Global Manufacturing Company Achieves 58% Savings by Migrating to OCI

    Global Manufacturing Company Achieves 58% Savings by Migrating to OCI

    Company

    Headquartered in Troy, MI, this automotive original equipment manufacturer (OEM) is a leading global supplier of drivetrain, mobility, braking and aftermarket solutions for commercial vehicle and industrial markets.

    Key Technologies: Oracle Cloud Infrastructure (OCI) | Oracle Enterprise Manager (EM) 12c | Oracle EM Application | Quality Mgmt 11g | Oracle SOA Suite 11g | Oracle WebLogic Server 12c

    The Challenges

    In order to modernize their manufacturing processes and adopt innovations like IoT, Artificial Intelligence (AI), and Machine Learning (ML), this automotive OEM was looking to transform their IT infrastructure. They developed a strategy to move from a static on-premises data center to a more flexible, cost-effective cloud-based solution. Considering that the company’s $10.4 million per year data center contract was up for renewal, it was time for them to embark on a cloud journey.

    After using Rimini Street’s maintenance support for Oracle applications, they wanted to migrate their mission-critical business applications to cloud and reinstate maintenance with Oracle. The automotive OEM raised an RFQ to migrate their applications to cloud, implementing a cloud security solution, and application support from Oracle. However, the company would have had to pay backdated support costs, as well as a substantial reinstatement fee, with a combined estimated cost of $7 million to reinstate support from Oracle.

    The Solution

    Suneratech outlined clear-cut benefits of OCI, by outweighing pricing, offerings, performance and security metrics of major cloud vendors.

    The automotive OEM selected two partners to lead their cloud project. Suneratech recommended moving their entire data center footprint, which included more than 90 applications, to OCI, and implement the full suite of Oracle Cloud Security. With this all-in composing Oracle solution, Suneratech was able to help the automotive OEM get the $7 million support reinstatement bill waived.

    Aligning the Security Gaps Within a Well-defined Budget
    The manufacturer’s key enterprise application, Oracle EBS, ran on Solaris OS with application support from Rimini Street. Oracle EBS needed to be modernized on Linux OS, the preferred platform in OCI. The estimated transformation cost for implementing the new solutions and transitioning to Cloud Managed Services was $2.2 million, a cost which wasn’t budgeted for the fiscal year.

    Delivering Oracle Cloud Benefits Using Unique Pricing Model
    To shift costs from CapEx to OpEx, and stay within budget, Suneratech proposed a Zero Cost Cloud Migration (ZCCM) pricing model. Coupled with Suneratech’s cloud managed services, ZCCM provides predictable monthly costs and guaranteed savings. Suneratech doesn’t invoice the customer until the migration completes. This avoids paying the existing provider and incurrent the additional cost of migration at the same time. Suneratech’s Safe Return program also avoided the $7M backdated support costs.

    The Result

    The automotive manufacturer was able to migrate from their on-premises data center to a modern cloud infrastructure. In addition, they were able to reduce their annual spend from $10.4M to $4.4M, while eliminating CapEx associated with the data center.

    The significant savings from moving to OCI can be invested towards their future innovations and digital transformation.

    “With automotive OEM’s new modern cloud infrastructure, they are well positioned to drive more innovations and digitize operations.”
    Ravi ReddyPresident and CEO of Suneratech