4-page Case Study
Posted: 5/17/2012
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Perusahann Gas Negara Using Private Cloud, PGN Improves Operational Effectiveness Level with Server Cost Cut up to 90

"PGN has proven that Microsoft Private Cloud solution implementation provides cost reductions. Overall costs related to applications and servers are reduced by up to 90%.”

Djoko Suripto, Division Head - Information Technology and Communications, Perusahaan Gas Negara (The State Gas Company)

The objective of adopting Private Cloud solutions was generally for cost efficiency. However, PGN benefited more than just cost-efficiency from Microsoft’s Private Cloud implementation.

For servers and applications, PGN are able to save up to 90%. In addition, Private Cloud enabled the provision of server resources more quickly, hence improving operational effectiveness level and boosting business productivity. On the other hand, the IT Department of PGN can provide IT services as a service, coupled with the ease in doing monitoring process and server system management. The job of IT staff becomes easier and the system works centrally.

The partnership with Microsoft allows PGN to manage applications and solutions through the Enterprise Agreement. The IT team of PGN would no longer mess with problems nor with costs for technical support and licensing. Evenmore, the opportunity is wide open for PGN to continue developing the system and IT infrastructure on the Microsoft platform. The next plan is for PGN to attempt a private cloud solution planning as a pillar of the DRC solutions and Software solutions as a Service in it.

Overview

Country : Indonesia

Industry : Transportation and distribution of natural gas

Company Profile

PGN is engaged in the field of transportation and distribution of natural gas, serving users as well as natural gas producers, operating gas distribution along 3750 km and gas transportation pipes of 2100 km. PGN has 4 strategic business units (SBU) and 8 subsidiaries as well as affiliates spread across Indonesia

Business Situation

PGN requires solutions to meet the needs of the IT resources quickly, distributed, scalable, and flexible but with centralized management.

Benefits:

The availability of server resources

Reduction in the cost of servers and applications by up to 90%

24/7 IT services without burdening the IT team

Summary:

The State Gas Company (PGN) is engaged in the field of transportation and distribution of natural gas. Serving users as well as manufacturers of gas, PGN operates gas distribution pipes of 3750 miles and gas transportation pipes of over 2100 km.

With 4 strategic business unit (SBU) and 8 subsidiaries and affiliates that are scattered in various regions in Indonesia, PGN requires systems and infrastructure that respond quickly to business needs without compromising the performance of the IT team.

Previously, PGN relied on systems and infrastructure that are distributed. Now, for the sake of productivity and efficiency, PGN implements Microsoft's Private Cloud Solutions by utilizing the environment which are largely already based on Microsoft technologies /platforms and Enteprise Agreement facilities. This step resulted, among other things, on the overall cost cutting that relate to server and applications up to 90%.

Situation:

PGN operates 4 strategic business unit (SBU) and 1 subsidiary to support operational activities of the transmission and distribution to various regions in Indonesia. Meanwhile, 7 subsidiary companies and other affiliations are considered as PGN business diversifications in a variety of business sectors.

Distributed locations often become a challenge for a number of corporations in Indonesia. And PGN was no exception.

with regards to distributed locations, the IT team experienced constraints that were not less serious, namely the level of application/implementation of information technology (IT) which varied in each SBU.

Cases frequently encountered, for example, the need for customization in every location of the SBU. It resulted in working patterns and systems which are not uniform/standardized.

Almost every month, the IT team had to give guidance relating to the process of creating accounts as well as reporting process of ancillary data for financial reports to be managed centrally. As a result, the process of compilation and submission of data to head office was slow, which can contribute to 40% of the duration of the process and have an impact on the process of corporate-level reporting.

“The operational pattern that was distributed, according to our experience, should not have been followed by the distribution of technology application pattern”, said Djoko Suripto, Head of the Division of Information Technology and Communication, Perusahaan Gas Negara. To his opinion, many of these issues would become snowballs if PGN does not immediately fix.

An unfavorable situation was also experienced by the IT department that was held busy with activities considered as “keeping the light on”. Thirty percent of PGN’s IT Team productive time was spent to monitor and manage the infrastructure, and to manage 15 enterprise applications supporting the operational activities of each SBU.

“From the User & Services side, we can provide IT services without being limited to space and time. It can even be considered as 24/7 IT services! We are able to serve users to certain services from anywhere and at any time”.

Djoko Suripto

Division Head - Information Technology and Communications

Perusahaan Gas Negara

(The State Gas Company)

“PGN sees Microsoft’s seriousness in developing cloud solution that is from Microsoft’s position on the magic quadrant leader for virtualization in a span of 3 years.”

“We are considering to find integrated products or tools and can answer our current needs and also for the future,” said Djoko Suripto.

In addition, according to Djoko, PGN saw Microsoft’s seriousness in developing cloud solution that was from Microsoft’s position on the magic quadrant leader for virtualization in a span of 3 years.

After the process of evaluation and search for solutions, Perusahaan Gas Negara soon did the implementation which ran relatively quickly, i.e. about 7 months only. According to Djoko, the implementation project began in January of 2011, followed by a process of roll-out in March. In the period of January to March, according to Djoko, his team did the preparation of infrastructure to support virtualization, especially the plan of allocating storage capacity and resource utilization of server that would serve as host of the virtual server.

“Meanwhile, in the month of March to June we tend to manage downtime schedule related to physical migration of servers into virtual servers”,he added. During the migration process, the request for a new server for system development that was being done by PGN could be fulfilled by the IT department quickly. Finally, the complete solution was implemented in June 2011.

The implementation project proceeded relatively quickly, among other things because perviously PGN had already been using Windows-based platforms. One of them was in the production line.

Djoko Suripto

Division Head - Information Technology and Communications

Perusahaan Gas Negara

(The State Gas Company)

Solution

Hyper-V and System Center Management Suite (System Center Virtual Machine Manager, System Center Configuration Manager, System Center Operation Manager, System Center Data Protection Manager)

Forefront TMG, Forefront End Point Protection, and Right Management Services

“ Before switching to

Benefit:

Microsoft's Private Cloud that had been adopted by 5 business process owners, which were the functions of marketing, finance, operations, HR, and technicals, brought ease and speed in meeting IT resources. As a corporation, PGN also enjoyed the reduction in costs which are quite significant.

Availability of Resources quickly

Microsoft's Private Cloud solution was very helpful in speeding up the process of PGN’s provision of server resources for the test environment, development, and production in the implementation of new systems. The quick provision of servers would push the level of operational effectiveness, which would ultimately boost the productivity of the business.

Cost Efficiency

“As a total, the costs associated to application and server were reduced by around 90%,” said Djoko Suripto.

The savings were obtained from the provisioning server that became more efficient, because of the reduction of electricity resource capacity. Previously, the company must prepare the electrical infrastructure, Storage Area Network (SAN), small-capacity and cooling to support projects in each SBU.

With the centralization of SAN in the the data centre in the head office, including the supporting infrastructure, the cost of implementation/ provisioning at the SBU related to system requirement could also be trimmed.

Hyper-V PGN had already done virtualization that was based on VMware platform. They even had also explored Citrix. However, PGN ended up choosing Hyper-V as the backbone of its private cloud. This is because Hyper-V was already covered in Windows Server that had been used in PGN’s IT Environment, so that it would be more efficient in terms of cost; and also because of technical considerations.”

Djoko Suripto

Division Head - Information Technology and Communications

Perusahaan Gas Negara

(The State Gas Company)

Djoko Suripto and the team felt the ease and benefits of System Center. “We find System Center as the most valuable, because in addition to managing and monitoring each existing server, we can also find out what's happening in the applications, which makes it easy for us to do some checking and correction in the application level in depth, quickly and effectively,” he detailed.

In terms of users, Djoko admitted that his team can collaborate more effectively. Previously, IT department had trouble compiling capacity planning in terms of the provision of servers. As a result, the growth of applications was less in synchronised with the availability of server. But with the feature of Self-Service, users can perform predictions of server needs of each.

Covered by the Enterprise Agreement of Microsoft, the IT team of PGN would no longer mess with problems or with costs for technical support and licensing.

Evenmore, the opportunity is wide open for PGN to continue developing the system and IT infrastructure on the Microsoft platform.

It was explained by Djoko Suripto that PGN will attempt to do a private cloud solution planning as a pillar of the DRC solutions and Software solutions as a Service in it.

For more information about Microsoft solutions, please visit website:

www.microsoft.com/indonesia/casestudy

Solution Overview




Organization Profile
PGN is engaged in the field of transportation and distribution of natural gas, serving users as well as natural gas producers, operating gas distribution along 3750 km and gas transportation pipes of 2100 km. PGN has 4 strategic business units (SBU) and 8 subsidiaries as well as affiliates spread across Indonesia

Business Situation
PGN requires solutions to meet the needs of the IT resources quickly, distributed, scalable, and flexible but with centralized management.

Third Party Software
 Hyper-V and System Center Management Suite (System Center Virtual Machine Manager, System Center Configuration Manager, System Center Operation Manager, System Center Data Protection Manager)
 Forefront TMG, Forefront End Point Protection, and Right Management Services

Software and Services
  • Windows Server
  • Microsoft System Center

Vertical Industries
Process Manufacturing & Resources

Country/Region
Indonesia

Business Need
Cloud & Server Platform

Languages
English

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