Why Managed Services Pay Off
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Transcript of Why Managed Services Pay Off
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
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
Christian Günther, 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 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
Christian Günther, 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 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.
Christian Günther, 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 Germany’s most important providers of polymers and chemicals
Christian Günther, 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.
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.
Christian Günther, 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 Günther, IT-IFS24-Nov-201010
Why Managed Services Pay Off
Screenshot Wirtschaftsnachrichten 2008
Christian Günther, 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 Günther, 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 Günther, 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 Günther, 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 Günther, 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 Günther, IT-IFS24-Nov-201016
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)
Christian Günther, 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 Günther, 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 Günther, IT-IFS24-Nov-201019
19
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
Christian Günther, IT-IFS24-Nov-201020
Backup V
*1 Responsible - Accountable -Consulted - Informed
Why Managed Services Pay Off
Fujitsu / LANXESS Operation Model
ITIL based
SPOC for
LANXESS
Christian Günther, IT-IFS24-Nov-201021
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
Christian Günther, IT-IFS24-Nov-201022
22
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.
Christian Günther, IT-IFS24-Nov-201023
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
Christian Günther, IT-IFS24-Nov-201024
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
Christian Günther, IT-IFS24-Nov-201025
• Own employees are available for more valued tasks
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]
Christian Günther, IT-IFS24-Nov-201027