Silicon Labs saves 50% on SAP costs with Rimini Street deal
Silicon Labs has selected Rimini Street as its partner to support and maintain its SAP ECC 6.0 systems, aiming to prolong the value of the current software investment and avoid the disruption associated with major upgrades.
ERP strategy
The semiconductor manufacturer has entered into a multi-year agreement with Rimini Street to provide long-term SAP maintenance, professional services, and support. The partnership follows a project where Rimini Street aligned 12 SAP environments at Silicon Labs with current operating system and database standards, resulting in improved system stability and compliance.
The engagement was designed to address technical debt, ensure platform security, and enable enhanced reporting functions critical for executive decision-making.
"Rimini Street not only delivered outstanding results for our SAP project, but we were also able to go live ahead of schedule, working side by side with our team to ensure success from start to finish," said Radhika Chennakeshavula, CIO and vice president, Silicon Labs.
Chennakeshavula said the updated SAP core continues to deliver operational value. Silicon Labs now seeks to further modernise the system through incremental improvements without migrating to a new SAP platform.
Cost focus
Silicon Labs has signed a five-year agreement for Rimini Support for SAP, which it said immediately produced a 50% saving on annual support costs. Additional solutions in use include Rimini Watch, an alternative for SAP's own change management tools. These are intended to allow faster implementation of new features in line with business growth strategies.
The company has stated a preference for targeted investment, particularly in developing new capabilities leveraging artificial intelligence, rather than undertaking platform upgrades.
"Our current SAP ECC investment continues to provide value across our operations. As part of our innovation strategy, we are accelerating new capabilities built on and around our SAP core, modernising where needed without the cost, risk and disruption of an unwanted move to RISE with SAP. I prefer to make impactful investments of our people, time and money to harness the full power of the latest AI technology rather than a low-ROI platform upgrade," said Chennakeshavula.
Silicon Labs is expanding its partnership with Rimini Street to include support for new AI-driven enhancements to its ERP systems. The deal reflects wider industry trends as manufacturers seek tailored ERP strategies and alternatives to standard upgrade cycles.
Ongoing support
The professional services project delivered ahead of schedule has established Rimini Street as a long-term collaborator, according to Silicon Labs. The agreement is intended to free up resources and enable the company to follow its own timeline for modernisation.
"Rimini Street is more than a service provider. They are now a trusted, long-term partner that respects our strategic direction, aligns with our vision and delivers real value," said Chennakeshavula. "Rimini Street frees up critical resources, fast-tracks innovation and provides expert support across our global operations, giving us the flexibility to modernise on our own terms and timeline."
Industry perspective
Rimini Street is extending its focus within the manufacturing sector through this partnership, providing what it describes as end-to-end ERP support and AI integration services for its clients.
"We are proud to serve as a strategic partner to leading manufacturers such as Silicon Labs, helping to build a stronger, more secure operation that is agile in its ability to adopt the latest technology without lengthy migrations or replatforming," said Jeff Chenevey, VP of manufacturing industry solutions, Rimini Street.
