TRUMPF reduces costs by 50 percent and increases user productivity

Published on 08-Feb-2013

"IBM DB2 on Linux pays off enormously well. TRUMPF benefits from an optimum cost performance ratio and increased user productivity because of consistently good response times." - Volker Blum, Head of IT Applications Technology, TRUMPF

Customer:
TRUMPF

Industry:
Industrial Products

Deployment country:
Germany

Solution:
Business Resiliency, Enterprise Resource Planning, High Availability , Information Management Foundation

IBM Business Partner:
ORGA GmbH, SAP

Overview

TRUMPF is one of the world’s largest production technology specialists, offering innovative and high-quality solutions for clients in the manufacturing, photonics and medical industries.

Business need:
TRUMPF, a global leader in production technology, constantly seeks new, more efficient ways to operate. The company relies on a comprehensive suite of SAP applications to run core business processes. To substantially reduce costs for licensing and disk space and at the same time create a stable foundation for future business growth, a new database solution was implemented.

Solution:
Working with its outsourcing partner ORGA and with IBM, TRUMPF chose to migrate from Oracle to IBM DB2 for its SAP applications. By implementing IBM DB2 data compression features, TRUMPF has saved around 5 TB of disk space, some 50 percent of the total database size, achieved significant maintenance and license fee savings, and improved system performance.

Benefits:
Saved 15 percent on license, maintenance and disk storage costs. Delivered a return on investment within 15 months. Reduced maintenance costs for the database by 50 percent and overall SAP maintenance costs by six percent. Improved user productivity thanks to shorter response times. Increased operational safety due to the extremely stable database environment.

Case Study

To read a German version of this case study, please click here

TRUMPF is one of the world’s largest production technology specialists, offering innovative and high-quality solutions for clients in the manufacturing, photonics and medical industries.

TRUMPF Group has around 60 subsidiaries and branch offices and operates more than 20 production sites, across Europe, North America, South America and Asia. With 9,600 employees, TRUMPF achieves revenues of €2.33 billion.

“For TRUMPF, our global SAP® ERP system, which has about 5,000 users, is business-critical,” explains Volker Blum, Head of IT Applications Technology at TRUMPF, who is responsible for running the SAP environment.

“We manage all our business processes with SAP, from production, sales, logistics and customer service to accounting and HR.”

Identified the right trigger – and pulled it

TRUMPF has been outsourcing the management of a large portion of its SAP systems for many years. Today, the company works with IBM Business Partner ORGA GmbH, a subsidiary of Fiducia IT and a specialist in SAP hosting for medium-sized businesses. ORGA hosts the SAP system environment for TRUMPF, including infrastructure and system management services, and operates a computer center. ORGA can reliably guarantee the 24/7 high availability and performance of business-critical applications. TRUMPF continues to run certain SAP systems in-house, particularly those which are linked with customers and suppliers.

The company processes around 1.8 million transactions every day. Because system performance is significantly affected by the database technology on which it is based, TRUMPF collaborated closely with ORGA to migrate the database from Oracle to IBM® DB2®, and change the operating system to Linux. The goal was to increase the system throughput without requiring costly investment in additional hardware. In doing so, TRUMPF improved the performance of its SAP database environment, reduced its license and maintenance fees, and cut the total disk storage footprint. The resulting low operational costs enable TRUMPF to expand its service capabilities without incurring extra expenses.

Proven security

TRUMPF extended the collaboration with IBM and involved specialists from IBM Global Technology Services in the preparations for the database changeover. To gain accurate insights into the likely effects of a change to IBM DB2, consultants from IBM Software Services created a proof of concept (PoC). The forecasts showed that TRUMPF could achieve overall cost savings of around 15 percent, and that the investment would pay for itself within 15 months. The PoC confirmed that the theoretical benefits of migrating to DB2 – faster access and lower costs – could be achieved in practice, too, demonstrating that IBM’s structured approach enables license costs and dependent maintenance costs to be determined in advance.

Gerhard Reuer, Head of SAP System Performance and Monitoring, with a focus on databases, was the project manager for the IBM DB2 migration work: “Our tests showed that transactions such as posting goods receipts or invoices ran very reliably.”

For reasons relating to license costs, the migration of five production and seven test systems was carried out within just one quarter, with a minimum of system downtime. The migration was led by ORGA and implemented by its specialists in line with SAP-defined guidelines, using the tools supplied by SAP. During this process, database parameters were optimally adjusted for the SAP environment, and very little manual rework was required. The routines are agreed and tested by SAP and IBM, which guarantees availability and security during the migration itself.

Programs developed in-house, which had been written in the past few years and optimized for use with Oracle, were adapted to IBM DB2, especially in terms of index access.

Volker Blum comments, “It was comforting for us to know that we had IBM and SAP at our side, and that they would be able to provide the necessary support if any unexpected difficulties were to arise. The experience of working together was and still is very pleasant, not only in the preliminary stages and during the tight implementation period, but also when it came to the support provided following the change-over.” TRUMPF specialists extended their IBM DB2 knowledge with administrator training sessions at IBM.

Downsized databases and boosted system performance

The migration has reduced the amount of disk storage space required by about 50 percent. Compression technology of IBM DB2 significantly contributed to this effect. Volker Blum comments, “We have been able to reduce our major SAP ERP production system database from 3 to 1.5 terabytes and the same goes for the test system, while in the SAP NetWeaver® Business Warehouse we have saved one terabyte of disk space. Through the database change-over and the compression, overall we have saved around five terabytes.”

After 18 months in operation, the database size has grown to 2.2 terabytes. “We observed a substantial slowdown in database growth,” explains Volker Blum. “Our database only grows by approximately 15 gigabytes per month, with Oracle the growth was twice that rate. This enables us to benefit from a considerable economic effect.” Because of the smaller database size, Backup times at ORGA have been reduced by about 30 percent compared to the previous solution.

Feedback regarding SAP application performance from end users at TRUMPF showed that there have been considerable advances in terms of stability and response times. The complete re-organization of the database, which was conducted for the migration and again after some time in operation, contributes to the outstanding performance. Administrators’ workflows are simplified with the integration of IBM DB2 into the SAP DBA Cockpit.

Reduced costs for the entire company

“To us, it was incredibly important that SAP has its strategic focus on the IBM DB2 database,” adds Volker Blum. “This means we can utilize innovations made on the database side faster in the SAP environment. As such, we are very well prepared to face future demands, particularly where the growing number of users and transactions is concerned.

“The decisive factor, however, was the savings that could be made, and this was fully confirmed after using IBM DB2 in daily operations. All targets were met.” Database maintenance costs are only half as much as with the previously used Oracle database. This reduces the overall SAP maintenance costs by approximately six percent.

Volker Blum and Gerhard Reuer conclude: “IBM DB2 on Linux pays off enormously well. TRUMPF benefits from an optimum cost performance ratio and increased user productivity because of reliably good response times.”

Products and services used

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

Software:
DB2 for Linux, UNIX and Windows

Operating system:
Linux

Service:
IBM-SAP Alliance, Software Services for Information Management

Legal Information

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