Click here to close now.


Microservices Expo Authors: Liz McMillan, Elizabeth White, Pat Romanski, Yeshim Deniz, Lori MacVittie

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Containers Expo Blog, Agile Computing, Apache

@CloudExpo: Case Study

Case Study: Cloud-Based Sales & Operations Planning in the Cloud

How network provider Enterasys used cloud-based S&OP technology to drive growth and save millions per quarter

Cloud computing has changed the way we work. People and businesses can now access services, applications and infrastructure over the Internet, with lower costs, higher productivity and an enhanced user experience.

While cloud computing has revolutionized many aspects of business, its effects have been quite dramatic across supply and demand management. Cloud-based Sales & Operations Planning (S&OP) is particularly powerful, connecting disparate demand, supply and financial data from a wide swath of packaged and home-grown enterprise information systems as well as a forest of spreadsheets, harmonizing everything into a single, meaningful plan. Delivering this supply chain "Big Data," analytics and reporting in the cloud means that it can be deployed, scaled, and interconnected quickly, enabling truly collaborative supply and demand planning.

Cloud makes S&OP faster, more transparent and collaborative. It works, it's proven, and it can immediately adjust as needed based on changing business demands. Applications delivered via cloud not only makes it easier to connect disparate business processes and applications, it eliminates the traditional ‘forklift upgrade' process of traditional software vendors. Keeping up with the latest innovations is automatic, so enterprises can focus on their business instead of technology issues.

An Early Commitment to Cloud for Enterasys
For wired and wireless network infrastructure supplier Enterasys Networks, the cloud was not simply a path to IT value and cost savings, but rather it is considered a strategic weapon for competing against very large competitors. Enterasys has rolled out a broad range of cloud solutions company-wide, from gmail and Google Apps, in addition, to replacing Microsoft SharePoint, with Box for cloud-based content management and on-line collaboration. An avid advocate for cloud, Enterasys CIO Dan Petlon is a member of the customer advisory board for its cloud CRM solution,

One of its early business processes to benefit from cloud computing is S&OP, a journey which began in 2005. By harnessing the power of the cloud through S&OP vendor Steelwedge to better align its demand and supply plans internally as well as with suppliers and customers, Enterasys has achieved better demand predictability, reduced inventory and contributed to a 95% rate of global customer satisfaction.

The company's achievements have not gone unnoticed. Because of their innovative S&OP use of cloud computing, Enterasys has been recognized by Gartner as embodying advanced S&OP Maturity. The company's exceptional S&OP practices have resulted in three years of sequential growth during a period its peers were plagued with sluggish growth. With cloud-based S&OP technology, Enterasys identified $3 - $4 million in savings per quarter, and, in 2012, achieved the milestone of eleven consecutive quarters of improved year-over-year growth.

Creating a Demand-Driven Mindset
Enterasys' wired and wireless network infrastructure & security solutions help enterprises stay in front of changing connectivity and security needs. Back in 2004, the company realized that the impact of constantly evolving global business change on its supply chain meant that improving its ability to predict demand was paramount. The firm subsequently embarked on a CEO-driven mission to transform itself into a lean, responsive and much more demand-driven business.

According to Vice President of Operations Jack Lyon, "We needed to do a better job at predicting demand, so that we could reduce excess and obsolete inventory; you own it and have to write it off." Lyon's baseline assessment of supply chain challenges also included order delays, sluggish market response, short product life cycles and organization silos of information. Compounding the problem was a completely outsourced supply chain with contract manufacturers building all of its products.

Enterasys embarked on a mission to create a worldwide collaborative integrated process and methodology that supports and delivers a demand plan with one agreed set of numbers. The company set out to find an IT solution incorporating a S&OP software platform.

S&OP Year One: Anticipating the Market
Within a year of Lyon's assessment, the company improved its bottom line by applying new techniques and cloud-based technology to a proven S&OP process. With the cloud-based S&OP platform from Steelwedge, Enterasys connected its people and processes to better understand operational tradeoffs when changes in the business environment did not align with its business plan. The company selected Steelwedge's S&OP solution because it is built on a single, cloud-based Integrated Business Planning platform used by large, global manufacturers across multiple industries.

Enterasys uses Steelwedge to unite people, process and technology for an agile planning environment and growing business.

In 2005 the Enterasys S&OP process brought together a cross functional group of leaders from sales, marketing, product management, operations, finance and supply chain. At the same time, Steelwedge integrated and normalized the data from each of those groups that resided in their respective systems such as SAP and --and eventually added in BigMachines as well. From there, Enterasys drove significant and immediate changes in its business starting with better demand predictability, which in turn, directly affected its ability to respond to change.

For example, within a year, the company could determine in near real-time when a product was not selling as well as expected and drive demand-shaping activities to stimulate sales. Alternatively, if products were selling better than forecast, Enterasys could look first at sales data to see if the growth was sustainable, then reach out to its contract manufacturers to ascertain their capacity to boost production short and mid- term.

The bottom line was clear as well: decreased excess and obsolescence accounted for a whopping $3 to $4 million in savings per quarter initially.

But better demand planning was just the beginning of the ongoing transformation that Enterasys continues to drive from cloud-enabled S&OP. Armed with cross-company data and insights, the S&OP team moved its discussions from having enough supply to fill a particular order, to strategizing on improving gross margins. It regularly uses S&OP to power "what if" scenario planning across many facets of its business to understand the impacts of potential changes on customer satisfaction, revenue, sales and production.

Seven Years Later: Collaborating and Orchestrating
Enterasys has taken a purposeful, incremental "win" approach to driving advancement and ROI from its S&OP. Seven years later, the company has a global, collaborative and integrated S&OP process and methodology, powered with the Steelwedge cloud-based S&OP Platform. Its demand and supply plans are aligned internally and externally with suppliers and customers. In turn, better balance is delivering better predictability, better cash spend and better customer success.

Among the results Enterasys achieved from its mature use of cloud-based S&OP:

  • Timely and accurate information through automation
  • Cross functional alignment through a collaborative planning approach
  • Higher customer satisfaction through better fulfillment
  • Sustained high global customer satisfaction (ATP): 95%
  • Customer fulfillment: over 97%
  • Reduced inventory: 21% year over year
  • Forecast error (MAPE): averaging 24%
  • Revenue impact less than 5% (of material overhead/excess inventory)

Most impressive though was that Enterasys has realized year over year growth for the past three years (2009-2012). Even in 2011, where its sector saw a 3% drop, Enterasys kept growing and outperforming all other networking companies. Critical to that business stability is Enterasys' cloud-based S&OP foundation.

Crawl, Walk, Run, Sprint: the Promise and Perils of Optimizing Business in a Volatile World
Under Lyon's leadership, S&OP has become a key strategic lever for the company's continued market growth and competitive advantage. But Lyon isn't resting on his laurels. He maintains that the ever shifting marketplace requires constant vigilance on agile business planning to maintain great customer success.

"We traded up our problems, by transforming from a manually intensive supply chain into a lean and responsive organization," says Lyon. "For us, success is all about strengthening the collaboration with customers, delivering on our promises and meeting their expectations. Therefore, our optimization work is never done."

In summary, the cloud-based S&OP transformation at Enterasys resulted in the following improvements and lessons learned:

Stronger collaboration within the organization: A demand plan with one agreed set of numbers fosters alignment and a "we're in it together" culture, eliminating finger-pointing.

Better inventory balance: S&OP helps model the optimal inventory balance. Keeping the lowest possible inventory is not always the right solution: balance needs to be struck between revenue growth and high customer satisfaction while protecting the balance sheet.

Automation powers valuable analysis: Integrated data and executive level reports from the S&OP platform facilitate a collaborative, global S&OP process, freeing resource time for analysis vs. data gathering and manipulation. This, in turn, powers continuous improvement and faster process maturity.

Enabling "bluebird" opportunism: Insights from accurate S&OP data and timely "what if" scenario testing supports "bluebird" demand opportunities that weren't in the forecast at all. With tighter contract manufacturer collaboration, this provides reliable answers to questions like: Can we support it? If not now, when? What other options do we have for supply if we don't have it?

Lyon sums up Enterasys' S&OP success by stating, "We've been successful with S&OP because we've taken an iterative, ‘Crawl, Walk, Run, Sprint' approach to implementation, testing, measurement and advancement. "It's a non-stop journey. The only constant in business is change, whether its market disruptions, economic volatility, a natural disaster...or you name it: they all have varying degrees of impact on the process. Achieving a ‘sprint', may only happen for a matter of seconds before continuous improvement kicks in and you re-evaluate. But we have an agile foundation in place to help us deliver better, more consistently-regardless of the circumstance."

More Stories By Jeri Donn

Jeri Donn is Vice President of Cloud Services at Steelwedge Software, responsible for building, deploying and maintaining the company’s cloud environment. Steelwedge commands the global market for cloud-based Integrated Business Planning and is trusted by Global 1000 companies including: Lenovo, Jaguar Land Rover, Sony, and Emerson. Steelwedge's cloud-based Sales & Operations Planning (S&OP) software connects people, process and technology to power a single view of a company's business, powering reliable "what if" scenario modelling that pinpoints the financial impact of supply-demand trade-off decisions. Visit

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

@MicroservicesExpo Stories
The web app is agile. The REST API is agile. The testing and planning are agile. But alas, data infrastructures certainly are not. Once an application matures, changing the shape or indexing scheme of data often forces at best a top down planning exercise and at worst includes schema changes that force downtime. The time has come for a new approach that fundamentally advances the agility of distributed data infrastructures. Come learn about a new solution to the problems faced by software organ...
Between the compelling mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how busine...
With containerization using Docker, the orchestration of containers using Kubernetes, the self-service model for provisioning your projects and applications and the workflows we built in OpenShift is the best in class Platform as a Service that enables introducing DevOps into your organization with ease. In his session at DevOps Summit, Veer Muchandi, PaaS evangelist with RedHat, will provide a deep dive overview of OpenShift v3 and demonstrate how it helps with DevOps.
JFrog has announced a powerful technology for managing software packages from development into production. JFrog Artifactory 4 represents disruptive innovation in its groundbreaking ability to help development and DevOps teams deliver increasingly complex solutions on ever-shorter deadlines across multiple platforms JFrog Artifactory 4 establishes a new category – the Universal Artifact Repository – that reflects JFrog's unique commitment to enable faster software releases through the first pla...
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet condit...
The last decade was about virtual machines, but the next one is about containers. Containers enable a service to run on any host at any time. Traditional tools are starting to show cracks because they were not designed for this level of application portability. Now is the time to look at new ways to deploy and manage applications at scale. In his session at @DevOpsSummit, Brian “Redbeard” Harrington, a principal architect at CoreOS, will examine how CoreOS helps teams run in production. Attende...
The APN DevOps Competency highlights APN Partners who demonstrate deep capabilities delivering continuous integration, continuous delivery, and configuration management. They help customers transform their business to be more efficient and agile by leveraging the AWS platform and DevOps principles.
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult - let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and li...
Containers are changing the security landscape for software development and deployment. As with any security solutions, security approaches that work for developers, operations personnel and security professionals is a requirement. In his session at @DevOpsSummit, Kevin Gilpin, CTO and Co-Founder of Conjur, will discuss various security considerations for container-based infrastructure and related DevOps workflows.
Manufacturing has widely adopted standardized and automated processes to create designs, build them, and maintain them through their life cycle. However, many modern manufacturing systems go beyond mechanized workflows to introduce empowered workers, flexible collaboration, and rapid iteration. Such behaviors also characterize open source software development and are at the heart of DevOps culture, processes, and tooling.
IT data is typically silo'd by the various tools in place. Unifying all the log, metric and event data in one analytics platform stops finger pointing and provides the end-to-end correlation. Logs, metrics and custom event data can be joined to tell the holistic story of your software and operations. For example, users can correlate code deploys to system performance to application error codes.
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of, and Fred Yatzeck, principal architect leading product development at, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at th...
In their session at DevOps Summit, Asaf Yigal, co-founder and the VP of Product at, and Tomer Levy, co-founder and CEO of, will explore the entire process that they have undergone – through research, benchmarking, implementation, optimization, and customer success – in developing a processing engine that can handle petabytes of data. They will also discuss the requirements of such an engine in terms of scalability, resilience, security, and availability along with how the archi...
“All our customers are looking at the cloud ecosystem as an important part of their overall product strategy. Some see it evolve as a multi-cloud / hybrid cloud strategy, while others are embracing all forms of cloud offerings like PaaS, IaaS and SaaS in their solutions,” noted Suhas Joshi, Vice President – Technology, at Harbinger Group, in this exclusive Q&A with Cloud Expo Conference Chair Roger Strukhoff.
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, will explore HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Application availability is not just the measure of “being up”. Many apps can claim that status. Technically they are running and responding to requests, but at a rate which users would certainly interpret as being down. That’s because excessive load times can (and will be) interpreted as “not available.” That’s why it’s important to view ensuring application availability as requiring attention to all its composite parts: scalability, performance, and security.
Saviynt Inc. has announced the availability of the next release of Saviynt for AWS. The comprehensive security and compliance solution provides a Command-and-Control center to gain visibility into risks in AWS, enforce real-time protection of critical workloads as well as data and automate access life-cycle governance. The solution enables AWS customers to meet their compliance mandates such as ITAR, SOX, PCI, etc. by including an extensive risk and controls library to detect known threats and b...
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud wit...
Overgrown applications have given way to modular applications, driven by the need to break larger problems into smaller problems. Similarly large monolithic development processes have been forced to be broken into smaller agile development cycles. Looking at trends in software development, microservices architectures meet the same demands. Additional benefits of microservices architectures are compartmentalization and a limited impact of service failure versus a complete software malfunction....