ServiceNow and Rimini Street partner on new enterprise software model to unlock value in existing ERP systems for net-new innovation, digital growth and scale

Rhea-AI Summary

ServiceNow (NYSE: NOW) and Rimini Street (NASDAQ: RMNI) announced an expanded partnership to help organizations maximize value from existing ERP systems while enabling innovation. The partnership combines ServiceNow's AI Platform with Rimini Street's enterprise software support, offering an alternative to costly 'rip and replace' or limiting 'lift and shift' approaches. The solution includes the Now Platform for business transformation, Rimini Support for optimizing current software, and Rimini Manage for application management, promising significant savings and productivity gains in weeks rather than years.

Positive

• Partnership offers significant cost savings by extending life of existing ERP systems
• Solution enables rapid deployment of innovations in weeks/months versus years
• Provides full coverage for customizations with no required upgrades for 15+ years
• Combines AI-driven productivity gains with reduced maintenance costs

Negative

• None.

Insights

Tech Industry Analyst

This strategic partnership marks a significant shift in enterprise software modernization. The collaboration addresses a critical market gap by enabling companies to innovate without the traditional "rip and replace" approach to ERP systems. By combining ServiceNow's AI platform capabilities with Rimini Street's support services, organizations can potentially save 15+ years of mandatory upgrade costs while modernizing their systems.

The partnership's value proposition centers on "Transformation without Disruption," offering a compelling alternative to costly ERP migrations. This could significantly impact both companies' market positions - strengthening ServiceNow's enterprise presence and expanding Rimini Street's service portfolio. The solution directly addresses the growing market demand for AI-driven modernization while preserving existing IT investments.

Financial Analyst

This partnership represents a strategic revenue opportunity for both companies. For ServiceNow (NOW), it opens up access to Rimini Street's established enterprise customer base, potentially accelerating platform adoption and recurring revenue growth. For Rimini Street (RMNI), it adds a premium service offering that could increase average revenue per customer and strengthen client retention.

The solution's focus on cost optimization and immediate ROI is particularly attractive in the current economic environment where IT budgets are under scrutiny. By enabling customers to redirect maintenance savings into innovation initiatives, both companies position themselves to capture a larger share of enterprise IT spending.

New solution enables “Transformation without Disruption” by combining ServiceNow’s AI Platform with Rimini Street’s proven enterprise software support without the costs of mandatory upgrades, migrations or re-platforming

SANTA CLARA, Calif.--(BUSINESS WIRE)-- ServiceNow (NYSE: NOW), the AI platform for business transformation, and Rimini Street (NASDAQ: RMNI), a global provider of end-to-end enterprise software support and innovation solutions, today announced an expanded partnership that enables organizations to unlock value in existing ERPs and enterprise applications to fund new innovation and growth. The new solution combines the power of the single architecture, single data model of ServiceNow with Rimini Street’s proven enterprise software support, in order to accelerate customer innovation across procurement, finance, supply chain, HR, customer service and IT.

According to Gartner ^® research, ERP leaders should “adopt an ERP approach that will enable a promising automated business strategy by challenging the old beliefs that led organizations to the current static and monolithic ERP architectures.” ¹

Yet, until now, companies faced two undesirable choices with their existing ERP: “rip and replace,” which involves costly and risky multi-year migrations with an unknown return, or “lift and shift,” which minimizes some infrastructure costs, but limits innovation and change.

The new enterprise software model from Rimini Street and ServiceNow can produce significant and immediate savings that fuel net-new innovation, unmatched user experiences and AI-driven productivity gains, in weeks to months, not years, with the ServiceNow platform.

“Twentieth century systems have created a mess of complexity that hinders 21^st century innovation,” said Bill McDermott, chairman and chief executive officer at ServiceNow. “ServiceNow’s partnership with Rimini Street gives customers a more unified, intelligent platform to maximize their existing software investments, for faster paths to transformation. Together, we are enabling a brighter future where technology unlocks unprecedented potential.”

“We are excited to bring organizations this new enterprise software model that enables maximized ROI on their current enterprise software investments, integrates disconnected and siloed landscapes of enterprise software and frees up funding for innovation,” said Seth Ravin, chairman and chief executive officer at Rimini Street. “This new partnership truly brings together the best of ServiceNow innovation and Rimini Street enterprise software support capabilities to solve this common – but complex – IT challenge.”

Turn-key Solution for Transformation without Disruption

The new solution is designed to help organizations from business case to deployment to value realization, including:

• ServiceNow AI platform for business transformation to transform ERP: ServiceNow provides industry-leading modernization capabilities through the Now Platform, enabling organizations to improve productivity and maximize business outcomes and deliver modern, consumer-like experiences to all users. Rimini Street will design, deploy and manage the Now Platform as an innovation layer for ERP customers with its experienced and certified ServiceNow team, funded by efficiencies and savings through Rimini Street’s support and management of the existing enterprise software foundation.

• Rimini Support™ to optimize and extend the life of current enterprise software: Replaces software vendor maintenance of traditional perpetually licensed software with third-party support, providing significant annual support fee savings, improved service levels, full coverage for customizations and no required upgrades or migrations for a minimum of 15 years.

• Rimini Manage™ for robust application management: Manages and runs both traditional on-premises licensed software and SaaS applications, either by itself or in combination with vendor replacement third-party support. Rimini Manage relieves the IT department from the day-to-day software operating and support tasks to enable focus on driving innovation and value for the enterprise.

“It is imperative that enterprises accelerate AI innovation, digital transformation and workflow automation without being slowed by the complexity and cost burden of upgrading or migrating existing enterprise software,” said R “Ray” Wang, principal analyst at Constellation Research. “Customers seek a comprehensive, all-in-one optimization and innovation solution that can accelerate and improve productivity, increase profitability and enhance competitive advantage.”

¹ Gartner, Predicts 2024: ERP Evolves Planning With Automation and AI, Denis Torii, 5 April 2024

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

About ServiceNow

ServiceNow (NYSE: NOW) is putting AI to work for people. We move with the pace of innovation to help customers transform organizations across every industry while upholding a trustworthy, human centered approach to deploying our products and services at scale. Our AI platform for business transformation connects people, processes, data, and devices to increase productivity and maximize business outcomes. For more information, visit: www.servicenow.com.

About Rimini Street, Inc.

Rimini Street, Inc. (Nasdaq: RMNI), a Russell 2000® Company, is a global provider of end-to-end enterprise software support and innovation solutions and the leading third-party support provider for Oracle, SAP and VMware software. The Company offers a comprehensive portfolio of unified solutions to run, manage, support, customize, configure, connect, protect, monitor, and optimize enterprise application, database, and technology software. The Company has signed thousands of contracts with Fortune Global 100, Fortune 500, midmarket, public sector and government organizations who selected Rimini Street as their trusted, proven mission-critical enterprise software solutions provider and achieved better operational outcomes, realized billions of US dollars in savings and funded AI and other innovation investments. For more information, visit: www.riministreet.com.

Forward Looking Statements

This press release contains “forward looking statements” about the expectations, beliefs, plans, and intentions relating to an expanded partnership between ServiceNow and Rimini Street. Such statements include statements regarding future product capabilities and offerings and expected benefits to ServiceNow. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, ServiceNow’s results could differ materially from the results expressed or implied by the forward-looking statements made. ServiceNow undertakes no obligation, and does not intend, to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether sales will justify the investments in the product capabilities and offerings. Further information on factors that could affect ServiceNow’s financial and other results is included in the filings ServiceNow makes with the Securities and Exchange Commission from time to time.

© 2024 ServiceNow, Inc. All rights reserved. ServiceNow, the ServiceNow logo, Now, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries. Other company names, product names, and logos may be trademarks of the respective companies with which they are associated.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241023412490/en/

Caroline Parkinson

press@servicenow.com

Janet Ravin

pr@riministreet.com

Source: ServiceNow

FAQ

What is the purpose of ServiceNow's partnership with Rimini Street announced in 2024?

The partnership aims to help organizations maximize value from existing ERP systems by combining ServiceNow's AI Platform with Rimini Street's enterprise software support, enabling transformation without costly upgrades or migrations.

What are the main components of the new ServiceNow (NOW) and Rimini Street solution?

The solution includes the ServiceNow AI platform for business transformation, Rimini Support for optimizing current software, and Rimini Manage for application management.

How long can companies extend their existing software life through the ServiceNow-Rimini partnership?

The partnership enables companies to extend their existing software life for a minimum of 15 years with no required upgrades or migrations.