Origina Achieves Record Quarterly Growth in $1bn Third-Party Software Support Sector
First Quarter of 2021 Yields Year-Over-Year Growth Rate of 75 Percent as More Enterprises Seek an Alternative to Costly IBM Software Support Contracts
DUBLIN, March 2, 2021 /PRNewswire/ -- Origina, the only provider of third-party IBM software support and value-added services, today announced that its quarterly performance in Q1 2021 included €9.364M in new billings, marking a 75 percent increase in billings growth compared to Q1 of 2020. In addition to a jump in enterprise customer acquisition, Origina experienced a 426% YoY increase in new business from existing customers. Origina attributes this rapid growth to the need by global companies to streamline costs associated with maintaining the performance of legacy IBM products.
"Origina's proven third-party model gives enterprises a better alternative to IBM annual support, which is expensive and often frustrating," said Tomás O'Leary, CEO, Origina. "Enterprises who select Origina as their support partner have seen significant savings--an average of 50 percent compared to IBM annual support--while extending the lifecycle of more than 800 IBM applications. Our knowledgeable, dedicated Global IBM® Experts work closely with our customers to assess their specific challenges and provide customized solutions. This intimate support is the primary reason why our services are gaining more traction with new international customers. Once we begin working with customers, the trust relationship grows, and they're more apt to keep working with us."
Gartner has identified the third-party software support market to be primed for explosive growth over the next five years, predicting that revenue for this sector will triple to more than $1 Billion USD by 2023. In its 2020 report, Gartner notes, "Uptake of independent third-party support is increasing year over year. The software vendors' cloud-first fixation means that, for certain on-premises applications, third-party support may be the only alternative. As on-premises clients face a decreasing number of options, uptake of independent third-party support is expected to increase substantially." The report adds that the savings realized from the third-party support model "allows customers to use the savings (of at least 50% in costs) to fund digital transformation projects that they were unable to achieve while stuck in an ever-increasing support cycle."
The marked growth in Origina's Q1 2021 billings follows this trend. During Q1, Origina closed a total of 44 customer transactions, a record quarterly performance for the company that introduced €9.364M in new billings. This is a YoY increase of 75 percent in new invoices raised. Origina acquired 17 new customers in Q1 2021, representing 70 percent YoY growth in new customer business and a record performance for new customer transactions in a quarter. These 17 new customers represent a potential combined revenue portfolio of €174B. Origina reports that the deals were heavily focused on the telecommunications and retail sectors. Origina finalized eight new transactions with existing customers, accounting for €2.766M in new billings in the quarter. This is a 426 percent increase YoY in new transaction billings raised from existing customers. Opportunities transacted with 21 existing customers throughout the quarter represent €694B in a potential combined revenue portfolio.
To learn more about how Origina's proven third-party IBM software support and value-added services help enterprises cut operational costs while extending the lifecycle of their investments, request a free feasibility assessment with our Global IBM® Experts.
About Origina
Founded in 2012, Origina is the only third-party provider of intimate software support and value-added services for more than 800 IBM® Passport Advantage applications. Origina has helped more than 100 organizations in 17 countries achieve significant savings in IBM software maintenance costs while extending the software's lifecycle and improving its performance, stability, and security. Origina's international team of independent Global IBM® Experts delivers responsive support and in-depth technical knowledge where companies need it most. For more information, visit https://www.origina.com.
SOURCE Origina
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