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ERP Support: How Far Will Oracle Go to Protect Golden Egg?

By Thomas Wailgum
February 24, 2010 03:10 PM ET

CIO - What does Oracle think about those companies that offer third-party maintenance and support services for Oracle's software--for up to half off Oracle's price? Look no further than the names of these two lawsuits:

Oracle v. TomorrowNow and Oracle v. Rimini Street.

TomorrowNow (a now defunct third-party support player that SAP owned for a while) and Rimini Street have been the high-profile faces of third-party maintenance offerings for years, and their pitch is simple: ERP support for half off Oracle's prices on its PeopleSoft, JD Edwards and Siebel software. Customers pay software vendors annual maintenance and support fees on their software--which is calculated as a percentage of software licenses, in Oracle's case 22 percent. The fees cover technical support, major application releases, bug fixes and patches, and product update rights such as critical regulatory, legal and tax updates.

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