How one manufacturer cut their largest IT cost in half

Manufacturers saving money

In our recent series of third-party support case studies, we’ve discussed different industries that have been severely impacted by the national lockdown like air travel organisations.

Manufacturing and distribution have also been negatively affected. Given that suppliers and retailers have been hit hard, manufacturers have faced losses from every side of their business. It has become the top priority for organisations to save money wherever and however they can, but without damaging their future.

Vendor support and maintenance fees are significantly overlooked by organisations, and they’re often a surprisingly high percentage of the total cost.

Oracle and SAP charge 22% of the total licence cost for their support. One of our third-party support case studies, Premier Interlink (WACO UK Ltd) are manufacturers of building solutions. They decided their vendor’s price just wasn’t worth it anymore.

How to avoid Oracle’s upgrades

Premier Interlink are Oracle customers, using a combination of E-Business Suite 11i and Oracle 10g Databases as the foundation of their systems. Being manufacturers, the organisation regularly collaborates with external companies, so they need their systems to remain stable and functional. Premier Interlink didn’t need or want Oracle’s regular upgrades or the disruptions they would cause.

They just wanted a system that worked.

Premier Interlink weren’t interested in upgrades and wanted to stick with what they had. Because they were running very stable systems, they had no need for the latest versions with their limited improvements.

They raised a few incidents per year with Oracle, but were still charged the same expensive fees. These fees were only increasing each year with autorenewals and “expired software” levies.

Understandably, Premier Interlink’s long-term IT roadmap involved moving away from Oracle. They wanted a manufacturing-specific provider that would allow them to modernise more appropriately. However, Premier Interlink struggled to justify the cost of the migration, given the money lost in Oracle’s fees. Getting their costs down was a crucial priority.

The Support Revolution solution

Premier Interlink joined Support Revolution back in 2013. They were eager to keep their current systems, cut costs, and ultimately prepare themselves for the planned modernisation project.

We became something similar to an insurance policy for Premier Interlink. They could use stable systems for as long as they wished for a fraction of what Oracle was charging them. They could feel safe in the knowledge that if they did need support, our 20+ years of experience could solve any problems that should arise.

In the time they’ve been customers of Support Revolution, Premier Interlink have managed to avoid at least two major Oracle upgrades. They’ve also escaped two price jumps as their systems “went out of Oracle’s standard support,” and eight years of annual price rises.

Avoiding these expenses has meant massive savings for Premier Interlink. They’ve been able to reinvest these savings towards their migration to the manufacturing-specific ERP provider.

For as long as they need us, we will continue to support them at a greatly reduced price until their migration project is completed.

Benefits of switching to third-party support

  • We cut Premier Interlink’s ERP costs by 50% and saved them additional money by avoiding Oracle’s upgrades. This significantly improved their current ERP estate’s value for money.
  • Premier Interlink have successfully rerouted their IT roadmap to suit their needs, not Oracle’s. They’ve unlocked the necessary savings for future development.
  • We’ve also provided the necessary legislative patches for Premier Interlink while they were changing their banking processes. We kept them up-to-date and compliant as part of our support services. Oracle would not have provided legislative patches for their “unsupported software.”
  • In their time with us, Premier Interlink have only needed to raise one or two issues per month. We have resolved these issues within our fast, right-first-time SLAs, and at a much fairer price.

Third-party support case studies

Premier Interlink are just one example of how we’ve helped our customers. You can find other third-party support case studies on our Customers page.

We want to help organisations reinvest in their futures and protect their developments, especially now amidst the current crisis. During these difficult times, we’re here to help see you through.

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