Rimini Street fires back at Oracle; Alleges 'anticompetitive tactics'

Rimini Street fires back at Oracle; Alleges 'anticompetitive tactics'

Summary: Rimini Street fired back at Oracle over its lawsuit adding that Larry Ellison & Co. are trying to stifle competition to preserve fat software maintenance margins.

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Rimini Street on Monday fired back at Oracle over its lawsuit adding that Larry Ellison & Co. are trying to stifle competition to preserve fat software maintenance margins.

Rimini Street, which provides third party support for Siebel, PeopleSoft and JD Edwards software, was sued by Oracle alleging massive theft of intellectual property.

In its response, Rimini denied Oracle's allegations. Rimini added that Oracle's lawsuit is the climax of a five-year campaign to squelch the company's third party support services.

According to the response to Oracle's complaint (download response PDF):

Oracle initiated this baseless litigation as another anticompetitive tactic to try and slow Rimini Street’s fast-paced growth and protect Oracle’s dominant 95% market share and monopoly-like 92% gross profit margins on the after-market support of its products.

Since shortly after Rimini Street’s inception, Oracle began a systematic campaign to disrupt and halt Rimini Street’s business. Initially, Oracle’s efforts consisted of numerous hostile letters, some of which were published in the media as early as 2005 as examples of how Oracle was trying to forestall after-market competition from a just-launched Rimini Street. Over the years, Rimini Street responded to each Oracle letter, explained the appropriateness of Rimini Street’s practices and procedures, and repeatedly offered to meet and discuss any questions or concerns Oracle might have about Rimini Street’s processes and procedures.

As Rimini Street’s success grew, so did Oracle’s determination and efforts to disrupt Rimini Street’s growth. Since the inception of the company, Rimini Street used automated download tools to help its clients identify and take delivery of the large volume of Oracle Software and Support Materials they paid for and were entitled to possess and use (potentially tens of thousand of files for a single customer). Using such automated tools was necessary because Oracle refused to help its customers identify and take delivery of such large volumes of materials.

According to Rimini, Oracle's attacks escalated in 2007 and 2008. Ultimately, Oracle blocked its support materials from Rimini.

Oracle sues Rimini Street, alleges 'massive theft'; Is third party support dead?

At this point, as a good-faith attempt at conflict reduction with Oracle, Rimini Street unilaterally agreed to cease using automated download tools in January 2009 and notified Oracle’s representatives of this decision in early February 2009.

Further, to prevent Oracle’s anti-competitive actions from occurring in the future, Rimini Street asked for and was finally granted a call with Oracle representatives in early February 2009. On the call, Rimini Street offered to share Rimini Street internal information with Oracle and/or to work out an agreement that would utilize an independent third party auditor reporting back to both parties to confirm Rimini Street’s compliance with its standard processes and procedures. Oracle never responded to any of Rimini Street’s proposals.

Topics: IT Employment, CXO, Oracle

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4 comments
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  • Oracle needs to just go away...

    I'm admittedly not an Oracle guru, but what I've seen of both the database and the company make me realize why nobody wants to do business with Oracle. The company I'm working for has a robotic electronics manufacturing machine that uses a backend Oracle database to keep track of usage, provide lot/serial traceability down to the board level, tell the machine where to place components and tell the machine what type of solder to use among other things. The database went offline early yesterday morning creating a complete shutdown of the manufacturing line. It's now 27 hours after we placed a service call and guess what...we haven't even received a callback. It's customer service like this that will ensure that this company will never again purchase anything that uses Oracle. For $3500/year in service contract charges, this is beyond unacceptable. I hope they get their pants sued off.
    jasonp@...
  • I hope they crush the worm...

    I hope they crush that 'third party' worm who complains that
    his gravy train is about to come to end; get over it Rimini
    Street - you're the buggy whip maker of the 21st century,
    time to learn a new trade.
    Macintoshtoffy
  • Go Rimini Street

    Oracle I hope you loose in court.. :)
    I'm with small business that help customers get things
    done. I'm not supporting lazy butts just getting
    maintenance fees money and doing nothing to help their
    customers..
    faulk6
  • RE: Rimini Street fires back at Oracle; Alleges 'anticompetitive tactics'

    I'm all for having 3rd party support options. But recall a similar incident several years ago with TomorrowNow? That company was bought out by SAP. Oracle sued alleging theft of trade secrets. TomorrowNow folded after it was revealed that they were indeed stealing code patches from Oracle's KnowledgeGarden website. There is just no way around this. If a customer requires an ESU applied, where will the 3rd party support company get it from, if not from KN?

    I hope Rimini Street has learned from TomorrowNow and was not engaging in these allegations. We shall soon see!

    cheers,
    Boris
    http://www.mlbig.com/jde-blog
    BorisJDE