we know they know
Eskom energizes its business perfor performance mance with SAP and IBM
Overview
The Challenge
The Benefits
Key Solution Components
Eskom, South Africa’s leading energy
Introduction of employee self-
Industry: Energy & Utilities
utility, wanted to find new ways to
service tools has simplified
Applications:: SAP Applications SAP ® Industry
streamline processes and cut costs,
administration and reduced costs
Solution for Insurance, SAP ERP ®
especially important during times of
by an estimated 15 percent, with
applications, including financials,
economic uncertainty. unc ertainty. In particular,
accurate time and attendance,
SAP Supplier Relationship
managing almost 40,000 people
payroll and employment data
Management, SAP Customer
and their pay was a demanding
available throughout the business.
Relationship Management, SAP
task. The complexity of supporting
Month-end reporting, which
ERP Human Capital Management,
multiple legacy applications and
previously took two months and
SAP NetWeaver Portal
server platforms hindered progress,
required at least one full-time-
Hardware: IBM ® Power ® 595
which was reflected in slow monthly
equivalent employee, will be
Software: IBM AIX ® , Oracle, IBM
financial consolidation and difficulties
cut to 12 days. Single source of
Tivoli ® Storage Manager
in gaining an enterprise-wide view
transaction and financial data
Services: IBM Business Partner
of budget and performance from
allows management to gain
TCM
different business units.
enterprise-wide view of activities, based on accurate information
The Solution
that is not subject to re-statement
Replaced SUN, HP and Dell
or change. Flexible virtualization
hardware, operating systems and
technologies on IBM Power 570 570
support contracts and standardized
allow greater utilization of existing
on the IBM Power 595 platform for
hardware investments, introduce
SAP application applications, s, and consolidated
more resilient infrastructure in
information storage to IBM System
case of disaster, and reduce
Storage DS8100, managed by
capital outlay. Reduced processor
IBM Tivoli Storage Manager. This
numbers, down by 66 percent,
replaced server deployments based
leads to lower software license fees.
on each Eskom Business Unit running their own SAP instances on discrete server stacks purchased in separate procurement processes.
“With virtualization on the IBM Power platform,, we can platform c an consider the total compute capacity, and reassign resources or even shift applications within the existing physical estate at no risk... With this IT Simplification solution from IBM, I BM, we can ca n achieve much more with a more compact and efficient eff icient infrastructure. inf rastructure.” ” Sudash Raghubir, Infrastructure Advisor, Eskom
Eskom of South Africa is one of the
“IBM Power 595 servers combined with
global top ten utilities, measured by
IBM System Storage offer us a flexible,
generation capacity. The company
powerful and integrated platform
generates some 95 percent of
that is ideally suited to running large,
electricity used in South Africa, sold
centralized SAP solutions. Using this
to more than 4.3 million customers.
powerful combination, Eskom has
Eskom employs 37,857 people, and
cut financial reporting times from two
devotes R823 R82 3 million ($110 million) to
months to twelve days, enabling an
training from total annual revenues of
enterprise-wide view of operations that
R53.8 billion ($7.2 ($7.2 billion).
was simply not possible before.”
The company relies on SAP
Current applications
applications to help run this diverse
Questions over legacy applications’
business, from financial controls
ability to handle the so-called Y2K
through to employee payroll
problem had prompted Eskom to
and attendance. During times of
review ERP solutions, leading to the
economic uncertainty, reporting
selection of SAP applications. The close
on every aspect of business
business fit between the core business
performance was of increasing
applications within the SAP for Utilities
importance. In particular par ticular,, managing
offering allowed Eskom to establish a
37,857 37 ,857 people and their pay was a
cost-effective, standardized business
demanding task, based on paper
solution across all the operating units.
processes and on isolated local
From that point, the SAP landscape
systems.
has gradually grown to replace legacy applications for its core commercial
Over time, many of Eskom’s SAP
processes, including solutions such as
and other business systems had
finance, materials management, plant
been implemented on different
maintenance, and latterly SAP ERP
hardware platforms. Collecting data
Human Capital Management.
from different systems, checking and integrating it before being able
The first versions of the SAP soft ware
to produce meaningful and reliable
were implemented on a location-
results, was causing delays and, in
by-location basis, and group-wide
some cases, inaccuracies.
reporting was managed by manual consolidation and analysis.
Sean Maritz, Infrastructure Manager, Manager, comments, “We wanted to speed
“We had collected an array of Sun, H P
up our reporting, which meant
and other systems, often bought as a
increasing information flow and
result of hardware-only RFPs in a drive
improving accuracy. accuracy. It was clear
to reduce acquisition costs,” says Sean
that SAP applications had the ability
Maritz. “As Eskom’s business needs
to provide the business information
changed and grew, migrating the SAP
we needed, from core commercial
applications from one server brand to
operations through to human
another was difficult and relatively risky,
resource management. Once we had
and it was clear that a change in thinking
decided to implement SAP solutions,
was needed.”
we turned to the choice of hardware platform. We wanted infrastructure
Switch on the power
that would provide a long-term
Faced with the costs and complexity of
solution for a growing business, able
the mixed platforms, the Eskom team
to respond to changing workload at
reviewed both its acquisition policies
competitive commercial terms.
and infrastructure strategy. Working
with its technology business partner,
providing almost instantaneous, hands
TCM of South Africa, Eskom planned to
off allocation of Disaster recovery
standardize on one platform for the SAP
partitions to systems that require them.
landscape.
For the duration of the D isaster isaster,, non production partitions are scaled back,
The initial aim was to make it easier
in line with business rules defined as
to migrate applications to more
part of the system scoping exercise.
powerful servers as the workload grew.
IBM, IBM Business Partner TCM and
Developing the logical argument, TCM
ESKOM Corporate IT worked closely
made the case to use virtualization to
with ESKOM’s Audit division, to ensure
allow several applications to run on each
that the DR profiles and functionally
physical system, and allocate resources
match and satisfy the Corporate DR
according to business requirements
standards.
rather than move applications to other servers – reducing the business risk.
Sudash Raghubir Raghubir,, Infrastructure Advisor, remarks, “Running
Eskom originally implemented two
applications on a one-per-server basis
IBM Power 595 servers at its primary
tends to encourage you to buy over-
data center, center, and a single Power 595 59 5
size equipment to allow for expansion,
at a secondary center. This footprint
which absorbs capital. With limited
was subsequently expanded with an
headroom on each physical machine,
additional server at each location. TCM
realistically you are only able to plan a
provided implementation, configuration
year in advance.
“From a strategy point of view, we view infrastructure as a service, to be provided to meet the business needs. The IBM approach is exactly in line with that thinking, simplifying the infrastructure and providing dynami dynamicc delivery of the required services to the Eskom business units at reduced costs and better quality.” Sean Maritz, Infrastructure Manager, Eskom
and commissioning as well as ongoing support and maintenance contracts.
“With virtualization on the IBM Power platform, we can consider the total
Eskom has divided its production
compute capacity, and reassign
servers into multiple logical partitions
resources or even shift applications
(LPARs), (LPARs ), in effect ef fect providing more than
within the existing physical estate
20 separate virtual servers for the SAP
at no risk. This gives us a planning
applications. For example, several
horizon of around five years, with much
instances of SAP ERP Human Capital
lower need to refresh the physical
Management run on each ser ver ver,,
infrastructure and hence reduced
allocated a share of the total processors
capital expenditure. With this IT
available. If the workload increases,
Simplification solution from IBM, we
then additional CPU resources can
can achieve much more with a mo re
TECHNICAL LANDSCAPE
be allocated as required. Additionally, Additionally,
compact and ef ficient infrastructure.” infrastructure.”
Servers: IBM Power 595 with IBM POWER5+ and POWER6 processors,
resources, such as additional memory or CPU, can be added to virtual servers
Sean Maritz explains: “The IBM Power
replacing HP, Sun Microsystems and
during production, with no service
595 platform offers virtualization
Dell hardware. IBM System Storage
interruption.
capabilities and resilience that we
DS8100 replacing EMC Clarion
could not obtain on other systems.
Storage. Software: IBM AIX, IBM Tivoli Storage
The second data center acts as a
For Eskom, this ensures continued
backup and disaster recovery solution,
operations for business-critical
Manager,, SAP Industry Solution for Manager
with the servers divided into multiple
applications at commercially attractive
Insurance, SAP ERP applications,
LPARs reflecting the production servers’
rates.”
including financials, SAP Supplier Relationship Management, SAP
LPARs. Less important applications are assigned a restricted CPU total, and
Eskom has deployed IBM System
Customer Relationship Management,
business-critical applications continue
Storage DS8100 systems for
SAP ERP Human Capital
without interruption. This functionality is
information storage, with 23.2TB and
Management, SAP NetWeaver Portal,
provided by IBM’s virtualization, Virtual
35TB at the production and backup
Oracle
IO and dynamic LPAR functionality,
sites, respectively respectively..
Sean Maritz explains: “The DS8100
provided the local technical support
provides reliable, centralized storage
and implementation services, backed
that removes the need for costly and
by the global resources available
inefficient direct-attached disks.
through the IBM connection.”
The business benefit is simpler administration, and lower costs per
The flexible IT landscape based on
gigabyte.”
the virtualization capabilities of the IBM Power platform reduces the
Next generation capabilities
effort and downtime associated with
Eskom is migrating its four principal
re-allocating applications across
SAP instances from legacy systems
different servers. The disaster recovery
to a single, centralized Platform
resources can also be used for
on IBM Power 595. This approach
development and quality assurance,
reduces complexity, eliminates the
providing a 70 percent reduction
slow, manual data collection and
in the size of the “non -production”
consolidation process, and cuts the
footprint with associated reduction
likelihood of errors when preparing
in floor space, power, cooling and
monthly and annual reports.
depreciation costs.
Additionally,, the IBM Power platform Additionally
Automation of disaster recovery
allows Eskom to introduce new and
provisioning provides “hands off”
expand its SAP solutions exactly as
capability, replacing replacing a manual process
the business requires, without the
that had a 96-hour recovery time with
business risk of migrating from server
a solution that now has an “instant on”
to server. Existing CPU capacity can
capability. Virtualization allows rapid
be allocated according to need, or
provision of development and quality
total CPU capacity can be increased
assurance resources On Demand, and
on the Power 595 servers.
reduces lead time on development and quality assurance projects by
Sean Maritz explains: “The Human
up to six months, providing quicker
Capital Management capabilities
response to business requirements,
are already proving a great success, and, using SAP NetWeaver Portal,
Sean Maritz concludes, “From
employees can now access essential
a strategy point of view, we view
payroll, time and attendance, training
infrastructure as a service, to be
and other information, wherever they
provided to meet the business needs.
are.”
The IBM approach is exactly in line with that thinking, simplifying the
Make the right connections
infrastructure and providing dynamic
In planning its strategic move to the
delivery of the required services to
IBM Power platform, Eskom reviewed
the Eskom business units at reduced
the hardware capabilities, the long-
costs and better quality. At Eskom we
term roadmap for the technolo gy, and
are confident that we chose the right
the business assistance available from
platform in IBM to support our SAP
possible vendors.
solutions.”
Sudash Raghubir comments, “The can-do attitude demonstrated by IBM was very important, showing us a positive willingness to assist. TCM
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