Panaya – A different kind of ERP third party maintenance provider

Panaya – A different kind of ERP third party maintenance provider

Summary: ERP update costs got your firm stuck on old releases? Panaya may have cloud-based way to help your firm stay current in a less costly and less risky manner.

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“The opposite of Rimini Street”

Many users of third party maintenance solutions for their ERP software are looking for a low-cost provider that will keep their working, stable ERP software current with tax, regulatory and a few technical changes. But, the key focus for many of these customers is to avoid major upgrades and the attendant business disruptions they cause.

Rimini Street serves this market well. If you have a stable release of a major ERP product, they’ll keep it running. And, they do it cost effectively.

But, what if you’re a company who wants to keep their licensed ERP software current but without the risk and disruption that comes with applying scores of patches, new releases and upgrades? How does a company stay current without throwing piles of support people on these fixes and enhancements? How do you do all the regression testing, interface adjustments, etc. to ensure these updates don’t cause the system to fail?

Those are the ERP customers that Panaya has targeted. ERP users that want to stay current but have no appetite for risk and little budget or headcount to throw into all of that testing.

Panaya currently provides this service for SAP customers (Rimini Street supports SAP and Oracle product lines). A Panaya customer still pays SAP its annual maintenance fee; however, the update process is completely re-engineered after this point. Panaya creates a cloud-based sandbox to test a group of updates against their virtual version of the customer’s production software environment. Panaya’s tools identify which patches will work, which ones may cause issues and which ones will require serious investigation to prevent a failed upgrade, data corruption or system crash.

Panaya’s service runs on the Amazon EC cloud. Panaya is an Israeli firm that has already captured more than 150 SAP customers. This month, the company is releasing new functionality to permit one-click application of tested upgrades to its clients. The company claims its solutions automatically resolve or remove 70% of potential upgrade problems.

Panaya exists because too few ERP vendors have focused on the sale of their software and not on the upgrade burden it places on its customers. You would think someone would have created a firm like Panaya before as one finds so many software buyers who get stuck on old releases. Why are they stuck? Because its too risky and/or too costly to upgrade. This forces too many customers to adopt a ‘if it ain’t broke, don’t fix it’ attitude to ERP.

Companies that utilize a system integrator, consultancy or application outsourcer to operate their SAP solutions should insist their outsourcer utilize a solution like Panaya. Then, they need to insist that their rates/fees be reduced as Panaya takes a lot of their lower-value-added work out of the equation.

Panaya will be moving into Oracle ERP software soon.

My thanks to Amit Bendov of Panaya for meeting with me at the Sapience 2009 show a few weeks ago and thanks to fellow blogger Jon Reed for insisting I check out Panaya.

Topics: SAP, Enterprise Software, Software

About

Brian is currently CEO of TechVentive, a strategy consultancy serving technology providers and other firms. He is also a research analyst with Vital Analysis.

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2 comments
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  • What is different with Panaya?

    Brian,

    I agree that Panaya is specializing in a niche area of SAP support phase. But I fail to grasp the significant differentiator / value in Panaya's offerings

    - For old SAP versions, most System Integrators bundle upgrade analysis tools with their services. The analysis are based on standard SAP system information and doesn't involve significant IP from the vendors
    - For new SAP versions, SAP solution manager is addressing many upgrade analysis requirements

    Regards,
    Vaidhya
    vaidhyv@...
  • RE: Panaya ??? A different kind of ERP third party maintenance provider

    @Vaidhiv,
    I believe the comparison here was mainly to low cost maintenance providers that make it cheaper not to stay behind.

    But to your point, it's very simple:
    a) Supercomputer simulation shows *precisely* which custom programs will break and why. Eliminates complete testing cycles and much of the development work. It's the first and only solution that does that.
    b) SaaS- no sandbox, no hardware, no software- 20 minutes is all it takes.

    There's a more technical comparison I saw on a forum recently (NOT by us) http://www.sapfans.com/forums/viewtopic.php?f=12&t=334033

    You are welcome to see for yourself :-)

    Amit Bendov,

    Panaya
    amit_bendov