Hitachi Construction Machinery Drives Digital Transformation by Moving Large-scale Systems to Oracle Cloud Infrastructure
Oracle announced that Hitachi Construction Machinery has chosen Oracle Cloud Infrastructure (OCI) to migrate its mission-critical business systems. Utilizing Oracle Cloud VMware Solution and Oracle Exadata Database Service on OCI, the company achieved a seamless cloud migration, reducing operating costs by 20% and significantly improving performance metrics like online transaction processing by 50% and batch processing by 60%.
This migration supports Hitachi's digital transformation goals by consolidating data and preparing for future AI implementation. Additionally, the company benefits from improved business continuity, enhanced automation, and optimized costs without significant application changes. The transition also includes migrating around 500 virtual servers and 100 databases, and setting up a new disaster recovery environment in Oracle Cloud regions in Tokyo and Osaka.
Oracle's cloud solutions have enabled Hitachi to increase resource scalability, business flexibility, and operational efficiency, underscoring the broader trend of industries leveraging cloud migration for digital transformation.
- Hitachi Construction Machinery reduced infrastructure operating costs by 20%.
- Online transaction processing performance improved by 50%, and batch processing by 60%.
- The company achieved a fast and reliable migration without needing application changes.
- Enhanced business continuity with new disaster recovery environments in Tokyo and Osaka.
- Enabled future AI implementation by consolidating data and preparing a digital transformation platform.
- None.
Hitachi Construction Machinery's decision to migrate its mission-critical systems to Oracle Cloud Infrastructure (OCI) is notable from a technological perspective. Moving such a wide array of systems—including accounting, development and production—requires a robust and reliable cloud infrastructure. Oracle's Exadata and VMware Solution offer a seamless transition, particularly advantageous because they do not necessitate significant application changes, which can be costly and time-consuming.
The transition to OCI is a strategic move to unify data across different systems and gear up for future AI implementations. The company reported a 50% improvement in online transaction processing and a 60% enhancement in batch processing, which are substantial performance gains. This improvement in processing times means the company can handle more transactions and data queries faster, directly impacting operational efficiency and customer satisfaction.
For retail investors, this migration indicates a forward-thinking approach by Hitachi Construction Machinery, focusing on scalable and cost-effective solutions. The new disaster recovery environment further strengthens business continuity, reducing downtime risks during unforeseen events. This move aligns with broader industry trends toward digital transformation, making Hitachi Construction Machinery better positioned for future technological advancements.
The migration to Oracle Cloud Infrastructure has resulted in
From a financial perspective, reducing Total Cost of Ownership (TCO) is a significant advantage, particularly in today's competitive market. The strategic decision to avoid application changes cut down additional costs that could have arisen from rebuilding or reconfiguring applications, enhancing overall cost-effectiveness.
Investors should be aware of the implications of such technological investments. While the immediate cost reduction is beneficial, the long-term benefits include potential revenue growth due to enhanced operational efficiency and the ability to scale rapidly. It's worth noting the alignment with the company's broader digital transformation goals, making Hitachi Construction Machinery a more agile and competitive player in the market.
The migration to OCI positions Hitachi Construction Machinery favorably within the industry. The decision to move to a cloud-based infrastructure aligns with the greater trend towards digital transformation across industries. By improving operational efficiencies and reducing costs, the company strengthens its market position and appeal to stakeholders.
Another important aspect to consider is the company's ability to scale dynamically as its business grows and changes, which is particularly important in the highly cyclical and demand-sensitive construction machinery market. The improved business continuity and secure migration strategy further emphasize the company's commitment to operational resilience and customer satisfaction.
Investors might also find the potential for future AI integration and multicloud capabilities intriguing, as these technologies are likely to drive future growth and innovation. The shift to cloud-native applications entails long-term operational benefits, making the company more adaptable to changing market conditions and technological advancements.
This strategic move might also set a benchmark within the industry, pushing competitors to adopt similar digital transformation strategies, potentially leading to a broader digital shift within the sector.
Oracle Cloud VMware Solution and Oracle Exadata Database Service help ensure fast and reliable cloud migration of mission-critical systems
The company has reduced operating costs by 20 percent while improving performance in other key areas
Hitachi Construction Machinery develops, manufactures, sells, rents, and services hydraulic excavators, wheel loaders, road equipment, and mining equipment, with more than 400,000 units of construction equipment in operation worldwide. As part of its digital transformation effort (DX), it's migrating its large-scale core system to the public cloud to unify data from mission-critical systems and construction equipment and prepare for future AI implementation.
Hitachi Construction Machinery selected OCI because it enabled a safe and secure migration strategy without requiring application changes. Additionally, the company benefits from improved business continuity and a reduced total cost of ownership (TCO). By moving to the cloud, Hitachi Construction Machinery has quickly and dynamically scaled its resources, increased flexibility as its business grows and changes, and reduced its infrastructure operating costs by 20 percent. In addition, online transaction processing performance has improved by 50 percent, and batch processing performance has enhanced by 60 percent on several core business systems.
"OCI is the only public cloud that can securely migrate mission-critical databases running on Oracle Exadata and VMware virtualization environments since we can migrate quickly without configuration changes and reduce costs. Other clouds would have increased our costs due to having to rebuild applications," said Noriko Momoki, senior officer and president, DX Promotion Group, Hitachi Construction Machinery. "The increased performance has significantly improved business processing time while reducing operational and management tasks, meaning our IT department can now focus on new projects to strengthen our business competitiveness."
Hitachi Construction Machinery is migrating approximately 500 virtual servers from an on-premises VMware virtualization environment and 100 databases to Oracle Cloud VMware Solution and Oracle Exadata Database Service on OCI. The migration will allow the company to benefit from better architecture, enhanced automation, improved performance, availability, data security configurations, and optimized costs without making application changes. In addition, Hitachi Construction Machinery is implementing a new disaster recovery environment using Oracle Cloud Tokyo and
"Organizations across all industries worldwide have realized that moving to the cloud can help them accelerate digital transformation," said Ashish Ray, vice president, Mission-Critical Database Technologies, Oracle. "Exadata Database Service and Oracle Cloud VMware Solution on OCI enable Hitachi Construction Machinery to quickly and reliably migrate mission-critical systems to the cloud, capture the cloud's economic benefits, and deliver on high-performance expectations from customers and employees. Both these services extend on-premises environments with cloud elasticity and leverage existing knowledge, skills, processes, and tooling — and having both applications and databases on OCI simplifies operations and increases performance."
Hitachi Construction Machinery plans to modernize applications to cloud-native OCI and migrate its remaining databases from on-premises environments. By consolidating its business data into OCI to develop a DX platform, the company plans to leverage multicloud and AI capabilities.
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