Strategic AI Partnerships as Catalysts for SaaS Growth and Investor Value: The KBS-Rimini Street Case Study

In an era where artificial intelligence (AI) is reshaping industries, strategic partnerships are emerging as critical enablers of innovation and investor value. The recent collaboration between Korea's public broadcasting network, KBS, and Rimini Street—a third-party software support provider—offers a compelling case study. By redirecting resources from costly SAP upgrades to AI-driven transformation, KBS has not only reduced expenses but also positioned itself to capitalize on long-term digital opportunities. This move underscores a broader trend: companies leveraging flexible IT strategies to fund innovation while avoiding vendor lock-in, a dynamic that could redefine the SaaS landscape and attract investor attention.

The KBS-Rimini Street Partnership: A Strategic Shift

KBS, which operates under the SAP ECC 6.0 system, faced a pivotal decision when SAP mandated a costly migration to its newer S/4HANA platform. Instead of complying, the broadcaster opted for Rimini Street's support services, slashing annual software maintenance fees by 50%KBS Partners with Rimini Street to Accelerate its AI Vision^[1]. This cost reduction, according to a report by Business Wire, has freed up capital to fund AI initiatives that enhance talent capabilities, accelerate program development, and improve operational efficienciesKBS Partners with Rimini Street to Accelerate its AI Vision^[1].

The partnership is rooted in what KBS describes as a “composable ERP strategy,” prioritizing flexibility and control over its IT roadmapKBS Partners with Rimini Street to Accelerate its AI Vision^[1]. By retaining its customized SAP ECC 6.0 system—loaded with over 20 years of data on talent, financials, and operations—KBS has preserved a competitive differentiator while avoiding the disruption of a forced migrationKBS Partners with Rimini Street to Accelerate its AI Vision^[1]. Rimini Street's 24/7 access to global engineering talent further addresses technical knowledge gaps, ensuring critical systems remain stable during AI integrationKBS Partners with Rimini Street to Accelerate its AI Vision^[1].

Broader Implications for SaaS and Investor Value

KBS's approach reflects a growing skepticism toward vendor-mandated upgrades, particularly in the SaaS sector. Traditional software providers often tie customers to costly renewal cycles, but third-party support models like Rimini Street's offer an alternative: maintaining legacy systems while redirecting savings into innovation. For investors, this signals a shift in how companies allocate capital.

Data from Rimini Street indicates that organizations adopting such strategies can achieve cost savings of 50–70% compared to vendor-mandated supportKBS Partners with Rimini Street to Accelerate its AI Vision^[1]. These savings, when reinvested into AI and digital transformation, create a compounding effect. KBS's plan to leverage its data-rich SAP system for AI projects—such as predictive analytics for audience engagement or automated content production—exemplifies how legacy infrastructure can be repurposed for next-generation valueKBS Partners with Rimini Street to Accelerate its AI Vision^[1].

Moreover, the partnership aligns with Rimini Street's broader mission to extend support for SAP systems through 2040Rimini Street Announces the Extension of Support for All SAP ECC 6.0 and S/4HANA Releases Through 2040^[3]. This long-term commitment reduces the risk of obsolescence for clients, offering a stable foundation for innovation. For SaaS providers, the lesson is clear: flexibility and customer-centricity are increasingly valued over rigid, upgrade-driven models.

A Model for Investor Scrutiny

Investors should view KBS's strategy as a blueprint for balancing cost efficiency with innovation. By avoiding a $100 million+ migration to S/4HANA (a typical cost for large enterprisesKorean broadcaster KBS partners with Rimini Street to fund AI vision^[2]), KBS has preserved liquidity for high-impact AI projects. This approach mirrors trends in the tech sector, where companies like Netflix and Amazon have prioritized infrastructure optimization to fund R&D.

The financial benefits are quantifiable. If KBS's 50% maintenance fee reduction translates to $5 million in annual savings, and assuming a 10% ROI on AI initiatives, the broadcaster could generate $500,000 in incremental value yearly—a figure that compounds over time as AI systems scaleKBS Partners with Rimini Street to Accelerate its AI Vision^[1]. For Rimini Street, the partnership also represents a revenue win, with third-party support markets projected to grow 15% annually through 2030Rimini Street Announces the Extension of Support for All SAP ECC 6.0 and S/4HANA Releases Through 2040^[3].

Conclusion: The Future of SaaS-Driven Innovation

KBS's partnership with Rimini Street is more than a cost-cutting exercise—it's a strategic repositioning in the AI era. By rejecting SAP's upgrade agenda and embracing a third-party support model, the broadcaster has demonstrated how organizations can reclaim control over their IT budgets and redirect resources toward innovation. For investors, this case highlights the importance of identifying companies that prioritize agility and long-term value creation over short-term vendor compliance. As AI becomes a universal business imperative, partnerships like these will increasingly serve as catalysts for SaaS growth and investor returns.