Family Dollar looks to cloud to boost efficiency

Family Dollar Stores (NYSE: FDO) has licensed technology from a cloud management company designed to improve business responsiveness, operational efficiency and cost competitiveness.

In a three-year agreement, Family Dollar has licensed Cloud360, a proprietary enterprise-class cloud management platform from Cognizant (NASDAQ: CTSH) developed on Amazon Web Services for its portal applications. This is helping the retailer improve operational performance and cost competitiveness, according to a Cognizant press release. Family Dollar has over 8,000 stores in 46 states.

Cloud360 is one of Cognizant's BusinessCloud solutions, a suite of ready-to-deploy, on-demand business and IT solutions. It provides an on-demand service experience and a single consolidated management console to provision, monitor, analyze and optimize diverse cloud operations, the vendor said.

"We are constantly looking for opportunities to strengthen our value proposition and improve our performance," said Vikas Wali, divisional VP of IT application and infrastructure services at Family Dollar. "This engagement is crucial to our efforts to execute better on our promise of being an efficient, low-cost retailer. We selected Cognizant for its robust domain knowledge, deep infrastructure service delivery and management expertise, its enterprise platform Cloud360, and rich experience implementing solutions on Amazon Web Services. Cognizant brings the vision and the end-to-end capabilities that we need in order to adopt cloud for fulfilling our business objectives."

Cognizant services use a consumption-based managed services model to enable Family Dollar to optimize infrastructure investments and achieve a variable cost mix by paying only for usage, while improving time-to-market by quickly deploying technology solutions without large capital outlays. Cognizant has implemented intelligent management of Family Dollar's portal applications to enhance availability, reliability, scalability and governance. This enables Family Dollar to sharpen its business focus, embrace metrics-driven service delivery, and support complex compliance requirements, the release said.

This agreement expands Cognizant's relationship with Family Dollar, which began in 2006, and it now supports the retailer's store operations, supply chain, merchandising and back office, Retailing Today reported.

"We are pleased to expand our relationship with Family Dollar," said Sean Middleton, COO of Emerging Business Accelerator at Cognizant, in the press statement. "Rapid advances in cloud technology, rapidly evolving consumer behavior, and increasing competitive pressures present a great opportunity for forward-thinking retailers such as Family Dollar to look at new, technology-powered business models enabled on demand."

For more:
-See this Cognizant press release
-See this Retailing Today article

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