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Prepared by a Microsoft Certified Partner
The new MBS environment will be easier for the end users to use and maintain. As the skill sets of functional and technical staffs are limited. The applications can be tailored without expensive programming. such as multiple languages and currencies.e. PeopleSoft is built with an extensive array of technical and functional capabilities to meet the demands of a diverse global customer base. Many customers rationalized their purchase with the idea that if it works for the big companies. residing on the Microsoft Technology stack. The Microsoft Business Solutions (MBS) ERP applications. That couldn’t be further from the truth. Since most companies already operate some elements of the Microsoft technology stack. The reality is that many companies could migrate to the MBS suite of products in less time than their next PeopleSoft upgrade and at less cost. The same holds true in the technical environment where advanced tuning skills are required to maintain the system’s performance. thereby reducing user training and maintenance costs. don’t need and can’t support. the chances are good that the technical maintenance and support will also be readily available in house. The applications are built in a single database structure. In short. training and ramp-up take longer. While Mid-market companies require some advanced functionality. it surely will meet my requirements. Mid-sized companies don’t have large technical or functional staffs to support their ERP implementation. License and maintenance fees are less. batch processing activities). The extensive functional capabilities may actually complicate rather than simplify the work processes. PeopleSoft Migration to MBS  . providing for true real-time capabilities and simpliﬁed business processes. offer a cost effective alternative to PeopleSoft. It may also be necessary to supplement the implementation with expensive external consulting services. mid-sized companies may be burdened with a complex technical environment that they don’t understand.PeopleSoft Migration to Microsoft Business Solutions Abstract Mid-sized companies and divisions of larger organizations currently using the PeopleSoft suite of Enterprise Resource Planning (ERP) applications may be ﬁnding out that software designed for Enterprise Organizations create a set of issues that they didn’t expect. Upgrades take weeks not months. • • • • MBS products are designed with core functionality necessary for most Mid-market companies.. You pay for what you need and you use what you pay for. which makes the end-users more productive and the systems more easily adaptable to your changing business environment. they are generally lacking in the following key areas: • • • • • Mid-sized companies don’t have the same volume and scale requirements. The new implementation provides a customer the opportunity to concentrate on simplifying business processes and eliminating unnecessary steps created to support the software (i.
>>> Contents • Comparing the Total Ownership Experience between PeopleSoft and MBS Axapta o End User Functionality o Implementation Technical Maintenance & Support o Periodic Upgrades Putting it All Together—Total Cost of Ownership Comparison Speciﬁc Issues or Concerns About Migrating from PeopleSoft General Requirements Should I Migrate from PeopleSoft to Microsoft • • • • • PeopleSoft Migration to MBS  .
• • Data drill downs are seamless and easy for an end user to accomplish. The Axapta architecture is based on a data driven model. The most recent addition to the reporting family is a very sophisticated Enterprise Performance Management (EPM) product suite that features data warehouse tools. Human Resources. Customer Relationship Management (CRM). we can see that the MBS suite provides a more cost effective ownership experience for Mid-market companies. Enter a customer order in CRM and the appropriate areas of the Financial and Supply Chain modules are updated automatically. Customizations are easily accomplished at appropriate levels. They also provide deep functionality that has been built in over time through a combination of product enhancements and acquisitions. Drill down to source data is difﬁcult as you cross applications. the MBS Axapta products all reside in a single database. training. PeopleSoft makes use of Crystal reports and a utility called SQR for increased complexity. Starting with end-user functionality and continuing through implementation. upgrades. PeopleSoft Migration to MBS  . and upgrades. PeopleSoft provides extensive reporting capabilities within their applications. • • • Batch processing is required to post information across the product suites. In addition to standard reports and ad-hoc Query tools. support. In contrast. The downside is a lack of data integration. Applications may reside on the same platform but in different instances of the database. and Cost of Ownership. all of which give users the tools to build complex Key Performance Indicators and other performance metrics. While this adds ﬂexibility. it introduces complexity. A single transaction sometimes takes a user several screens to complete.>>> Comparing the Total Ownership Experience between PeopleSoft and MBS Axapta The best way to illustrate the similarities and differences between the products is to compare and contrast each of the aspects of ownership. No need for batch processing or integration brokers. This is a great feature for scalability and also allows the ability to rapidly add and integrate applications to the product suites through acquisitions. Ad-hoc and structured reporting across applications is easier because the data is in one place and has one tool. PeopleSoft also provides a modular design. technical support. End User Functionality PeopleSoft offers a full product line across the ERP landscape. Real-time integration is accomplished through an Integration Broker that adds another process to implementation and maintenance. and Supply Chain Management. including Financials. Customizing the screens to reduce input adds to the cost of implementation. PeopleSoft internally builds enhancements to its products through a combination of the PeopleTools development environment and a highly table-driven design. Transactions automatically ﬂow in real time across the application suite. The EPM suite is an extra cost suite and comes at a signiﬁcant price point. integration across multiple data sources and Business Intelligence capabilities.
with PeopleSoft in the middle of the range. complexity. • • The length of a typical implementation can be from 4 to 12 months.5 to nearly 7 times the license fees to estimate Implementation costs. Axapta also includes in the base price a comprehensive set of Business Analytics that give end users tools that they can easily learn and use to build performance metrics to run their business. Axapta falls at the low end of the range with PeopleSoft in the middle and SAP at the high end of the range. • The reporting tools are tied directly to the Microsoft software platform. Reports can be printed or emailed directly from the desktop. and amount of customization required.In contrast. You can use Microsoft Pivot Tables from Microsoft Excel® to view data Implementation The time. Axapta is at the low end. and SAP at the top. Once again. There are several widelyheld benchmarks within the industry that are used when deﬁning the implementation process. MBS Axapta has the same powerful set of standard tools for query and reporting with built-in capability to capture data across applications because it all resides in a single database. Implementation costs can run from a low of 1. • PeopleSoft Migration to MBS  . cost. and resource commitment required to implement any suite of ERP applications varies widely based on the number of modules. External Consulting Resources are frequently used to support the implementation.
In the table below is a list of standard tasks associated with a typical implementation project. Project Tasks & Length The typical project tasks associated with an implementation are generally the same regardless of the vendor. and the availability of internal resources to commit to the project. degree of customization. The project should take between 12 and 25 weeks.760 Est MBS Axapta Hours 80 560 200 400 1.240 PeopleSoft Migration to MBS  . Project Phase Assessment (PM) Planning and Analysis Design and Development Testing and Training Deployment Total Implementation Project PeopleSoft Duration 1 week 6 weeks 8 weeks 4 weeks 4 weeks 23 weeks MBS Axapta Duration 1 week 3 weeks 4 weeks 4 weeks 2 weeks 14 weeks Resource Requirement Project Manager Functional Specialist Technical Specialist External Consultants Total Estimated Hours Est PeopleSoft Hours 120 880 880 880 2.Let’s examine these areas more closely as they relate to PeopleSoft and MBS. Signiﬁcant differences begin to show up in resource commitments depending on the complexity. The timeline may also be the same.
000 and $500. This eliminates the need for excessive technical training and learning new skills sets to implement and support the product.000. Contrast that to MBS Axapta where the typical software investment for a mid-sized company is between $150. PeopleSoft Migration to MBS  . the implementation is generally going to cost more than the MBS suite. Implementation Costs Because of the complexity and design of PeopleSoft. They also charge premium rates up to $200 per hour.000. • • • Highly-skilled technical and functional resources to take on the complexity of the application. The number of external consultants can range from 2 to 10 full-time team members.000. The product exists entirely on the Microsoft technology stack. but built with a table-driven modular design. Most customers work with local partners to provide services on an as-needed basis to support their implementation. including PeopleSoft. This necessitates several requirements for the implementation team.As we stated earlier. You will need to outsource or hire signiﬁcant skill sets that you don’t have in house (and they’re probably more expensive). depending on the number of modules. PeopleSoft applications are feature rich. has a limited consulting organization. you’ll need to customize the software to make it easy to use for your limited user team. in effect. on the other hand. More training courses to learn the key technical and functional elements of the software. all of the major system integrators have consulting organizations to support PeopleSoft. probably won’t need or use.000. It will cost more because you will need to provide more training for your internal resources. and degree of complexity in the implementation. In almost every implementation. Oracle and SAP.000 (source GIGA Information Group) then the average implementation at the mid-point of 3. There are several reasons why this will hold true. • • • Axapta is designed to meet Mid-market needs. If the average software investment for a typical PeopleSoft suite of modules in the Upper Mid-market is between $500.000. In addition. Also. taking away the extensive functionality that you.5 times the license fees. Greater dependency on external consultants to meet both the resource gaps and skill set gaps within the organization. as a Mid-market company.000. At 1.000 and $6. MBS. thereby reducing the need for external consultants. time frames. External consultants are rarely full time for the length of the project and the total number is rarely more than 2 or 3.0 times the license fees will run between $1.000 and $2. In the case of PeopleSoft.000 and $750. The product is easier to learn and implement. PeopleSoft recommends the use of their consultants or partners to participate in the implementation. eliminating the need for customizations to make the system easy to use.500. which oftentimes don’t exist in a mid-sized company. the average implementation will only cost between $250. has a professional services organization. External Consulting Resources Every Tier One vendor. the consultant base is nearly 4.
COBOL and SQR. PeopleSoft Migration to MBS  . you would require more hours in the day to support routine maintenance. The MBS Axapta environment requires fewer skill sets and these can generally be shared with the existing team that supports the Microsoft technology platform.5 people. MBS Axapta will be less because the vendor maintenance portion is 16%. This is a robust operating environment that will scale to high volumes and large numbers of users. Websphere or Weblogic. The single database architecture is SQLServer and the applications reside completely within the Microsoft technology stack. MBS Axapta. SQR. The MBS Axapta is not likely to scale to the volumes that PeopleSoft does. UNIX Systems Administrator—PeopleSoft in either an Oracle or DB2 environment requires a UNIX administrator for installation. Even if they did. In most cases. The annual vendor maintenance fees are 20% vs. UNIX Systems Administrator and a Technical Lead. The majority of the customer base is generally on a UNIX operating system with either Oracle or IBM’s DB2 as the database. Where PeopleSoft may require 2 to 3 people to support the environment. Contrast that to MBS Axapta. Technology Stack Requirements PeopleSoft supports all of the major database products on the market today. However. supporting a PeopleSoft environment every year is signiﬁcantly more expensive than MBS Axapta. PeopleTools. skills include JAVA. users can perform all of the reporting functions and most of the system personalization…without a technical lead. not 20% where PeopleSoft is today. and COBOL at a minimum. At a minimum. Technical Lead—The technical lead will provide user support for reports and customizations. you need to ask yourself if you need to pay for technology you may never use. Microsoft’s 16%. As IT budgets continue to get squeezed. this is probably outside the typical skills and requirements of a mid-sized company. But that’s not all. The PeopleSoft Pure Internet Architecture requires a wide array of technologies and skill sets to install and maintain. PeopleSoft also requires Windows 2000 (or 2000 Server). • • • DBA—The PeopleSoft environment requires multiple instances of the databases and should be tuned periodically to ensure optimal performance. MBS Axapta needs only 1 to 1. Is this something that a Mid-market company needs…probably not. It’s likely that you already have some of the skill sets in house running Microsoft Exchange and Ofﬁce. Annual Maintenance Costs According to GIGA research. the annual cost to support a PeopleSoft environment is 20 to 25% of the initial investment (including the cost to implement). The skills include a DBA.>>> Technical Maintenance & Support There are several fundamental differences in the requirements to support the PeopleSoft environment vs. As the table on the following page illustrates. maintenance and upgrades. Technical Resources The typical PeopleSoft environment requires at least three skill types that often don’t exist in a single person.
3 @ 1500 Watt Server License .... PeopleSoft’s 20%..... in our experience.. 32 GB (64 @ 512 MB DIMMS) 10000 RPM FC-AL Disk Drive ....$119...000 $200.000 $2. 1 @ 10/100BASE-T Serial Port .. whereas.... Annual Maintenance % This percentage is an industry average quoted from GIGA research and represents the total of all costs associated with operating and maintaining the applications. Processor .....000 $300. internal personnel costs.. The conﬁguration requirements would be based on the volume.........00 3 PeopleSoft Migration to MBS  .000 $500.. Exchange and Ofﬁce that negates the ability to use lower powered clients..........200 This is an estimate of the base hardware conﬁguration needed to run PeopleSoft or MBS Axapta..000 $1....... It includes software maintenance and support from the vendor.. 1 2 Hardware Costs Implementation Costs Using standard industry ﬁgures....120............ MBS Axapta is calculated at 4% less.. 2 RS-232C/RS-423 Power Supply .. size and concurrent users.000 25% $530..........000 21% $130.............. PeopleSoft implementation is calculated at 3.. and external consulting fees. PeopleSoft operates in a web-client environment that ultimately requires less processing power on the client machine....... However. as their annual software maintenance is 16% vs.0 times the software license fees....500.....000 MBS Axapta $120.......5 times the software license fees. Yes List Price .... 12 @ 36 GB DVD-ROM 10 Drive .. 1 Gigabit Ethernet Port ......... Axapta is calculated at 1. 8 MB Memory .... 8 @ 750 MHz External Cache per Processor ......000 $620..Description Hardware Software Implementation Cost2 Total Investment Annual Maintenance %3 Annual Maintenance Costs 1 PeopleSoft $120...... Most customers also run some version of Windows... 1 Ethernet Port ... most customers are still providing more powerful computing environments for end-users as the price/performance levels improve.....................995....
800 MBS $120.000 $2.000 $40. To support their upgrade process. This will translate into an upgrade every 2 to 3 years. an upgrade can take anywhere from 3 to 6 months to complete. How well documented the changes are. Unlike the PeopleSoft 3 to 6 month upgrade timeframes.669.950 5 years of Annual Internal Support PeopleSoft Migration to MBS  . PeopleSoft provides a series of tools to aid users in the upgrade. These include upgrade scripts. The most recent PeopleSoft upgrades required a signiﬁcant technology change as PeopleSoft moved from client-server to its PIA or Pure Internet Architecture environment.000 $405.Periodic Upgrades PeopleSoft supports products for four years from general availability release date. In addition to the layering technology. This not only provides for ﬂexibility.750 $1.914. the typical MBS upgrade requires only 1 to 3 months depending on complexity. An upgrade can be easy or extremely complex depending on: • • • • How many customizations were done. and customers with the ability to create speciﬁc customizations that will be isolated and contained in their own layers. including scripts.000 $4. Depending on the degree of customization. >>> Putting it All Together—Total Cost of Ownership Comparison For mid-sized companies or divisions of larger companies. data conversion programs. and customization. its partners. The major issue in any PeopleSoft upgrade is customization. and audit reports.750 $333.000 $500.000 $834.500. number of modules. Axapta provides a similar set of tools to help guide the customer through an upgrade process.000 $144. How complex the customizations are. compare reporting.000 $1. and an upgrade cockpit that allows the upgrade team to run extensive testing routines from a single desktop.650. Cost Item Hardware Costs1 Software License Fees2 Implementation Upgrades Total 5 Year Average Annual TCO 4 5 3 PeopleSoft $120. MBS Axapta was designed with a unique application. layering technology that provides MBS. MBS Axapta can be signiﬁcantly greater. compare reports. The table below illustrates the dramatic differences that buying a Tier One vendor like PeopleSoft can mean where the functionality of MBS Axapta would more than meet your end users’ requirements. but it also makes the process of upgrading much easier by keeping any unique customizations in a well-documented and controlled area.000 $982. How many customizations need to be retroﬁtted to the new release.000 $270. the total cost of operating a PeopleSoft environment vs.
This is usually handled in the migration toolsets of each product. • • • • External Interfaces PeopleSoft and MBS use different technologies to interface and integrate with external systems. Technical support and maintenance procedures require redeﬁnition.5 times the license. extraction. An analysis of any third-party interfaces is required and the following may require additional development in Axapta. Data model incompatibilities (e. the use of Set IDs. we used the following factors to calculate our costs. • What could you do with an extra $600.000 each. BUs. Implementation—Calculated at 1. Upgrades—Two upgrades over the 5 year period. Initial investment equals hardware. as well as electronic business exchanges must be carefully reviewed and. there are several areas that need to be considered when making the transition. Software License Fees—Based on the low end of the average for PeopleSoft from GIGA research report dated August 2002. whereas PeopleSoft typically imports and exports directly to/from the database. while Axapta’s database is inherently case insensitive. software. >>> Speciﬁc Issues or Concerns About Migrating from PeopleSoft If you are interested in transitioning from PeopleSoft to a Microsoft Business Solutions product. • • • • Hardware Costs—We assumed that both products would require the acquisition of similar hardware platforms to run similar volumes and end users. it will be learning the single database structure and highly ﬂexible Axapta layering tools for customization and upgrades. in most cases.. Annual Support Costs—PeopleSoft is calculated at 25% of the initial investment and MBS Axapta is calculated at 21% of initial investment. Axapta is calculated at one month with two external resources at $20. perhaps it’s time for a change. • Interfaces. and tree structures) between PeopleSoft and Axapta raise issues with data migration and/or consolidated reporting. Data and Process Migration The PeopleSoft applications are different and there are several areas around the structure of the data and the business processes that must be examined when considering a migration. will require a signiﬁcant redevelopment effort. and implementation costs.In the previous graph.000 per month each. Business processes will most likely need to be reﬁned and simpliﬁed because Axapta doesn’t require any batch transactions to post transactions. PeopleSoft Migration to MBS  . reporting. Migration of data out of PeopleSoft into Axapta must go through the Axapta import wizard to maintain integrity. The difference is that software maintenance fees are 20% for PeopleSoft and 16% for Axapta. leading to potential data integrity issues during migration. In most cases. Actual pricing for Axapta is based on a 600 user complete suite of modules.g.000 added to your bottom line each year? If you are facing your next PeopleSoft upgrade or just frustrated with the complexity of the applications. and maintenance tools. PeopleSoft calculated as a three-month effort with two external resources at $24. PeopleSoft is modular and therefore uses a number of batch processes to ﬂow data through their systems. • PeopleSoft databases require case sensitivity.
these must be rewritten using Axapta COM+ Connector. As part of the migration. Report Distribution—Axapta reports can be generated by individual users and distributed in hard copy or by email.• • If you are using component Interfaces into PeopleSoft. PeopleSoft’s application modularity makes it more cumbersome to navigate. which may be replaced in Axapta. access data. users and technical staff will need to be trained in the applications and technical architecture. and maintain tables. The reporting tools in Axapta are capable of meeting all of the reporting needs. That. Reporting Requirements As noted earlier. • • • >>> General Requirements End User and Technical Support Retraining Requirements PeopleSoft and MBS Axapta have similar interfaces in that they both operate in a Windows environment. SQR Reports—Certain types or SQR reports that perform complex routines may need to be built using custom code in Axapta. Axapta operates in a single environment. These differences must be reconciled as part of the migration. • nVision Reports—Provide high-level ﬁnancial data mostly from the General Ledger. PeopleSoft has built-in Query capabilities plus three additional reporting tools…SQR. MBS offers complete documentation and a full range of online and classroom training options to minimize the time and expense of training. For example. These reports should be analyzed and redeveloped only if necessary. in turn. This will result in considerable business process differences. If you are using Integration Brokers and Application Messaging into and out of PeopleSoft. Crystal Reports and nVision for General Ledger. PeopleSoft Migration to MBS  . eliminates the need for daily reconciliation of the AP interface. Check the distribution process within PeopleSoft to see if it can be simpliﬁed in Axapta. Business Intelligence—Axapta incorporates extensive OLAP capabilities. it’s no longer necessary to run batch AP posting jobs each night. make sure that any non-MBS initiatives that might affect the ERP applications will be compatible with the new environment. Application Functionality Differences PeopleSoft Uses hierarchical tree structures in ﬁnancial reporting and chart ﬁeld validation. However.NET technologies will be required to replicate this in Axapta. These reports can be generated in the basic Axapta application report writer and also provide signiﬁcant drill-down abilities into the source date. Microsoft BizTalk and . Architectural Requirements and Compatibility Before embarking on a migration. the reports currently produced in PeopleSoft should be evaluated and redeveloped in the Axapta reporting tools. It’s also important to review the conﬁguration of the desktops to ensure that Axapta client deployment requirements are met. Users should consider what nVision or Crystal reports could be replaced with effective drill downs to source data within Axapta to reduce output. Axapta uses a concept called Dimensions. See if any SQR or Crystal reports are sending data to external OLAP systems.
give yourself a simple checkup. PeopleSoft Migration to MBS  . Oracle Database if PeopleSoft is the only application running on it Evaluate your latest PeopleSoft upgrade o How much did it cost? o How long did it take? o How many external consultants were involved? Evaluate your PeopleSoft technical environment o Are there excessive customizations? o What are the transaction volumes? o What is the number of users? o Is the technical PeopleSoft environment stable? Evaluate your PeopleSoft functional environment o Measure user satisfaction o Identify functional gaps o Determine user productivity issues Evaluate MBS Axapta o Compare functional requirements to Axapta features o Evaluate Microsoft technology stack o Identify product gaps o Identify data conversion issues o Identify system interface and integration issues o Develop High-level Migration project plans and cost estimates Prepare an ROI analysis o Identify the Beneﬁts: Improve employee productivity Reduce software maintenance costs Reduce upgrade costs Eliminate unnecessary software license fees Eliminate external consultants o Identify the cost to migrate Calculate new software license and implementation Calculate ongoing TCO o Calculate ROI What are the annual savings? What is the payback period? • • • • • A structured ROI tool should be used to analyze and justify any large IT decision. • Capture total cost of PeopleSoft Operations o Annual Vendor Maintenance Fees o Internal Support Personnel o External Consultants—if any o Extra Software—For example. ROI is the most important metric to use for choosing an application and prioritizing projects within a company during budgeting. ROI = average beneﬁt over three years/initial cost.>>> Should I Migrate from PeopleSoft to Microsoft? If you are thinking about simplifying your ERP applications and reducing the total cost of ownership.
objective companies such as Nucleus Research provide toolsets to capture the appropriate cost.Payback Period is the time it takes for beneﬁts returned to equal the initial cost of the project. and calculate the numbers necessary to make informed choices. This is a key measurement of risk—in the rapidly-changing technology area. For companies that haven’t deﬁned a corporate standard for ROI analysis. identify the beneﬁts. look for payback periods of less than one year and don’t be afraid to discard a solution in favor of a better one once the solution has surpassed its payback period. PeopleSoft Migration to MBS  .
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