Silicon Labs has entered into a multi-year agreement with Rimini Street Inc. for long-term SAP maintenance and support as the company continues modernizing its SAP core. The partnership will help Silicon Labs optimize its SAP ECC environment while enabling the development of new capabilities across the business.
The U.S.-based semiconductor manufacturer had earlier enlisted Rimini Street’s services for a larger project involving alignment of its 12 SAP environments with modern operating system and database standards. Through this project, Rimini Street reduced Silicon Labs’ technical debt by improving platform stability and strengthening its security and compliance posture. The project also helped support better decision-making by enabling real-time reporting capabilities.
Modernization Without Migration
Through this latest strategic partnership with Rimini Street, Silicon Labs aims to add new capabilities built around its SAP core, maximizing its SAP ECC 6.0 investment, without the disruption and cost of migrating its SAP systems to the cloud.
Radhika Chennakeshavula, CIO and vice president of Silicon Labs, said the company is continuing to build on the value of its SAP ECC system while introducing new capabilities to support growth. She added that Silicon Labs is modernizing its SAP core in a way that aligns with its innovation strategy and preferred transformation pace.
The company’s strategy allows it to utilize third-party support as an existing SAP customer, to optimize current systems, as they shape long-term SAP S/4HANA strategies.
Immediate Savings, Expanded Capabilities
The five-year agreement, which reflects the diversity of modernization paths across the SAP customer ecosystem, will get Silicon Labs:
- Immediate savings of 50% on support costs, annually.
- Access to Rimini Watch, Rimini Street’s change management alternative solution to SAP Solution Manager, supporting Silicon Labs’ ongoing growth initiatives.
- Access to Rimini Street’s Agentic AI ERP solutions.
Jeff Chenevey, Rimini Street’s VP of manufacturing industry solutions, said the company is proud to partner with manufacturers like Silicon Labs to help build secure, resilient operations capable of adopting new technologies without undergoing lengthy migrations or replatforming.
What This Means for ERP Insiders
ERP roadmaps are increasingly phased and influenced by market timelines. Silicon Labs illustrates how organizations can strengthen their existing ERP systems while navigating vendor-defined maintenance windows. By using this period to prioritize foundational upgrades and reduce technical debt, companies set themselves up to adopt next-generation platforms on a timeline that aligns with their strategy.
Reducing technical debt creates room for innovation. Strengthening the core environment gives companies more flexibility to adopt emerging capabilities such as AI and advanced analytics.
Hybrid support models are gaining traction. Third-party services are becoming part of broader ERP operating strategies, helping enterprises manage costs, free internal resources, and accelerate modernization on their own timelines.
