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Client Success Story

Packaging Solutions Company Avoids SAP


Upgrade and Invests in Network Infrastructure

Jones Packaging Inc.


Client Profile: Jones, whose roots trace Jones provides a variety of packaging solutions, focusing
back over 135 years, provides printing and
packaging solutions throughout North
on pharmaceutical and healthcare markets, but also
America and Europe largely targeted to servicing customer packaging needs in the confectionery,
pharmaceutical companies and pharmacists.
food, beverage and personal care markets.
Industry: Manufacturing

Geography: Headquartered in The Jones Challenge


Ontario, Canada
Jones manages a very diversified business with multiple product lines offered by
Products Supported: SAP R/3 4.6c, its three operating divisions. To help Jones deliver a wide variety of solutions to its
Microsoft® SQL Server 2000
customers, the company runs a customized version of SAP R/3-4.6C. Even though the
software meets business needs, the company began to explore upgrading simply
due to concerns over technological obsolescence for the 32-bit environment.

“As we explored the next phase of technology infrastructure investment for our
business, we learned both the supported hardware and software that were needed
to operate 4.6C were starting to become scarce in the industry,” says Rick Jankura,
chief financial officer for Jones. “It turned out the bigger risk for us wasn’t about the
stability of our existing SAP software, but rather about us continuing to rely on a
32-bit environment that may not be compatible with current technologies.”

“I was concerned about having to If the company were to upgrade its hardware and software, it would also require an
invest meaningful time and money to upgrade of its SAP software to a 64-bit version – and this would require a significant
upgrade our SAP platform, since there capital investment. In addition, Jankura reports an SAP upgrade project would
was no real benefit for our business require extensive effort from the company’s technology services team, putting any
operations, or measurable return on new business-focused IT initiatives on hold for at least a year. Jones had already
investment. We had a stable system,
spent nearly a year testing its customizations and SAP ECC 6.0 software in a sandbox
including SQL Server 2000, that was
development environment. Plus, Jones had to ensure related add-on manufacturing
already doing what we needed it
to do — and we had no reason to
software would function appropriately in an upgraded SAP environment.
change it.”
Jankura explains: “Our upgrade was really just a defensive measure to combat the
threat of obsolescence of 32-bit hardware and operating systems.”
Rick Jankura
Chief Financial Officer Jankura expected the upgrade to cost over $250,000. “What’s more,” Jankura says,
Jones
“there’s risk associated with going through an enterprise system upgrade. The
process inevitably causes disruption to day-to-day business activities and that’s a
cost I couldn’t clearly quantify.”
Client Success Story Jones

The Rimini Street Solution


Benefits
Jankura spoke to a Rimini Street expert who presented an alternative option to
―― Avoided unnecessary SAP upgrade:
Jones was able to remain on its stable the unnecessary upgrade. The advice: move the 32-bit system into a virtualized
SAP R/3 implementation, eliminating environment that could be managed more easily for years to come.
business risk while achieving On one hand, upgrading the system would involve time, resources and the risk
significant operational cost savings. of a potentially devastating business outage, while still adding no new business
―― Gained ability to reinvest savings: functionality or immediate productivity gains.
Jones has redeployed its support
On the other hand, Rimini Street could support Jones’ existing environment, including
savings into strategic hiring to fill
knowledge gaps, update network
all customizations and support for its MS SQL Server 2000, plus Jones could get its
infrastructure, add process tax, legal and regulatory updates from Rimini Street at no additional charge. Because
automation and deploy new Rimini Street guarantees 15 years of support for Jones’ current SAP version, there is
applications. also no pressure to upgrade to ECC 6.0.
―― Achieved strategic flexibility: Jones Still, Jankura wanted his company’s external technology consultants to vet the viability
can continue to run its effective SAP of the 32-bit virtualization solution. “That was probably the first ‘ah-ha’ moment
R/3 system for years to come, yet also — our external experts engaged with Rimini Street to prove we could move to this
upgrade to SAP ECC 6.0 if the business virtual environment, and we found this was really possible.”
requires it in the future.
“We also spoke with Rimini Street customers who had been working with the
―― Received tailored tax, legal and
organization for three or four years and already lived through the same challenges we
regulatory updates: Jones now receives
were facing. Every customer mentioned how moving to third-party support proved
tax, legal and regulatory patches for its
Canadian operations, complimentary to be a very good decision for the organization, and that sealed the deal for me.”
and customized to Jones’ specific needs.
Client Results
By moving to Rimini Street, Jones immediately saved significantly in annual support-
“The Rimini Street team helped show
related fees, not to mention in other areas as well. “When I ran a five-year business case,
us a path to freeing up capital so we
our overall savings approached $700,000, taking into account the time and additional
could enhance our existing platform’s
functionality and performance
costs outside of annual support fees associated with the upgrade,” adds Jankura.
instead of executing costly and The new funds allowed Jankura to hire staff to fill skills shortages, which included
large-scale upgrades. When I hiring a Director of Corporate Technology Services tasked with creating an updated
delivered the recommendation to our technology roadmap and implementing more new applications. “This is allowing
senior leadership team, and, more
us to shift the focus of our technology team to working with operations teams and
importantly, to the owners of the
determining how we can leverage technology to drive business value.”
company, they were very appreciative
of the savings we were able to “We’re looking at an e-commerce initiative for one of our divisions and mobility
produce from this move.” for another,” Jankura says. “A lot of our efforts will be focused on business process
and automation improvements, extending our capabilities to the front lines so
Rick Jankura
we don’t have to touch transactions manually and so frequently. We’ve also made
Chief Financial Officer some updates to our network infrastructure, and have been evaluating new data
Jones management tools for potential implementation.”

Jankura says that Jones is now getting much more responsive and tailored support
For More Information services. “When you submit a ticket to SAP,” Jankura explains, “the customer has the
burden of proving a customization is not at fault. Rimini Street takes on the whole
To learn more about Jones or to read
problem and works diligently to find a solution, regardless of custom code – and that
other client success stories, visit
has been refreshing.”
www.riministreet.com/clients.

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