4-page Case Study
Posted: 4/28/2013
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Duzon Fast growth in cloud industry with iPlus Cloud Edition service for small businesses and tax accounting firm

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* From the standpoint of cloud service provider, it is important to reduce cost while simultaneously maintaining service quality. With Windows Server 2012 Data Edition allowing unlimited use of server software instance on virtual infrastructure, the licensing cost can be drastically reduced *

Song Hocheol
Convergence Technology Department Head
DUZON

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After the successful debut of ‘iPlus Cloud Edition' designed for small businesses and tax accounting firms, DUZON is now expanding its cloud service infrastructure with Microsoft’s solution. Released in early 2012, iPlus Cloud Edition is a cloud service designed to help small businesses and tax accounting firms reduce their IT burden in the face of regulation changes that include the recent enactment of the Personal Information Protection Law. iPlus Cloud Edition serves small businesses and tax accounting firms in handling tasks, enabling 1,000 customers to be won within a year, a remarkable achievement. DUZON was soon expanding its iPlus Cloud Edition infrastructure to keep up with increasing market demands. Expanding the existing infrastructure, though, would mean having to part with considerable expense. To solve this problem, DUZON decided to adopt Windows Server 2012 and System Center 2012 in the latter half of 2012. The existing system requires a license for hypervisor and operating system to provide the service. Having Windows Server 2012 on a virtual machine, though, means the cost for Windows Server licensing can be reduced. This was what really settled it for DUZON in seeing Windows Server 2012 as a way to reduce the cost. By applying Microsoft solution to the real-world service, DUZON achieved its initial goal of reducing both CAPEX and OPEX. As a result, the company was able to improve its competitive advantage on both service and cost fronts. DUZON is now seeking to make full use of Microsoft solution in the further infrastructure expansions it has in the pipeline.

Situation

iPlus Cloud Edition, a cloud service introduced by DOZON in early 2012 for tax accounting firms, continues to be among the most popular of its type. Since its launch, iPlus Cloud Edition has won many admirers across the market. For instance, iPlus Cloud Edition earned the glory of winning the grand prize in recognition for its technology and business development at the 19th Korea Multimedia Technology Awards held in 2012 by Korea Communications Commission and Korea Association for ICT Promotion (KAIT).

Fortunately, strong market interest was able to be translated into good hard results, driving the appeal iPlus Cloud Edition across a wider customer base. The company soon leapt to more than 1,000 subscribers in less than a year after the launch of its service, with its tangible results propelling to the status of recognized leader in the public cloud market. Its strategy has worked wonders: providing a work space unbounded by time and location through recognition of the difficulties small businesses and tax accounting firms are finding it to manage IT due to the craze for smart work and the implementation of the Personal Information Protection Law.

With one strategy a success, DUZON considered what other strategy to follow for cloud infrastructure. The rapid increase in customer numbers couldn’t but alert the company to the importance of having a competitive edge in terms of ‘service cost’. DUZON chose a strategy to build service infrastructure with a proven solution that was already available in the market, rather than an open source solution. With the belief that the key to success in the cloud market is the customer’s trust in the stability and security of the service rendered, the company decided to adopt a solution with eons of previous success, instead of trying to cut costs with an open source solution. In this respect, the commercial solution was introduced to provide the initial infrastructure.

DUZON initially managed the infrastructure with a commercial solution. It didn’t take long, though, for the company to realize the importance of cost reduction while preparing for infrastructure expansion to meet increasing customer demands. The company thus came up with a two-pronged improvement scheme: CAPEX and OPEX. The first thing was the licensing fee - how to reduce the licensing fee, including that for management tools, which would otherwise increase in line with the number of virtual machines.

The second point was management efficiency. Infrastructure expansion raises difficulties in terms of its management and, in that respect, what could be better than managing various hypervisors and monitoring both virtual and physical machines? Windows Server 2012 and System Center 2012 provided the answers DUZON sought.

Solution

DUZON carried out a Windows Server 2012 and System Center 2012-related Proof of Concept (PoC) project in early 2012, even before the official launch of the products. To stick with its original cloud strategy of going with a proven solution, the company performed PoC, a realization of a certain technology to demonstrate its feasibility. DUZON focused primarily on stability and performance in the PoC project.

iPlus Cloud Edition requires a higher level of stability and performance than that of a general cloud service due to its always-on nature, as opposed to just being on when required as is the norm. iPlus Cloud Edition is a cloud service of iPlus, a longtime beloved business management program with application virtualization. In other words, iPlus Cloud Edition provides customers with all the features of iPlus.

As a business management program, it needs to remain always on due to the sheer volume of tasks facing small businesses and tax accounting firms, including financial accounting, personnel/remuneration management, tax adjustment and e-tax invoice. Plus, iPlus Cloud Edition is much used as it is unbounded time and location. Users can access the service via a tablet when working outside the office and even take it home for use after work. This means the session between client and service stays connected for a long time. In addition, the service is swamped with simultaneous user access requests during tax reporting season and this is the reason why servers running iPlus Cloud Edition mark CPU usage close to 100%.

DUZON examined whether Windows Server 2012 would ensure both the stability and performance of iPlus Cloud Edition under the same condition as PoC. When the stress on the system was tested in various aspects, the results showed that Windows Server 2012 was better than the previous version in terms of scalability, stability and performance. DUZON then tested System Center 2012 through various scenarios faced when managing thousands of virtual machines. As a result, it found that System Center 2012 is capable of managing and monitoring virtual environment and physical devices as well.

After a thorough pre-test, DUZON built a new infrastructure for iPlus Cloud Edition based on Windows Server 2012 and System Center 2012 and started providing the service in the latter part of 2012.

Benefits

Improvement in cost competitiveness

DUZON is now seeking to deploy Windows Server 2012 for further expansions in its infrastructure because it works so much more effectively with larger infrastructure in terms of cost reduction.

“Considering the current pace of growth, we expect the cloud infrastructure for iPlus Cloud Edition will be expanded to run over 10,000 virtual machines by the end of 2013", said Song Hocheol, Convergence Technology Department Head at DUZON. “In only 2 years after its launch, the service has already expanded several-fold. With the insight gained through observing such growth, DUZON has been able to find a way to reduce the cost with Microsoft solution”. In other words, DUZON gained the ability to identify what is important when it comes to cost reduction and ensuring a level of service quality that would meet customer expectations.

“From the standpoint of cloud service provider, it is important to reduce cost while simultaneously maintaining service quality. With Windows Server 2012 Data Edition allowing unlimited use of server software instance on virtual infrastructure, the licensing cost can be drastically reduced”, he said. To build the service infrastructure in the traditional environment requires both hypervisor and operating system, but Windows Server 2012 reduces the licensing cost for Windows Server to run on virtual machines. This is what DUZON identified as an important point in cost reduction.

Meanwhile, reduction in the licensing fee is also expected in management. In a traditional environment, the licenses for the management tools to be purchased depend on the number of virtual machines. However, System Center 2012 Data Center Edition has no restriction of OSE that can be managed on a single physical unit. It means that there is no extra licensing cost required, no matter how many virtual machines run on Windows Server.

Stable management even under heavy traffic loads

It is not easy to strike a balance between quality and cost, but DUZON was able to find the right balance. The company was able to ensure cost competitiveness by reducing the licensing cost without giving up on service quality. Unlike other package solutions, iPlus Cloud Edition is not bound to the desktop. It means that the service is available on the desktop in office or at home and mobile devices, such as tablets. Likewise, the greatest benefit of iPlus Cloud Edition is its service availability, providing work space regardless of time and location.

Then, what would it take to realize customer value? The answer is a service infrastructure with near-perfect performance and stability, like that of DUZON. Windows Server 2012 and System Center 2012 offer the kind of performance and stability DUZON expects.

“Many users access the service on ordinary days, but since our main customers are small businesses and tax accounting firms, large amounts of traffic spike when tax reporting deadlines come along, like the present state of business place, VAT (Valued Added Tax) and corporate tax. If the number of users increase rapidly, virtual machines in clusters automatically move to distribute the load. Also, the high-availability architecture, in which the service is continued through other system even in case of an error in the host, ensures non-interrupted service and thus rives business continuity”, said Song Hocheol, Department Head.

A new prospect in the field of integrated management

DUZON first brought about innovation into the organization while planning iPlus Cloud Edition. The company structured the organization in a way that the operating team can monitor and manage the whole picture, rather than having individual managers take care of each part (server, network and storage).

To bring about a change in organization, DUZON looked for a way of achieving integrated management, judging that ‘integrated management’ is essential in order to enable operators to intuitively view a sophisticated virtualization environment that incorporates server, network and storage. After going through several solutions, DUZON found that System Center 2012 would best serve its needs.

“With an enhanced service, infrastructure has become more complicated. In such a complicated environment, it is far from simple to identify the cause of an error. An integrated management tool allows operators to understand and manage the entire infrastructure at once”, said Song Hocheol, Department Head. “When running a large infrastructure, unexpected things happen. In Windows Server 2012-based system managed by System Center 2012, it is possible to perform centralized-management and the monitoring of entire service components including such hardware as network, storage and virtual machines, as well as operating system and DB”.

In other words, System Center 2012 performs the integrated management of whole elements that comprises the cloud service, rather than management at host level or virtual machine level. Meanwhile, DUZON is considering whether to integrate and manage other hypervisor environments with System Center 2012 in order to achieve a truly integrated management system.

Microsoft Server Product Portfolio

For more information about the Microsoft server product portfolio, go to:

www.microsoft.com/servers

For More Information

For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. Customers in the United States and Canada who are deaf or hard-of-hearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to:

www.microsoft.com

For more information about DUZON visit the website at: www.duzon.com

This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.
Solution Overview



Organization Size: 1200 employees

Organization Profile

Established in 1991, DUZON is a leading total IT service provider in ERP, IFRS and management information systems. In recent years, the company has shown leadership in a new business area that saw the convergence of the latest technologies, including cloud, mobile office, e-finance, IDC and certified e-document center.


Business Situation

Encountering the winds of change in the craze for smart work and the implementation of the Personal Information Protection Law, DUZON went ahead with its public cloud service designed exclusively for small businesses and tax accounting firms.


Solution

DUZON started expanding the infrastructure in order to keep pace with the rapid growth of its business and, in so doing, it discovered Windows Server 2012 and System Center 2012 SP1 would serve to reduce the cost.


Benefits

  • Improvement in cost competitiveness
  • Stable management even under heavy traffic loads
  • A new prospect in the field of integrated management


Software and Services
  • Microsoft Hyper-V Server
  • Microsoft Systems Management Server Technologies
  • Microsoft System Center Operations Manager
  • Microsoft System Center Virtual Machine Manager
  • Windows Server
  • Windows Server Technologies

Vertical Industries
IT Services

Country/Region
Korea

Business Need
Support and Services

IT Issue
Virtualization

Languages
English

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