PeopleSoft Migration to

Microsoft Business Solutions

7.27.04
Prepared by a Microsoft Certified Partner
 PeopleSoft Migration to
Microsoft Business Solutions Abstract
Mid-sized companies and divisions of larger organizations currently using the PeopleSoft suite of Enterprise
Resource Planning (ERP) applications may be finding out that software designed for Enterprise Organizations
create a set of issues that they didn’t expect. PeopleSoft is built with an extensive array of technical and
functional capabilities to meet the demands of a diverse global customer base.

Many customers rationalized their purchase with the idea that if it works for the big companies, it surely will
meet my requirements. That couldn’t be further from the truth. While Mid-market companies require some
advanced functionality, such as multiple languages and currencies, they are generally lacking in the following
key areas:

• Mid-sized companies don’t have the same volume and scale requirements.
• Mid-sized companies don’t have large technical or functional staffs to support their ERP
implementation.
• As the skill sets of functional and technical staffs are limited, training and ramp-up take longer. It may
also be necessary to supplement the implementation with expensive external consulting services.
• The extensive functional capabilities may actually complicate rather than simplify the work processes.
• The same holds true in the technical environment where advanced tuning skills are required to
maintain the system’s performance.

In short, mid-sized companies may be burdened with a complex technical environment that they don’t
understand, don’t need and can’t support.

The Microsoft Business Solutions (MBS) ERP applications, residing on the Microsoft Technology stack, offer a
cost effective alternative to PeopleSoft.

• MBS products are designed with core functionality necessary for most Mid-market companies.
• License and maintenance fees are less. You pay for what you need and you use what you pay for.
• Upgrades take weeks not months. The applications can be tailored without expensive programming,
thereby reducing user training and maintenance costs.
• The applications are built in a single database structure, providing for true real-time capabilities and
simplified business processes, which makes the end-users more productive and the systems more
easily adaptable to your changing business environment.

The reality is that many companies could migrate to the MBS suite of products in less time than their next
PeopleSoft upgrade and at less cost. The new implementation provides a customer the opportunity to
concentrate on simplifying business processes and eliminating unnecessary steps created to support the
software (i.e., batch processing activities). The new MBS environment will be easier for the end users to use
and maintain. Since most companies already operate some elements of the Microsoft technology stack, the
chances are good that the technical maintenance and support will also be readily available in house.

PeopleSoft Migration to MBS [2]

>>> Contents
• Comparing the Total Ownership Experience between PeopleSoft and MBS Axapta
o End User Functionality
o Implementation

• Technical Maintenance & Support

o Periodic Upgrades

• Putting it All Together—Total Cost of Ownership Comparison

• Specific Issues or Concerns About Migrating from PeopleSoft

• General Requirements

• Should I Migrate from PeopleSoft to Microsoft

PeopleSoft Migration to MBS [3]

>>> Comparing the Total Ownership Experience between PeopleSoft
and MBS Axapta
The best way to illustrate the similarities and differences between the products is to compare and contrast
each of the aspects of ownership. Starting with end-user functionality and continuing through implementation,
training, technical support, upgrades, and Cost of Ownership, we can see that the MBS suite provides a more
cost effective ownership experience for Mid-market companies.

End User Functionality

PeopleSoft offers a full product line across the ERP landscape, including Financials, Human Resources,
Customer Relationship Management (CRM), and Supply Chain Management. They also provide deep
functionality that has been built in over time through a combination of product enhancements and acquisitions.

PeopleSoft internally builds enhancements to its products through a combination of the PeopleTools
development environment and a highly table-driven design. While this adds flexibility, it introduces complexity.
A single transaction sometimes takes a user several screens to complete. Customizing the screens to reduce
input adds to the cost of implementation, support, and upgrades.

PeopleSoft also provides a modular design. Applications may reside on the same platform but in different
instances of the database. This is a great feature for scalability and also allows the ability to rapidly add and
integrate applications to the product suites through acquisitions.

The downside is a lack of data integration.

• Batch processing is required to post information across the product suites.

• Real-time integration is accomplished through an Integration Broker that adds another process to
implementation and maintenance.
• Drill down to source data is difficult as you cross applications.

In contrast, the MBS Axapta products all reside in a single database. No need for batch processing or
integration brokers. Transactions automatically flow in real time across the application suite. Enter a customer
order in CRM and the appropriate areas of the Financial and Supply Chain modules are updated automatically.

The Axapta architecture is based on a data driven model. Customizations are easily accomplished at
appropriate levels.

• Data drill downs are seamless and easy for an end user to accomplish.
• Ad-hoc and structured reporting across applications is easier because the data is in one place and has
one tool.

PeopleSoft provides extensive reporting capabilities within their applications. In addition to standard reports
and ad-hoc Query tools, PeopleSoft makes use of Crystal reports and a utility called SQR for increased
complexity.

The most recent addition to the reporting family is a very sophisticated Enterprise Performance Management
(EPM) product suite that features data warehouse tools, integration across multiple data sources and Business
Intelligence capabilities, all of which give users the tools to build complex Key Performance Indicators and other
performance metrics. The EPM suite is an extra cost suite and comes at a significant price point.

PeopleSoft Migration to MBS [4]

In contrast, MBS Axapta has the same powerful set of standard tools for query and reporting with built-in
capability to capture data across applications because it all resides in a single database. Axapta also includes
in the base price a comprehensive set of Business Analytics that give end users tools that they can easily learn
and use to build performance metrics to run their business.

• The reporting tools are tied directly to the Microsoft software platform. Reports can be printed or
emailed directly from the desktop.

You can use Microsoft Pivot Tables

from Microsoft Excel® to view data

Implementation
The time, cost, and resource commitment required to implement any suite of ERP applications varies widely
based on the number of modules, complexity, and amount of customization required. There are several widely-
held benchmarks within the industry that are used when defining the implementation process.

• The length of a typical implementation can be from 4 to 12 months. Axapta falls at the low end of the
range with PeopleSoft in the middle and SAP at the high end of the range.
• Implementation costs can run from a low of 1.5 to nearly 7 times the license fees to estimate
Implementation costs. Once again, Axapta is at the low end, with PeopleSoft in the middle of the range,
and SAP at the top.
• External Consulting Resources are frequently used to support the implementation.

PeopleSoft Migration to MBS [5]

Let’s examine these areas more closely as they relate to PeopleSoft and MBS.

Project Tasks & Length

The typical project tasks associated with an implementation are generally the same regardless of the vendor.
The timeline may also be the same. In the table below is a list of standard tasks associated with a typical
implementation project. The project should take between 12 and 25 weeks. Significant differences begin to
show up in resource commitments depending on the complexity, degree of customization, and the availability
of internal resources to commit to the project.

Project Phase PeopleSoft Duration MBS Axapta Duration

Assessment (PM) 1 week 1 week

Planning and Analysis 6 weeks 3 weeks
Design and Development 8 weeks 4 weeks
Testing and Training 4 weeks 4 weeks
Deployment 4 weeks 2 weeks
Total Implementation Project 23 weeks 14 weeks

Resource Requirement Est PeopleSoft Hours Est MBS Axapta Hours

Project Manager 120 80

Functional Specialist 880 560
Technical Specialist 880 200
External Consultants 880 400
Total Estimated Hours 2,760 1,240

PeopleSoft Migration to MBS [6]

As we stated earlier, PeopleSoft applications are feature rich, but built with a table-driven modular design. This
necessitates several requirements for the implementation team, which oftentimes don’t exist in a mid-sized
company.

• Highly-skilled technical and functional resources to take on the complexity of the application.
• More training courses to learn the key technical and functional elements of the software.
• Greater dependency on external consultants to meet both the resource gaps and skill set gaps within
the organization.

Implementation Costs
Because of the complexity and design of PeopleSoft, the implementation is generally going to cost more than
the MBS suite. It will cost more because you will need to provide more training for your internal resources.
You will need to outsource or hire significant skill sets that you don’t have in house (and they’re probably more
expensive). Also, you’ll need to customize the software to make it easy to use for your limited user team, in
effect, taking away the extensive functionality that you, as a Mid-market company, probably won’t need or use.

If the average software investment for a typical PeopleSoft suite of modules in the Upper Mid-market is
between $500,000 and $2,000,000 (source GIGA Information Group) then the average implementation at the
mid-point of 3.0 times the license fees will run between $1,500,000 and $6,000,000.

Contrast that to MBS Axapta where the typical software investment for a mid-sized company is between
$150,000 and $500,000. At 1.5 times the license fees, the average implementation will only cost between
$250,000 and $750,000.

There are several reasons why this will hold true.

• Axapta is designed to meet Mid-market needs, eliminating the need for customizations to make the
system easy to use.
• The product exists entirely on the Microsoft technology stack. This eliminates the need for excessive
technical training and learning new skills sets to implement and support the product.
• The product is easier to learn and implement, thereby reducing the need for external consultants.

External Consulting Resources

Every Tier One vendor, including PeopleSoft, has a professional services organization. In the case of
PeopleSoft, the consultant base is nearly 4,000. They also charge premium rates up to $200 per hour.

In addition, all of the major system integrators have consulting organizations to support PeopleSoft, Oracle
and SAP. In almost every implementation, PeopleSoft recommends the use of their consultants or partners to
participate in the implementation. The number of external consultants can range from 2 to 10 full-time team
members, depending on the number of modules, time frames, and degree of complexity in the implementation.

MBS, on the other hand, has a limited consulting organization. Most customers work with local partners to
provide services on an as-needed basis to support their implementation. External consultants are rarely full
time for the length of the project and the total number is rarely more than 2 or 3.

PeopleSoft Migration to MBS [7]

>>> Technical Maintenance & Support
There are several fundamental differences in the requirements to support the PeopleSoft environment vs. MBS
Axapta. The PeopleSoft Pure Internet Architecture requires a wide array of technologies and skill sets to install
and maintain. The annual vendor maintenance fees are 20% vs. Microsoft’s 16%.

Technology Stack Requirements

PeopleSoft supports all of the major database products on the market today. The majority of the customer
base is generally on a UNIX operating system with either Oracle or IBM’s DB2 as the database. But that’s not
all. PeopleSoft also requires Windows 2000 (or 2000 Server), Websphere or Weblogic, COBOL and SQR. This
is a robust operating environment that will scale to high volumes and large numbers of users. However, this is
probably outside the typical skills and requirements of a mid-sized company.

Contrast that to MBS Axapta. The single database architecture is SQLServer and the applications reside
completely within the Microsoft technology stack. It’s likely that you already have some of the skill sets in house
running Microsoft Exchange and Office. The MBS Axapta is not likely to scale to the volumes that PeopleSoft
does. Is this something that a Mid-market company needs…probably not.

Technical Resources
The typical PeopleSoft environment requires at least three skill types that often don’t exist in a single person.
Even if they did, you would require more hours in the day to support routine maintenance. The skills include a
DBA, UNIX Systems Administrator and a Technical Lead.

• DBA—The PeopleSoft environment requires multiple instances of the databases and should be tuned
periodically to ensure optimal performance.
• UNIX Systems Administrator—PeopleSoft in either an Oracle or DB2 environment requires a UNIX
administrator for installation, maintenance and upgrades.
• Technical Lead—The technical lead will provide user support for reports and customizations. At a
minimum, skills include JAVA, PeopleTools, SQR, and COBOL at a minimum.

The MBS Axapta environment requires fewer skill sets and these can generally be shared with the existing team
that supports the Microsoft technology platform. In most cases, users can perform all of the reporting functions
and most of the system personalization…without a technical lead. Where PeopleSoft may require 2 to 3 people
to support the environment, MBS Axapta needs only 1 to 1.5 people.

Annual Maintenance Costs

According to GIGA research, the annual cost to support a PeopleSoft environment is 20 to 25% of the initial
investment (including the cost to implement). MBS Axapta will be less because the vendor maintenance portion
is 16%, not 20% where PeopleSoft is today.

As the table on the following page illustrates, supporting a PeopleSoft environment every year is significantly
more expensive than MBS Axapta. As IT budgets continue to get squeezed, you need to ask yourself if you need
to pay for technology you may never use.

PeopleSoft Migration to MBS [8]

 Description PeopleSoft MBS Axapta
Hardware 1
$120,000 $120,000
Software $500,000 $200,000
Implementation Cost2 $1,500,000 $300,000
Total Investment $2,120,000 $620,000
Annual Maintenance %3 25% 21%
Annual Maintenance Costs $530,000 $130,200

This is an estimate of the base hardware configuration needed to run PeopleSoft or MBS Axapta. The
configuration requirements would be based on the volume, size and concurrent users. PeopleSoft operates in
a web-client environment that ultimately requires less processing power on the client machine. However, in our
experience, most customers are still providing more powerful computing environments for end-users as the
price/performance levels improve. Most customers also run some version of Windows, Exchange and Office
that negates the ability to use lower powered clients.

1
Hardware Costs
Processor .................... 8 @ 750 MHz
2
Implementation Costs
Using standard industry figures, PeopleSoft External Cache
implementation is calculated at 3.0 times the per Processor ............... 8 MB
software license fees; whereas, Axapta is
calculated at 1.5 times the software license fees. Memory ....................... 32 GB (64 @ 512 MB DIMMS)
3
Annual Maintenance % 10000 RPM FC-AL
This percentage is an industry average quoted Disk Drive .................... 12 @ 36 GB
from GIGA research and represents the total of all
DVD-ROM 10 Drive ....... 1
costs associated with operating and maintaining
the applications. It includes software maintenance Gigabit Ethernet Port ... 1
and support from the vendor, internal personnel
costs, and external consulting fees. MBS Axapta Ethernet Port ............... 1 @ 10/100BASE-T
is calculated at 4% less, as their annual software
maintenance is 16% vs. PeopleSoft’s 20%. Serial Port ................... 2 RS-232C/RS-423

Power Supply ............... 3 @ 1500 Watt

Server License ............. Yes

List Price ....................$119,995.00

PeopleSoft Migration to MBS [9]

Periodic Upgrades
PeopleSoft supports products for four years from general availability release date. This will translate into an
upgrade every 2 to 3 years. Depending on the degree of customization, an upgrade can take anywhere from
3 to 6 months to complete. The most recent PeopleSoft upgrades required a significant technology change as
PeopleSoft moved from client-server to its PIA or Pure Internet Architecture environment.

To support their upgrade process, PeopleSoft provides a series of tools to aid users in the upgrade. These
include upgrade scripts, data conversion programs, compare reports, and audit reports. The major issue in any
PeopleSoft upgrade is customization. An upgrade can be easy or extremely complex depending on:

• How many customizations were done.

• How complex the customizations are.
• How well documented the changes are.
• How many customizations need to be retrofitted to the new release.

MBS Axapta was designed with a unique application, layering technology that provides MBS, its partners, and
customers with the ability to create specific customizations that will be isolated and contained in their own
layers. This not only provides for flexibility, but it also makes the process of upgrading much easier by keeping
any unique customizations in a well-documented and controlled area.

In addition to the layering technology, Axapta provides a similar set of tools to help guide the customer through
an upgrade process, including scripts, compare reporting, and an upgrade cockpit that allows the upgrade
team to run extensive testing routines from a single desktop.

Unlike the PeopleSoft 3 to 6 month upgrade timeframes, the typical MBS upgrade requires only 1 to 3 months
depending on complexity, number of modules, and customization.

>>> Putting it All Together—Total Cost of Ownership Comparison

For mid-sized companies or divisions of larger companies, the total cost of operating a PeopleSoft environment
vs. MBS Axapta can be significantly greater. The table below illustrates the dramatic differences that buying a
Tier One vendor like PeopleSoft can mean where the functionality of MBS Axapta would more than meet your
end users’ requirements.

Cost Item PeopleSoft MBS

Hardware Costs1 $120,000 $120,000
Software License Fees2 $500,000 $270,000
Implementation 3
$1,500,000 $405,000
Upgrades 4
$144,000 $40,000
5 years of Annual Internal Support 5
$2,650,000 $834,750
Total $4,914,000 $1,669,750
5 Year Average Annual TCO $982,800 $333,950

PeopleSoft Migration to MBS [10]

In the previous graph, we used the following factors to calculate our costs.

• Hardware Costs—We assumed that both products would require the acquisition of similar hardware
platforms to run similar volumes and end users.
• Software License Fees—Based on the low end of the average for PeopleSoft from GIGA research
report dated August 2002. Actual pricing for Axapta is based on a 600 user complete suite of modules.
• Implementation—Calculated at 1.5 times the license.
• Upgrades—Two upgrades over the 5 year period. PeopleSoft calculated as a three-month effort with
two external resources at $24,000 per month each. Axapta is calculated at one month with two
external resources at $20,000 each.
• Annual Support Costs—PeopleSoft is calculated at 25% of the initial investment and MBS Axapta
is calculated at 21% of initial investment. Initial investment equals hardware, software, and
implementation costs. The difference is that software maintenance fees are 20% for PeopleSoft and
16% for Axapta.

What could you do with an extra $600,000 added to your bottom line each year? If you are facing your next
PeopleSoft upgrade or just frustrated with the complexity of the applications, perhaps it’s time for a change.

>>> Specific Issues or Concerns About Migrating from PeopleSoft

If you are interested in transitioning from PeopleSoft to a Microsoft Business Solutions product, there are
several areas that need to be considered when making the transition.

Data and Process Migration

The PeopleSoft applications are different and there are several areas around the structure of the data and the
business processes that must be examined when considering a migration.

• PeopleSoft databases require case sensitivity, while Axapta’s database is inherently case insensitive,
leading to potential data integrity issues during migration. This is usually handled in the migration
toolsets of each product.
• Data model incompatibilities (e.g., the use of Set IDs, BUs, and tree structures) between PeopleSoft
and Axapta raise issues with data migration and/or consolidated reporting.
• PeopleSoft is modular and therefore uses a number of batch processes to flow data through their
systems. Business processes will most likely need to be refined and simplified because Axapta doesn’t
require any batch transactions to post transactions.
• Technical support and maintenance procedures require redefinition. In most cases, it will be learning
the single database structure and highly flexible Axapta layering tools for customization and upgrades.
• Migration of data out of PeopleSoft into Axapta must go through the Axapta import wizard to maintain
integrity; whereas PeopleSoft typically imports and exports directly to/from the database.

External Interfaces
PeopleSoft and MBS use different technologies to interface and integrate with external systems. An analysis of
any third-party interfaces is required and the following may require additional development in Axapta.

• Interfaces, reporting, extraction, and maintenance tools, as well as electronic business exchanges
must be carefully reviewed and, in most cases, will require a significant redevelopment effort.

PeopleSoft Migration to MBS [11]

 • If you are using component Interfaces into PeopleSoft, these must be rewritten using Axapta COM+
Connector.
• If you are using Integration Brokers and Application Messaging into and out of PeopleSoft, Microsoft
BizTalk and .NET technologies will be required to replicate this in Axapta.

Reporting Requirements
As noted earlier, PeopleSoft has built-in Query capabilities plus three additional reporting tools…SQR,
Crystal Reports and nVision for General Ledger. The reporting tools in Axapta are capable of meeting all of
the reporting needs. As part of the migration, the reports currently produced in PeopleSoft should be evaluated
and redeveloped in the Axapta reporting tools.

• nVision Reports—Provide high-level financial data mostly from the General Ledger. These reports
can be generated in the basic Axapta application report writer and also provide significant drill-down
abilities into the source date. Users should consider what nVision or Crystal reports could be replaced
with effective drill downs to source data within Axapta to reduce output.
• Report Distribution—Axapta reports can be generated by individual users and distributed in hard copy
or by email. Check the distribution process within PeopleSoft to see if it can be simplified in Axapta.
• Business Intelligence—Axapta incorporates extensive OLAP capabilities. See if any SQR or Crystal
reports are sending data to external OLAP systems, which may be replaced in Axapta.
• SQR Reports—Certain types or SQR reports that perform complex routines may need to be built using
custom code in Axapta. These reports should be analyzed and redeveloped only if necessary.

>>> General Requirements

End User and Technical Support Retraining Requirements
PeopleSoft and MBS Axapta have similar interfaces in that they both operate in a Windows environment.
However, users and technical staff will need to be trained in the applications and technical architecture. MBS
offers complete documentation and a full range of online and classroom training options to minimize the time
and expense of training.

Architectural Requirements and Compatibility

Before embarking on a migration, make sure that any non-MBS initiatives that might affect the ERP applications
will be compatible with the new environment. It’s also important to review the configuration of the desktops to
ensure that Axapta client deployment requirements are met.

Application Functionality Differences

PeopleSoft Uses hierarchical tree structures in financial reporting and chart field validation. Axapta uses a
concept called Dimensions. These differences must be reconciled as part of the migration.

PeopleSoft’s application modularity makes it more cumbersome to navigate, access data, and maintain tables.
Axapta operates in a single environment. This will result in considerable business process differences. For
example, it’s no longer necessary to run batch AP posting jobs each night. That, in turn, eliminates the need for
daily reconciliation of the AP interface.

PeopleSoft Migration to MBS [12]

>>> Should I Migrate from PeopleSoft to Microsoft?
If you are thinking about simplifying your ERP applications and reducing the total cost of ownership, give
yourself a simple checkup.

• Capture total cost of PeopleSoft Operations

o Annual Vendor Maintenance Fees
o Internal Support Personnel
o External Consultants—if any
o Extra Software—For example, Oracle Database if PeopleSoft is the only application running on it
• Evaluate your latest PeopleSoft upgrade
o How much did it cost?
o How long did it take?
o How many external consultants were involved?
• Evaluate your PeopleSoft technical environment
o Are there excessive customizations?
o What are the transaction volumes?
o What is the number of users?
o Is the technical PeopleSoft environment stable?
• Evaluate your PeopleSoft functional environment
o Measure user satisfaction
o Identify functional gaps
o Determine user productivity issues
• Evaluate MBS Axapta
o Compare functional requirements to Axapta features
o Evaluate Microsoft technology stack
o Identify product gaps
o Identify data conversion issues
o Identify system interface and integration issues
o Develop High-level Migration project plans and cost estimates
• Prepare an ROI analysis
o Identify the Benefits:
Improve employee productivity
Reduce software maintenance costs
Reduce upgrade costs
Eliminate unnecessary software license fees
Eliminate external consultants
o Identify the cost to migrate
Calculate new software license and implementation
Calculate ongoing TCO
o Calculate ROI
What are the annual savings?
What is the payback period?

A structured ROI tool should be used to analyze and justify any large IT decision. ROI is the most important
metric to use for choosing an application and prioritizing projects within a company during budgeting.
ROI = average benefit over three years/initial cost.

PeopleSoft Migration to MBS [13]

Payback Period is the time it takes for benefits returned to equal the initial cost of the project. This is a
key measurement of risk—in the rapidly-changing technology area, look for payback periods of less than
one year and don’t be afraid to discard a solution in favor of a better one once the solution has surpassed
its payback period.

For companies that haven’t defined a corporate standard for ROI analysis, objective companies such as
Nucleus Research provide toolsets to capture the appropriate cost, identify the benefits, and calculate the
numbers necessary to make informed choices.

PeopleSoft Migration to MBS [14]