Fullscope Customer Network Equipment Technologies (NET) Goes Live on Microsoft Dynamics AX 2009 for High Tech

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Network communications provider completes aggressive three-month upgrade project 75% under budget; overall implementation yields $1.3 million in annual savings

For us, the product cost was less than the cost of one year's maintenance on our prior system.

Fullscope, a Gold Certified Microsoft Business Solutions Partner and silver sponsor of the Microsoft Global High Tech Summit, today announced that its customer Network Equipment Technologies, Inc. ("NET", NYSE: NWK), a leading provider of network and Voice over Internet Protocol (VoIP) solutions to enterprises and government agencies, has upgraded to Microsoft Dynamics® AX 2009 for High Tech.

The entire upgrade implementation process--including the migration of Quintum Technologies, a VoIP innovator acquired by NET--was accomplished at minimal cost with a small, mostly internal team. Microsoft Dynamics AX 2009's enhanced reporting capabilities, business intelligence, production planning and support for integration with contract manufacturers were the key reasons for the upgrade.

"We budgeted more than $200,000 in consulting services and expected the Microsoft Dynamics AX 2009 project to last about five months," said Carmel Wynkoop, director of information technology for NET. "We were delighted when three in-house developers were able to do most of the upgrade themselves--including modifications and migration of the new division--in three months, incurring outside consulting costs of less than $38,000."

Formerly an Oracle user, NET implemented Microsoft Dynamics AX 4.0 in 2007 to streamline sales transactions and financial systems, and also to improve processes with supply chain and contract manufacturing facilities.

"The decision to implement Microsoft Dynamics AX was a straightforward business decision," said Talbot Harty, chief development officer of NET. "For us, the product cost was less than the cost of one year's maintenance on our prior system."

According to Harty, NET achieved a full return on its investment in Microsoft Dynamics AX in less than seven months and saved $1.5 million over the cost of an Oracle upgrade. Based on the reduced information technology burden, stronger system integration and greater process efficiency, the software continues to save NET $1.3 million annually.

As a result of implementing Microsoft Dynamics AX, NET has simplified sales orders processes related to building and supporting a portfolio of complex communications products. Due to the set up of the Oracle Item Master the system required additional phantom items within each configuration in order to properly order and build individual product models. This created over 25,000 phantom parts. With the flexible product configuration in Microsoft Dynamics AX, NET streamlined approximately 37,000 derivative part numbers to about 8,000 and reduced its sales order data entry time by half.

"In our previous system, it would take hours to complete the order for one of our more complex products," said Wynkoop. "With Microsoft Dynamics AX for High Tech, it takes minutes."
NET's desire to remain agile and competitive in a rapidly changing global marketplace also influenced the upgrade decision.

"Protecting our upgrade path was critical from the beginning," said Wynkoop. "Microsoft Dynamics AX for High Tech fit our requirements for a system nimble enough to adapt to the changing needs of our company."

Automated, accurate compliance with government regulations such as Sarbanes-Oxley was another important factor. "In addition to being a public company subject to securities laws and related regulations, we conduct a lot of business with the federal government and must comply with strict government procurement guidelines," continued Wynkoop. "With Microsoft Dynamics AX, we were quickly able to build a contracts compliance module to integrate directly into the pricing module, enable efficient public company compliance and facilitate processes related to the Quintum acquisition."

Microsoft Dynamics AX 2009 sits atop NET's overall Microsoft® platform, providing significant ease in managing data from Microsoft SQL Serverâ„¢ via desktop applications such as Microsoft Office Excel® and Microsoft Office Word®. For more information about how NET leverages Microsoft Dynamics AX in a global, networked manufacturing environment, please join NET at the Microsoft High Tech Summit, where Talbot Harty will present at 12:30 pm, January 29, 2009 at the Santa Clara Marriott Hotel. He will also be available for one-on-one discussions in the Fullscope booth in the exhibition between 1-3pm on January 29, 2009.

About Network Equipment Technologies, Inc.
Network Equipment Technologies, Inc. (NET) provides network and VoIP solutions to enterprises and government agencies that seek to reduce the cost to deploy next generation unified and secure communications applications. For a quarter of a century, NET has delivered solutions for multi-service networks requiring high degrees of versatility, security and performance. Today, the company's broad family of products enables interoperability and integration with existing networks for migration to secure IP-based communications. Broadening NET's voice solutions, Quintum Technologies, now a part of NET, is a VoIP innovator whose applications bring the reliability and clarity of public telephone networks to Internet telephony and unified communications. NET is headquartered in Fremont, CA and has 14 offices worldwide including the US, the UK, France, the Middle East, China, Japan, Australia, and Latin America. The company sells its solutions through a direct sales force and an international network of resellers and distributors. For more information, visit http://www.net.com.

About Fullscope
The 2007 and 2008 Microsoft Dynamics AX Partner of the Year, Fullscope, Inc. is a Microsoft Gold Certified Partner that offers deep domain expertise for companies with process, discrete and hybrid manufacturing operations. The company develops and supports Process Industries for Microsoft Dynamics AX; offers a Certified for Microsoft Dynamics AX solution for high tech; and is one of the largest Microsoft Dynamics AX resellers in the U. S. and Canada. For more information, contact http://www.fullscope.com.

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