The Challenge
Oando faced significant industry challenges, including; foreign exchange volatility, lower oil prices, Niger Delta militancy, and the service industry shrinkage. To counter the challenges, Oando looked to their internal IT department to cut expenditures without affecting technology advancements. Oracle support fees surfaced as one of the largest expenditures in Oando’s budget. Their CIO explored alternatives, including third-party support. Increasing dissatisfaction with the quality of Oracle support, combined with the high cost of both application and database support, made for a straightforward business case.
Spinnaker Support knows EBS and is delivering as promised. Their robust, audited processes enabled timely, smooth onboarding away from Oracle maintenance. Oando is realizing significantly faster speeds of response, problem diagnosis, and issue resolution for less cost. In 2017, we plan to expand our services with Spinnaker Support to upgrade Oracle Database versions.
– Segun Oyeniyi
The Approach
Oando began investigating third-party support options and quickly realized vital distinctions between Oracle’s portal-centric support offering and Spinnaker Support’s more personalized support model. Oando sought to reduce its Oracle software and database maintenance fees while significantly improving their level of support through customized service with ready access to experienced support personnel. The company desired a partner with the Oracle competency, global infrastructure, proven support methods, and stringent business practices required to replace Oracle-provided support; one that would deliver more value for money spent.
Oando chose Spinnaker Support, in part, based on a pricing policy to align support fees with licenses used; a credit for shelfware and unused licenses. This unique approach provides more savings on annual maintenance fees. Oando was also impressed with Spinnaker Support’s Technology Center of Excellence resources, who deliver support and guidance regarding ongoing interoperability protection, full technology stack security, and future upgrades or cloud migration plans. These resources come standard with every support agreement.
The Solution
Oando signed a multi-year agreement with Spinnaker Support in January of 2016 for EBS application, Oracle Database, and Fusion Middleware support. They noted the following reasons:
- Greater responsiveness and professionalism during the pre-sales and due diligence period.
- Commitment to finding a win/win solution to an extremely urgent problem.
- Lowest price point, based on concessions for unused licenses and shelfware. Oando received more than 60% discount off of Oracle support fees – much more attractive than the competition’s standard 50% discount.
- Oando gained an assigned Account Support Lead and named team of support engineers with specific expertise mapped to their unique Oracle environment.
- A unique blend of additional service capabilities, e.g., Oracle managed services and consulting, that can be leveraged in the future if needed.
- One partner for all their support needs: applications, database, and middleware under one umbrella.
The Results
Oando PLC dramatically reduced annual maintenance fees, which helped with the execution of its strategic plan. By replacing expensive Oracle Support with Spinnaker Support, the company is now redirecting over $4 million (over five years) towards cash injection, restructuring of debt, and deleveraging the balance sheet.
Oando continues to progress through a strategic transformation and has already reallocated support funds for strategic IT initiatives. The savings afforded by Spinnaker Support are helping Oando redirect costs to R&D – so they remain on the leading edge of innovation and continue to expand their market reach. Oando values are to enrich lives by aligning business priorities with their economic, social, and environmental responsibilities. Oando’s key initiatives support and strengthen the community with grants, infrastructure development, and employee volunteerism.