Hitachi Construction Machinery transforms business operations with Oracle Cloud migration

Hitachi Construction Machinery Co., Ltd., a global leader in construction and mining equipment, has taken a significant leap in its digital transformation by migrating its comprehensive, mission-critical business systems to Oracle Cloud Infrastructure (OCI). The migration encompasses various functional domains including accounting, development, production, design, sales, and human resources, among others. This strategic move is aimed at unifying data across the company and paving the way for future advancements in artificial intelligence.

The decision to select Oracle Cloud VMware Solution and Oracle Exadata Database Service on OCI has enabled Hitachi Construction Machinery to execute a swift and secure transition from its on-premises setups with minimal disruption to existing applications and databases. This transition not only enhances operational efficiency but also significantly reduces the total cost of ownership (TCO), with infrastructure operating costs cut by 20%. Furthermore, the company reports a 50% improvement in online transaction processing and a 60% increase in batch processing performance.

Noriko Momoki, Senior Officer and President of the DX Promotion Group at Hitachi Construction Machinery, highlighted the advantages of OCI, stating, “OCI is the only public cloud that can securely migrate mission-critical databases running on Oracle Exadata and VMware virtualization environments without configuration changes, reducing costs significantly compared to other clouds which would require application rebuilds.” This efficiency gain has not only improved business processing times but also allowed the IT department to shift focus towards new projects to boost business competitiveness.

The migration includes approximately 500 virtual servers from an on-premises VMware environment and 100 databases to OCI. This transition is part of Hitachi Construction Machinery’s broader effort to enhance its architecture, automation, performance, data security, and cost optimization. Moreover, the company is establishing a new disaster recovery environment using Oracle Cloud’s Tokyo and Osaka regions to fortify its business continuity plans.

Ashish Ray, Vice President of Mission-Critical Database Technologies at Oracle, emphasized the broader industry trend: “Organizations across all industries worldwide have realized that moving to the cloud can help them accelerate digital transformation. Exadata Database Service and Oracle Cloud VMware Solution on OCI enable quick and reliable migrations, capture economic benefits of the cloud, and meet high-performance expectations.”

Looking forward, Hitachi Construction Machinery plans to further modernize its applications to cloud-native OCI and migrate additional databases from on-premises environments. By consolidating its business data into OCI to develop a digital transformation (DX) platform, the company is set to leverage multicloud and AI capabilities to remain at the forefront of industry innovation.

This collaboration between Hitachi Construction Machinery and Oracle demonstrates a significant advancement in how companies are leveraging cloud solutions to enhance operational flexibility and efficiency. It sets a precedent for how major enterprises can successfully transition to cloud environments, optimizing both performance and cost.