Thursday, March 20, 2008

Supply Chain Integrator Switches to Microsoft Dynamics AX From Oracle for Major Cost Savings

Microsoft Corp. today announced that PACCESS, a global supply chain integrator based in Portland, Ore., has selected Microsoft Dynamics AX 4.0 as its enterprise resource planning (ERP) solution, replacing an Oracle 11.0.3 system that had become very expensive to maintain and too limited in its ability to meet the company’s needs. Microsoft Dynamics AX is a comprehensive business-management solution providing midsize and larger companies with end-to-end, industry-specific functionality, enabling them to do business across locations and countries.

PACCESS chose Microsoft Dynamics AX because it allows many disparate systems to be unified under one core application at a lower total cost of ownership. These factors were crucial to PACCESS, a global service company whose paper, packaging, and sourcing divisions integrate procurement, logistics, distribution, and fulfillment services to meet their customer’s specific supply chain needs.

Previously PACCESS faced expensive upgrades to its Oracle system, which it had modified repeatedly to meet its business process requirements. Scaling the system was very costly. “We tried to add five users, but we would have had to pay Oracle $365,000 because of a license-model change,” said Nina Palludan, vice president of IT for PACCESS. “The five-year total cost of ownership for Microsoft Dynamics AX 4.0 was more than $1 million less than Oracle’s, even though we already owned the Oracle software. Actually rebuying the Oracle e-business suite would have cost less than upgrading our current licenses.”

 

Source- MS press release

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