Why placing your on-premise systems to the cloud makes sense: a customer example
It seems like everyone has been preaching the benefits of the cloud for years. Tech marketers remind us that “everyone is in the cloud” and that it’s the only way to stay competitive: “if you’re not in the cloud, you might as well close up shop.”
There is truth to what they tell us, and their message is going to keep getting louder until everyone’s on cloud 9. Don’t get me wrong, no one can predict the future, but we’ve seen first-hand how organizations are benefitting from moving to the Azure cloud. We’re also realistic and know that every company has a unique situation with specific needs and their reasons for staying on-prem are valid.
We’re currently working with a food manufacturer that’s operated its ERP on Microsoft Dynamics AX2012 on-premise for years. For various reasons it does not yet make sense for them to acquire and implement a new cloud-native ERP system. The question became – is there an intermediate step they can take to protect, maximize and enhance their investment in the interim or for the foreseeable future?
This is a situation that is more and more common given the proliferation of new technology available in cloud environments such as Microsoft Azure. A trend that will continue as computing becomes more cloud-centric. In addition, most companies find that in-house system support and risk management are bigger and bigger issues as time goes on.
Food Manufacturer's Technology Obstacles
Our food manufacturer’s primary challenges are uptime and system reliability. For example, they experience outages frequently due, in large part, to their geographic location. There are several other drivers as well, including:
- difficulty keeping up with operating system updates
- they did not feel comfortable with their disaster recovery capabilities
- they wanted to make sure they maintained an up-to-date security environment
- there were increased issues maintaining skillsets internally
- there was a need and desire to focus their people on more value-add tasks by offloading system management functions
This customer chose to “lift and shift” their AX2012 system to the Azure cloud along with various other applications. Immediately, Azure provided them with an updated and constantly maintained operating system, disaster recovery, and improved their security situation.
As a reputable Microsoft partner, they engaged our Alithya team to manage the system for them which freed up their internal resources and ensured they had the required “up-to-date” skillsets needed to run smoothly and successfully.
While cost was not a primary driver for this company, it became more transparent and consistent. The leadership and finance teams are excited to see this unexpected benefit from a hybrid cloud strategy. We get it, what business wants unpredictable costs?
Although not at the top of this company’s drivers, we frequently see other objectives such as the ability to scale computing power up and down rapidly with great elasticity – almost zero lead time, improving mobility and collaboration - which is a huge new paradigm with so many people working remotely, and the opportunity to innovate to a much greater extent via toolsets and applications available with Azure such as artificial intelligence, machine learning, IoT and low code development environments that enable new applications to be rolled out for specific use cases much faster.
This customer has a bright future ahead and we’re glad to help them modernize their ERP while extending the life and value of their Dynamics investment. If you want to learn more about this topic, join our webinar: How a Hybrid Cloud Can Prolong Your On-Premises Dynamics AX Investment.
In this webinar, you'll hear how other Alithya customers are leveraging a hybrid cloud strategy to meet their business needs without upgrading their systems. Don't miss this insightful discussion, register now!
To learn more about empowering your manufacturing organization with the right tools and strategy FOR YOU, contact us!