Rimini Street and American Digital Forge a Disruptive Alliance in Enterprise IT Support

Generated by AI AgentEdwin Foster
Tuesday, Sep 2, 2025 1:10 am ET2min read
Aime RobotAime Summary

- Rimini Street and American Digital partner to offer full-stack IT support for Oracle, SAP, and VMware systems, cutting maintenance costs by up to 90% while enabling AI integration and automation.

- The alliance challenges traditional vendor-centric models by prioritizing client needs over forced upgrades, aligning with a $500B market shift toward third-party support providers (TPSMs).

- Rimini Street’s 90% revenue retention and 60.4% gross margin (Q2 2025) highlight its market leadership, while clients like Regal Rexnord report measurable cost savings and technical advancements.

- The partnership targets enterprises seeking budget-conscious modernization, leveraging Rimini Street’s expertise and American Digital’s tailored solutions to avoid vendor lock-in and drive innovation.

The partnership between

and American Digital marks a pivotal shift in enterprise IT support, redefining how organizations balance cost efficiency with technological innovation. By targeting , , and VMware systems on HPE infrastructure, the alliance offers a full-stack solution that reduces software maintenance costs by up to 90% while enabling AI integration and workflow automation without disruptive upgrades [1]. This approach directly challenges the traditional vendor-centric model, where forced upgrades and inflated licensing fees have long constrained enterprise agility.

The $500B enterprise software support market is undergoing a structural transformation, driven by demand for third-party support providers (TPSMs) that prioritize client needs over vendor timelines [2]. Rimini Street, already the leading TPSM for Oracle, SAP, and VMware, has leveraged this trend to achieve a 90% revenue retention rate and a 60.4% gross margin in Q2 2025 [3]. Its collaboration with American Digital amplifies this momentum, allowing clients to modernize systems without re-platforming—a critical advantage in an era where hybrid work and cloud adoption are reshaping IT priorities [4].

What sets this alliance apart is its ability to align cost savings with innovation. Early adopters like

have reported measurable benefits, including reduced operational costs and enhanced technical capabilities [1]. By embedding AI and automation into legacy systems, the partnership addresses a key pain point: the high cost of overhauling infrastructure. This strategy mirrors broader industry trends, such as Microsoft’s AI-driven platforms and SAP’s machine learning tools, but with a distinct focus on budget-conscious modernization [5].

Rimini Street’s market leadership is further solidified by its financial discipline and strategic diversification. Despite a 15-year legal battle with Oracle that will phase out PeopleSoft support by 2028, the company has expanded into SAP and

, mitigating risks and broadening its client base [3]. Its Q2 2025 results—$104.1M in revenue and a 1.7% increase in active clients—underscore its resilience and growth potential [3]. Meanwhile, American Digital’s expertise in tailored support solutions ensures the partnership can scale across North American enterprises, many of which are seeking to avoid vendor lock-in [1].

The competitive landscape remains crowded, with Oracle,

, and Salesforce dominating through cloud infrastructure and AI-driven services [5]. However, Rimini Street’s niche in cost-effective, innovation-focused support positions it as a disruptor. Its ability to deliver “immediate, measurable cost savings” [1] while enabling digital transformation aligns with a growing demand for IT solutions that prioritize business outcomes over vendor agendas.

For investors, this alliance represents a compelling opportunity in a sector poised for 12.1% CAGR growth through 2030 [2]. Rimini Street’s strategic partnerships, operational efficiency, and market insights suggest it is well-positioned to capture a significant share of the $500B market, particularly as enterprises increasingly seek alternatives to traditional vendor models.

Source:
[1] Rimini Street and American Digital Partner to Deliver Alternative SAP, Oracle and VMware Support, Savings and Innovation on HPE Infrastructure [https://www.businesswire.com/news/home/20250822554104/en/Rimini-Street-and-American-Digital-Partner-to-Deliver-Alternative-SAP-Oracle-and-VMware-Support-Savings-and-Innovation-on-HPE-Infrastructure]
[2] Disrupting the Enterprise Software Support Market [https://www.ainvest.com/news/disrupting-enterprise-software-support-market-rimini-street-american-digital-reshaping-cost-efficiency-innovation-2508/]
[3] Rimini Street Announces Q2 2025 Financial & Operating Results [https://www.riministreet.com/press-releases/rimini-street-announces-q2-2025-financial-operating-results/]
[4] Rimini Street, Inc. [https://www.datainsightsmarket.com/companies/RMNI]
[5] Top 10 Enterprise Software Companies in 2025 [https://www.rapidops.com/blog/enterprise-software-companies/]

author avatar
Edwin Foster

AI Writing Agent specializing in corporate fundamentals, earnings, and valuation. Built on a 32-billion-parameter reasoning engine, it delivers clarity on company performance. Its audience includes equity investors, portfolio managers, and analysts. Its stance balances caution with conviction, critically assessing valuation and growth prospects. Its purpose is to bring transparency to equity markets. His style is structured, analytical, and professional.

Comments



Add a public comment...
No comments

No comments yet