As Itambé churns out impressive business growth, how can the company ensure that its IT systems keep pace with increased workload?
Itambé transformed its operational efficiency and accelerated core business processes by migrating its SAP® applications to the latest IBM infrastructure, delivering speed, capacity, and scalability.
30% cutin time for customer billing
Fasterdelivery of monthly management reports
USD 2,270 savingper month on electricity bills
Business challenge story
Tickling taste buds across Brazil
Itambé produces vast quantities of highly perishable dairy goods every day. As such, it relies on super-efficient core business processes—from logistics and billing to HR—to ensure always-fresh deliveries for consumers. To maintain tip-top efficiency, the company embeds IT into every aspect of its operations, including recording collections of milk from farmers, analyzing quality, processing the milk, and delivering finished dairy goods to retailers. To keep its business ticking, Itambé manages core processes such as billing, HR and payments using a sophisticated suite of SAP applications, including SAP Business Warehouse, SAP ERP, SAP Fiori®, SAP Process Integration, SAP Solution Manager, and SAP Governance, Risk and Compliance. As Itambé grew, transaction volumes swelled. During peak times, up to 700 people accessed the SAP applications simultaneously, significantly affecting performance. To keep core processes running smoothly, Itambé looked for ways to ensure its mission-critical SAP applications continued to deliver the efficiency and speed needed for the company’s time-sensitive operations.
Finding the recipe for success
Following a detailed review of risk, future capacity, total cost of operation (TCO), and return on investment (ROI), Itambé decided to migrate its SAP landscape from its existing older IBM Power Systems servers to the latest IBM POWER8 servers. The new servers are virtualized using IBM PowerVM® technology and run the IBM AIX® operating system. The servers and accompanying storage solutions were supplied under a leasing deal from IBM Global Financing.
Evaldo Pereira, IT Infrastructure Coordinator at Itambé, explains: “SAP applications lie at the heart of our business, so it is vital we keep them up and running at all times. We selected IBM Power Systems servers because we knew from experience that the platform offers exceptional reliability and availability.
“In addition, a financing deal from IBM meant the IBM proposal came at an attractive price, with the cost spread over a longer period. IBM also helped us implement the new infrastructure, and migrate our SAP applications to the new platform.”
In its primary data center, Itambé deployed an IBM Power® System E870 server and an IBM FlashSystem® V9000 storage device. At its disaster-recovery site, the company implemented an IBM Power System S824 server, an IBM Storwize® V7000 storage solution, and an IBM TS3200 tape library.
Serving up impressive results
Benefits in detail
- 30 percent cut in time for customer billing
- Faster delivery of monthly reports enables managers to react faster to changes, boosting business agility
- 40 percent hike in SAP performance accelerates core business processes, with batch processes completed in half the time on average
- 50 percent cut in backup times saves IT staff hours and improves business resilience
- 87.5 percent space saving in the data centers, as the new servers occupy a quarter of a rack per site, rather than two racks per site previously
- 10 - 15 percent saving on electricity bills—equivalent to around USD 2,270 per month—as Itambé consolidates to fewer physical machines and pursues a greener IT strategy
- Itambé has found that IBM POWER8® servers are between 30 and 40 percent faster per core than POWER7® servers, enabling the company to use fewer processor cores and therefore reduce software licensing costs
- 60 percent reduction in average CPU consumption gives Itambé headroom to handle even greater business volumes in future
With the new infrastructure in place, Itambé has been able to accelerate core processes to keep its booming business running efficiently. Evaldo Pereira continues, “We can now execute customer billing in 30 percent less time, so billing runs that previously took nine hours, from 6pm to 3am the next day, are now completed before midnight. Batch processes are now completed in half the time on average, with the duration of some jobs slashed by 70 or even 75 percent. “The system performance hike has also helped us cut our data backup time by 50 percent, saving hours for IT personnel and sharpening business resilience. “What’s more, we can satisfy managers’ appetites for rapid insight into the business, as reports are delivered faster each month. As a result, decision-makers can react faster to changes, boosting business agility.” Evaldo Pereira continues: “We have found that IBM POWER8 servers are between 30 and 40 percent faster per core than POWER7 servers. Thanks to this extra performance, we have been able to swap 32 POWER7 cores for just 25 POWER8 cores. Even with fewer CPUs we have boosted SAP performance and slashed response times by 40 percent on average, accelerating business processes and helping staff work more productively. Software license fees are typically calculated on a per-CPU basis, so using fewer cores also helps us to keep licensing costs down.” The new servers occupy a quarter of a rack per data center, down from two racks per site previously—equivalent to an 87.5 percent space saving. By consolidating to fewer physical machines, Itambé has cut electricity costs by between 10 and 15 percent—equivalent to BRL 7,000 or USD 2,270—helping the company pursue a greener IT strategy. Additionally, average CPU consumption has reduced by 60 percent, giving Itambé headroom to handle even greater business volumes in future. The new IBM infrastructure also lays the foundation for Itambé to migrate its SAP applications to the SAP HANA® database, if it chooses to do so in future. Evaldo Pereira concludes: “The new IBM infrastructure provides a solid foundation for our mission-critical SAP applications, and helps us keep our booming business running smoothly and efficiently. We have real peace of mind from knowing that our business is in such good hands.”
Itambé is one of Brazil’s largest dairy companies, serving more than 7,000 suppliers and employing 3,300 people. Every day, the company transforms 3.5 million liters of milk into over 190 different dairy goods, including milks, yogurts, whey, and confectionery. With more than 67 years in the dairy business, Itambé operates industrial units in Pará de Minas, Sete Lagoas, Guanhães, Uberlândia, and Goiânia.
- Consumer Products: Smarter Operations
- GTS Technical Support Services: Hardware Maintenance
- IBM Power System E870
- IBM-SAP Alliance
- IBM Power System S824
- IGF: IT Financing - IBM HW
- SAP ERP
- SAP Fiori
- SAP NetWeaver Business Warehouse
- Storage: IBM Storwize V7000
- Storage: IBM TS3200 Tape Library
- Power Systems running AIX
- Power Systems
- Storage: IBM FlashSystem V9000
Take the next step
To learn more about the IBM SAP Alliance, please contact your IBM representative or IBM Business Partner, or visit ibm.com/sap
To learn more about SAP HANA on IBM Power Systems, please contact your IBM representative or IBM Business Partner, or visit ibm.com/systems/power/solutions/bigdata-analytics/sap-hana/