TomorrowNows Fate Wont Ruin
Third-Party App Support"> "I think wed have to realistically say there are some people around the world, even since the lawsuit, that are saying, I am interested but I am going to sit this one out for a year or two. Weve run into that," Ravin said. "But the reality is you have to look at contracts themselves. Are ]companies] signing contracts? The answer is theyve signed hundreds with TomorrowNow and weve quadrupled in size since the lawsuit was announced. The reality is people still need to save money. They still have budget constraints. Theyre still not getting the value they need. Were seeing nothing but demand."Forrester analyst Ray Wang wrote in his Nov. 20 blog, "The Software Insiders Point of View," that its too early to declare the death of third party maintenance companies. Wang lists a number of reasons, including the fact that customers feel they are getting low value for their maintenance dollars, they are seeking other options, and a lower cost third party provider market may emerge from China. To read more about the Oracle lawsuit against TomorrowNow and SAP, click here. "Despite competitive and market pressures from Oracle and SAP, this market remains a huge pain point for customers," writes Wang. "Vendors for too long have milked the maintenance revenue to juice quarterly profits at the expense of customers. Expect new IT players to emerge and take this space and free companies from the shackles of vendor imposed policies while delivering on the true promise of perpetual license." But what about that potential "For Sale" sign slapped on TomorrowNows back? Rimini Streets Seth Ravin said it has put third party support customers across the board in a panic. "In general were just trying to keep everybody calm [by telling them] their support is not going to go away," said Ravin. "When you put your play [out there] mentioning the sale word, you really spook the clients .clearly the reaction from the customer base isnt going to be an excited one. SAP has stood behind this company, and to say we dont know what were going to do really puts a damper on future sales initiatives." But despite woes from TomorrowNow, Ravin said he cant hire enough sales people to handle the all the business thats coming his way. "Were seeing nothing but demand," he said. As for potential buyers Wang suggested that system integrators might be a good pick, as would Rimini Street itself. Ravin said he is interested in looking at TomorrowNow, but there are some caveats. "The questions we would have to ask is why we would want to buy a company if all the customers are going to come to us anyway," said Ravin. "What exactly would we be buying, based on what were seeing? Theres no other company in the world that has a natural fit for TomorrowNow customersthat could assimilate them overnight, with the ability to take those companies in. That all points to interest on our part, but we have to see what the value is." Check out eWEEK.coms for the latest news, reviews and analysis about productivity and business solutions.
The issues at TomorrowNow, however, may just stop at the companys doorstep.