Group Mannheimer Versicherungen reduces operational costs by 30 percent with SAP and IBM

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A study case on IBM efficiency. The insurance group Mannheimer migrated from HP servers running SAP applications and Oracle databases in the Microsoft Windows Server environment to IBM infrastructure. Migration to IBM Power Systems and DB2 has reduced operational costs by around 30 percent a year; business reports that took 20 minutes to generate are now
produced in three minutes; IBM DB2 Deep Compression for data and indexes has reduced total data storage requirements by an average of between 40 to over 60 percent, ect...Discover in this case study all the other benefits that the company received from the migration.



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Group Mannheimer Versicherungen reduces operational costs by 30 percent with SAP and IBM

  1. 1. we know they knowGroup Mannheimer Versicherungenreduces operational costs by 30 percentwith SAP and IBM Overview The Challenge  The Benefits  Key Solution Components Insurance group Mannheimer relied Migration to IBM Power Systems Industry: Insurance on SAP applications to run its core and DB2 has reduced operational Applications: SAP® ERP business operations. Older HP costs by around 30 percent a applications including financials, servers were unable to support new year. Business reports that took controlling, SAP Financial Services SAP applications, and migration to 20 minutes to generate are now Collections and Disbursements, the Unicode standard would require produced in three minutes. SAP SAP Financial Services investment in additional physical application dialog step response Re-Insurance and SAP ERP servers. Poor dialog response times and batch run times have Human Capital Management performance and slow report decreased by a factor of five. IBM Hardware: IBM ® Power™ 570, IBM generation caused user complaints, DB2 Deep Compression for data System Storage DS4800 series while maintenance and license and indexes has reduced total data Software: IBM AIX®, IBM Tivoli® costs continued to rise. storage requirements by an average Storage Manager, IBM DB2® of between 40 to over 60 percent. version 9.7 for Linux, Unix and The Solution SAP Financial Services Collections Windows Migrated from HP servers running and Disbursements data was Services: LIS.TEC, IBM Global SAP applications and Oracle reduced from 1TB to 350GB, Technology Services databases in the Microsoft avoiding investment in additional Windows Server environment storage capacity. Consolidating to IBM infrastructure. SAP ERP from seven to two physical servers applications, DB2 and other simplified the IT environment, in-house and business intelligence reduced power consumption and applications run in multiple virtual released valuable data room space servers on IBM Power 570 servers for new projects. running AIX and the Unicode standard. Deployed IBM System Storage DS4800 family systems to rationalize and consolidate the data storage landscape.
  2. 2. “The migration to IBM Founded in 1879 in Mannheim, systems and support for all the Germany, insurance group Mannheimer companies, and IMD itself Power Systems and Mannheimer offers life, sickness and is a wholly-owned subsidiary. DB2 has saved around general insurance. The group 30 percent each year, companies employ 842 people in total, “The existing HP and Oracle and the solution is and generate an annual insurance infrastructure could not scale reliably priced as a complete premium income of around €376 and cost-effectively to meet demand. In million (2009). addition, we wanted to move to the hardware, maintenance current versions of the SAP applications and license package for Mannheimer enjoys consistent as this would reduce license and support five years, offering business growth, fueled by specialist fees. We therefore chose to review the budget predictability for insurance solutions focusing on market entire software and hardware landscape. Mannheimer.” sectors such as jewelers, artists and musicians. The company has relied on “IMD had to complete many changes Norbert Koch, Managing Director, SAP applications to run its core with minimal disruption to the IMD GmbH processes for many years, including Mannheimer companies, which placed the specialist SAP Financial Services significant constraints on our project Collections and Disbursements and plans. The new solution also needed to SAP Financial Services Re-Insurance allow us to complete system components, as well as its own administration and maintenance without in-house and other non-SAP impacting daily business.” applications. Choosing IBM Group IT services are provided by an The IMD team selected IBM to advise on in-house company, IMD - Gesellschaft the best way to progress with the für Informatik und Datenverarbeitung transformation, including the introduction mbH. Norbert Koch, Managing Director of Unicode, which was required for the of IMD, explains, “We provide SAP upgrade to the most current versions of the SAP applications. “IBM offers an excellent cross-brand value proposition, including hardware, software and services,” says Norbert Koch. “IBM presented three possible architecture solutions, any of which could be operated in-house or outsourced to IBM. This flexibility of approach suited Mannheimer, as it enabled us to choose the right course based on the business requirements rather than the technical specifications.” Mannheimer chose to migrate all its SAP applications to virtualized environments on IBM Power Systems servers running IBM AIX, and to replace Oracle with IBM DB2.
  3. 3. The project was initiated in May 2008, character set, data volumes “We are extraordinarilywith the first hardware implemented in decreased slightly. satisfied with theNovember. Database migrationoperations commenced in January Selecting a DB2 strategy business, technical and2009 and finished in February, Mannheimer implemented two IBM operational benefits offollowed immediately by SAP Power 570 servers with POWER6 the IBM Power Systemsapplication upgrades that concluded processors, two IBM System Storage and DB2 combination...in November. The SAP ERP devices from the DS4800 family, and The project ranapplications were divided into test, an IBM TS3310 tape library. Todevelopment, quality management manage the data, Mannheimer smoothly, on time andand production, all hosted on the IBM enabled the DB2 Storage Optimization slightly below budget.”Power Systems servers. Feature and implemented IBM Tivoli Norbert Koch, Managing Director, Storage Manager to provide backup, IMD GmbHThe purpose behind the upgrade to archive and recovery services.the latest SAP ERP version andUnicode enablement was to move the IBM Global Technology Servicescompany to a standard, current SAP provided service and support toenvironment with reduced license migrate Oracle databases from 32-bitcosts on flexible, scalable technology. Microsoft Windows Server 2000 on HP servers to the 64-bit AIX environmentThe first project phase covered the on the IBM Power Systems platform.migration from Windows and Oracle toIBM AIX and DB2 9.5. This migration, “The strategic database system withinincluding DB2 row compression, the whole Mannheimer group is DB2,resulted in compression rates of and we wanted to pursue ourbetween 40 percent and over 60 standardization strategy to help uspercent for the SAP Financial Services reduce costs, consolidate our skill setsCollections and Disbursements, SAP and increase system performance.Financial Services Re-Insurance, and DB2 provides a scalable, highly robustSAP ERP Human Capital Management foundation for SAP applications, andlandscapes. The second project ensures that we are well-placed to TECHNICAL LANDSCAPEphase comprised SAP application manage the predicted business Servers: Two IBM Power 570 serversupgrades for SAP FSRI from SAP 4.6 C growth,” says Norbert Koch. with POWER6 processors replacingvia SAP 4.71 and SAP 4.72 to ECC 6.0, “Enhanced application performance HP servers, two IBM System Storageand was completed during a single available from POWER-processor devices from the DS4800 family, andweekend. The concluding phase was based systems also boosts user an IBM TS3310 tape librarythe conversion to Unicode for the SAP productivity, a valuable gain across Software: IBM AIX and IBM TivoliFinancial Services Collections and the entire company.” Storage Manager. IBM DB2 versionDisbursements, SAP Financial 9.7 for Linux, Unix and WindowsServices Re-Insurance, and SAP ERP Additional POWER-processor features replacing an Oracle database. SAPHuman Capital Management include Live Partition Mobility, a unique ERP applications including financials,landscapes. This process included IBM technology for POWER controlling,SAP Financial Servicesthe upgrade from DB2 9.5 to DB2 9.7 processor-based systems that allows Collections and Disbursements, SAPand the implementation of new LPARs to be moved from one system Financial Services Re-Insurance andfeatures such as “Reclaimable to another even during continuous SAP ERP Human Capital ManagementStorage” and Index Compression, and production. Combined with the Users: 400despite the conversion to the Unicode established reliability, security and
  4. 4. availability advantages, the IBM Power resources for busy application areas “For Mannheimer, theSystems platform offers a very high when they are not needed by other twin IBM Powerdegree of business flexibility to LPARs. This is important both for our Systems and DS4800Mannheimer. nightly batch runs and during production for the dialog-based solution provides easilyTaking advantage of IBM Power Systems applications.” sufficient capacity, andWith database migration in place, the flexibility offered byMannheimer migrated its SAP Norbert Koch says, “With IBM Power virtualization enablesapplications to the new platform, with Systems we can do what formerly was us to look at addingan intermediate upgrade and only possible in the mainframeconversion to Unicode, followed by environment. AIX provides everything functionality, such asfinal deployment of SAP ERP we need on one machine, and portal solutions, withapplications in the production practical experience shows that the no immediate need toenvironment. The Power 570 systems virtualization solutions are very good. invest in additionalwere divided into virtual servers called For example, for overnight batch runs hardware.”logical partitions (LPARs), used as we can utilize the whole machine tostaging servers for the upgrade and meet processing demands, and then Rainer Böhm, Head of SAP Systems,then sized according to the predicted re-allocate resources automatically to IMD GmbHworkload of the SAP application. the production applications the next morning.Norbert Koch continues, “We evaluatedother vendors’ 64-bit solutions for the “Additionally, scalability is a hugeSAP application landscape. Because advantage, as we could not predict atthe HP hardware had reached the end the time of purchase how theof life, it became important that the new workload would grow. By combiningsolution would be able to handle this the processor and resource allocationworkload and scale to meet future offered by virtualization with the abilitydemands. We chose the Power to add processors as required,Systems and AIX platform because it Mannheimer is able to increaseoffers better scalability, IBM provides a throughput without buying additionallong-term strategy, the pricing was very servers.”competitive and it included superiorvirtualization technology.” Working with IBM Mannheimer worked closely with IBMRainer Böhm, Head of SAP Systems, Global Technology Services on theadds, “Virtualization capabilities were migration processes themselves. Thisthe deciding factor. IBM logical included the complex multiple stepspartitioning (LPAR) on Power Systems for updating both the SAPservers permits dynamic allocation of applications and the introduction ofprocessor capacity between LPARs, the Unicode standard.allowing Mannheimer to ensure thateach application meets its expected New versions of SAP applicationsperformance levels. require support for Unicode, and older operating systems, database“The ability to allocate CPUs is an data and applications must beoutstanding business advantage, upgraded in the correct sequence toparticularly the ability to use more ensure that the conversion is
  5. 5. successful and that the revised data Compression (both indexes and data), “We always assess whichsets are suitably compact. the 1TB volume was reduced to platform best meets our 350GB, achieving a compression rate“IBM Global Technology Services of 65 percent. needs, and SAPprovided us with the advice and applications with DB2experience necessary to plan and “We have been able to release several on Power Systemsexecute the SAP application upgrades terabytes of disk space, and at current provide a cost-effective,and Unicode conversions rapidly and growth rates do not need to worry future-proof solution forcost-effectively. By working with IBM about running out of space for the nextGlobal Technology Services, we were five to ten years,” says Norbert Koch. Mannheimer.”able to draw on their global resources “This represents a considerable cost Rainer Böhm, Head of SAP Systems,for the crucial periods, and complete saving for the company.” IMD GmbHthe work on time, successfully,” saysNorbert Koch. Improving storage performance As part of the project, MannheimerReducing costs with DB2 re-structured its data storage. ByAs a central services supplier to the mixing drive types within the DS4800Mannheimer group, IMD is particularly family storage units, the companycost-conscious. On the database side, implemented an information hierarchyany ways to reduce infrastructure cost that ensures data is placed on theare welcome. For example, finding, drives as cost-effectively as possibletraining and retaining IT personnel is a while at the same time improvingcostly business, and database technical performance.administrators are no exception. Rainer Böhm explains, “We wanted toNorbert Koch comments, “To maintain improve the response times from ourthe Oracle databases we needed to business intelligence application, andhire external contractors, whereas the one route would have been to licenseDB2 tools remove this expense, and all further processors.database administration tasks can bemanaged internally. “Instead, working with IBM, we reorganized the layout of the disks,“The volume of data generated by SAP and we now have smaller disk drivestransactions started strain our total that offer faster data access, whichstorage capacity. Even though has produced a remarkableconversion to the Unicode standard improvement in response timesoften results in increased capacity, without the expense of additionalusing IBM Deep Compression we processor licenses.”reduced the volume of data by from 40to over 60 percent.” Two separate data centers each house an IBM Power 570 server and storageFor example, SAP Financial Services system. IBM Tivoli Storage ManagerCollections and Disbursements automatically replicates data from theoriginally ran to 500GB, which on production to the secondary server,conversion to Unicode and migration including system state copies,to the latest SAP application release ensuring that production can continuegrew to 1TB. After applying DB2 Deep even if disaster strikes the primary site.
  6. 6. Rainer Böhm comments, “With the At the operational level, Mannheimerprevious system, we needed three has replaced seven HP servers withdays to recover data and restart two energy-efficient IBM Poweroperations. Based on previous Systems servers. With lower energyexperience we used to dread this. consumption and reduced heat output, the company saves on air-conditioning“The new solution has cut the period to costs and has been able to reducejust half a day, and with the IBM Power server room floor space.Systems and DB2 combination,recovery and it is no longer an issue. Norbert Koch concludes, “We areWe use Tivoli Storage Manager to extraordinarily satisfied with themirror data continuously between the business, technical and operational IBM Deutschland GmbHtwo data centers, and the non- benefits of the IBM Power Systems and D-70548 Stuttgart ibm.com/solutions/sapproduction Power 570 server acts as a DB2 combination. Some consulting IBM, the IBM logo, and ibm.com are trademarkshot stand-by system, offering very high companies painted what we might call of International Business Machines Corporation,availability of better than 99.98 ‘anxiety scenarios’ concerning the registered in many jurisdictions worldwide. A current list of other IBM trademarks is availablepercent.” migration, and they have been proved on the Web at “Copyright and trademark wrong. The project ran smoothly, on information” at http://www.ibm.com/legal/ copytrade.shtmlAchieving business benefits time and slightly below budget.” Intel, the Intel logo, Intel Xeon and the Intel XeonThis root-and-branch review and logo are trademarks or registered trademarks ofrestructuring of the Mannheimer IT IBM provided a SAP certified Migration Intel Corporation or its subsidiaries in the United States and other countries. UNIX is a registeredlandscape has more than met the Consultant to support the trademark of The Open Group in the Unitedbusiness objectives, and has also transformation, working as a joint team States and other countries. Linux is a trademark of Linus Torvalds in the United States, otherdelivered lower operational costs with with Mannheimer and LIS.TEC. countries, or both. Microsoft, Windows, Windowsimproved technical performance. NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other Rainer Böhm adds, “Migration to DB2 countries, or both.Norbert Koch comments, “The HP and fully meets our expectations, and we Other company, product or service names mayOracle solution was incurring high are 100 percent confident in the be trademarks, or service marks of others.maintenance costs and significant solution. IBM recommended the This case study illustrates how one IBM customer uses IBM and/or IBM Business Partnerannual license fees. The migration to combined landscape and migration technologies/services. Many factors haveIBM Power Systems and DB2 has process, and it was excellent. contributed to the results and benefits described. IBM does not guarantee comparablesaved around 30 percent a year, and results. All information contained herein wasthe solution is priced as a complete “For Mannheimer, the twin IBM Power provided by the featured customer and/or IBM Business Partner. IBM does not attest to itshardware, maintenance and license Systems and DS4800 solution provides accuracy. All customer examples cited representpackage for five years, offering budget easily sufficient capacity, and the how some customers have used IBM products and the results they may have achieved. Actualpredictability for Mannheimer. flexibility offered by virtualization environmental costs and performance enables us to look at adding characteristics will vary depending on individual customer configurations and conditions.“Previously, users complained about functionality, such as portal solutions, This publication is for general guidance only.performance, especially concerning with no immediate need to invest in Photographs may show design models.the 20 minutes or so it took to generate additional hardware. © Copyright IBM Corp. 2010. All rights reserved.complex accounting and statisticalreports. With the Power Systems “We always assess which platform bestserver and DB2, the same queries now meets our needs, and SAP applicationstake around three minutes to complete, with DB2 on Power Systems provide aand many other standard reports are cost-effective, future-proof solution fordelivered in just seconds. Similarly, Mannheimer.”SAP application dialog step response © Copyright 2010 SAP AG SAP AGtimes and batch run times have Dietmar-Hopp-Allee 16decreased by a factor of five, D-69190 Walldorfeliminating user complaints and SAP, the SAP logo, SAP and all other SAP products and services mentioned herein aregreatly improving total productivity.” trademarks or registered trademarks of SAP AG in Germany and several other countries. SPC03284-DEEN-01 (November 2010)

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