When it comes to reducing IT infrastructure costs, the cloud is the way to go. If on-premises systems with high operational burdens can be migrated, significant benefits can be expected. But Mr. Satoyama had another effect in mind.

Hitachi Astemo had long operated an on-premises system and was highly dependent on external vendors. Although the IT departments are all highly skilled, we were concerned that their experience was limited to legacy systems. We wanted our own systems to be cloud-based, and we wanted our people to be able to learn about the cloud and develop new careers. Of course, it is also a great asset to our company.

"The cloud is now accessible to everyone. But it changes and evolves very quickly, and you have to keep learning to use it well. Amazon Web Services (AWS) is a large, global player that our company can easily leverage. There is also a lot to learn from the rapid development of new technologies, while there is a lot of documentation and information available on the Internet. We decided that this was the best cloud service for us to strengthen our in-house production and for our staff to learn about cutting-edge technologies," said Mr. Satoyama.

Hitachi Astemo began migrating its global PLM and peripheral systems. After a two-month preparation period to learn about AWS, the migration began and took just four months to complete for a group of 26 applications running on 96 virtual servers and eight database environments. According to Mr. Satoyama, the build-out went smoothly thanks to a careful survey of the existing system and a careful migration design.

Most of the migration went smoothly because the migration to AWS was thoroughly vetted with the PLM package vendor in advance. Some of the data could be moved to smaller data center facilities to reduce costs. They have no performance issues with minor configuration changes and are comfortable using the system.

The cost benefits of migrating to AWS were so great that we were able to cancel our previous data center contract. Even including personnel and development costs to increase in-house production, the total cost is reduced to about one-fifth of an on-premises system.

Hitachi Astemo's migration to AWS was expected to have a significant impact not only on cost reduction and technology innovation, but also on strengthening human resources. As a result, the company adopted AWS Professional Services and actively used AWS-sponsored workshops and learning sessions to increase the level of knowledge and expertise in the IT department. Mr. Satoyama, the leader of the group, also attended each seminar, demonstrating to the staff his willingness to learn on his own.

"While many employees were excited about moving to the cloud and using AWS, others wondered if they could do it themselves. I have been in the business longer than most of my team, but I wanted to show that you can learn and grow at any age. With AWS, if you make a mistake, you can easily start over and learn efficiently. In particular, I think the Professional Services program has been very effective in developing people because they are able to work as a team with AWS engineers to solve problems. The members of the team, who only knew the name of AWS, were able to completely migrate PLM and peripheral systems to the cloud in just six months," said Mr. Satoyama.

Hitachi Astemo's IT department took advantage of AWS seminars and other opportunities to deepen their knowledge. Mr. Satoyama points out that even IT engineers who built their careers around on-premises systems have been transformed by AWS.

"I always say, 'Be professional. There is no point in simply asking a vendor to do what the business unit wants and then putting your stamp on the contract. Also, a system created with great effort will not be appreciated if it is not used. He says that only professionals who think for themselves, take responsibility for their actions, and are accountable for the results are "worth anything. Knowledge and skills are essential to understanding the needs of business units, creating an effective system, and getting them to use it properly," says Mr. Satoyama.

Now everyone in the IT department can learn and use the basics of AWS. Mr. Satoyama hopes that the next step will be advanced use of the system, including operational automation.

Hitachi Astemo is also planning to move to the cloud in the business unit responsible for software development, and Mr. Satoyama and his team in the Information Systems Management Division are also involved in the project as infrastructure managers. Our mission is to provide the best infrastructure by leveraging our experience and expertise in AWS conversion and in-house production.

The company also intends to use AWS to drive the smart factory concept in its factories, which it is considering expanding globally. For example, AWS IoT Greengrass could be deployed at factory locations across the country and connected to AWS as the cloud edge to leverage advanced data analytics and AI. Smart factories are still in their infancy, with a wide range of options for the future, and it will take time to reach an optimal solution. Mr. Satoyama looks forward to AWS's technological evolution and service improvement, and is eager to incorporate the technology and knowledge.

*The information in this article is current as of March 2021.

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