Case Study: Taming JD Edwards License Costs for a Manufacturer

Case Study: Taming JD Edwards License Costs for a Manufacturer

Published
December 3, 2024
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Challenge:

A multinational manufacturing enterprise, heavily reliant on JD Edwards, faced escalating licensing costs due to a lack of visibility into actual software usage. This hindered their ability to optimize their IT budget and plan for a future transition to a SaaS ERP solution.

Complicating factors included:

  • Outdated JDE Version: The client's older version of JD Edwards lacked the functionality to track application usage at the user level, making it difficult to assess actual license needs.
  • Complex Security Setup: A complex, role-based security structure designed for larger organizations led to employees having broader access than required, potentially inflating license consumption.

Solution:

Allari teamed with the client to conduct a comprehensive License/Usage Review and Optimization project. Our approach involved:

  • Deep-Dive System Analysis: We performed a detailed analysis of the client's JD Edwards environment, extracting security setup data across all modules and user roles.
  • Data Cleansing & Normalization: The team meticulously cleansed and normalized the extracted data to ensure accuracy and provide a clear picture of actual license consumption.
  • Security-Based Usage Analysis: Leveraging the existing security setup as a proxy for application usage, we collaborated with the client to align access with actual job roles.
  • Minimizing Direct JDE Access: We identified opportunities to reduce direct JDE access for certain users by providing alternative reporting methods.
  • Actionable Recommendations: Based on our findings, the team delivered a prioritized list of recommendations, including re-harvesting unused licenses, right-sizing user roles, and consolidating licenses.
  • Collaborative Communication: We maintained open communication throughout the project, ensuring alignment between Allari and the client's IT and Finance stakeholders.

Results:

  • Enhanced Visibility: The client gained a clear and accurate understanding of their JD Edwards license usage.
  • Cost Optimization: The client avoided unnecessary license purchases, optimized existing licenses, and significantly reduced overall licensing costs.
  • Risk Mitigation: The project mitigated the risk of non-compliance and potential financial penalties associated with software audits.
  • Strategic Foundation: The insights gained provided a valuable foundation for the client's future ERP strategy, enabling data-driven decisions for their next-generation systems.
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