IT aftermarket operators take fight to European Commission
HP, IBM and Oracle in cross-hairs of new not-for-profit body representing third-party hardware and software maintenance firms
Over 200 firms representing the IT aftermarket in Europe have joined forces to lobby EU lawmakers in response to recent moves made by HP, IBM and Oracle and other manufacturers to clamp down on third-party services firms.
Talking to CRN, Free ICT Europe secretary Tomás O'Leary said the not-for-profit foundation's formation was a reaction to the server firmware restrictions introduced by the likes of HP and IBM last year and Oracle's ongoing legal battle with Rimini Street.
O'Leary claimed third-party services firms and - ultimately European taxpayers - are getting a raw deal because of the increasingly aggressive tactics of the manufacturers towards the aftermarket.
They had co-existed relatively happily until about two years ago, when the big vendors began coming under pressure to drive more revenue from existing clients, O'Leary asserted.
"What prompted the entire secondary market to get together and do something was the commencement of what we call the boiling of a frog," he explained.
"Small, subtle changes were happening to certain parts of the assets and that impacted the choice that [end-user] businesses could make. What I mean specifically is things like changing firmware access, which made it more difficult for the owners of a licensed asset to firstly sell it on and secondly have a choice of who provided support once the warranty had expired."
Money raised from among Free ICT's members has been used to employ lobbyists in Brussels to open doors in the European Parliament and Commission.
Meanwhile, the foundation has begun coordinating its activities with the Campaign for Clear Licensing, a body set up last year to push for more transparency among software vendors.
O'Leary, whose own firm, Origina, claims it can save IBM software customers at least 50 per cent off their maintenance, said it was also vital that third-party software maintenance firms in Europe link arms in the wake of Oracle's legal pursuit of Rimini Street.
"Like anyone in this industry, I followed what was going on in the US with Oracle and Rimini Street and I figured they seem to be on their own to a certain extent. I didn't like the idea of being on my own so [I formed] a relationship with the [hardware] guys that have been in this a game a long time.
"This is about fair play," he added. "We just want people to have choice, and choices that are clear. The fact that there are no rules around that, well maybe there should be - and that's what we're looking for. If there are no rules, the software companies and hardware companies can pretty do what they want."
Martin Thompson, who co-founded CCL and who recently took up a place on Free ICT Europe's board following a formal alliance between the two bodies, said: "Both organisations are looking for fair play, transparency and the rights of buyers. That applies to software and hardware, so it seems to make sense that we look at the same legislation in Europe."
O'Leary said Free ICT Europe's lobbying efforts are already beginning to yield "real change".
"Fair play and the right to choose is already being inserted as part of some of the wording and some of the documents that are being produced at a European level, albeit at a discussion stage at this point in time," he said.
Software maintenance is a $200bn industry in terms of fees paid to the publishers, while the market hardware maintenance around datacentre assets alone is worth $100bn, O'Leary added.