Microsoft Volume Licensing Customer Solution Case Study

Manufacturer Gains Real-Time Production Data, Reduces Licensing Costs by 15 Percent

Overview “We estimate that we’re saving close to $45,000 Country or Region: United States annually in licensing costs with the Enterprise Industry: Manufacturing Agreement, which is at least a 15 percent savings Customer Profile over acquiring Open licenses a few at a time.” Coating Excellence International, based in Wrightstown, Wisconsin, produces Curt Nassen, IT Manager, Coating Excellence International specialized flexible packaging for a variety of food, medical, and industrial Coating Excellence International (CEI) manufactures high- products. It has 500 employees. quality, flexible-packaging products using environmentally Business Situation friendly practices. To continue to enhance its quality and CEI wanted to provide decision makers with an integrated view of shop-floor efficiency, CEI needed to provide its shop-floor operators and operations along with analysis and business decision makers with real-time production metrics and reporting tools. It also wanted to simplify its software licensing to save costs and analysis tools in a solution that was quick to deploy and easy to management time. manage with limited resources. It upgraded to Microsoft

Solution Dynamics® AX 4.0, Microsoft® SQL Server® 2005, and Microsoft The company upgraded to Microsoft SQL Server 2008 Reporting Services, deployed Microsoft Dynamics® AX 4.0, Microsoft® SQL Server® 2005, and SQL Server 2008 Dynamics CRM 4.0, and integrated those with its shop-floor Reporting Services, deployed Microsoft application. As a result CEI enhanced its decision making and Dynamics CRM 4.0, and signed a Microsoft Volume Licensing Enterprise customer management tools. And by signing a Microsoft Volume Agreement. Licensing Enterprise Agreement, it cut software license

Benefits acquisition and management costs, set a predictable licensing  Enhanced decision-making tools cost per desktop, and gained Software Assurance benefits.  More cost-effective desktops  Predictable licensing costs for 15 percent less  Simplified management  Expanded flexibility Situation a second factory in the Cincinnati, Ohio, In 1997, Mike Nowak and seven other area which it plans to open in fall 2009. experienced packaging professionals saw “With the additional plant we’re in a better a need for a flexible-packaging position to service customers in other parts manufacturer that could deliver innovative of the country,” says Mike Nowak, Chief products at a competitive price along with Executive Officer for Coating Excellence superior quality and service. The group International. formed Coating Excellence International (CEI), which grew rapidly in size and The company started running its network scope. Today, CEI, which is headquartered infrastructure on Microsoft® software from in Wrightstown, Wisconsin, has more than the day it opened in 1997. By 2007 it had 650,000 square feet of manufacturing 11 servers running the Windows Server® space and approximately 500 employees. 2003 Enterprise and Windows Server 2003 The company offers a full range of Standard operating systems. Four of those package-manufacturing processes, servers were running Microsoft Exchange “We needed to … get including adhesive lamination, electron- Server 2007 in two clusters. It had a real-time data to the beam coating, extrusion coating and separate shop-floor system that collected lamination, woven bag manufacturing, all the data related to production people on the floor who high-quality water-based flexo printing on operations, and CEI stored that data in a are running equipment paper and film, and offset printing. Its Microsoft SQL Server® database. In 2003, products include everything from copier CEI implemented Microsoft Axapta 2.5 and making decisions paper packaging and insulation facing to (now Microsoft Dynamics® AX) as its minute to minute so we sugar pouches, for companies all over enterprise resource planning (ERP) North America and in Mexico, South and system. can do a better job of Central America, and the United Kingdom. managing the business CEI employees also used Terminal All CEI products are designed and Services in Windows Server 2003 to from the operators on manufactured using environmentally access the shop-floor application, Microsoft up.” friendly business practices. The company’s Axapta 2.5, and Microsoft Office use of clean production technologies, Professional Edition 2003. However, there Mike Nowak, Chief Executive Officer, renewable resources, and recycling was no communication between Microsoft Coating Excellence International practices makes CEI a market leader in Axapta and the shop-floor application. sustainable packaging products. In fact, 95 percent of CEI products are recyclable, As part of its work to incorporate lean which contributed to its being recognized manufacturing practices, CEI wanted to by the state of Wisconsin as a Business provide its shop-floor operators and Friend of the Environment. business decision makers with real-time data on production metrics such as run The company’s innovative approach to times, tension, and other information that package manufacturing and service has affects the quality of the end product. “We helped it achieve an average growth in wanted a shop-floor application that sales of 20 percent a year over the last integrated an HMI [Human Machine decade. That growth is leading CEI to add Interface] layer directly with our PLCs “The increased [Programmable Logic Controllers] to Microsoft Gold Certified Partner with the provide real-time information to ensure that Licensing Solutions Competency—to learn scalability, we maintain our high level of quality,” says about the available volume licensing performance, and Curt Nassen, IT Manager for Coating options. Excellence International. integration with other As a Microsoft Large Account Reseller, systems made “Our previous system did a good job of SoftwareONE offers strategic software collecting data but then the data went into a licensing solutions, software asset Microsoft Dynamics AX box and people didn’t have ready access to management programs, and proactive the best choice for us.” it,” says Nowak. “One of the key things that account management to small, medium, we needed to do was to get real-time data and enterprise-level customers. The firm Curt Nassen, IT Manager, Coating to the people on the floor who are running represents all the top software publishers Excellence International equipment and making decisions minute to and tailors comprehensive software minute so we can do a better job of licensing strategies directly to customer managing the business from the operators needs. on up.” “Going forward we wanted a licensing In addition, CEI has a 15-person sales strategy that would position us for current force that handles more than U.S.$190 and future technology needs,” says million in annual sales. The company Nassen. “We wanted to make sure that we wanted to implement a customer keep up to date with products, while relationship management (CRM) reducing the cost of acquiring and application to make it easier for those managing software licenses.” salespeople to efficiently take care of existing customers and attract new ones. Solution Before deploying Microsoft Axapta 2.5 in Because it had just a six-member IT staff 2003, CEI had conducted an in-depth and one onsite consultant from Microsoft evaluation of ERP systems including J.D. Gold Certified Partner Heartland Business Edwards and Oracle and found that the Systems, the solutions CEI chose needed implementation time and the acquisition to be quick to deploy and easy to manage cost made Microsoft Axapta the best with limited resources. choice for the company. In 2008, it took a cursory look at alternative solutions before As it grew, CEI had acquired Microsoft deciding to upgrade to Microsoft Dynamics software licenses a few at a time under the AX 4.0. “Based on price as well as on Microsoft Volume Licensing Open License implementation time, we found that the program. By 2008, it had approximately increased scalability, performance, and 200 users, and management decided it integration with other systems made was time to explore more cost-effective Microsoft Dynamics AX the best choice for ways to acquire licenses. As CEI worked us,” says Nassen. with Heartland to plan and deploy new technologies, the partner suggested that CEI decided to upgrade to Microsoft the company talk to SoftwareONE—a Dynamics AX 4.0 in combination with “SQL Server 2008 replacing its shop-floor system with the coordinating activities to retain existing Redhawk data collection system from business,” says Nassen. Reporting Services Operon Systems. It took about four months helps significantly to plan the upgrade and prepare the The network also includes two Windows systems, including upgrading the server Server 2003 Terminal Services increase performance. hardware to HP server hardware. By March implementations—one for administrative A report that used to 2009, the deployment team had added workers to access Microsoft Office Microsoft Dynamics AX to the environment applications and Microsoft Dynamics AX take 10 hours to run while continuing to run Microsoft Axapta data, and one for accessing the previous now only takes 30 2.5 as it gradually transferred data from the shop floor application. The second old system to the new one. A SQL Server Terminal Services implementation will be minutes.” 2000 database cluster supported Axapta phased out when the Redhawk shop floor Curt Nassen, IT Manager, Coating 2.5 and SQL Server 2005 database application is fully deployed. Excellence International software supported Microsoft Dynamics AX. When the upgrade to Microsoft The IT department uses Microsoft System Dynamics AX is complete, all data will be Center Configuration Manager 2007 to consolidated on a SQL Server 2005 deploy servers and manage software database. updates, and it is looking at the possibility of installing Microsoft Systems Center CEI is also implementing SQL Server 2008 Operations Manager to monitor and Reporting Services to run reports—based maintain the health of the entire IT on data collected by Microsoft Dynamics environment. AX—on inventory for the office administration staff, and on factory floor CEI has approximately 70 portable statistics for the operations staff. “Using computers for senior management. In SQL Server Reporting Services, operations addition, the company has approximately managers will easily be able to track 80 Wyse terminals for administrative trends, and a range of statistics such as employees and another 50 Wyse terminals uptime, downtime, and footages of for the shop floor, all running Windows products on the factory floor,” says Nassen. Server 2003 Terminal Services. When the current deployment projects are complete, In addition, CEI deployed Microsoft all 200 users will have access to Microsoft Dynamics CRM 4.0 to provide its Office Professional Edition 2003 or salespeople and customer service staff Microsoft Office Professional 2007, the with an easy-to-use tool to access Redhawk shop-floor application, the customer and product information in Windows® Internet Explorer® Internet seconds. “We decided to go with Microsoft browser, and Microsoft Dynamics AX. Dynamics CRM because it will integrate with both Microsoft Dynamics AX and After the Microsoft Dynamics AX upgrade Redhawk and because it gives us a lot of is complete, CEI plans to deploy Microsoft functionality such as consolidating Office SharePoint® Server 2007 to create a customer contact information, managing fully integrated portal for sales, customer new business leads, and more effectively service, and other key business units to “We can upgrade use for access to corporate resources and  “Cold” backups to the Heartland collaboration tools. The portal will also Business Systems site to help ensure software that is provide decision makers with access to disaster recovery covered under the real-time operations data customized for  Packaged Services, including a one-day the requirements of each business unit. onsite planning session on Office Enterprise Agreement SharePoint Server 2007, to help expedite at no extra cost, and As CEI made plans to upgrade existing transitions to new technology software and implement new technologies, we can pay for the Nassen worked with SoftwareONE to Under the Enterprise Agreement, CEI licenses over three decide on the most appropriate Microsoft licenses the Core Client Access License Volume Licensing program. “We did a (CAL) Suite, which provides CALs for years, which is a huge licensing analysis of all the Microsoft Windows Server 2003, Exchange Server benefit.” software they had in place as well as 2007 Standard, and a System Center planned deployments, such as Office Configuration Manager 2007 Configuration Curt Nassen, IT Manager, Coating SharePoint Server 2007,” says Dave Management License, as well as for Office Excellence International Stangel, Business Development Manager SharePoint Server 2007 Standard that it for SoftwareONE. “Then we provided them plans to deploy within a year. The with a six-year cost comparison between company’s Enterprise Agreement also acquiring licenses through a Microsoft covers Windows Server 2003 Terminal Volume Licensing Enterprise Agreement Services, Microsoft Dynamics CRM, and through the Open License program.” Microsoft Dynamics AX, and Microsoft SQL Server. CEI also licenses 15 Microsoft That comparison showed significant Office for Mac users under a Select savings with the Enterprise Agreement License. When the company upgrades to from the very first year. “It was obvious that Microsoft Office 2007 Professional in early the Enterprise Agreement offered the best 2010 it will add all Office licenses (including price point for the range of products and those for Mac users) to the Enterprise the forecasted growth of our organization,” Agreement. says Nassen. “With the Enterprise Agreement we got a deep discount on the Benefits cost of licenses along with several Through its use of Microsoft technology, Software Assurance benefits, which are all CEI was able to provide its shop-floor included in the price of the agreement.” workers and management staff with real- time, actionable operations data to Some of the primary Software Assurance enhance decision making. It also reduced benefits that CEI is taking advantage of desktop hardware and software costs. In include: addition, by signing a Microsoft Enterprise  The TechNet subscription—to help the Agreement, CEI saved approximately 15 staff stay up to date on the latest percent on software licenses, while technology and find solutions to business standardizing its software, and gaining needs predictable annual costs, simplified licensing management, and compatibility with third-party software. Predictable Licensing Costs for 15 Percent Enhanced Decision-Making Tools Less By upgrading to Microsoft Dynamics AX CEI estimates a significant savings in and integrating it with the Redhawk shop- licensing the Core CAL suite and other floor application, CEI will provide decision Microsoft applications under the Enterprise makers with real-time data to help them Agreement. “We estimate that we’re saving make better informed decisions. “With close to $45,000 annually in licensing costs Microsoft Dynamics AX, operators have with the Enterprise Agreement, which is at real-time information on various processes least a 15 percent savings over acquiring rather than the theoretical times that we Open licenses a few at a time,” says had before, which will help us do a better Nassen. job of managing the business and making necessary production adjustments in a Because upgrades are covered under the more timely manner,” says Nowak. agreement, CEI can upgrade Microsoft software without budget discussions. In addition, CEI takes advantage of SQL “Before, if we wanted to upgrade to a new Server 2008 Reporting Services to run both version, I’d have to ask our CFO for several scheduled and ad-hoc reports based on thousand dollars for new software data collected through Microsoft Dynamics licenses,” says Nassen. “We can upgrade AX. Business managers and employees software that is covered under the can quickly create reports without requiring Enterprise Agreement at no extra cost, and help from IT. “SQL Server 2008 Reporting we can pay for the licenses over three Services helps significantly increase years, which is a huge benefit. Going performance,” says Nassen. “A report that forward we can make software decisions used to take 10 hours to run now only based more on business need than cost takes 30 minutes. because we’ve already absorbed the cost on an annualized basis.” More Cost-Effective Desktops CEI saves both hardware and management Simplified Management, Enhanced Support costs by using Terminal Services to provide CEI administrators are able to easily access to corporate applications and data. manage both the Enterprise Agreement “We get a great return on our investment and the Microsoft Select License through by using Windows Server 2003 Terminal the security-enhanced Microsoft Volume Services because we can provide Licensing Service Center (VLSC). On employees with access to necessary VLSC, they can view license agreements, resources through a $300 Wyse terminal download products and product license rather than have to spend $1,000 to $1,500 keys, and manage Software Assurance on a laptop,” says Nassen. “At that price benefits. we can get a lot more Wyse terminals than laptops for the same amount of money and “An additional benefit we get through it’s a lot easier to manage Terminal Software Assurance is a one-day onsite Services than to manage each laptop.” deployment planning session with a vendor of choice, which we’re planning to use to For More Information help us deploy Office SharePoint Server Microsoft Volume Licensing For more information about Microsoft 2007 later this year,” says Nassen. Microsoft® Volume Licensing offers products and services, call the Microsoft customized programs that are designed to Sales Information Center at (800) 426- Expanded Flexibility meet the needs of your business. Tailored 9400. In Canada, call the Microsoft CEI has also found that the availability of for companies of different sizes and Canada Information Centre at (877) 568- third-party products that integrate easily purchasing preferences, these Volume 2495. Customers who are deaf or hard- with Microsoft software helps reduce Licensing programs provide simple, of-hearing can reach Microsoft text development time when deploying new flexible, and affordable solutions that can telephone (TTY/TDD) services at (800) solutions. “There are a variety of third-party help you manage your licenses with ease. 892-5234 in the United States or (905) software packages that work right out of Whether you have five or thousands of 568-9641 in Canada. Outside the 50 the box with Microsoft technologies,” says desktop PCs, Microsoft Volume Licensing United States and Canada, please Nowak. “With such a wide choice, we can has the right program for you. contact your local Microsoft subsidiary. usually find something that fits us rather To access information using the World than having only one vendor to choose To acquire the latest Microsoft technology Wide Web, go to: www.microsoft.com from, in which case we’d have to fit our at a significant cost savings through operation to that package.” Microsoft Volume Licensing, contact your For more information about Heartland Microsoft Partner or local reseller. Business Systems products and services, call (800) 236-7914 or visit the To learn more about Microsoft Volume Web site at: Licensing, visit: www.hbs.net www.microsoft.com/licensing

For more information about SoftwareONE products and services, call

(800) 444-9890, send e-mail to [email protected], or visit the Web site at: www.softwareone.com

For more information about Coating Software and Services  Technologies Excellence International products visit  Microsoft Server Product Portfolio − Terminal Services the Web site at: − Windows Server 2003 Enterprise www.coating-excellence.com − Windows Server 2003 Standard Hardware − Microsoft Exchange Server 2007  HP servers Enterprise − Microsoft System Center Partners Configuration Manager 2007  Heartland Business Systems  Microsoft Dynamics  SoftwareONE − Microsoft Dynamics AX 4.0 − Microsoft Dynamics CRM 4.0  Microsoft Office − Microsoft Office Professional 2003 − Microsoft Office Professional 2007 − Microsoft Office SharePoint Server 2007

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Document published May 2009