New Survey of VMware Customers Reveals Strong Desire to Maximize the Value of Perpetual Licenses

(BUSINESS WIRE)--Rimini Street, Inc. (Nasdaq: RMNI), a global provider of end-to-end enterprise software support and innovation solutions, the leading third-party support provider for Oracle, SAP and VMware software, today announced the findings of the report, “Insights and Strategies on VMware: Navigating the Evolving Hypervisor Market.” The Rimini Street-sponsored research was conducted in Q3 2024 amongst 110+ VMware customers, exploring how they are navigating changes in pricing structure and new subscription bundling since Broadcom’s acquisition of the hypervisor provider.

The analysis of the data revealed that nearly all VMware customers surveyed are proactively seeking paths to take control of their VMware roadmap, focusing on opportunities to lower cost, buy more time, and bring greater stability to the organization amidst turbulent changes in the hypervisor market.

Customers Seek to Maximize Value of Current VMware Software While Assessing Hypervisor Options

The majority of survey respondents (79%) stated their current perpetually licensed VMware software meets their business needs. With VMware customers being compelled to give up their perpetual licenses and switch to a subscription model, along with changes in how products are bundled, the resulting significant price increases for many customers has led to organizations seeking alternative hypervisors.

However, the survey results also indicate 99% of the respondents would consider continuing to utilize current perpetually licensed software if they could acquire support.

Given these dynamics, customers are motivated to seek VMware alternatives over time. 96% of survey respondents stated they see value in roadmap services to help assess VMware alternatives. In fact, 98% of respondents are already using, planning to use or considering alternatives for at least a part of their VMware estate. With growing concerns around market uncertainty and Broadcom policies, 92% of those surveyed anticipate additional VMware price increases within the next 12-18 months.

“Giving up control over perpetual licenses due to forced vendor subscription models is like turning in keys to your paid-off home to rent the same house from a landlord. The results of this survey highlight that while VMware customers are happy with their software, they are concerned with price increases and changes in licensing, and are seeking alternative strategies,” says Rodney Kenyon, group vice president of Rimini Custom™. “With our award-winning, industry-leading support, Rimini Street has helped thousands of organizations around the world extend the life and value of their current enterprise software releases, including VMware. For organizations that prefer to maintain their existing VMware environment rather than pursue an alternative solution, third-party support offers a powerful option. We provide clients with comprehensive support and optimization for their current software while also helping them define and execute strategic roadmap plans.”

Additional Survey Findings Identify AI and Cloud Hypervisor Market Transformation

71% of respondents identify cloud-native solutions as the top influence on the hypervisor market, with 70% of respondents citing AI as a major impact. The hypervisor landscape is undergoing a transformation, led by new cloud-native technologies, AI innovations and new computing options. With notable changes coming to market in the next few years, perpetual licensees have greater incentive to keep running their systems longer as they explore new solutions to meet their evolving needs.

In addition to support, Rimini Street provides expert guidance and roadmap services to help VMware customers evaluate and determine the best strategy to optimize costs and reduce complexity.

Access the full, comprehensive report, “Insights and Strategies on VMware: Navigating the Evolving Hypervisor Market,” here.

About Rimini Street, Inc.

Rimini Street, Inc. (Nasdaq: RMNI), a Russell 2000® Company, is a global provider of end-to-end enterprise software support and innovation solutions and the leading third-party support provider for Oracle, SAP and VMware software. The Company offers a comprehensive portfolio of unified solutions to run, manage, support, customize, configure, connect, protect, monitor, and optimize enterprise application, database, and technology software. The Company has signed thousands of contracts with Fortune Global 100, Fortune 500, midmarket, public sector and government organizations who selected Rimini Street as their trusted, proven mission-critical enterprise software solutions provider and achieved better operational outcomes, realized billions of US dollars in savings and funded AI and other innovation investments.

To learn more, please visit www.riministreet.com, and connect with Rimini Street on X, Facebook, Instagram, 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 “anticipate,” “believe,” “continue,” “could,” “currently,” “estimate,” “expect,” “future,” “intend,” “may,” “might,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “seem,” “seek,” “should,” “will,” “would” 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, adverse developments in and costs associated with defending pending litigation or any new litigation, including the disposition of pending motions to appeal and any new claims; additional expenses to be incurred in order to comply with injunctions against certain of our business practices and the impact on future period revenue and costs; changes in the business environment in which Rimini Street operates, including the impact of any macro-economic trends and changes in foreign exchange rates, as well as general financial, economic, regulatory and political conditions affecting the industry in which we operate and the industries in which our clients operate; the evolution of the enterprise software management and support landscape and our ability to attract and retain clients and further penetrate our client base; significant competition in the software support services industry; customer adoption of our expanded portfolio of products and services and products and services we expect to introduce; our ability to grow our revenue, manage our cost of revenue and accurately forecast revenue; the expected impact of recent and anticipated future reductions in our workforce and associated reorganization costs; estimates of our total addressable market and expectations of client savings relative to use of other providers; variability of timing in our sales cycle; risks relating to retention rates, including our ability to accurately predict retention rates; the loss of one or more members of our management team; our ability to attract and retain additional qualified personnel, including sales personnel, and retain key personnel; our business plan, our ability to grow in the future and our ability to achieve and maintain profitability; our plans to wind down the offering of services for Oracle PeopleSoft products; the volatility of our stock price and related compliance with stock exchange requirements; our need and ability to raise 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; risks associated with global operations; our ability to prevent unauthorized access to our information technology systems and other cybersecurity threats, protect the confidential information of our employees and clients and comply with privacy regulations; our ability to maintain an effective system of internal control over financial reporting; our ability to maintain, protect and enhance our brand and intellectual property; changes in laws and regulations, including changes in tax laws or unfavorable outcomes of tax positions we take, a failure by us to establish adequate tax reserves, or our ability to realize benefits from our net operating losses; the impact of environmental, social and governance (ESG) matters; our credit facility’s ongoing debt service obligations and financial and operational covenants on our business and related interest rate risk, including uncertainty from the transition to SOFR or other interest rate benchmarks; the sufficiency of our cash and cash equivalents to meet our liquidity requirements; the amount and timing of repurchases, if any, under our stock repurchase program and our ability to enhance stockholder value through such program; uncertainty as to the long-term value of Rimini Street’s equity securities; catastrophic events that disrupt our business or that of our clients; and those discussed under the heading “Risk Factors” in Rimini Street’s Quarterly Report on Form 10-Q filed on October 30, 2024, 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.

© 2024 Rimini Street, Inc. All rights reserved. “Rimini Street” is a registered trademark of Rimini Street, Inc. in the United States and other countries, and Rimini Street, the Rimini Street logo, and combinations thereof, and other marks marked by TM are trademarks of Rimini Street, Inc. All other trademarks remain the property of their respective owners, and unless otherwise specified, Rimini Street claims no affiliation, endorsement, or association with any such trademark holder or other companies referenced herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241211557422/en/