LAS VEGAS & SÃO PAULO--(BUSINESS WIRE)--Rimini Street, Inc. (Nasdaq: RMNI), a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner, today announced that it has been awarded three separate contracts to provide enterprise software support to agencies linked to the Legislative, Executive and Judiciary branches of the Brazilian government, specifically the Chamber of Deputies, the Superior Labor Court and APEX Brasil, an independent social service agency. The Brazilian government public procurement processes were put in place to ensure that public sector organizations work with providers in a manner that is transparent, efficient, ensures economy of scales and the best optimization of public resources.
Rimini Street Addresses Public Sector Demands for Cost Optimization
In 2019 the Ministry of Economy, which is responsible for planning the whole of Brazil’s budget, issued a mandate – Normative Instructions 01 and 02 – requiring all public sector organizations to carefully evaluate their IT costs in general, including technical support services and IT systems providers, to ensure the most attractive cost-benefit ratio. Those regulations were preceded by a decision from 2018 (Ruling 2,569/2018) issued by the Tribunal de Contas da União (TCU), which is responsible for overseeing and ensuring that public entities are spending their funds judiciously and on activities and items that have been earmarked specifically for these funds. That ruling had demonstrated that some commercial practices adopted by the major IT providers could cause losses to the public administration, guiding institutions to seek more advantageous alternatives that could favor competition.
The mandate also provides that the Brazilian federal public administration prioritize the improvement of services to its citizens, ensuring that investments made in the R$ 8 billion Information and Communication Technology (ICT) sector for these services benefit the wider public need. Technology has a fundamental role in the government/citizen relationship and therefore the resources directed to it need to be extremely well managed with transparency.
Prior to Rimini Street’s launch in the Brazilian public sector market, no public bids for support for Oracle or SAP systems occurred as the only support options available were offered by the original software vendors and their partners. Today Rimini Street is on the official list of support providers, offering an alternative solution that can better meet the needs of Brazil’s public sector entities via a more competitive value proposition which helps organizations maximize their software investments, and provides a premium level enterprise support experience not generally offered by the original vendor.
Although Brazil is among the countries that spend the most on technology, this spend does not typically result in innovation capacity – Brazil ranks 66th in the Global Innovation Index among 129 countries, according to the World Intellectual Property Organization. And according to some industry analyst firms, many organizations spend approximately 90% on ongoing operations, or “keeping the lights on,” with only 10% left over to drive innovation initiatives. This funding model makes it increasingly challenging for CIOs to find additional budget for critical spending innovation that will help their business grow and gain competitive advantage.
“More than ever before, Brazil needs to take a major leap in competitiveness with regard to its capacity for innovation. Optimizing IT resources, decreasing unnecessary IT spend and directing this money to invest in priorities is fundamental for public and private organizations to make their way through the current crisis and emerge stronger on the other side of this global pandemic,” said Edenize Maron, general manager, Latin America, Rimini Street. “These contracts in the Brazilian public sphere will allow us to deliver the same savings and efficiency benefits to the government sector that Rimini Street has been offering to more than 3,700 companies globally including more than 100 organizations in Brazil.”
About Rimini Street, Inc.
Rimini Street, Inc. (Nasdaq: RMNI) is a global provider of enterprise software products and services, the leading third-party support provider for Oracle and SAP software products and a Salesforce partner. The Company offers premium, ultra-responsive and integrated application management and support services that enable enterprise software licensees to save significant costs, free up resources for innovation and achieve better business outcomes. To date, more than 3,700 Fortune 500, Fortune Global 100, midmarket, public sector and other organizations from a broad range of industries have relied on Rimini Street as their trusted application enterprise software products and services provider. To learn more, please visit https://www.riministreet.com, follow @riministreet on Twitter and find Rimini Street on Facebook and LinkedIn.
Forward-Looking Statements
Certain statements included in this communication are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “may,” “should,” “would,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “seem,” “seek,” “continue,” “future,” “will,” “expect,” “outlook” or other similar words, phrases or expressions. These forward-looking statements include, but are not limited to, statements regarding our expectations of future events, future opportunities, global expansion and other growth initiatives and our investments in such initiatives. These statements are based on various assumptions and on the current expectations of management and are not predictions of actual performance, nor are these statements of historical facts. These statements are subject to a number of risks and uncertainties regarding Rimini Street’s business, and actual results may differ materially. These risks and uncertainties include, but are not limited to, the duration of and operational and financial impacts on our business of the COVID-19 pandemic and related economic impact, as well as the actions taken by governmental authorities, clients or others in response to the COVID-19 pandemic; catastrophic events that disrupt our business or that of our current and prospective clients, changes in the business environment in which Rimini Street operates, including inflation and interest rates, and general financial, economic, regulatory and political conditions affecting the industry in which Rimini Street operates; adverse developments in pending litigation or in the government inquiry or any new litigation; our need and ability to raise additional equity or debt financing on favorable terms and our ability to generate cash flows from operations to help fund increased investment in our growth initiatives; the sufficiency of our cash and cash equivalents to meet our liquidity requirements; the terms and impact of our outstanding 13.00% Series A Preferred Stock; changes in taxes, laws and regulations; competitive product and pricing activity; difficulties of managing growth profitably; the customer adoption of our recently introduced products and services, including our Application Management Services (AMS), Rimini Street Advanced Database Security, and services for Salesforce Sales Cloud and Service Cloud products, in addition to other products and services we expect to introduce in the near future; the loss of one or more members of Rimini Street’s management team; uncertainty as to the long-term value of Rimini Street’s equity securities; and those discussed under the heading “Risk Factors” in Rimini Street’s Quarterly Report on Form 10-Q filed on November 5, 2020, and as updated from time to time by Rimini Street’s future Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings by Rimini Street with the Securities and Exchange Commission. In addition, forward-looking statements provide Rimini Street’s expectations, plans or forecasts of future events and views as of the date of this communication. Rimini Street anticipates that subsequent events and developments will cause Rimini Street’s assessments to change. However, while Rimini Street may elect to update these forward-looking statements at some point in the future, Rimini Street specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Rimini Street’s assessments as of any date subsequent to the date of this communication.
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