Network Equipment Technologies Completes Switchover to Microsoft Dynamics AX 4.0

SAN JOSE, Calif. — Oct. 25, 2007 — Network Equipment Technologies Inc. (NET) (NYSE: NWK), a global provider of multiservice network exchange solutions for government and enterprise clients, completed its installation of Microsoft Dynamics AX 4.0 and went live with the new system, Microsoft Corp. announced today at its Global High Tech Summit 2007.

Headquartered in Fremont, Calif., NET has been delivering multiservice voice and data communications equipment for more than 20 years. The company serves more than 1,700 customers in 75 countries. NET originally selected the Microsoft business management solution to streamline its sales transactions and financial systems, as well as improve processes with its supply chain and contract manufacturing facilities. The company expects to save more than $1.3 million annually with the new system.

Microsoft Dynamics AX 4.0 is helping NET simplify in a number of areas, including sales orders, financials, serial number tracking and POs. NET builds complex, customized devices and is now able to simplify its sales order process with the product configurator capabilities of Microsoft Dynamic AX 4.0, from 37,000 individually managed part numbers down to only 4,000 configurable bills-of-materials. In addition, the feature improves order and planning accuracy. Customer product and services orders also are now combined into a single order, a big improvement over the previous Oracle-based system in which separate orders were needed for products and services.

“The fact that Microsoft Dynamics AX 4.0 allows us to develop additional modules and integrate into our other systems is key,” said Talbot Harty, CIO and general manager of voice and mobility solutions at NET. “We conduct a lot of business with the federal government, and there are strict guidelines related to compliance. With our previous Oracle system, this was a huge manual effort because of lack of features and integration. With Microsoft Dynamics AX 4.0, we were quickly able to build a contracts compliance module that integrates directly into the pricing module.”

Managing data and conducting backups is enhanced with the Microsoft platform. NET is able to create automated processes to streamline backups, and the backup time has dropped from six hours to 20 minutes.

“It’s rewarding to see customer experiences validate the approach we offer with Microsoft Dynamics AX 4.0,” said Tyler Bryson, general manager of the U.S. Manufacturing Industry Group at Microsoft. “NET required a system that could integrate seamlessly with its existing infrastructure as well as provide a familiar and easy-to-use interface that empowers its employees — and Microsoft Dynamics AX 4.0 delivered.”

Fullscope Inc., a Microsoft Gold Certified Partner, took a unique approach when it deployed the new solution for NET. “Our goal in working with NET was to make them more self-sufficient in IT,” said Chris Moore, managing director of Fullscope. “Ideally, companies should be able use their internal capabilities and eliminate the outsourcing of their IT needs. The simplicity and ease of use of Microsoft Dynamics AX 4.0 makes all of this possible. We helped NET become self-sufficient from a development and configuration perspective. For instance, the company almost built its entire product configurator itself.”

NET is already realizing significant cost savings since switching over. By implementing Microsoft Dynamics AX, the company reduced its IT staffing requirements by more than half. In addition, NET estimates it saved $525,000 during the implementation phase.

NET originally purchased Microsoft Dynamics AX 4.0 in July 2006 and kicked off the project the following month. Full implementation of the system was completed slightly more than a year later, going live Sept. 29, 2007. The project team included one IT project manager, four full-time IT staff, four part-time consultants and seven part-time business area experts.

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