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Panasonic Information Systems Selects Oracle Cloud Infrastructure to Drive Modernization of Internal Systems Across the Group

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Panasonic Information Systems (Panasonic IS), a subsidiary of Panasonic Holdings, has selected Oracle Exadata Database Service on Oracle Cloud Infrastructure (OCI) to modernize its internal systems. The initiative involves migrating over 2,000 database environments from on-premises to the cloud. In the first phase, Panasonic IS migrated 30 systems, reducing database infrastructure costs by 50%. One major milestone was the migration of the sales data analytics system, managing 30TB of data for 18,000 employees. This move is part of the broader 'Panasonic Transformation (PX) Best Hybrid Platform' strategy, which leverages multiple public clouds for optimal performance. Oracle Consulting's support played a significant role in the project's success. Panasonic IS plans to continue collaborating with Oracle for future migrations and data utilization initiatives.

Positive
  • Panasonic IS reduced database infrastructure costs by 50% in the first phase.
  • Successfully migrated a major sales data analytics system containing 30TB of data.
  • Panasonic IS's migration included 30 internal systems, a part of over 2,000 database environments.
  • Oracle Exadata Database Service provided superior performance, availability, and cost benefits.
  • Oracle Consulting's support was pivotal in resolving deployment issues quickly.
  • The migration supports over 18,000 employees, enhancing operational efficiency.
Negative
  • The project is still in its early stages, with only a small portion of systems migrated.
  • Unclear if the same level of cost reduction can be maintained throughout the entire migration process.

Insights

Panasonic Information Systems has made a substantial move by migrating its sales data analytics system to Oracle Exadata Database Service on OCI. The initial phase already shows a 50% reduction in database infrastructure costs, which is highly significant for the company's bottom line. This cost-saving metric is a strong signal to investors about Panasonic's commitment to improving operational efficiency and reducing overheads.

In the short term, these savings can potentially improve Panasonic's profit margins by reducing operating expenses. Over the long term, the investment in cloud infrastructure could further enhance scalability and flexibility, allowing Panasonic to swiftly adapt to market changes and new technology developments.

However, it’s worth noting that cloud migrations come with their own set of risks, such as data security and potential downtime during the transition phase. The successful completion of only 30 system migrations out of hundreds suggests a gradual and careful approach, which might mitigate some of these risks but also implies a long-term horizon for the full realization of benefits.

Retail investors should consider the potential cost savings and improved operational efficiency against the backdrop of these risks and the overall timeline of the migration project.

From a technological standpoint, Panasonic's decision to use Oracle Exadata Database Service on OCI offers several advantages. Exadata is known for its high performance and availability, which are important for managing large datasets such as the 30TB sales data analytics system. This migration to a more robust cloud infrastructure can enhance data processing speeds and improve overall system reliability.

The adoption of cloud-based infrastructure reflects a broader industry trend where companies are moving away from on-premises solutions to leverage the scalability and flexibility that the cloud offers. Exadata's built-in automation and elastic resource scaling can further simplify system management and reduce IT workload, making it easier for Panasonic to maintain and upgrade its systems in the future.

Retail investors should understand that this technological shift not only aligns Panasonic with current industry standards but also positions it advantageously for future advancements in data analytics and AI-driven decision-making.

Panasonic Group's IT subsidiary completes migration of one of its largest internal systems, its sales data analytics system, to Exadata Database Service

Successfully reduces database infrastructure cost by 50 percent in the first phase

AUSTIN, Texas, June 13, 2024  /PRNewswire/ -- Panasonic Information Systems Co., Ltd. (Panasonic IS), the IT subsidiary of Panasonic Holdings Corporation, has selected Oracle Exadata Database Service on Oracle Cloud Infrastructure (OCI) as the cloud database platform to support the internal systems used by all companies within the Panasonic Group. This entails migrating more than 2,000 database environments from hundreds of internal systems to Oracle Exadata Database Service on OCI. In the first phase of the project, Panasonic IS has successfully migrated 30 systems from on-premises to the cloud, resulting in a reduction of approximately 50 percent in database infrastructure costs.

Panasonic Group is a global leader in developing innovative technologies and solutions for a wide-range of consumer electronic appliances. To sustain its competitive edge, the Panasonic Group is modernizing its on-premises IT environment and traditional business processes. To achieve this, Panasonic IS is establishing an infrastructure called "Panasonic Transformation (PX) Best Hybrid Platform," which is leveraging multiple public clouds to adopt the most suitable cloud for each system. To consolidate a large number of databases in the public cloud, Panasonic IS chose Oracle Exadata Database Service on OCI for its exceptional performance, availability, and ability. As the major project milestone, Panasonic IS has successfully migrated one of the Panasonic Group's largest systems—the sales data analytics system, containing 30TB of data and used by 18,000 employees—to centrally manage its consumer electronics sales information in Japan.

"While migrating our internal systems, we select the optimal environment for each system in order to maintain or improve performance. In addition to the benefits of using the advanced database functionalities of Oracle Database in the cloud, Oracle Exadata Database Service also delivered the best performance for larger systems amongst all the other cloud vendors during the initial performance testing," said Takeshi Yokosuka, director, platform service division, Panasonic Information Systems Co., Ltd. "We have only completed migrating a small portion of the hundreds of internal systems, but we are already seeing significant benefits. We look forward to continuing to work with Oracle to migrate the rest of the systems and collaborate on future data utilization initiatives. Additionally, we are planning to leverage this seamless migration experience to support not only companies within the Panasonic Group, but also any companies considering migrating to Oracle Exadata Database Service."

"This sales data analytics system was our largest system migration to OCI. Preliminary results showed that our stringent requirements, such as performance, were met satisfactorily and the project was a great success," said Tomoyuki Sakai, senior managing executive officer, Panasonic Information Systems Co., Ltd. "Oracle Consulting's dedication to the project was exceptional and played a tremendous role in helping us quickly resolve any issues during deployment. We look forward to deepening our relationship with Oracle on various migration projects, which will help us reduce operational workload and benefit from early adoption of the latest technology. We are confident that this collaboration will lead us to develop the best hybrid cloud environment that meets our needs."

Oracle Exadata Database Service delivers the versatility of Oracle Database on purpose-built, optimized infrastructure to public and hybrid clouds. Built-in cloud automation, elastic resource scaling, security, and fast performance for all Oracle Database workloads helps customers simplify management and reduce costs.

"The electronics sector has weathered turbulent years marked by supply chain crises, unprecedented lead times, and shifting customer demands. To thrive in this rapidly evolving macroeconomic landscape, companies must embrace technology to leverage the full benefits of cloud and strengthen their competitive profile," said Ashish Ray, vice president, Mission-Critical Database Technologies, Oracle. "Exadata Database Service on OCI provides Panasonic IS with superior database performance, security, and availability to facilitate the deployment of diverse applications to support several thousands of users. By moving hundreds of Panasonic Group's internal systems to the cloud, its IT organization has gained flexibility and significant economic benefits."

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Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at oracle.com.

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SOURCE Oracle

FAQ

What cloud solution did Panasonic IS choose for their system modernization?

Panasonic IS chose Oracle Exadata Database Service on Oracle Cloud Infrastructure (OCI).

How much did Panasonic IS reduce its database infrastructure costs in the first phase of migration?

Panasonic IS reduced its database infrastructure costs by approximately 50% in the first phase.

What major system did Panasonic IS migrate in the first phase?

Panasonic IS migrated its sales data analytics system, managing 30TB of data.

How many database environments is Panasonic IS planning to migrate?

Panasonic IS plans to migrate over 2,000 database environments.

How many systems were migrated by Panasonic IS in the first phase?

Panasonic IS migrated 30 systems in the first phase.

What is the 'Panasonic Transformation (PX) Best Hybrid Platform' strategy?

It is Panasonic IS's strategy to leverage multiple public clouds for optimal performance and modernization.

How many employees will benefit from the migrated sales data analytics system?

The sales data analytics system will benefit 18,000 employees.

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