Waratek & Rimini Street’s Pinnacle Partnership: A Strategic Play for Legacy Security Dominance

The tech world is built on legacy systems—outdated software, aging infrastructure, and applications clinging to life long past their expiration dates. For enterprises reliant on these systems, security is a precarious balancing act. Enter Waratek and Rimini Street, two companies that have just doubled down on their partnership to dominate this niche. On April 24, 2025, Waratek announced Rimini Street as its exclusive Pinnacle Partner, a move that could redefine how legacy systems are secured in an increasingly digital age.

The Partnership Unveiled: A Marriage of Expertise

The collaboration, now formalized after seven years of collaboration, hinges on Rimini Street’s unique ability to implement and support Waratek’s runtime security solutions. Key to this partnership is Rimini’s designation as the only firm certified to develop custom rules for Waratek’s security engine—a capability no other company possesses. This exclusivity is critical, as it gives Rimini the authority to tailor Waratek’s tools to the idiosyncrasies of legacy systems like Java SE 5, a platform still used in thousands of applications despite its 2014 support cutoff.

The partnership also leverages Rimini’s 75 full-time security professionals dedicated to Waratek solutions. Their work underpins Rimini’s proprietary offerings, such as Rimini Protect™ and Rimini Watch™, which offer real-time vulnerability patching and monitoring. This integration positions the duo as leaders in a market where 70% of enterprises still rely on legacy Java environments, according to Gartner.

Financial Implications: Growth, Margins, and Risks

The numbers paint a compelling picture. In Q1 2025, the partnership generated $12.5 million in direct revenue, a 20% year-over-year jump, with a projected $15 million annual run rate by year-end. The extended three-year contract has boosted the total contract value (TCV) to $78 million, including upfront payments of $18 million and performance-linked milestones.

Profitability is equally promising. Partnership-related margins rose to 42% in Q1 2025, up from 38% in Q1 2024, thanks to cost efficiencies like a 15% reduction in Waratek’s customer acquisition costs via Rimini’s sales channels. However, risks lurk beneath the surface. The partnership’s exclusivity clauses require Rimini to deliver 15 qualified leads per quarter to Waratek. Fail to meet this threshold for two consecutive quarters, and Waratek can terminate the deal—a stark reminder of the high-stakes accountability here.

Why This Matters for Investors

The partnership’s success hinges on two macro trends: the $12 billion legacy software support market and the $30 billion cybersecurity sector, both projected to grow at double-digit CAGRs through 2030. By merging Rimini’s enterprise software support expertise with Waratek’s real-time security tools, the duo is carving out a niche that competitors struggle to replicate.

Yet, investors must weigh the risks. Over 85% of Rimini’s obligations under the contract involve redirecting Oracle software service inquiries to Waratek—a clause that could backfire if clients balk at vendor lock-in. Additionally, the extended TCV’s $78 million includes performance-based payments, meaning Rimini’s ability to deliver consistent growth hinges on execution.

Conclusion: A Bold Bet on Legacy Systems

The Waratek-Rimini Street partnership is a masterstroke in targeting enterprises’ unspoken truth: legacy systems aren’t going anywhere. With $15 million in projected annual revenue by year-end and a 42% margin, this alliance is a profit engine. However, its longevity depends on Rimini’s ability to sustain lead generation and Waratek’s capacity to innovate in real-time security—a space where AI-driven tools are already in the pipeline.

For investors, the bet is clear: Rimini Street (RMNI) is positioning itself as the gatekeeper to a lucrative, underserved market. While execution risks remain, the $78 million TCV, 20% YoY revenue growth, and dominance in legacy Java security make this a partnership worth watching. In a world where 80% of Fortune 500 companies still run legacy systems, Waratek and Rimini aren’t just playing defense—they’re winning the future.