LAS VEGAS - Malaysian conglomerate Sunway Group has partnered with Rimini Street , Inc. (NASDAQ: NASDAQ:RMNI) to enhance its enterprise software support and management services. This strategic move aims to optimize IT spending and reallocate savings towards Sunway's digital transformation initiatives, including artificial intelligence (AI) and customer experience (CX) projects.
Sunway, which operates across diverse sectors such as construction, property, and healthcare, initially adopted JD (NASDAQ:JD) Edwards as its core ERP system. However, the upgrade process proved costly in terms of both expenses and operational downtime. Chief Information Officer Kevin Khoo noted that the upgrades not only incurred significant costs but also diverted valuable human resources that could have been better utilized in digital initiatives.
The engagement with Rimini Street began with the adoption of Rimini Support, followed by Rimini Manage services, after positive feedback from other clients. The partnership has allowed Sunway direct access to a dedicated Primary Support Engineer and expert management of its software, including customizations at no extra charge. Additionally, Sunway is guaranteed a stable ERP environment for 15 additional years while saving 50% on annual support fees and up to 90% on total support costs.
The cost savings have been channeled back into strategic technology adoptions that align with Sunway's business goals. According to Khoo, without Rimini Street's support, many of Sunway's projects would still be in the proposal phase. Now, the company has been able to execute AI and other major tech initiatives critical for future competitiveness and customer satisfaction.
Rimini Street, a global provider of enterprise software solutions and a partner to major software firms like Oracle (NYSE:ORCL), SAP, Salesforce (NYSE:CRM), and AWS, continues to support a wide range of organizations in achieving better business outcomes, reducing costs, and facilitating innovation.
The information in this article is based on a press release statement from Rimini Street, Inc.
InvestingPro Insights
In light of Rimini Street, Inc.'s (NASDAQ: RMNI) recent partnership with Sunway Group, it is pertinent to consider the company's financial health and market performance. Rimini Street's strategic focus on enterprise software support is underscored by a robust balance sheet, where the company holds more cash than debt. This positions Rimini Street advantageously to manage its financial obligations and continue investing in service enhancements and technology innovations that benefit clients like Sunway.
However, it's not all smooth sailing for Rimini Street. The company's short-term obligations currently outweigh its liquid assets, indicating potential liquidity challenges ahead. Furthermore, the market has reflected some concerns as the company's share price has seen a notable decline over the last three months, with a 23.84% drop in total return. This may raise eyebrows among investors considering the company's stability and long-term value.
From a valuation standpoint, Rimini Street is trading at a low revenue valuation multiple, which could suggest that the company is undervalued compared to its revenue generation capacity. This could be an attractive entry point for investors who believe in the company's profitability prospects, as analysts predict Rimini Street will be profitable this year, having already achieved profitability over the last twelve months.
Investors seeking a deeper dive into Rimini Street's financial metrics and future outlook can access additional InvestingPro Tips by visiting https://www.investing.com/pro/RMNI. There are currently 7 additional tips available, which provide insights that could help in making informed investment decisions. Moreover, users can take advantage of an exclusive offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to InvestingPro.
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