Kellwood Apparel Company Chooses Hosted Services to Save 55 Percent


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Kellwood Apparel Company Chooses Hosted Services to Save 55 Percent

  1. 1. Microsoft Online Services Customer Solution Case Study Apparel Company Chooses Hosted Services Over On-Site Software to Save 55 Percent 55 PercentOverview ―Per user, Lotus Notes costs me three times as much asCountry or Region: United StatesIndustry: Retail—Apparel Microsoft. It‘s hard to argue with numbers like that.‖ Charles Pritzl, Chief Technology Officer, KellwoodCustomer ProfileBased in Chesterfield, Missouri, Kellwooddesigns, manufactures, and marketspremier fashion brands for women. Thecompany employs approximately 1,200 Kellwood Company, one of the nation‘s largest apparelpeople. manufacturers and owner of brands such as Vince, Baby Phat,Business Situation and Sag Harbor sought up-to-date messaging technologies toKellwood had a Lotus Notes andBlackberry solution that was difficult to increase employee efficiency. The company had been using anadminister and inefficient. The company outdated IBM Lotus Notes e-mail service that was notsought a streamlined communicationand collaboration solution that would compatible with its IT environment, which was based onreduce IT costs. Microsoft technologies, or customers‘ and partners‘ MicrosoftSolution messaging solutions. Kellwood replaced its Lotus Notes,Kellwood chose the Microsoft Business BlackBerry, and Web conferencing solutions with MicrosoftProductivity Online Standard Suite toempower employees with low-cost, Online Services. The company gained a suite of communication,hosted communication and collaboration collaboration, and archiving services at one-third of the price oftools that work well within its ITenvironment. its current Lotus Notes environment. Kellwood also achieved substantial savings on Web conferencing and e-mail archivingBenefits Reduced costs solutions. Streamlined IT maintenance Improved employee productivity Gained an archive solution
  2. 2. ―When we acquired Situation customers, suppliers, and partners. Staff Established in 1961, Kellwood Company members who wanted to work at home hadcompanies and brought designs, manufactures, and markets a to take extra steps to sign on to Kellwood‘s growing collection of premier fashion virtual private network (VPN) to access theirnew employees into the brands across a broad range of consumer mail, and the connection was not alwaysfold who were lifestyles. The Chesterfield, Missouri reliable. Extra frustration awaited staff company sells its branded and private-label travelling in China who encounteredaccustomed to Office goods to specialty stores, department difficulties using the VPN to connect to stores, national chains, and catalog houses headquarters in Chesterfield.Outlook, they‘d say, across the United States. Kellwood brands‗Why are you changing include Vince, Sag Harbor, Baby Phat, Phat ―When we acquired companies and Farm, Briggs New York, My Michelle, and brought new employees into the fold whome to Lotus Notes? I Jolt, as well as licensed brands XOXO and were accustomed to Office Outlook, they‘d David Meister. Kellwood also operates say, ‗Why are you changing me to Lotusdidn‘t know it still Vince and Sag Harbor brand stores. Notes? I didn‘t know it still existed,‘‖ saysexisted.‘" Pritzl. ―It had a perception of being old and In 2009, following a time of rapid growth, clumsy. I began to think of the move to a Charles Pritzl, Chief Technology Officer, Kellwood entered a period of restructuring. different e-mail service as a key step in Kellwood The company took the opportunity to providing more up-to-date technology reflect on its operations and examine ways tools for the workforce.‖ of working smarter and leaner. ―We were changing from a publicly traded company The IT department spent extra time to a private company,‖ says Charles Pritzl, managing oversized e-mail inboxes and Chief Technology Officer at Kellwood. ―In maintaining an outdated tape archiving the IT department, we wanted to energize system. Many employees used their employees with better services so they inboxes as informal storage repositories. IT could work more productively.‖ staff had to trim these inboxes to avoid exceeding storage limits and to keep the So Pritzl took a good look at the company‘s system manageable. IT staff members used IBM Lotus Notes e-mail service, which ran clean-up routines that occasionally deleted on several geographically dispersed IBM information employees needed. The Lotus Domino servers. Even though the problem got to the point where Pritzl was company had been using Lotus Notes for actively looking at deploying a third-party more than 12 years, it was not universally archiving solution. popular among employees. For example, approximately 40 staff members in ―We also needed a searchable archiving Kellwood‘s outsourcing operations in Asia solution for our attorneys to manage the were only able to use INotes, the Web mail electronic discovery process, or ‗e- client for Lotus Notes. These workers discovery‘ process,‖ adds Pritzl. ―As with wanted the same level of functionality that any company, legal issues can arise. In such their colleagues had with the full client cases, the IT staff had to spend a lot of time version. and money restoring tapes and providing information for our attorneys.‖ Many employees also complained that Lotus Notes didn‘t operate well with the Lotus Notes frustrated the IT staff because Microsoft Office Outlook messaging and it didn‘t work with the rest of the collaboration client used by many company‘s infrastructure. ―I‘m a guy who
  3. 3. likes things integrated,‖ says Pritzl. ―Instead, Microsoft Online Services, Kellwood gainedwe had to create a user in our Active access to the suite‘s collection of finishedDirectory service, and then again in Lotus services—Microsoft Exchange Online,Notes. We had a distribution list for our Microsoft SharePoint Online, MicrosoftBlackBerry users and another one for Lotus Office Live Meeting, and Microsoft OfficeNotes. People had to remember different Communications Online—all for a lowuser names and passwords. It was time- monthly per-user fee.consuming and redundant. ‖ Kellwood also subscribed to MicrosoftFor these reasons, Pritzl had been anxious Exchange Hosted Archive services to satisfyto move away from Lotus Notes for several retention requirements for e-discovery andyears. But because Lotus Notes performed compliance, and encrypt data to preservethe basic tasks of sending and receiving e- confidentiality.mail messages, he couldn‘t come up with aconvincing return on investment to make Making the Decisionthe change. ―As long as the mail worked ―I looked at many different providers ofwell enough, management was not hosted e-mail, including Zimbraprepared to invest in another on-premises Collaboration Suite, Google, Yahoo,solution,‖ he says. ―However, with the Hotmail, and third-party hosted solutionsgrowing acceptance of ‗cloud‘ or Web- using Exchange,‖ says Pritzl. ―Google hashosted computing and software as a Google Docs and Google Sites, but what‘sservice, I had a new argument to make. The the point of having Google Docs whenimproved reliability and security of the everyone is working in Office Word? WeInternet make hosted services more use Microsoft business intelligence toolsappealing today than they were a couple of and Microsoft Office SharePoint Serveryears ago. Everyone understands that e- 2007. If I threw Google in the mix, I‘d havemail is now a commodity service. There‘s to code all that integration. I was drivingno value to Kellwood in managing our own toward an integrated, consistente-mail servers.‖ environment. Microsoft Online Services had a great price point, and we got an entirePritzl decided to evaluate different hosted suite of collaborative technologies. After wee-mail services and build a business case did our analysis, we surveyed ourfor outsourcing e-mail for his next budget. employees: They voted overwhelmingly for―I knew the return on investment with a Office Outlook as their mail client.‖hosted service would be much higher; I justneeded to find the right choice for Taking advantage of the Microsoft partnerKellwood,‖ he says. ecosystem for support, Pritzl enlisted Microsoft Gold Certified PartnerSolution MessageOps to assist with the pre-Kellwood Company found its solution with migration configurations, providingthe Microsoft Business Productivity Online scripting that streamlined the entireStandard Suite. Part of Microsoft Online process.Services, the suite offers interoperableservices that include desktop and mobile e- Then, in October 2009, Pritzl evaluated twomail, instant messaging and presence, vendors to perform the actual migration,shared workspaces, and live audio-visual eventually selecting Microsoft GoldWeb-conferencing applications. Through Certified Partner, Binary Tree. The partner
  4. 4. immediately performed an analysis of the real-time meetings and Web conferencing, company‘s Lotus Notes environment and as well as Office Communications Online recommended a timeframe for the project. for presence awareness and instant Kellwood wanted to get the migration messaging. ―We did very little training for completed before the end of the year to the new suite, and in hindsight, we could avoid renewing licenses for Lotus Notes. have provided more tips and tricks for our users. But considering that everyone had Expediting the Migration been on Lotus Notes for 12 years, user Kellwood took advantage of the Weekend adoption has been phenomenal,‖ says Express Migration Program offered by Pritzl. Binary Tree. ―This is a hosted migration, where we can migrate up to 5,000 users in Now that Kellwood employees have a weekend,‖ explains Mark DeAngelis, incorporated Microsoft Online Services into Project Manager at Binary Tree. ―We their daily work lives, the IT department can created replicas of Kellwood‘s mail files on turn its attention to Microsoft Exchange―Microsoft Online staging servers in our environment. The Hosted Archive services. By subscribing toServices made an replication cleans up corruptions that may be in the mail files. For each employee, this service, Kellwood gained a centralized, searchable e-mail and instant messagingExchange-based e-mail Kellwood wanted to migrate 90 days of e- repository so Pritzl and his staff can more mail messages and one year of calendar easily adhere to retention, compliance,solution possible. We history, contacts, and tasks. Before the electronic discovery, and regulatorygot all the rich actual migration, we sent templates to the company‘s employees to do some pre- requirements.communication migration tasks such as synchronizing their Benefits contacts from their personal address book Kellwood Company employees are excitedcapabilities you‘d expect into their mail file so we could reach that to be working with an up-to-date suite of communication and collaborationfrom an on-premises data and migrate it as well.‖ technologies that fit the expectations of asolution, at a fraction of During the weekend of December 18, 2009, modern workforce. ―Kellwood employees are pleased to be using technologies that Binary Tree migrated 1,350 Kellwoodthe cost.‖ employees from the Lotus Notes meet both the needs and expectations of the modern workforce,‖ says Eric Hunter, Charles Pritzl, Chief Technology Officer, messaging platform to Office Outlook and Senior Vice President and Chief Marketing Kellwood Exchange Online. This amounted to Officer at Kellwood. approximately 2.5 terabytes of data. ―Binary Tree‘s experience and their understanding Also, the IT department is benefiting from a of the inner workings of Lotus Notes were simpler way of consuming and managing critical to the success of this project,‖ says technology that works well within its Pritzl. ―I talked to our chief operating officer Microsoft technology–centric IT and he said, ‗I‘m impressed beyond belief.‘ environment. It was truly Lotus Notes on Friday and Microsoft on Monday. The icing on the Reduced Costs cake was that our migration cost with Thanks to Microsoft Online Services, Binary Tree was almost one-quarter of the Kellwood IT staff members could finally quote we got from the other vendors.‖ deploy the messaging and collaboration technologies they felt would better serve Since the migration, employees have been the company. ―Microsoft Online Services using Office Live Meeting for impromptu,
  5. 5. ―Instead of acquiring and made an Exchange-based e-mail solution time ensuring that it works well with the possible,‖ says Pritzl. ―We got all the rich rest of the IT environment.managing disparate communication capabilities you‘d expect from an on-premises solution, at a fraction ―While we were probably only spendingsolutions for mobile e- of the cost.‖ five percent of our time directly managingmail, spam protection, Lotus Notes, it was an irritant because we Deploying the Business Productivity Online didn‘t feel as though we were providing theand Web conferencing, I Standard Suite through Microsoft Online best service to our users,‖ says Pritzl. ―And Services saved Kellwood from expenses there‘s no direct value to Kellwood for us toget them all in one suite that would have been required to license manage commodity services that Microsoftof services.‖ and support new messaging and can host and support with better security at collaboration solutions. To make his less cost. However, there is a benefit to Charles Pritzl, Chief Technology Officer, business case, Pritzl compared the costs of Kellwood if we can spend more time on IT Kellwood continuing with Lotus Notes with the costs services that are directly related to the of moving to Microsoft Online Services, business.‖ estimating a savings of 55 percent. ―Per user, Lotus Notes costs me three times as Kellwood‘s recent experience with much as moving to Microsoft,‖ he says. ―It‘s Exchange Hosted Archive illustrates how hard to argue with numbers like that.‖ easy it is for the IT department to deploy new services to the company. ―Subscribing And with regards to the archiving solution to Online Services decreases the support Kellwood had been contemplating, and the engineering and the upfront work Exchange Hosted Archive services provided that needs to go into building a solution,‖ the e-mail retention capabilities that the says Pritzl. ―I wanted to enable archiving; company needed at 50 percent of the cost. we subscribed to the service, turned it on, Pritzl deployed the Microsoft solution. and it‘s already configured and ready to go. Simple.‖ Pritzl also increased Kellwood‘s savings by retiring its BlackBerry servers and its third- Improved Employee Productivity party Web conferencing solutions. Since deploying Microsoft Online Services, Kellwood employees are using Live ―Instead of acquiring and managing Meeting and Office Communications disparate solutions for mobile e-mail, spam Online to streamline collaboration and protection, and Web conferencing, I get keep the business running at maximum them all in one suite of services,‖ says Pritzl. efficiency. ―Before, we could only provide Plus, Kellwood gets the benefit of Web conferencing to select associates; now predictable, ongoing IT costs.‖ everyone can use it,‖ says Pritzl. ―We are seeing spontaneous online meetings and Streamlined IT Maintenance conference calls happening all over the Not only did Kellwood successfully lower country. People are thrilled that they can the total cost of ownership of its messaging take their laptops home, or on an Asian and collaboration solution, but it also trip, open them up and get their e-mail. We reduced day-to-day maintenance, freeing routinely had around one hundred VPN valuable IT resources to focus on strategic users through the network every day initiatives that move the business forward. because they wanted to access their mail. Today, staff members no longer have to Now we are running less than 10. Our staff manage an on-premises solution or spend can now use Blackberry, Windows phones,
  6. 6. For More Information iPhones, and Motorola Droids to access our Microsoft Online ServicesFor more information about Microsoft mail. The usability of Microsoft Online Microsoft Online Services are business-classproducts and services, call the Microsoft Services has been a real productivity communication and collaboration solutionsSales Information Center at (800) 426- enhancer.‖ delivered as a subscription service and9400. In Canada, call the Microsoft hosted by Microsoft. With these offerings,Canada Information Centre at (877) 568- Gained an Archive Solution customers can cost-effectively access the2495. Customers in the United States and With Exchange Hosted Archive services, the most up-to-date technologies andCanada who are deaf or hard-of-hearing IT department can begin archiving e-mail immediately benefit from streamlinedcan reach Microsoft text telephone messages, offering employees a more communications, simplified management,(TTY/TDD) services at (800) 892-5234. secure alternative to purging mailboxes. and business-class reliability and securityOutside the 50 United States and Because the archive is searchable, it‘s easy features. For IT staffers, Microsoft OnlineCanada, please contact your local for staff members to locate a file that they Services are backed by strong service levelMicrosoft subsidiary. To access stored in their inbox even a year ago. agreements and help reduce the burden ofinformation using the World Wide Web, performing routine IT management, freeinggo to: ―With the Online Services archiving up time to focus on core solution, I can give our attorneys a initiatives. searchable environment for e-discovery,‖For more information about Binary Tree adds Pritzl. ―We want our attorneys to have For more information, visit:products and services, call (212) 244- self-serve capabilities for doing their own or visit the Web site at: recovery work. Now I don‘t have to about my IT staff spending days or weeks doing discovery for our legal staff. With thisFor more information about Kellwood service for our attorneys, I estimate thatproducts and services, call (314) 576- we‘ll see a 100 percent return on3100 or visit the Web site at: investment in the first year.‖ Software and Services  Solutions  Services − Software-plus-Services − Microsoft Business Productivity Online Standard Suite Partners  Binary TreeThis case study is for informational purposes only.MICROSOFT MAKES NO WARRANTIES, EXPRESS ORIMPLIED, IN THIS SUMMARY.Document published May 2010