Transition to Cloud-based Model Enables DyStar Group Reduce Costs by 25 Percent and Improve Operational Efficiency
SINGAPORE — SAP and T-Systems today announced that DyStar, a leading provider of products and services for the global textile industry, is implementing SAP’s ERP, SCM and enterprise data warehouse solutions on a managed cloud infrastructure provided by T-Systems. With the transition from hybrid in-house and vendor managed server environment to the cloud-based subscription model, Dystar intends to optimize its existing multi-platform systems on a standardized platform, and deliver a differentiated experience for its users across the globe.
Headquartered in Singapore with operations around the world,DyStar has more than 2,000 employees with a presence in more than 50 countries. Today the company operates eight different instances of SAP applications in multiple SAP versions software across its global footprint. In moving these applications to a managed cloud infrastructure hosted by T-Systems, the company is setting the stage to consolidate them into a single platform. This will also help the IT department to focus on providing business value, rather than keeping all systems up and running.
The implementation of cloud-based infrastructure is expected to bring significant improvements in operational efficiency through management of fewer IT vendors, contracts and faster deployment of applications in different geographies. The company is currently deploying SAP ERP, SAP NetWeaver® Business Warehouse, and SAP SCM on the cloud and gradually migrating from Oracle database to SAP® Sybase® Adaptive Server® Enterprise.
“We previously had many people managing our servers and keeping our infrastructure working. It’s an important job, but the value is low. We are not a technology company. By turning to professionals to run our infrastructure, we don’t just save costs—we can instead focus on how to use IT to better support our business,” said Vincent Goh, Global IT Director at DyStar.
One of the benefits of the managed private cloud is the ability to adopt a subscription-based consumption model. DyStar will only pay for what it uses and benefit from the choice of consuming SAP’s proven on-premise solutions with cloud deployment on a subscrip¬tion basis. The subscription-based consumption model also enables the company to implement service-level agreements with T-Systems to guarantee high levels of service—something DyStar previously had to manage internally. T-Systems provides the hosting and management of the SAP solutions on a private cloud infrastructure, without the need for Dystar to license solutions separately from SAP.
“Instead of investing in IT infrastructure, many of our customers are shifting to operational IT purchases to minimize balance sheet impact and conserve cash for investing in business innovation projects. With the SAP-based managed cloud offering, DyStar enjoys a faster time to value and lower total cost of ownership,” said Anthony McMahon, Senior Vice President, Ecosystem and Channels, SAP Asia Pacific Japan. “Through our innovative partnerships like this one with T-Systems, our partners can create solutions tailored to meet their customers’ needs, including complete management and support of their SAP environments.”
For DyStar, this move to the cloud is the first phase in a broader strategy to unify its infrastructure and embrace mobility. After migrating to the cloud, DyStar will consolidate its databases and instances of SAP applications, paving the way for mobile services and self-service business intelligence through other SAP platform solutions.
“Many IT leaders want to move beyond day-to-day operations and support to leverage technology to drive the business forward. As a result, we are seeing organizations across industries turn to managed clouds to optimize costs, reduce complexity and increase reliability and scalability. T-Systems’ Dynamic Services offers them the ability to do this and respond to dynamic nature of the market through a simple, cloud-based, on-demand and cost-effective IT infrastructure. As DyStar moves its infrastructure strategy into a managed cloud model, we believe it stands to realize significant benefits which will serve as a model for more customers around the region to follow,” said Natasha Kwan, Managing Director for T-Systems for Asia South.
“We are excited to go through the stages of fundamentally transforming the role of IT and elevating it within the organization. This directly translates to clear career development opportunities for my team. Our employees are more engaged when they can work on exciting projects and see clear results instead of handling maintenance tasks,” added DyStar’s Vincent Goh. “And by creating efficiencies to improve our operations, IT is more engaged in the business. If this approach can work for DyStar, it can work for even bigger companies.”
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 253,500 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
Drawing on a global infrastructure of data centers and networks, T-Systems operates information and communication technology (ICT) systems for multinational corporations and public sector institutions. T-Systems provides integrated solutions for the networked future of business and society. The company’s some 52,700 employees combine industry expertise and ICT innovations to add significant value to customers’ core business all over the world.
T-Systems generated revenue of around EUR 10 billion in the 2012 financial year.
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