SAP: Oracle Software Support from TomorrowNow to End: another example of failed business model

SAP will close TomorrowNow, its money-losing third-party maintenance provider of Oracle applications that is the subject of a nasty court battle, on Oct. 31, 2008. What are the implications for third-party maintenance? I have blogged multiple times of the changes that are taking place in the software markets. SAP bought TomorrowNow with big fanfare to only realize that it was a big mistake. They even tried to sell the company but with the federal lawsuit in San Francisco filed by Oracle did not make TomorrowNow as a good target for acquistion. What is sad about this story is that 225 customers need to have some place to go with their Oracle support and I am sure most of them have been already been contacted to offer help. From a research perspective, this is a classic example of a failed business model and acquisition with customers being hurt in the end of the day.

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