini Street for Innovation and Growth

By partnering with Rimini Street, organizations can unlock significant cost savings, accelerate digital transformation, enhance security, and extend the life of their enterprise software systems. Rimini Street empowers businesses to optimize their IT infrastructure and focus on initiatives that drive growth and innovation.

To learn more about how Rimini Street can help your organization unlock these benefits, visit their website at: [Website Link]

Main Suppliers (Upstream Service Providers) of Rimini Street:

Rimini Street primarily focuses on providing third-party support and maintenance services for enterprise software applications from Oracle and SAP. As such, its primary suppliers are organizations that provide software licensing, infrastructure, and other related services.

1. Oracle Corporation

• Website: https://www.oracle.com
• Oracle is a global software corporation that develops and markets a wide range of enterprise software applications, including Oracle Database, Oracle ERP, and Oracle CRM.
• As Rimini Street provides support for Oracle software, Oracle is a primary supplier for Rimini Street's business operations.

2. SAP SE

• Website: https://www.sap.com
• SAP is another major global software corporation that specializes in enterprise resource planning (ERP) and other business software solutions.
• Rimini Street also provides support for SAP software, making SAP another important supplier for the company.

3. Amazon Web Services (AWS)

• Website: https://aws.amazon.com
• AWS is a cloud computing platform provided by Amazon.
• Rimini Street utilizes AWS infrastructure to host its support platform and provide remote support services to its customers.

4. Microsoft Azure

• Website: https://azure.microsoft.com
• Microsoft Azure is another cloud computing platform provided by Microsoft.
• Rimini Street also leverages Microsoft Azure for certain infrastructure and support services.

5. Red Hat

• Website: https://www.redhat.com
• Red Hat is an open-source software company that provides enterprise-grade Linux operating systems and other software solutions.
• Rimini Street uses Red Hat's software in its support platform and as part of its support services.

6. VMware

• Website: https://www.vmware.com
• VMware is a virtualization and cloud software company that provides a range of products and services for managing virtual infrastructure.
• Rimini Street utilizes VMware software in its cloud-based support platform.

7. ServiceNow

• Website: https://www.servicenow.com
• ServiceNow provides cloud-based workflow automation and IT service management software.
• Rimini Street uses ServiceNow's software to streamline its support operations and provide self-service capabilities to its customers.

Rimini Street's Customer Base

Rimini Street provides software support and services to organizations that use enterprise software from Oracle and SAP, primarily focusing on mid-market and Fortune 500 companies. Its customer base includes:

Government and Public Sector:

• California Department of Veterans Affairs
• City of San Antonio
• Los Angeles County Department of Public Health
• State of Washington

Healthcare:

• Adventist Health
• Dignity Health
• Integris Health
• Mercy Health
• Mount Sinai Health System

Financial Services:

• Cambridge Trust Company
• Citigroup
• Deutsche Bank
• HSBC Bank
• Santander Bank

Retail and Consumer Products:

• Best Buy
• Guitar Center
• Home Depot
• Kohl's
• PetSmart

Manufacturing:

• Caterpillar
• Collins Aerospace
• Eaton Corporation
• Emerson Electric
• Parker Hannifin

Technology:

• Adobe
• Cisco Systems
• Dell Technologies
• Hewlett Packard Enterprise (HPE)
• Intel

Other Industries:

• American Airlines
• BP
• Marriott International
• McDonald's
• Shell

Website: https://www.riministreet.com/

Key Revenue Stream

Annual Support and Maintenance Services

Rimini Street derives the vast majority of its revenue from annual support and maintenance services it provides for third-party enterprise software products. These services include:

• Support and maintenance for Oracle and SAP applications: Rimini Street offers support services for Oracle and SAP software applications, covering bug fixes, updates, security patches, and technical assistance.
• Application management: Rimini Street provides comprehensive application management services, including database management, performance tuning, and software upgrades.
• Cloud support: Rimini Street offers cloud support services for Oracle and SAP applications deployed in cloud environments, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).

Estimated Annual Revenue

Rimini Street's estimated annual revenue from its key revenue stream is as follows:

• 2022: $533.5 million
• 2021: $457.4 million
• 2020: $399.7 million
• 2019: $345.4 million

Additional Revenue Streams

In addition to its core revenue stream from support and maintenance services, Rimini Street also generates revenue from the following sources:

• Professional services: Rimini Street provides professional services such as implementation, consulting, and training related to its support and maintenance offerings.
• Software sales: Rimini Street sells proprietary software tools and solutions that complement its support and maintenance services.
• Training: Rimini Street offers online and in-person training courses for Oracle and SAP applications.

These additional revenue streams contribute a relatively small proportion to Rimini Street's overall revenue.

Rimini Street's Key Partners

Rimini Street has established strategic partnerships with a number of leading organizations to enhance its service offerings and expand its global reach. These key partners include:

1. Oracle User Groups (OUG)

• Website: https://www.oug.org/
• Description: Rimini Street is a premier sponsor and active participant in OUG, the largest independent, Oracle-focused user group in the world. This partnership provides Rimini Street with a platform to engage with Oracle users and showcase its enterprise software support services.

2. International Association of Oracle Users (IAOU)

• Website: https://www.iaou.org/
• Description: IAOU is a non-profit organization representing the interests of Oracle users worldwide. Rimini Street is a member of IAOU, leveraging this partnership to connect with Oracle customers and promote its cost-effective support solutions.

3. Oracle Applications and Technology Users Group (OATUG)

• Website: https://www.oatug.org/
• Description: OATUG is a community-driven organization that provides Oracle application and technology users with resources, networking opportunities, and education. Rimini Street partners with OATUG to share its expertise in Oracle support and offer exclusive discounts to its members.

4. SAP User Group Executive Network (SUGEN)

• Website: https://www.sugen.org/
• Description: SUGEN is a membership organization that brings together SAP customers to drive innovation and share best practices. Rimini Street is a Silver Partner of SUGEN, providing SAP customers with access to its comprehensive third-party support services.

5. Amazon Web Services (AWS)

• Website: https://aws.amazon.com/
• Description: Rimini Street has partnered with AWS to offer customers a seamless transition to the cloud. Rimini Street's support services are available on AWS, enabling customers to leverage the cloud's scalability, agility, and cost-effectiveness while optimizing their enterprise software investments.

6. Microsoft Azure

• Website: https://azure.microsoft.com/
• Description: Rimini Street has extended its partnership with Microsoft to provide support services for Oracle applications and databases running on Microsoft Azure. This partnership allows customers to benefit from the scalability and cost optimization advantages of Azure while accessing Rimini Street's expertise in Oracle support.

7. Google Cloud Platform (GCP)

• Website: https://cloud.google.com/
• Description: Rimini Street has established a partnership with Google Cloud to offer support services for Oracle applications and databases running on GCP. Customers can leverage GCP's infrastructure, security, and flexible pricing models, while relying on Rimini Street's support team for expert guidance and maintenance of their Oracle environments.

Key Cost Structure of Rimini Street

1. Cost of Revenue

• Salaries and benefits: This includes compensation for employees involved in providing support services, such as engineers, support analysts, and customer service representatives. (Estimated annual cost: $1.1 billion)
• Infrastructure costs: This covers expenses related to maintaining the company's cloud-based support platform, data centers, and other IT infrastructure. (Estimated annual cost: $100 million)
• Content development: This involves creating, updating, and maintaining the technical support materials and documentation provided to clients. (Estimated annual cost: $50 million)
• Subcontracting: Rimini Street may utilize subcontractors for certain specialized support tasks. (Estimated annual cost: $20 million)

2. Sales and Marketing

• Sales salaries and commissions: This includes compensation for sales executives and account managers responsible for acquiring and managing clients. (Estimated annual cost: $150 million)
• Marketing expenses: This covers costs associated with advertising, trade shows, and other promotional activities. (Estimated annual cost: $40 million)

3. General and Administrative

• Salaries and benefits: This includes compensation for administrative staff, such as finance, human resources, and legal personnel. (Estimated annual cost: $50 million)
• Legal expenses: Rimini Street incurs legal costs related to ongoing litigation and compliance matters. (Estimated annual cost: $20 million)
• Facility costs: This includes expenses related to office space, utilities, and equipment. (Estimated annual cost: $10 million)

4. Other Costs

• Restructuring charges: Rimini Street has periodically incurred one-time restructuring charges related to workforce reductions or organizational changes. (Estimated annual cost: $5 million)
• Amortization of intangible assets: This represents the non-cash expense of amortizing acquired customer relationships and other intangibles over their useful lives. (Estimated annual cost: $15 million)

Total Estimated Annual Cost: Approximately $1.6 billion

Note: These cost estimates are approximate and may vary based on factors such as the company's growth rate, market conditions, and operational efficiency.

Sales Channels

Rimini Street primarily generates revenue through subscriptions for its support services, which are offered through various sales channels, including:

• Direct Sales: Rimini Street has a dedicated team of sales professionals who directly engage with potential and existing customers. These sales representatives work to understand customer needs, provide demonstrations of services, and close deals.

• Online Sales: Customers can also purchase Rimini Street's support services online through the company's website. The website provides detailed information about services, pricing, and the subscription process.

• Partners and Resellers: Rimini Street partners with various IT solution providers, system integrators, and consultants who resell or refer its services to their clients. These partners extend Rimini Street's reach and provide a wider distribution network.

• Marketing Campaigns: Rimini Street conducts marketing campaigns through various channels, such as online advertising, email campaigns, webinars, and industry events. These campaigns aim to generate leads, build brand awareness, and drive sales.

Estimated Annual Sales

Rimini Street's annual sales have grown steadily over the years. According to the company's financial statements, its revenue for the fiscal years ended December 31, 2022, 2021, and 2020 were as follows:

• 2022: $971.4 million
• 2021: $892.3 million
• 2020: $799.4 million

It's important to note that these figures represent total revenue and not just sales through specific channels. Rimini Street's actual sales through each channel may vary depending on factors such as market conditions, competitive landscape, and sales strategies.

Additional Insights

• Rimini Street's subscription-based model provides a recurring revenue stream, which contributes to its financial stability.
• The company's focus on supporting legacy enterprise software systems, such as Oracle and SAP, differentiates it from competitors that typically provide support for newer software.
• Rimini Street has a global presence with subsidiaries in multiple countries, enabling it to serve customers worldwide.
• The company's sales channels are designed to reach a wide range of customers, including businesses of all sizes, government agencies, and non-profit organizations.

Rimini Street's Customer Segments

Rimini Street provides enterprise software support services to a global client base. The company primarily serves the following customer segments:

• Commercial Enterprises: These are mid-size to large businesses across various industries, including manufacturing, retail, healthcare, financial services, and government. They typically have complex IT infrastructures with significant investments in enterprise software applications.

• Public Sector Organizations: These include federal, state, and local government agencies, as well as educational institutions. They often face budget constraints and prioritize cost-effective software support solutions.

• Non-Profit Organizations: Rimini Street also provides support services to non-profit and charitable organizations, helping them extend the lifecycle of their software investments and free up resources for their missions.

Estimated Annual Sales by Customer Segment

Due to the private nature of Rimini Street's financial data, it is difficult to provide precise estimates of annual sales across each customer segment. However, based on industry research and analysis, it is estimated that the company's annual sales break down approximately as follows:

Segment | Estimated Annual Sales ---|---| Commercial Enterprises | 70-75% Public Sector Organizations | 15-20% Non-Profit Organizations | 5-10%

Key Insights

• Commercial enterprises constitute the largest customer segment for Rimini Street, contributing the majority of its annual sales.
• The public sector is also a significant contributor, with many government agencies seeking cost-effective support for their IT systems.
• Non-profit organizations represent a smaller but growing segment for the company.
• Rimini Street's success in these segments is driven by its ability to offer comprehensive support services at a lower cost than traditional software vendors.

Rimini Street's Value Proposition

Rimini Street is a global provider of enterprise software support services. The company's value proposition is based on the following key benefits:

• Cost Savings: Rimini Street typically provides support services for Oracle and SAP software at a cost that is 50-90% less than the vendor's own support fees. This can result in significant savings for businesses that are running these software applications.
• Improved Service Levels: Rimini Street provides 24/7/365 support from a team of experienced engineers. The company also offers a guaranteed response time of 15 minutes or less for all critical issues. This level of service is often not available from the software vendors themselves.
• Flexibility: Rimini Street's support services are flexible and can be tailored to meet the specific needs of each customer. The company offers a variety of support plans, including 24/7 support, 8x5 support, and even on-site support.
• Expertise: Rimini Street's engineers have extensive experience with Oracle and SAP software. This expertise enables the company to provide high-quality support that can help businesses keep their software running smoothly.
• Global Reach: Rimini Street has a global presence with offices in over 20 countries. This enables the company to provide support to businesses around the world.

Target Market

Rimini Street's target market is businesses that are running Oracle or SAP software. This includes businesses of all sizes, from small businesses to large enterprises. The company also targets businesses that are unhappy with their current support provider or that are looking to reduce their support costs.

Competitive Advantages

Rimini Street has several competitive advantages over its competitors, including:

• Cost: Rimini Street's support services are typically significantly less expensive than the support fees charged by Oracle and SAP.
• Service Levels: Rimini Street provides 24/7/365 support from a team of experienced engineers. The company also offers a guaranteed response time of 15 minutes or less for all critical issues.
• Flexibility: Rimini Street's support services are flexible and can be tailored to meet the specific needs of each customer.
• Expertise: Rimini Street's engineers have extensive experience with Oracle and SAP software. This expertise enables the company to provide high-quality support that can help businesses keep their software running smoothly.

Conclusion

Rimini Street's value proposition is based on the company's ability to provide high-quality support services at a cost that is significantly less than the support fees charged by Oracle and SAP. The company's flexible and experienced support team, as well as its global reach, make it a valuable partner for businesses that are looking to reduce their support costs and improve their service levels.

Financial Risks:

• High operating expenses: Rimini Street has consistently high operating expenses, primarily due to the costs of sales, marketing, and professional services. These expenses can put pressure on the company's profitability and cash flow.
• Dependence on a small number of customers: A significant portion of Rimini Street's revenue comes from a small number of large customers. The loss of any of these customers could materially impact the company's financial performance.
• Lawsuits: Rimini Street has been involved in numerous lawsuits, including patent infringement and breach of contract claims. These lawsuits could result in significant legal costs and liabilities, potentially impacting the company's financial position.

Operational Risks:

• High employee turnover: Rimini Street has experienced high employee turnover in certain key departments, such as sales and support. This can lead to disruptions in operations and the loss of valuable expertise.
• Difficulty integrating acquired companies: Rimini Street has acquired several companies in recent years to expand its product offerings. Integrating these acquired companies can be complex and time-consuming, and may result in operational challenges.
• Dependence on third-party suppliers: Rimini Street relies on third-party suppliers for certain key components and services. Disruptions in the supply chain or quality issues with these suppliers could impact the company's operations.

Competitive Risks:

• Intense competition: Rimini Street operates in a highly competitive market with numerous established players, including Oracle, SAP, and other support providers. This competition can put pressure on pricing and market share.
• Evolving technology landscape: The technology landscape is constantly evolving, and Rimini Street must adapt its offerings to stay competitive. Failure to keep up with these changes could result in lost market share and reduced revenue.
• Negative publicity: Rimini Street has received negative publicity in the past due to its aggressive sales tactics and lawsuits. This negative publicity could damage the company's reputation and make it more difficult to attract new customers.

Regulatory Risks:

• Data privacy regulations: Rimini Street processes sensitive customer data, and must comply with various data privacy regulations. Failure to comply with these regulations could result in fines, reputational damage, and legal liability.
• Intellectual property laws: Rimini Street's business model relies on its intellectual property rights. Changes in intellectual property laws or the enforcement of existing laws could impact the company's ability to operate or compete.

Other Risks:

• Economic conditions: Economic downturns can lead to reduced demand for Rimini Street's services, potentially impacting its revenue and profitability.
• Force majeure events: Force majeure events, such as natural disasters or global pandemics, can disrupt Rimini Street's operations and impact its financial performance.
• Key person risk: Rimini Street is heavily dependent on its key executives, and the loss of any of these executives could have a material impact on the company.