SPINDO speeds reporting, increases agility, and readies itself for growth

By reducing operational and administration costs, SPINDO frees up budget for innovation

Published on 14-Aug-2013

"The IBM Flex System Manager node enables a single point of control for the entire systems landscape, greatly reducing the workload for IT staff and at the same time helping to improve already impressive system availability and performance." - The Hanny Purnomo, Senior Manager SAP, SPINDO


Industrial Products

Deployment country:

Flex System Manager, Flex System p460, PureFlex, PureFlex Enterprise, PureFlex System running OS - AIX, PureSystems, Business Integration, Business Resiliency, Enabling Business Flexibility, Energy Efficiency

IBM Business Partner:


SPINDO manufactures a wide range of specialist and innovative pipes, tubes and poles for the domestic market. The company employs more than 1,000 people in five spacious, modern plants, manufacturing to international quality and performance standards.

Business need:
SPINDO relies on integrated SAP solutions, combined with rapid analysis and reporting. Existing systems infrastructure was unable to keep pace with company growth.

SPINDO chose to migrate its SAP landscape to an expert integrated IBM® PureFlex™ System solution, the first in Indonesia, and migrate its business data to IBM DB2® for Linux, UNIX and Windows.

Infrastructure resources closely aligned to business needs; reports created almost eight times faster; backup and restore processes run almost four times faster; energy consumption cut by 40 percent.

Case Study

When you manage a multi-site manufacturing business, how can you ensure that customer orders are fulfilled by the most cost-efficient location and simultaneously ensure that customer service comes first and foremost?

PT Steel Pipe Industry of Indonesia Tbk (SPINDO) struggled to balance these competing demands, and its business analytics solutions could not deliver on the financial and operational reporting that would help managers achieve the company’s goals. SPINDO moved its business-critical SAP applications and databases to IBM PureFlex System Enterprise infrastructure and gained speed, agility, flexibility and cost-efficiency. Along the way, processing time for data reporting is now 7.9 times faster, backup is now 3.7 times faster and total database size has been cut by 36 percent.

Stock exchange listing brings new challenges
SPINDO manufactures a wide range of specialist and innovative pipes, tubes and poles for the domestic market. The company employs more than 1,000 people in five spacious, modern plants, manufacturing to international quality and performance standards.

SPINDO’s five manufacturing sites operate 24x7. To maximize efficiency, customer orders are allocated to each plant according to its capacity and capabilities. Information flow and analysis at the enterprise level is central to ensuring customer orders are met, and that revenues and margins are maximized. Experiencing difficulties with its in-house and legacy systems, in 2005 SPINDO chose to migrate to integrated SAP solutions. At this point, the SAP applications were running on distributed servers and databases. To manage the business itself, SPINDO extracts manufacturing and transaction data from the SAP applications for analysis.

The Hanny Purnomo, Senior Manager SAP, explains: “As the company grew, we added more physical servers to the SAP solution landscape. Over time, as complexity increased, the system was becoming less reliable, with more unplanned outages, with unacceptably slow backup and restore processes. The time taken to extract the analytics data was in danger of impacting production capabilities, which could in turn affect our business management. In 2011, we replaced some key servers with new hardware, but it did not solve the problem.

“For example, SPINDO recently listed on the stock exchange, and the regulatory requirements include the ability to complete financial reporting on time and meet obligations to shareholders. It was essential both to fix the immediate issues and to have a long-term solution and strategy in place.”

Solving challenges through simplicity
Following difficulties caused by a primary server failure that affected SPINDO’s production systems, and with a support desk response considered to be unsatisfactory, the SPINDO team reviewed every aspect of its SAP operations, and concluded that a fresh approach was needed. The objectives were to cure the practical infrastructure issues, enable near-continuous operations in support of the manufacturing processes, and implement a solution ready for the 2013 stock market debut. SPINDO is listed in Indonesia stock market with ticker “ISSP.JK”.

Understandably, SPINDO hesitated before implementing a major transition to IBM technologies. However, SPINDO soon came to trust IBM Global Business Services® and chose to move to IBM PureFlex System Enterprise and IBM DB2 for Linux, UNIX and Windows.

Working with IBM Systems Lab Services and Training in partnership with Wahana Cipta Sinatria (WCS), an IBM Business Partner certified for IBM PureFlex services, SPINDO implemented an IBM PureFlex System Enterprise solution. The system includes Flex System p460 nodes, featuring POWER7® processor-based compute nodes running the IBM AIX® operating system, with IBM DB2 for Linux, UNIX and Windows. WCS and IBM Systems Lab Services and Training assisted with system design, specification, installation, configuration and deployment, replacing the previous infrastructure.

The system is configured to provide multiple virtual servers that allow the workload – such as production applications, database, SAP Solution Manager and more – to be allocated resources according to the exact workload need.

“The attraction of IBM PureFlex System Enterprise is the integrated, simplified and unified infrastructure. Previously we had many separate hardware systems, procured separately and at different times, and each component would reach its end of service and support at different dates,” says The Hanny Purnomo.

“The IBM PureFlex System Enterprise replaces this complexity with an integrated, pre-configured solution that eliminates such concerns, and reduces the technical workload with its simplified physical layout and embedded network connections.

“For example, in the past we managed the legacy hardware with multiple tools. Ensuring system-wide stability and availability was time-consuming and presented a significant technical challenge. The IBM Flex System Manager™ node enables a single point of control for the entire systems landscape, greatly reducing the workload for IT staff and at the same time helping to improve already impressive system availability and performance.”

Taking advantage of IBM expertise
The SPINDO team saw that IBM Global Business Services understood both the business and the technical challenges faced by SPINDO, and IBM rapidly became a trusted solution vendor. IBM helped SPINDO plan its infrastructure capacity for the next three to five years, mapping the future investments against likely business needs. The inherent building-block approach of the IBM PureFlex System offers scalability that enabled IBM Global Business Services to present a comprehensive migration plan and long-term roadmap.

SPINDO completed migrations of SAP applications to a new operating system and new database infrastructure, bringing more than eight years of live ERP data into production on the IBM PureFlex System. Multiple migrations of this type present greater challenges and risk, and raise questions about workload capacity and system balancing that cannot easily be answered.

IBM Global Business Services developed an implementation plan that minimized downtime. To help ensure data integrity, IBM proposed a series of dry-run simulations and data export processes, which after successful conclusion demonstrated that migration would be swift and reliable.

Using IBM PureFlex System to transform efficiency
SPINDO has achieved its immediate technical goals, with improvements to data processing, stability, backup and recovery times. Data extraction times for key business reports are up to 7.9 times faster. System backup times, using the embedded IBM Flex System™ V7000, are now 3.7 times faster.

IBM Flex System V7000 is an easy-to-use, powerful data storage solution that enables rapid deployment without additional resources, offering efficiency and flexibility through built-in SSD optimization and thin-provisioning technologies. Integrated IBM Real-time Compression enhances efficiency even further by enabling storing up to five times as much active primary data in the same physical disk space. Advanced functions enable non-disruptive migration of data from existing storage systems, simplifying implementation and minimizing disruption to users.

During the project to migrate to the IBM solutions, SPINDO reviewed its database strategy, and chose to migrate to IBM DB2 for Linux, UNIX and Windows. The IBM POWER7 processors support advanced data compression and memory technologies provided by DB2 that deliver enhanced database performance, helping to ensure the greatest possible productivity boost from a given technology investment.

The Hanny Purnomo remarks, “With the existing systems we found that system and database response times had slowed down so much that many people were logging in twice to allow them to run two jobs in parallel. Using the DB2 data compression features, we have cut the total database size from 766 GB to 485 GB, a reduction of 36 percent. Additionally, the SAP DBA Cockpit for DB2 has greatly reduced the technical administration workload, making DB2 a very cost-effective choice for SPINDO.”

How IBM PureFlex System enables SPINDO to achieve objectives
With the IBM PureFlex System Enterprise solution in place, SPINDO has cured its technical issues and readied itself for its next phase of growth. This will include transition to the newest versions of the SAP software and the implementation of new solution areas such as business intelligence.

The Hanny Purnomo comments, “The ease of management, performance and reliability of the IBM PureFlex System means that we are now free to innovate. As the company grows we can add capacity and capability to the solution, and the single management environment makes this an easy and non-disruptive process. For example, we will add x86-based compute nodes within the same chassis, managed by IBM Flex System Manager, which will allow us to cut the number of external servers and simplify our technical landscape.”

With the IBM PureFlex System Enterprise solution in place, SPINDO is starting a strategic journey to undo the cost of IT sprawl by consolidating business services applications, databases and infrastructure. The objective is to reduce operational expenses and free up budget for innovation, with simplified IT resource management and improved resource utilization and efficiency.

Along the way, SPINDO expects to improve control, enhance business process compliance and tighten up its information security. The IBM PureFlex System Enterprise solution provides optimized application, database and transaction processing performance, combined with the ability to grow smoothly as SPINDO continues to expand.

The Hanny Purnomo concludes, “We are confident that IBM PureFlex System Enterprise provides the scalability, flexibility and reliability to help SPINDO deliver on its key business objectives, meeting our long-term strategic needs.”

Products and services used

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

Flex System Manager, Flex System p460, PureFlex Enterprise, PureFlex System running OS - AIX

AIX, DB2 for Linux, UNIX and Windows

Operating system:

GBS S&T: Business and Customer Strategy - Business Strategy, IBM-SAP Alliance

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