TAFE NSW Initiates Bold $22 Million ERP Overhaul
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Brief Overview
- TAFE NSW is committing $22 million for an upgrade to the S/4 HANA ERP system.
- This upgrade is essential as the existing SAP ECC 6.0 platform is nearing its end-of-life by 2027.
- The upcoming system will operate on SAP’s private cloud powered by Azure.
- TAFE NSW has obtained a $12.9 million contract for S/4 HANA licences spanning three years.
- A $7.6 million agreement has been made for integration and implementation services.
- An extra $1.4 million has been designated for SAP professional services.
- TAFE NSW has also entered into a $34 million agreement with Microsoft and revised a Dell contract to $57.5 million.
TAFE NSW’s ERP Enhancement Strategy
Reasons for the Upgrade
TAFE NSW, a leading institution in vocational education, is making a significant $22 million investment to upgrade its enterprise resource planning (ERP) system. The existing SAP ECC 6.0 platform is scheduled to reach its end-of-life by 2027, making this transition crucial for consistent operations.
Journey to S/4 HANA
The transition plan involves shifting from SAP ECC 6.0 to S/4 HANA, which will be hosted on SAP’s Azure-driven private cloud. This upgrade is enabled through RISE with SAP, an all-encompassing package that integrates cloud infrastructure, software, and managed services.
Investment Insights
TAFE NSW has entered into a three-year contract valued at $12.9 million for S/4 HANA licences. Moreover, a contract worth $7.6 million has been finalized for integration and implementation services, with SAP as the collaborating partner. An additional allocation of $1.4 million is designated for professional services to facilitate this transition.
Supporting Agreements
Partnerships with Microsoft and Dell
Alongside the ERP upgrade, TAFE NSW has concluded a $34 million agreement for Microsoft software licences and Azure cloud infrastructure, extending to 2028. The current master contract with Dell has also been revised upward to $57.5 million, to ensure comprehensive IT assistance.
Conclusion
TAFE NSW is systematically upgrading its ERP system to S/4 HANA, investing $22 million to sustain crucial business functions. This initiative forms part of a wider IT enhancement effort, including significant commitments to Microsoft and Dell.