Why Managed Services Pay Off

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VISIT 2010 – Fujitsu Forum Europe

Transcript of Why Managed Services Pay Off

VISIT 2010 – Fujitsu Forum Europe 1

Sourcing & Deployment – Room 5

Shapingtomorrowwith you.

Why Managed Services Pay Offwith you.

Christian GüntherHead of LANXESS IT Global Infrastructure

14:00 h14:00 h

VISIT 2010 – Fujitsu Forum Europe

INTERNAL USE ONLYINTERNAL USE ONLY

Why Managed Services Pay Off

Christian Günther

Head of

LANXESS IT Global InfrastructureLANXESS IT Global Infrastructure

Why Managed Services Pay Off

Agenda

Company introduction LANXESS

Context, Options and Decision of LANXESS IT

Project planning Managed Storagej p g g g

100 Days Operation: Experience

Abstract and Lessons Learned

Questions & AnswersQuestions & Answers

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Why Managed Services Pay Off

LANXESS @ a Glance: Product PortfolioBroad product range comprising premium chemicals, rubber and polymers

Basic chemicals

Active ingredients (custom manufacturing) and intermediates for

pharmaceuticals and crop protection products

Material protection productsMaterial protection products

Finishing agents for leather

Ion exchange resins, especially for water treatment

Inorganic pigments for coloring concrete and surface coatings

Dyes and inorganic and organic pigments for coloring plastics

Plastics additives such as flame retardants and plasticizersp

Solid rubber and rubber chemicals for the rubber and tire industry

Plastics for automotive, electrical appliances, furniture, sports and

leisure

Perlon wire for technical applications

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Why Managed Services Pay Off

Th t i t th h i t i i ht d th t t fitThe team is set, the chemistry is right and the strategy fits.

LANXESS is a leader in specialty chemicals and operates in all important global markets. p y p p gIn 2009, the company achieved sales of EUR 5,057 million.

Many forces combine at LANXESS' 42 sites worldwide to produce the optimal result. This y p papplies both to the products and processes themselves and to the 14,500 or so staff in 23 countries that are responsible for the company’s day-to-day business.

LANXESS is treading the path that is inherent in its name: Combined from the French verb “lancer” meaning to thrust forward and the English noun “success”, LANXESS represents the determined will to achieve and the readiness to embrace continual change.

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Why Managed Services Pay Off

Facts & Figures

Sales in 9M / 2010 EUR 5.288 bn

Sales in the year 2009 EUR 5.057 bn

Employees worldwide (as of: 2010-09-30) 14,539

Performance PolymersAdvanced IntermediatesPerformance Chemicals

Portfolio

Global orientation 42 production sites worldwide

LANXESS is one of Germany’s most important providers of polymers and chemicals

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Why Managed Services Pay Off

Why Managed Services Pay Off

St t i lik G di k t B t F jit h t th k t fStorage management is like a Gordian knot. But Fujitsu has cut the knot for us,

solving our problems with the growing flood of data by using its Managed

Storage solution for operations in our European storage environmentStorage solution for operations in our European storage environment.

What‘s more, the chemistry between Fujitsu and LANXESS is also good. Here

you can learn more about how this concept for flexible capacity provisioning

really works.

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Why Managed Services Pay Off

LANXESS is growing… continuously

15.09.2010 | Press Release, LANXESS sets ambitious growth target

EUR 1.4 billion EBITDA pre exceptionals targeted in 2015 FY 2010 earnings forecast confirmed

Focus on megatrends and emerging markets Further growth from investment projects and acquisitions

Product innovation promotes sustainability Feasibility study for new Asian Nd-PBR plant

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Why Managed Services Pay Off

Screenshot Wirtschaftsnachrichten 2008

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Why Managed Services Pay Off

Context 2008/2009• End-of-life server hardware because of overdue investmentsEnd of life server hardware because of overdue investments

• Growing demand of storage – storage had to be extended or changed urgently

• Project for consolidation and virtualization was in the pipelineProject for consolidation and virtualization was in the pipeline

• Storage is „KEY“ for success

• Worldwide economic crisis

• Revenue forecast fell back to the level of the founding year

• IT was challenged to identify possible savings

• Savings had to take effect in 2009 already

• Investments were limited hardly

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Why Managed Services Pay Off

Need for Decision: Storage System

C t t 2008/2009 T t i 2010Context 2008/2009

• Dedicated server per application

• Low capacity utilization

Target scenario 2010

• One, central storage system with different performance classesLow capacity utilization

• Complex system environment

• High complexity in backup

• High availability based on an SLA with 99.5%

• Virtual environment, high utilization• High administrative costs

• No Reporting

B t ff t ti

Virtual environment, high utilization

• Flexible call-off for changing volume

• Low costs• Best effort operating

• Technology freeze• Consolidated reporting

• SLA based operation

T h l l• Technology leap

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Why Managed Services Pay Off

Motivation of LANXESS IT Requirements from LXS:q

technical equipment which enables LANXESS IT to react flexible and cost-efficientto their customers’ requirements, step cost need to be reduced

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Why Managed Services Pay Off

P ibl O tiPossible Options Inhouse Operation: Outsourcing:LANXESS IT is responsible for IT operations and acts as an internal service provider.

WHO:

An external service provider is responsible for IT operations.

WHO:Outsourcing

vs.Inhouse

Operation

SourcingDecisionDecision

Off h i / N h iManaged Services:Centralized management of a local system, usually in preparation for an outsourcing.

Offshoring / Nearshoring:The services are provided in European countries (Nearshoring) or outside Europe (Offshoring.

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Why Managed Services Pay Off

Choice of Managed StorageLANXESS evaluated the different types, rangingLANXESS evaluated the different types, ranging from in-house self operation to Outsourcing.

Based on previous experience and presentBased on previous experience and present proposals LANXESS decided for a Managed Service for their storage.

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Why Managed Services Pay Off

LANXESS‘ Decision Criteria • Reduction of investments, IT-budget becoming more constant and

calculable

• Flexible an SLA-based IT-ServiceP U• Pay as you Use

• On Demand (capacity may be resized within few hours / days)

• Entrance to up-to-date technology with reduced riskp gy

• Reduced complexity of IT Infrastructure Management

• Optimized skill-profile for the selected technology

• Savings / benefits take effect in the actual year

• Option for a later Insourcing

• Choice of the hardware location (at the service provider or on-site in LANXESS‘ data center)

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Why Managed Services Pay Off

F th fi t C t t t O ti T kFrom the first Contact to Operation Takeover1. The idea of Managed Storage occurred on an exhibition. g g2. LANXESS-view: How could we compare in-house self operation, total

Outsourcing and managed Service under the aspects of total costs analysis, SLA and requirements coverage?

DecisionRFP

y q g

ProjectChoice

RFP

Project

Transition

Operation

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13 Months

Why Managed Services Pay Off

Timeline of the Transition Stage guntil the Operation Takeover by Fujitsu

setup systems and otherand other

infrastructure

Transitionmigration data Operation:

further expansion according to growth

Operate (60 Months)Phase 1 Phase 2

19.10.2009 31.01.201504.12.2009 01.02.2010

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Why Managed Services Pay Off

RACI*1-Matrix: ResponsibilitiesAktivität Lanxess Fujitsu

Beistellen der Storage-Infrastruktur und aktiven SAN-Komponenten V

Monitoring: Überwachung der Storage-Infrastruktur und aktiven SAN-Komponenten V

Release- und Patchmanagement der Storage-Infrastruktur und aktiven SAN-Komponenten V

Beistellen der RZ-Infrastruktur (Stellfläche, Strom, Klimatechnik, Höheneinheiten, etc.) V

Durchführen der storageseitigen Verkabelung (Storage-Switch) V

Durchführen der serverseitigen Verkabelung (Server-Switch) V

Durchführen der raumübergreifenden Verkabelung (Rack-Rack) V

Beistellen der Netzwerk (LAN) Infrastruktur VBeistellen der Netzwerk (LAN) Infrastruktur V

Beistellen der Management-Infrastruktur (Mgmt.-/Reporting-Server, etc.) V

Monitoring: Überwachung der Management-Infrastruktur V

Release- und Patchmanagement der Management-Infrastruktur V

Beistellen des Remote-Zugangs für das Remote Management V

Volume-Management (Anlegen, Verwalten, Mappen, Löschen) V

Snapshot/Checkpoint (Anlegen, Ändern, Löschen, Überwachen) V

Capacity Management: Überwachen der Vorhaltekapazität Vp y g p

Virenscanning V

Vorgaben für Setup der LAN-Controller/HBAs V

Setup der LAN-Controller/HBAs inkl. Firmware V

B k V

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Backup V

*1 Responsible - Accountable -Consulted - Informed

Why Managed Services Pay Off

Fujitsu / LANXESS Operation Model

ITIL based

SPOC for

LANXESS

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Why Managed Services Pay Off

Operation Characteristics

Operation Time M d 0 00 till S d 24 00 (7 24)Operation Time

Service Time

Standby Time

Monday 0:00 till Sunday 24:00 (7x24)

Monday till Friday from 8:00 to 18:00 (5x10)

Monday till Friday each from 18:00 to 8:00Standby Time

Response Time for

Monday till Friday each from 18:00 to 8:00 + weekends and holidays

Depending on incident-classification and date/time incidents

Time to Fix

from 15 up to 480 minutes

Depending on incident-classification 4 hours up-to next business day

Max. Workorder

Flexibility

next business day

3 business days for Change Requests

15% of the capacity booked per performance classy

SLA

p y p p

98-99,5% availability per month

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Why Managed Services Pay Off

P i i E i L L d

100 Days Operation: Experience

Positive Experience Lessons LearnedVery reliable operation High SLA fulfillment

The requirements aligned on the existing data centre infrastructure High SLA fulfillment

Professional servicesFlexibility of costs via projects

ghad been underestimated. Here we should have planned more conservative. y p j

Technology leap achievedFlexibility of costs achieved

Contact design for the first Managed Service contract was complex, since many legal questions were

Complexity reducedImportant IT resources now available for projects again

y ganswered for the first time. Service Management and Interface Management needs another skill available for projects again gprofile which needs to bee planned and built up parallel.

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Why Managed Services Pay Off

Yes, Managed Services Pay Off

I i i d di ti “• Invoicing depending on consumption „pay-as-you-use“• Speed-up for processes of procurement and usage • Possibility for flexible reaction on storage demands from business• Possibility for flexible reaction on storage demands from business

units• Transparent and foreseeable storage costs• No assets included in property • Option to use expert skills which internal are not available • SAL supporting business‘ requirements• Standardized operation processes and interfaces• 7x24h ITIL-based operations• maximum flexibility in future options

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Why Managed Services Pay Off

Next Steps …. @LANXESS IT Roadmap

M d B k• Managed Backup• Transparency of performance

• Backup as service not as technology• Different SLAs to support the business requirements

• Transparency of costsp y• Foreseeable backup costs (Budget)• Ability for usage based cost allocation• Proportion for future increasing capacity demandProportion for future increasing capacity demand

• Improved rate of equity• Assets do not appear in LANXESS’ balance sheet• Assets do not appear in LANXESS balance sheet

• Concentration on core competenciesO l il bl f l d t k

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• Own employees are available for more valued tasks

Why Managed Services Pay Off

Questions ?

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Why Managed Services Pay Off

Thank you for your attention

Christian GüntherLANXESS D t hl d G bHLANXESS Deutschland GmbHInformation TechnologyHead ofGlobal Infrastructure

Chemiepark LeverkusenpGebäude: E60, Raum: 643D-51369 Leverkusen, Deutschland

e-Mail: [email protected]

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