Why Managed Services Pay Off

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  • VISIT 2010 Fujitsu Forum Europe 1

  • Sourcing & Deployment Room 5

    Shapingtomorrowwith you.

    Why Managed Services Pay Offwith you.

    Christian GntherHead 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 Gnther

    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 LearnedQuestions & AnswersQuestions & Answers

    Christian Gnther, IT-IFS24-Nov-20105

  • 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 products Material 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

    Christian Gnther, IT-IFS24-Nov-20106

  • 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 companys 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.

    Christian Gnther, IT-IFS24-Nov-20107

  • 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 Germanys most important providers of polymers and chemicals

    Christian Gnther, IT-IFS24-Nov-20108

  • 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.

    Whats 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.

    Christian Gnther, IT-IFS24-Nov-20109

  • 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

    Christian Gnther, IT-IFS24-Nov-201010

  • Why Managed Services Pay Off

    Screenshot Wirtschaftsnachrichten 2008

    Christian Gnther, IT-IFS24-Nov-201011

  • 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

    Christian Gnther, IT-IFS24-Nov-201012

  • 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

    Christian Gnther, IT-IFS24-Nov-201013

  • 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

    Christian Gnther, IT-IFS24-Nov-201014

  • 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.

    Christian Gnther, IT-IFS24-Nov-201015

  • 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.

    Christian Gnther, IT-IFS24-Nov-201016

  • Why Managed Services Pay Off

    LANXESS Decision Criteria Reduction of investments, IT-budget becoming more constant and 9calculable Flexible an SLA-based IT-Service

    P U

    99 Pay as you Use

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

    Entrance to up-to-date technology with reduced risk 99p gy Reduced complexity of IT Infrastructure Management Optimized skill-profile for the selected technology

    99 Savings / benefits take effect in the actual year

    Option for a later Insourcing

    999 Choice of the hardware location (at the service provider or on-site in

    LANXESS data center)

    99Christian Gnther, IT-IFS24-Nov-201017

  • 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

    Christian Gnther, IT-IFS24-Nov-201018

    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

    Christian Gnther, IT-IFS24-Nov-201019

    19

  • Why Managed Services Pay Off

    RACI*1-Matrix: ResponsibilitiesAktivitt Lanxess Fujitsu

    Beistellen der Storage-Infrastruktur und aktiven SAN-Komponenten V

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

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

    Beistellen der RZ-Infrastruktur (Stellflche, Strom, Klimatechnik, Hheneinheiten, etc.) V

    Durchfhren der storageseitigen Verkabelung (Storage-Switch) V

    Durchfhren der serverseitigen Verkabelung (Server-Switch) V

    Durchfhren der raumbergreifenden 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: berwachung der Management-Infrastruktur V

    Release- und Patchmanagement der Management-Infrastruktur V

    Beistellen des Remote-Zugangs fr das Remote Management V

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

    Snapshot/Checkpo