OSG extends Rimini Street deal to 2029 to cut IT costs by 8%
Japanese manufacturer OSG Corporation has extended its agreement with Rimini Street for support of its Oracle E-Business Suite (EBS) systems through to 2029, with significant cost savings cited as a core reason for the renewed commitment.
OSG Corporation, which specialises in precision manufacturing of cutting tools, rolling dies, and machine parts, has continued its partnership with Rimini Street in support of strategic growth aims and efforts to optimise its IT expenditure.
Cost reduction and IT control
By partnering with Rimini Street, OSG reported an 8% reduction in total IT operating costs. The savings were achieved by reducing annual software support fees, which has allowed the company to redirect resources towards factory automation and productivity initiatives.
Go Harada, Head of IT Strategy at OSG Corporation, commented on the impact of the decision, stating, "The vendor's roadmap would have required us to keep upgrading for features we didn't need."
Harada further elaborated, "Signing with Rimini Street restored our ability to take control of our IT roadmap based on our business needs, and as a result, we achieved significant reduction in our fixed costs for Oracle maintenance and operation. These costs accounted for 86% of our total IT budget. With Rimini Street, we are no longer on the upgrade treadmill and were able to drive our total IT costs down to 78%, giving us the funds and flexibility to invest in creating new value."
"Nearly 90% of today's IT budgets are being used to 'keep the lights on,' leaving only 10% for innovation and growth. That is simply not enough," said Seth Ravin, CEO of Rimini Street. "At Rimini Street, our mission is to help organisations like OSG gain back more of those critical resources needed for projects that deliver even greater savings, more efficiency and growth potential for the business."
Choice of stability and flexibility
OSG has used Oracle E-Business Suite since 2010 to manage core processes such as sales, order management, inventory, accounting, and production. Despite Oracle's strategy pushing for cloud migration, OSG Corporation opted to maintain its on-premises architecture, which aligns more closely with its operational requirements and cost considerations.
Harada explained, "We considered migrating to the cloud, but decided against it. Our current EBS is built on an on-premises architecture and replicating that level of availability in the cloud would be extremely costly."
The company instead pursues a hybrid IT approach, integrating new digital tools that enhance efficiency while leveraging Rimini Street's support to ensure system stability. Harada continued, "Our goal is to connect our existing, customised systems to new digital tools in a way that increases factory productivity. Rimini Street makes it possible to deliver new innovations to support our business needs, on our terms and timeline."
Continuity in service and support
OSG Corporation indicated that its decision to continue with Rimini Street stems from the ongoing benefits experienced through the partnership. The extended agreement through 2029 reflects satisfaction with the level of support and the impact on operational agility and financial flexibility.
Harada shared, "Over the years, the relationship hasn't changed and that's rare. Rimini Street has treated us with the same level of care and attention as they did when we first signed on, and we value their expertise and guidance."
Nobutake Godo, Regional CTO of Rimini Street Japan, commented on the long-term nature of the partnership: "We are deeply humbled by OSG's decision to select Rimini Street as its long-term partner. The enduring commitment from both parties to each other's and the region's success is founded on the shared principal that business needs come first, technology second. We look forward to the years ahead, working together to strengthen and deliver on OSG's vision to dominate the tool manufacturing industry."
Rimini Street's ongoing remit covers support, security, system management, integration, and various professional services for OSG's Oracle EBS installations. The manufacturer's renewed commitment highlights a preference for long-term stability, control over IT strategy, and resource allocation aligned to productivity and innovation targets.
