Spinnaker Support Announces 2015 First Half Financial Results and Notable Highlights

42.4% revenue growth infers inflection point for third-party support market has arrived

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Spinnaker Support

Jul 09, 2015, 09:00 ET

DENVER, July 9, 2015 /PRNewswire/ -- Spinnaker Support, the leading global provider of third-party maintenance and managed services for SAP and Oracle enterprise software applications, is reporting 42.4% year-over-year revenue growth for first half of 2015. Financial results are exceeding plan and span all service areas. 

"We predicted that 2015 could shape up as an inflection point year for third-party support, and we were right," stated Matt Stava, CEO of Spinnaker Support. "Organizations around the world are fast recognizing that third-party support is a smart option and that Spinnaker Support delivers it the right way. The Oracle versus Rimini Street trial should continue to drive organizations to the safe harbor of Spinnaker Support."

Spinnaker Support ramped up its internal Oracle software support staff by 46% in the first half of this year to meet a rise in E-Business Suite (EBS), Database, and Siebel demand. The company reports signing the largest Siebel and Oracle Database contracts in company history. Both deals occurred in EMEA, pointing to the pent up demand in that region. In North America, one-third of new EBS clients are adopting a blend of software support and managed services. 

With many SAP support contracts expiring at year's end, coupled with an uncertain S/4HANA roadmap, Spinnaker Support reports a significant rise in both SAP user interest level and 2H 2015 sales pipeline. 

1H 2015 Highlights:

  • Total clients signed as of June 30, 2015 increased 22% year over year to 432.
  • Signed 52 new support and managed service contracts as of June 30, 2015, excluding maintenance renewals.
  • Closed the largest Siebel support deal in company history with a Finnish telecom company.
  • Closed one of largest Oracle Database deals with a large Israeli telecom company, supporting  >350 databases and signed a strategic business partnership with Comgu in Israel.
  • Signed multi-national entertainment conglomerate to a $2.1m deal for JD Edwards software maintenance and managed services.
  • Announced a formal offering for IBM iSeries support targeting JD Edwards users, elements of which 23 clients have already adopted.
  • Incorporated Affordable Care Act filing support as part of the tax and regulatory compliance service.

User Surveys Affirm Uncertainty in Oracle and SAP Roadmaps

Spinnaker Support reported user survey results regarding the planned adoption of SAP's next generation ERP, S/4HANA.  According to the survey, 76% are either undecided or do not plan to use S/4HANA due to the following top three reasons: too early to commit; unsure of license and support costs; not sure how customizations will be supported.

A survey to the Oracle EBS community was also conducted in the first half of the year, gauging the confidence in the future of EBS support and development with Oracle's push to the cloud in mind. Given that Oracle has not announced a future release of EBS, 73% of respondents are not confident in the continued development and support they will receive. 

About Spinnaker Support

Spinnaker Support has steadily emerged as the leading global provider of third-party support, managed services, and consulting for SAP and Oracle enterprise software and database applications. According to our more than 430 clients, spanning 74 countries, we consistently deliver them a higher caliber of service – governed by ISO - for a fraction of what they've previously paid. We help keep their SAP and Oracle solutions more highly available, adaptable through constant change, and more valuable from the instant ROI we provide.

Spinnaker Support is headquartered in Denver, Colorado with regional operations centers located in London, Singapore, and Mumbai. We support SAP, Oracle E-Business Suite, JD Edwards, Siebel, and Oracle Database. To learn more about Spinnaker Support, visit www.spinnakersupport.com, call +1-877-476-0576 or follow us on LinkedIn, Twitter, or Google+. 

Spinnaker Support Contact:       Michelle Wilkinson 
                                               720-457-5442
                                               [email protected]

SOURCE Spinnaker Support

Related Links

http://www.spinnakersupport.com

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