Rimini Street Client Kumagai Gumi Receives IT Award from Japan Institute of Information Technology. Recognized for adoption of independent software support and cloud services, enabling the reallocation of IT budget to new strategic initiatives
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Kumagai Gumi recognized for adoption of independent software support and cloud services, enabling the reallocation of IT budget to new strategic initiatives (Photo: Business Wire)
As part of its long-term IT infrastructure roadmap, Kumagai Gumi proactively evaluated and utilized external services to help drive down the cost of operations and allow for more optimal allocation of funds to strategic areas of the business. This included switching the maintenance and support for their SAP ERP system from the ERP vendor to Rimini Street. In addition, Kumagai Gumi moved its existing on-premise servers, database systems, email systems, TV conference application and groupware to a cloud service environment.
Savings of Over 100 Million Yen Funds Strategic Project
As a result of these efforts, Kumagai Gumi was able to avoid a large expense to their existing software application simply because it was nearing the end of vendor support, and also leverage their cloud infrastructure. These strategies helped the organization reduce immediate IT costs associated with an upgrade by 100 million yen, and cut down operations and maintenance expenses by about 40 million yen every year. The company was then able to redistribute these budget savings into new projects, including the installation of 800 iPads to help improve operational efficiencies.
“We are very pleased that our efforts to achieve IT budget optimization were recognized with this award. Our primary focus has been to find solutions that allow us to reduce our valuable IT budget and instead utilize the liberated funds to improve the efficiency and working practices of our employees,” said Mr. Isao Shigihara, manager of the IT Planning Group, Corporate Planning Department, Kumagai Gumi. “I think there are companies that are still evaluating the move to independent support, or hesitant to adopt the cloud due to uncertainty and cost, but we have taken a very proactive position to introduce these advanced technologies and services throughout our organization to continue to gain market share and remain competitive.”
Company’s IT Cost Optimization Efforts Earn Recognition
Mr. Shigihara was responsible for the identification and analysis of external services for Kumagai Gumi, including evaluating a switch from ERP vendor support to independent support. Based on his efforts, which resulted in helping the company realize an increase in the ROI of their IT investments, Kumagai Gumi was recognized by JIIT for its efforts in supporting their overall business management strategies through IT innovation.
“Reducing the costs associated with IT infrastructure is one of the biggest challenges for companies today – not only in Japan, but globally – and Kumagai Gumi is a prime example of how to do this effectively and net very powerful results,” said Yorio Wakisaka, country manager, Nihon Rimini Street. “Rimini Street’s maintenance and support model cuts annual Oracle and SAP vendor maintenance costs in half, and also makes it possible to reduce total maintenance costs by up to 90%. Adoption of Rimini Street is the best option for companies looking to maximize their IT investments and leverage existing and stable ERP systems for a minimum of 15 years guaranteed.”
The ceremony and memorial lecture for the JIIT Information Technology Awards was held at the Tokyo Conference Center Shinagawa on February 9th and 10th, 2017.
About Rimini Street, Inc.
Rimini Street is the global leader in providing independent enterprise software support services. The company has redefined enterprise support services since 2005 with an innovative, award-winning program that enables Oracle and SAP licensees to save up to 90 percent on total support costs. Clients can remain on their current software release without any required upgrades for a minimum of 15 years. Over 1,750 global, Fortune 500, midmarket, and public sector organizations from a broad range of industries have selected Rimini Street as their trusted, independent support provider. To learn more, please visit http://www.riministreet.com.
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