Cameron switches to IBM DB2 for SAP applications, saves $1 million

Published on 24-Oct-2011

Validated on 18 Jul 2013

"In particular, the combination of IBM Global Business Services and the IBM Migration Factory never required the typical who’s-doing-what review meeting. IBM scoped and delivered a dedicated program that produced results." - Bill Hull. Director Global Infrastructure, Cameron

Customer:
Cameron

Industry:
Industrial Products

Deployment country:
United States

Solution:
Database Management, Enterprise Resource Planning, Optimizing IT, Virtualization - Server, Virtualization - Storage

IBM Business Partner:
SAP

Overview

Based in Houston, Texas, Cameron International Corporation sells flow equipment products, systems and services to worldwide oil, gas and process industries. Leveraging its global manufacturing, engineering and sales and service network, Cameron works with drilling contractors, oil and gas producers, pipeline operators, refiners and other process owners to control, direct, adjust, measure and compress pressures and flows.

Business need:
Cameron International Corporation faced significant database growth, which was gradually reducing the performance of its SAP applications. The traditional solutions of buying processor capacity and adding storage devices would impact profitability, and would not provide a sustainable long-term strategy.

Solution:
Migrated 24 Oracle databases supporting SAP applications to IBM DB2, implemented DB2 Deep Compression technology. Added to the company’s IBM Power estate by purchasing an IBM Power 770 server, featuring IBM POWER7 processor technology, divided into 24 logical partitions (LPARs) using IBM PowerVM.

Benefits:
Cameron has reduced its 22.1 TB of data in six databases on Oracle to 9.5 TB on DB2, a saving of 12.6 TB or 57 percent. The total SAP database footprint has been cut by more than 50 percent. Average end-user response is now 0.820 seconds, a 39 percent reduction. Cameron estimates its overall five-year cash savings to be approximately $1 million, and the internal rate of return to be 601 percent. Cut storage requirements by up to 60 percent, introducing savings on additional expenditure on storage capacity and associated services of around $294,000 a year

Case Study

Based in Houston, Texas, Cameron International Corporation sells flow equipment products, systems and services to worldwide oil, gas and process industries. Leveraging its global manufacturing, engineering and sales and service network, Cameron works with drilling contractors, oil and gas producers, pipeline operators, refiners and other process owners to control, direct, adjust, measure and compress pressures and flows.

With 177 years of continuous business history, fueled by organic growth and acquisition, Cameron now achieves more than $6 billion in annual sales, two-thirds of which is outside of the US. The company employs more than 19,500 people in 300 locations globally, managed as three operating groups and 11 divisions by the Texas headquarters.

Cameron runs SAP ERP applications as its standard business management solution, deploying almost every component to provide comprehensive, integrated administration for a diverse organization. Cameron also uses SAP Supplier Relationship Management, SAP Customer Relationship Management, SAP NetWeaver Portal and SAP NetWeaver Business Warehouse solutions. The software runs on IBM Power Systems servers, hosted, maintained and managed by IBM Global Business Services.

Bill Hull, Director Global Infrastructure, comments, “Cameron and IBM have monthly review meetings, and the key recurring topic is always growth. The company has grown by acquisition, and we have extended our SAP application footprint, with the result that capacity planning is particularly difficult. You do not want to buy too much, or for systems to be overloaded. For Cameron, forecasting even a year ahead is difficult.”

Challenges of rapid growth
As part of good business management, the Cameron team had chosen to rebuild its SAP environment, which had become heavily customized. During the same period, Cameron acquired another corporation, whose business processes would then be migrated to the standard SAP landscape.

“Our leadership team decided to boost our business processes by implementing best practices across our ERP landscape. At the same time, we executed our largest acquisition ever. The demand on the system and the organization was extremely challenging. We needed to accommodate mega-change and enable scale for growth,” says Bill Hull.

During the regular strategic outsourcing review meetings, the IBM Global Business Services team proposed taking the opportunity to migrate the SAP applications from Oracle Database to DB2. The business case showed that major hard-dollar savings could be gained in areas such as data compression (to reduce storage volume growth) and in lower database license fees.

Additionally, lower database volumes were projected to improve application performance, with smaller datasets to load, without requiring increases in processor capacity.

Ron Cooper, Manager, SAP Basis, comments, “We were really averse to risk, for both production and non-production systems, and acutely aware of the database migration project’s potential impact on operations. But the IBM team scored big, because they clearly knew all the steps, the sizing issues and performance expectations, and presented a genuinely worked out program. The IBM database migration project scope was well-defined, and the IBM team gave us confidence that it would actually deliver what it said it would deliver.”

Demanding database migration
IBM Global Business Services provides a full strategic outsourcing service for Cameron. Starting from 2001, IBM has established itself as trusted supplier for Cameron's most critical business functions, establishing a long track record of day to day operational excellence for Cameron’s SAP systems. IBM has continued to tune its services to remain competitive and introduce cost saving ideas to Cameron, a prime example of which is the migration to DB2, helping to significantly reduce storage costs and at the same time improve overall performance.

The SAP applications run on IBM Power 570 and 770 servers, using IBM PowerVM virtualization to provide a total of 32 servers on just six physical systems. Cameron operated a total of 24 Oracle databases supporting the SAP landscape, with six main SAP production databases totaling 22.1 TB. The Power 770 server was recommended by IBM to support Cameron’s expansion plans. The POWER7 processor technology offers flexibility, energy efficiency and high performance through its multiple core design and simultaneous multithreading (SMT).

Database license agreements for the core SAP ERP, SAP NetWeaver Portal, SAP Supplier Relationship Management and SAP NetWeaver Business Warehouse applications were all due to expire on 31 December 2010 – “A very short runway,” as Ron Cooper puts it. Additionally, Cameron scheduled new applications and environments as part of continuing business expansion.

Cameron chose a three-year rebuild and migration process, which required parallel operation of the existing and new environments as the transition completed, step by step. The migrations to DB2 were essential first stages, executed by the IBM Migration Factory Team.

Ron Cooper explains, “The IBM team was very well versed in the process and had the necessary hands-on experience. IBM committed to have things done, and delivered.

“Of course, there were unexpected painful moments – some pre-existing network connections between application and database servers were discovered to be defectively configured. The IBM team cured them, helping both the existing applications perform better as well as correctly architecting the new landscapes.”

The IBM Global Business Services team also cut the transitional database storage requirements in half, by using the quality assurance (QA) environment as the shadow copy volume for the production database. This allowed Cameron to avoid purchasing additional storage capacity purely for migration purposes, and accelerated the migration process by minimizing the volume of backup data. The core production database was migrated in 48 hours, and all other migrations were completed within 20 hours.

Dramatic business results with DB2
By migrating from Oracle to DB2 and by enabling DB2 deep compression, Cameron has reduced its 22.1 TB of data in the six production databases on Oracle to 9.5 TB on DB2, a saving of 12.6 TB or 57 percent. The project, managed by IBM Global Business Services, was delivered on time and in budget.

Bill Hull continues, “Our overall SAP database footprint has been cut by more than 50 percent, while application response time has significantly improved. Prior to the migration, less than 90 percent of our transactions finished in 1 second or less, with an average end-user response of 1.345 seconds. Since the migration, 95 percent of our transactions finish in 1 second or less, and the average end-user response is now 0.820 seconds, a 39 percent reduction.”

In total, Cameron estimates its overall five-year cash savings to be approximately $1 million, and the internal rate of return to be 601 percent. Looking at the projected database growth rates, the business case presented to Cameron showed that DB2 deep compression would cut storage requirements by up to 60 percent, introducing savings on additional expenditure on storage capacity and associated services of around $294,000 a year.

Bill Hull says, “The IBM Global Business Services provided excellent focus on our need to continue to run the business during the migration process. With IBM taking responsibility for the project, there was no finger-pointing going on between a systems integrator, application, database or hardware vendor. IBM managed the whole program, from inception to go live.

“In particular, the combination of IBM Global Business Services and the IBM Migration Factory never required the typical who’s-doing-what review meeting. IBM scoped and delivered a dedicated program that produced results.”

“From a business point of view, Cameron is expecting to continue to grow, and IBM DB2 technology is essential in mitigating the costs of that growth. Without DB2, we would have had to buy additional storage capacity, which would bring additional implementation and management costs.

“Migration to DB2 for SAP applications was as close to a no-brainer that I have ever had. IBM really came on strong, saying that this is a low-risk operation, and took on the responsibility to make it happen. In short, we are really impressed.”

Products and services used

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

Hardware:
Power 570, Power 770, Storage, Storage: Tape & Optical Storage

Software:
DB2 for Linux, UNIX and Windows

Service:
GBS ISV Community: SAP, IBM-SAP Alliance

Legal Information

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