LTCH Picks Spinnaker for SAP Third-party Support

My recent blog post said that third-party software service and maintenance providers continue to peel off lucrative maintenance contracts from large vendors one customer at a time. As the latest example, Spinnaker Support, a provider of SAP and Oracle JD Edwards and Siebel third-party maintenance, application/technical management, and consulting services, recently announced that Swiss manufacturer LTCH has chosen Spinnaker Support as its SAP support and maintenance partner.

LTCH is a manufacturer of precision carbide cutting tools specialized in milling and turning inserts made of state-of-the-art sub-micron grades and physical vapor deposition (PVD) coatings. The company’s only factory is located in Switzerland and all production processes of the products are made in-house to ensure the highest quality and consistency of production (but the business has five subsidiaries worldwide).

Since its founding in 2002, LTCH has relied on its SAP 4.6C enterprise resource planning (ERP) system to help the company satisfy customer requirements and meet business goals. LTCH was satisfied with its ERP application performance, and had no desire to migrate since the current environment was sufficiently meeting the business needs. But with the end of support for the company’s SAP application imminent and no system upgrade strategy as part of its IT roadmap, LTCH management decided to consider third-party maintenance and support options costing a fraction of what it was paying SAP.

More than 180 clients worldwide have chosen Spinnaker Support as their provider of choice. Spinnaker Support services are available across the globe via offices located in Denver, London, Singapore, and South Africa. But this win seems important for Spinnaker Support given that the firm has introduced SAP services only relatively recently (originally being a JD Edwards support shop). It now serves a growing population of SAP users that see third-party support as a viable and cost-effective solution, and want an experienced, reliable support and maintenance partner.

It is uncertain whether other service and maintenance solutions were on the table for LTCH. Quite possibly Rimini Street might have been considered for this opportunity, although the deal is somewhat smaller than its current average. Also, Rimini Street tends to have SAP customers with strong needs for tax and regulatory fixes, which does not appear to be the case here.
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