Rimini Street said it is expanding into higher-level support services with the global availability of application management services for SAP enterprise software.
The move to application management services provides a potential growth avenue for Rimini. Typically, Rimini has offered third party support as a replacement for annual support from the software vendor, the lowest, most expert level of support. Now Rimini Street can help enterprises operate and run their SAP systems.
Rimini's application management services for SAP include the following:
By moving upstream in support, Rimini can capture more of the maintenance revenue pie. Rimini has nearly 1,900 clients, and if the company can upsell some of them to higher level services, it can maintain growth.
The applications management services market is estimated to be between $82 billion to $90 billion.
Rimini's application management services will include an engagement manager, primary support engineer, enterprise account manager to work with customers.
Separately, Rimini announced its second-quarter results. The company reported second-quarter earnings of $4.1 million, or 3 cents a share, on revenue of $68 million, up 8.5% from a year ago. Active clients were 1,896, up 17% from a year ago.
The company added that its annualized subscription revenue was about $270 million, up 10% from a year ago.