A 3-Part Blog Series for CFOs
April 7, 2020 | Jim Nollsch | CFO
COVID-19 is an equal opportunity enemy. Every finance leader I know is looking at every option available to find out how to build a stronger balance sheet to get through these uncertain times.
As a CFO, I’ve never experienced a time like this: travel bans, diving oil prices, plummeting auto sales, mass retail business closures – all hitting at the same time. Add the further complication of quarantines where employees must work remotely (if they can), and sadly, millions more are now filing for unemployment benefits.
Here at Spinnaker Support, we took swift measures to safeguard our employees and their families to head off the threat of COVID-19 extraction and spread. At the same time, we are obligated to meet customer service commitments to keep Oracle and SAP software up and running at peak performance.
Fortunately, protecting our employees while fully servicing our customers works hand in hand. Since we deliver our third-party support and managed services remotely – a model that we have practiced since inception in 2008 – there is no disruption to service quality or responsiveness. We are built for good conditions and the worst of crises.
It’s now clear that a recession is upon us. The only question is, for how long? The game has really changed.
Muted Optimism
There is widespread optimism that the recession will be short-lived, that business will return to normal within three months if the spread of coronavirus were to end immediately. Having anticipated economic and geopolitical shock, many businesses are executing scenario-based contingency and continuity plans.
But COVID-19 is no ordinary shock. As it unfolds – particularly for some industry sectors – it is countering the ability for companies to shift strategy and reallocate investment. It has driven a short-term survival approach, and Finance Leaders are struggling to manage short-term cost and cash flow challenges.
How Third-Party Oracle and SAP Support Can Help in a Time Like This
As an industry leader in the third-party support (3PS) business, Spinnaker Support is in a position to be a tool for Finance Leaders to navigate through this crisis. Prior to the crisis, 3PS was surging in popularity as companies found more value than from the support provided by Oracle or SAP.
The sector’s rapid growth is driven by better overall service, lower fees, more predictable and controllable costs, and the end of forced migrations to unready cloud replacement alternatives. The dramatic cost savings from 3PS are typically redirected to drive innovation and digital transformation.
Now add COVID-19 into the mix. Many businesses need to reduce costs now and are putting innovation and digital transformation projects on the back burner. They seek smart ways to defer cash outflow. Through all this, business-critical software applications must keep running smoothly despite work-from-home mandates.
Here at Spinnaker Support, customers are asking us to step in and provide services above and beyond anything that’s defined in a standard statement of work. They are trusting us with their most mission-critical applications. Prospective customers are inquiring about how we can help and if they have the time to transition to 3PS before their expensive Oracle or SAP support contracts automatically renew.
So, how can 3PS help in times like this?
- It can cut your first support payment of 2020 by 90%
- It provides better service that demands less of internal IT staffs and more from the vendor
- It delivers immediate cost savings on average of 62% compared to Oracle- and SAP-provided support
- It helps with cash flow management
- 3PS enables more time to prepare for migration to the optimal cloud solution.
What this Blog Series Covers
Over the course of this blog series, I will outline five steps for making a swift transition to third-party Oracle or SAP support. These steps help Finance leaders:
- Get up to speed on the basics of 3PS
- Confirm a timeline and that a switch to 3PS is possible
- Build the business case for 3PS
- Gather and submit the information needed by the vendor for accurate scoping and pricing
- Engage the right internal stakeholders to reach a team decision
Finance Needs to be Ready
COVID-19 has hit people and businesses with unprecedented force. 3PS has proven to be a safe, effective way to help businesses withstand the immediate onslaught and better navigate through the recovery period and beyond. It is certainly worth some investigation.
To get started, download our free CFO Quick Start Guide with the details and resources about how to make a speedy transition to third-party software support.
Read Part 2 – Time is of the Essence
Read Part 3 – Engage Your Stakeholders
