Lonch Group Cuts O&M Costs by 50% by Migrating to Alibaba Cloud

This article explains how Alibaba Cloud helped a pharmaceutical company cut its direct database cost and O&M cost by migrating its core ERP system and databases to the cloud.

By Luo Dingliang

This article is reproduced from China Software Developer Network (CSDN). It discusses how Alibaba Cloud worked with UFIDA to help Lonch Group, a large pharmaceutical holding group company in China, migrate its core Enterprise Resource Planning (ERP) system and core databases to the cloud. The cloud migration cuts Lonch Group's direct database cost by 20% and the O&M cost by 50% while enabling more efficient internal and external collaboration to boost further business development.

Earlier, Lonch Group deployed UFIDA's NC ERP system locally and used traditional commercial databases. As its business grew rapidly, the company wanted to accelerate its transformation toward intelligent and mobile cloud migration to fully tap into the cloud advantages and cut IT costs.

After careful research and multi-stakeholder evaluation, Lonch Group decided to migrate its core business systems and databases to Alibaba Cloud. Lonch Group officially launched its cloud migration in January 2020. The migration drew to a successful close after three months of joint efforts led by UFIDA and Alibaba Cloud.

With Alibaba Cloud services, Lonch Group significantly cuts its data center management and O&M cost. Its cloud-based business systems enable efficient internal and external collaboration and quick responses to market demands. Besides, online business systems also lay a solid foundation for the company to implement its digital and intelligent strategies in the future.

Replacing traditional commercial databases with Alibaba Cloud's ApsaraDB services marked a crucial step in this migration project. Traditional databases are costly initially and demand subsequent maintenance, and are not flexible enough to cope with innovative services.

After Alibaba Cloud's ApsaraDB solutions took over the role, Lonch Group achieved the dynamic expansion of databases according to business development needs. Consequently, the direct cost of database usage reduced by more than 20%, and O&M costs reduced by more than 50%.

According to the Lonch Group's IT in-charge, "Alibaba Cloud's powerful ApsaraDB empowered the company to significantly reduce the O&M workload while ensuring data security. The second-level historical data recovery capabilities of ApsaraDB RDS free companies from the data loss concerns."

Lonch Group is a benchmark case where UFIDA and Alibaba Cloud collaborated to promote cloud migration among large group companies. Since Alibaba Cloud and UFIDA formed a comprehensive strategic partnership in 2017, the two sides have integrated the industrial ecosystem and jointly promoted companies' digital transformation and business innovation.

UFIDA has been focusing on enterprise services for 31 years. It is now China's largest enterprise cloud services and software provider and has cumulatively served 5.66 million enterprises and public organizations in their digital and intelligent transformation. Currently, UFIDA provides enterprises with a wealth of cloud services based on Alibaba Cloud to accelerate the cloud migration of large and medium-sized enterprises as well as small and micro enterprises in all sectors.

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Lonch Group Cuts O&M Costs by 50% by Migrating to Alibaba Cloud

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