Waters Boat Spinnaker Image by Günther Schneider from PixabaySpinnaker Support has revealed a business update for EMEA, celebrating 30% growth across the region in 2022. The firm provides support services for Oracle, SAP, JD Edwards, Salesforce, and Microsoft applications. It also provides security support services.

In 2022 it signed several new customers in the region. However, it omits any mention of the number or any of the recent wins. It rarely announces customer wins, unlike its rival, Rimini Street. The most recent press release was Edinburgh Airport in 2021.

Martin Biggs VP & Managing Director, EMEA & Strategic Markets at Spinnaker Support
Martin Biggs VP & Managing Director, EMEA & Strategic Markets at Spinnaker Support

Martin Biggs, VP & Managing Director, EMEA & Strategic Markets at Spinnaker Support, said: “Supporting and maintaining critical software systems is non-negotiable, and no business wants to be left in the dark if a product fails or an urgent upgrade or fix is required. But an 8-10% rise in support fees is steep, especially in the context of the staggeringly high margins that software vendors currently make on their support revenue. The poor level of service is a growing concern amongst enterprises too.

“Fortunately, there is a way for businesses to cut their software support costs without – crucially – compromising on the quality of the service they receive. Third-party support provided by us does exactly that, and it’s fantastic to see enterprise leaders recognising that there are alternative options available to them – and options that enable them to drive forward digital transformation by breaking the commercial bonds with the publisher.”

The new boost to support services

Spinnaker hopes to increase growth in 2023. As Bob Harland, Chief Delivery Officer, Spinnaker Support, noted in a recent blog, “With so much of today’s IT budget funneled towards support contracts, it’s critical that they’re worth their weight and deliver on the kind of service your business needs. On this front, many businesses are left disappointed – and that’s before the hefty price rises are baked in every year.”

Those price rises are now here. SAP revealed that it would increase the annual support fee “by a maximum of 3.3% (or the local CPI rate, if lower), effective January 1, 2023.” Likewise, in July, Oracle revealed that it would raise support fees by 8% in the US and n line with inflation in other countries. (Source: The Register). With inflation running at 8.9% in July last year, that hike could be substantial.

Organisations must consider the rising costs and the value they gain from their current support services. They also need to free up the budget for digital transformation programs and migration to cloud-based solutions, whether with the incumbent or someone else. Spinnaker Support is one of several companies that offer global support for legacy applications at a price point they claim is much lower than current agreements and with a better level of service

Enterprise Times: what does this mean?

There is little substance in this announcement, and as it is focused on EMEA only, it does not tell a tale of where else Spinnaker Support is growing. While the company has more than 1,300 customers globally, most of its employees are US based, so while a 30% revenue growth is impressive, understanding the scale in terms of revenue would give greater clarity.

Certainly, Spinnaker is making a push in EMEA as it looks to expand its business. Will it see an increase in the cadence of announcements? Biggs is certainly driving the company forward and proving.


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