E22 Services Utilized:

Client/Environment

A manufacturing company with over $750M in annual revenues and plants distributed across the continental United States.

The client had historically hosted and maintained their J.D. Edwards ERP system in an IBM AS/400 environment. This environment and the corresponding internal staff evolved over 15+ years as the business expanded and matured.

Problem

As the client’s industry and business environment became increasingly competitive, pressure continued to mount on the IT department to reduce costs. Maintaining the internal implementation of J.D. Edwards required the cost of the hardware, facilities and staff. The client also had no reliable disaster recovery plan or business continuity capability for J.D. Edwards if their headquarters were unavailable or went offline.

Solution

E22 performed an initial budget analysis and concluded that moving the J.D. Edwards ERP system to a cloud hosting provider would create significant savings for the client while increasing its stability, availability and reliability. A detailed project plan was created with:

  • A Return on Investment (ROI) analysis including the payback term, internal rate of return and net present value of the project.
  • A cash flow model detailing payments throughout the life of the migration project and the first five years of hosting.
  • A comprehensive budget including external and internal costs.
  • A milestone-driven schedule.

After an exhaustive RFP process a specific hosting provider was selected and the project commenced. Through rigorous project management, the migration was completed on time and under budget.

Outcome

After the successful implementation, the client was able to eliminate all hardware and licensing costs for their entire IBM AS/400 environment. Internal staff was reallocated thereby reducing the staff dedicated to J.D. Edwards support from four employees to one part-time contractor.

By moving J.D. Edwards to a secure, dedicated hosting facility with robust operational continuity systems, the client removed the risk of a headquarters outage affecting the entire company and also gained the hosting facility’s existing disaster recovery ability for their own data centers.

The client was able to realize an annual year-over-year savings of over $500,000.
By leveraging the right cloud services, we were able to help our client realize over $500,000 / year in savings, while increasing operational stability.
Josh Gold, Chairman