Retail Leader Avoids Costly ELA Renewal Through Independent Support

Customer Profile

The customer is a large global retail company operating across multiple markets through both physical stores and e-commerce channels. They employ thousands of people and generate annual revenues of more than $2 billion.

Industry

Retail

Location

Global

Products

IBM Mainframe

IBM DB2

Cloud Pak for Integration (MQ)

Company Size

Large

Revenue

$2B+

The Problem

OEM Renewal Creates Strategic Decision Point for Retail Leader

The company relies on stable IBM environments to support critical retail operations. With core systems performing reliably and meeting business requirements, the organization's priority was maintaining operational stability rather than introducing major change. Several key environments were expected to remain largely unchanged for years to come.

As its IBM Enterprise License Agreement (ELA) approached expiration at the end of the year, the company faced a strategic decision. It could renew with the OEM for another three-year term at significantly higher cost or explore an alternative support model better aligned to its long-term operating plans.

The existing ELA was valued at approximately $45 million over three years. Renewal projections indicated an additional $10–15 million in costs, with future licensing and support commitments expected to increase spending further over time. With rising costs outweighing the value of the proposed renewal, the company began evaluating alternative support models.

A looming ELA deadline prompted the company to evaluate alternatives to a costly OEM renewal.

The Solution

Independent Support Aligns with Long-Term Operating Plans

As part of its evaluation process, the company engaged Origina to explore alternatives to the OEM support model. Origina's assessment demonstrated how an independent support strategy could reduce costs while providing greater flexibility for future technology decisions.

Origina developed a cost projection comparing the OEM renewal path with an independent support model, illustrating both the immediate cost increase and the longer-term financial impact of continued OEM support.

Origina presented two potential paths forward. The first was a hybrid model combining OEM and Origina support, reducing costs while allowing the company to retain elements of its existing support arrangement. While this option would not eliminate all the limitations associated with OEM support, it provided a lower-risk transition path for the organization to consider.

The second option was to transition fully to Origina's independent maintenance and support model. Unlike the OEM renewal path, this approach aligned with the company's plans to maintain stable IBM environments over the long term while retaining greater control over future technology decisions. Financially, it also created a path to avoid nearly $30 million in support and upgrade costs over the next three years.

Security and patch management were key considerations during the evaluation process. Origina's security specialists outlined the company's approach to vulnerability management, risk assessment, and long-term system stability, helping address concerns around operating outside the OEM support model.

The evaluation also demonstrated how independent maintenance could support the company's longer-term technology strategy. Several DB2 and MQ environments were expected to remain largely unchanged for the next five years and beyond. Origina's model aligned with this approach by supporting long-term stability without requiring ongoing upgrade cycles. The company also planned to retire selected products, including SPSS. Origina could provide interim support during the transition, helping maintain stability while modernization initiatives progressed.

Ultimately, the organization selected Origina to support its IBM environment, avoiding a costly OEM renewal and choosing a model better aligned to its long-term operational and technology objectives.

The Result

With Origina as its independent maintenance and support provider, the leading Retailer now has a path to:    

Avoid an estimated $30 million in additional OEM support and upgrade costs over the next three years
Maintain stable IBM environments without introducing unnecessary change or disruption
Support long-term plans to operate key DB2 and MQ systems with minimal modification
Create flexibility to modernize selected technologies on its own timeline
Reduce dependence on vendor-driven support and lifecycle requirements

"We took time to evaluate our options, and Origina consistently emerged as the strongest fit for our needs."

-CTO, Leading Retail Company. 