How one manufacturer cut their largest IT cost in half

Manufacturers saving money

In our recent series of customer case studies, we’ve discussed different industries that have been severely impacted by the national lockdown – such as air travel organisations.

Another impacted industry is that of manufacturing and distribution. Given that suppliers and retailers have been affected too, 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.

One significant IT expense, usually overlooked by organisations, are their vendor’s support and maintenance fees which are often a surprisingly high percentage of the total cost considering the value they provide…

Oracle and SAP charge 22% of the total license cost for their support, and Premier Interlink (WACO UK Ltd), manufacturers of building solutions, decided that 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, but simply sticking with what they had, and because they were running very stable systems, they had no need for the latest versions with their limited improvements.

They raised only a few incidents per year with Oracle – but were still being charged the same, expensive fees. Fees that were only increasing each year with autorenewals and ‘expired software’ levies.

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

The Support Revolution solution

Premier Interlink joined Support Revolution back in 2013, 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 continue using their stable systems for as long as they wished, for only a fraction of the cost Oracle was charging them – 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, 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, which they’ve been able to reinvest towards their migration to the manufacturing-specific ERP provider.

And we will continue to support them, however much – or little – they need us, 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 – significantly improving their current ERP estate’s value for money.
  • Premier Interlink have successfully rerouted their IT roadmap to suit their needs, not Oracle’s, unlocking 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 – whereas 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, which we have resolved within our fast, right-first-time SLAs; and at a much fairer price. More recently, we continue to provide additional support during their transition.

Save your IT budget – and fast!

Premier Interlink are just one example of how we’ve helped our customers. You can find other examples 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, and afterwards; we’re here to help see you through.

See how much you could save, straight away: