TP Vision reduces costs by 40 percent with an IBM SmartCloud solution

IBM SmartCloud Enterprise+ infrastructure cuts operating costs with its pay-per-use model

Published on 10-Jul-2013

"TP Vision was looking for a solution that would allow us to support growing customer demand, and IBM was the partner to do that with. The IBM SmartCloud infrastructure fits perfectly with our vision." - Remco Meeuwesen, director operations, Smart TV

Customer:
TP Vision

Industry:
Electronics

Deployment country:
Netherlands

Solution:
Cloud Computing, SmartCloud - Services

Overview

As a brand licensee of Philips TV, TP Vision develops, manufactures and markets Philips-branded TVs from its headquarters in Amsterdam. Launched in April 2012, the company is a joint venture between Royal Philips Electronics and Hong Kong-based TPV Technology Ltd., created in response to an increasingly cost- and price-competitive market. The company combines the strength of the Philips brand with the innovation and agility of TPV Technology to deliver a superior TV experience to its customers. TP Vision employs almost 3,100 people around the world.

Business need:
As TP Vision grew, it was challenged to scale its traditional hardware infrastructure to meet customer demand efficiently and cost-effectively.

Solution:
TP Vision moved its Smart TV solution’s development, testing and hosting operations from a traditional hardware architecture to an IBM® SmartCloud® Enterprise+ environment.

Benefits:
With the IBM SmartCloud Enterprise+ solution, TP Vision can scale to meet demand in near-real time while cutting costs by eliminating the need to acquire and maintain a hardware infrastructure.

Case Study

As a brand licensee of Philips TV, TP Vision develops, manufactures and markets Philips-branded TVs from its headquarters in Amsterdam. Launched in April 2012, the company is a joint venture between Royal Philips Electronics and Hong Kong-based TPV Technology Ltd., created in response to an increasingly cost- and price-competitive market. The company combines the strength of the Philips brand with the innovation and agility of TPV Technology to deliver a superior TV experience to its customers. TP Vision employs almost 3,100 people around the world.

Challenge

In 2008, Philips and IBM teamed to develop the Philips Smart TV platform. Now part of the TP Vision portfolio, the solution became operational in 2009, and the company hosted it on a traditional IT infrastructure. Over the next three years, TP Vision experienced significant growth, reaching two million customers in 2012. As its user base grew, the organization struggled to stay ahead of the capacity required to support an unpredictable growth trajectory as well as cyclical and unplanned spikes in use. With its traditional hardware infrastructure, the business faced lengthy procurement times of up to two months and, as more competitors joined the IPTV race and saturated the market, smart TV prices dropped at a rate that exceeded the company’s ability to cut costs. TP Vision knew that it needed an infrastructure that could easily scale with demand while allowing it to lower operating costs to remain price-competitive in a challenging market.

Solution

TP Vision worked with IBM Global Business Services® – Application Innovation Services to migrate its development, testing and hosting operations to an IBM SmartCloud Enterprise+ infrastructure. The fully managed, production-ready cloud environment reduces operating costs by eliminating the need to acquire and manage a traditional hardware infrastructure. With the platform’s pay-as-you-go pricing model, TP Vision only pays for active users, helping the company pass along savings to its customers and remain competitive as industry prices spiral downward. Additionally, the IBM SmartCloud Enterprise+ solution provides TP Vision with a scalable infrastructure, helping the company keep pace with its rapidly growing user base and provide the flexibility it needs to react to planned and unplanned spikes in usage.

Benefits


● Reduces operating costs with a usage-based pricing model, translating into around a 40 percent decrease in cost per TV
● Increases customer satisfaction with near-real-time scaling to meet demand as well as cyclical and unplanned spikes in usage
● Eliminates the need to acquire and set up hardware, reducing provisioning time from up to two months to minutes

For more information

To learn more about the IBM SmartCloud Enterprise+ solution, please contact your IBM marketing representative or IBM Business Partner, or visit the following website: ibm.com/cloud .

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Products and services used

IBM products and services that were used in this case study.

Service:
AIS: Business Application Modernization, IBM SmartCloud Enterprise plus

Legal Information

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