Exclusive: Rimini Street Supports CIOs in Combatting Vendor Lock-In for Enhanced SEO Benefits.
The escalating costs of maintaining vendor support are increasingly viewed by technology leaders as a barrier to innovation. In boardrooms across the ANZ region, Chief Information Officers (CIOs) and Chief Financial Officers (CFOs) are actively considering third-party support options, which can yield savings of up to 90% while regaining control from entrenched software vendors. David Rowe, Chief Marketing and Product Officer at Rimini Street, describes this situation as “a perfect storm” that compels leaders to take action. He emphasises the importance of maximising existing systems, freeing up funds and resources, and investing in projects that deliver greater value. Rowe highlights a critical issue: the disproportionate allocation of IT budgets, with 90% dedicated to “keeping the lights on” and only 10% available for innovation. This imbalance poses a universal challenge, as organisations must navigate the need for AI advancements without overspending on projects that fail to provide a return on investment.
Research conducted by ADAPT in 2025, involving 214 Australian organisations that collectively represent $571 billion in revenue—equivalent to 30% of Australia’s GDP—underscores the magnitude of the challenge. The top priorities identified include technology modernisation and simplification, enhancing operational effectiveness, and reducing costs. Gabby Fredkin, Head of Analytics at ADAPT, notes that technical debt, which refers to sunk costs in legacy and ineffective architectures, significantly hinders the delivery of cost-effective and efficient IT solutions. The findings also reveal that 70% of CIOs plan to invest in generative AI within the next year, while 24% have already deployed AI to boost employee productivity, primarily by freeing up staff time and lowering labour costs. A separate survey of 99 CFOs indicates that they believe 40% of deployed technology is underutilised or wasted, often due to duplication and vendor lock-in. Additionally, 50% of CFOs cite unclear fiscal responsibility as a barrier to managing cloud costs, and 48% report poor collaboration between IT and Finance regarding FinOps practices. Independent technology strategist Michael Warrilow has observed this frustration firsthand, noting that many organisations in Australia feel trapped by their incumbent software vendors. He advises that organisations experiencing poor support and infrequent upgrades should consider third-party software support as a viable alternative.
Rowe highlights examples of clients who have successfully redirected support savings into innovative projects. For instance, a pharmaceutical company in Brazil opted to automate processes using ServiceNow’s AI platform instead of pursuing a costly ERP migration. This decision allowed them to validate their capabilities within weeks and demonstrate their value to the business, resulting in increased funding for further initiatives. In Sweden, the rail operator Green Cargo redirected savings from Rimini Street into automation and predictive maintenance projects, leading to their CIO receiving multiple CIO of the Year awards for delivering recognised innovation. Rowe notes that CFOs are increasingly taking the lead in these discussions, driving the conversation towards more strategic investments in technology.
Categories: Vendor Support, Cost Reduction, Innovation Strategies
Tags: Vendor Support, Innovation, Third-Party Support, Cost Savings, IT Budgets, Technical Debt, Generative AI, Operational Effectiveness, Cloud Costs, Automation