Warum sich Managed Services doch lohnen - Fujitsu

VISIT 2010 – Fujitsu Forum Europe 1

Sourcing & Deployment – Room 5 

Shaping 

tomorrow 

with you. 

VISIT 2010 – Fujitsu Forum Europe 

Why Managed Services Pay Off 

Christian Günther 

Head of LANXESS IT Global 

Infrastructure 

14:00 h

INTERNAL USE ONLY



Head of 

LANXESS IT Global Infrastructure


Agenda 

� Company introduction LANXESS 

� Context, Options and Decision of LANXESS IT 

� Project planning Managed Storage 

� 100 Days Operation: Experience 

� Abstract and Lessons Learned 

�Questions & Answers 

5 

Christian Günther, IT-IFS 

24-Nov-2010


LANXESS @ a Glance: Product Portfolio 

Broad product range comprising premium chemicals, rubber and polymers 

� Basic chemicals 

� Active ingredients (custom manufacturing) and intermediates for 

6 

pharmaceuticals and crop protection products 

� Material protection products 

� Finishing agents for leather 

� Ion exchange resins, especially for water treatment 

� Inorganic pigments for coloring concrete and surface coatings 

� Dyes and inorganic and organic pigments for coloring plastics 

� Plastics additives such as flame retardants and plasticizers 

� Solid rubber and rubber chemicals for the rubber and tire industry 

� Plastics for automotive, electrical appliances, furniture, sports and 

leisure 

� Perlon wire for technical applications 


24-Nov-2010


The team is set, the chemistry is right and the strategy fits. 

LANXESS is a leader in specialty chemicals and operates in all important global markets. 

In 2009, the company achieved sales of EUR 5,057 million. 

Many forces combine at LANXESS' 42 sites worldwide to produce the optimal result. This 

applies both to the products and processes themselves and to the 14,500 or so staff in 23 

countries that are responsible for the company’s day-to-day business. 

LANXESS is treading the path that is inherent in its name: Combined from the French verb 

“lancer” meaning to thrust forward and the English noun “success”, LANXESS represents 

the determined will to achieve and the readiness to embrace continual change. 

7 


24-Nov-2010


Facts & Figures 

8 

Sales in the year 2009 EUR 5.057 bn 

Sales in 9M / 2010 EUR 5.288 bn 

Employees worldwide (as of: 2010-09-30) 

Portfolio 

Global orientation 

LANXESS is one of Germany’s most important providers of polymers and chemicals 


24-Nov-2010 

14,539 

Performance Polymers 

Advanced Intermediates 

Performance Chemicals 

42 production sites worldwide



9 

Storage management is like a Gordian knot. But Fujitsu has cut the knot for us, 

solving our problems with the growing flood of data by using its Managed 

Storage solution for operations in our European storage environment. 

What‘s more, the chemistry between Fujitsu and LANXESS is also good. Here 

you can learn more about how this concept for flexible capacity provisioning 

really works. 


24-Nov-2010


LANXESS is growing 

… continuously 

10 


24-Nov-2010 

15.09.2010 | Press Release, 

LANXESS sets ambitious growth target 

EUR 1.4 billion EBITDA pre exceptionals targeted in 2015 

FY 2010 earnings forecast confirmed 

Focus on megatrends and emerging markets 

Further growth from investment projects and acquisitions 

Product innovation promotes sustainability 

Feasibility study for new Asian Nd-PBR plant


Screenshot Wirtschaftsnachrichten 2008 

11 


24-Nov-2010


Context 2008/2009 

• End-of-life server hardware because of overdue investments 

• Growing demand of storage – storage had to be extended or changed urgently 

• Project for consolidation and virtualization was in the pipeline 

• Storage is „KEY“ for success 

• Worldwide economic crisis 

• Revenue forecast fell back to the level of the founding year 

• IT was challenged to identify possible savings 

• Savings had to take effect in 2009 already 

• Investments were limited hardly 

12 


24-Nov-2010


Need for Decision: Storage System 

13 

Context 2008/2009 

• Dedicated server per application 

• Low capacity utilization 

• Complex system environment 

• High complexity in backup 

• High administrative costs 

• No Reporting 

• Best effort operating 

• Technology freeze 


24-Nov-2010 

Target scenario 2010 

• One, central storage system with different 

performance classes 

• High availability based on an SLA with 

99.5% 

• Virtual environment, high utilization 

• Flexible call-off for changing volume 

• Low costs 

• Consolidated reporting 

• SLA based operation 

• Technology leap


Motivation of LANXESS IT 

14 

Requirements from LXS: 

technical equipment which enables LANXESS IT to react flexible and cost-efficient 

to their customers’ requirements, step cost need to be reduced 


24-Nov-2010


Possible Options 

15 

Inhouse Operation: 

LANXESS IT is responsible 

for IT operations and acts as 

an internal service provider. 

Offshoring / Nearshoring: 

The services are provided in 

European countries (Nearshoring) 

or outside Europe (Offshoring. 


24-Nov-2010 

Outsourcing: 

An external service provider is 

responsible for IT operations. 

WHO: 

Outsourcing 

vs. 

Inhouse 

Operation 

Sourcing 

Decision 

Managed Services: 

Centralized management of a 

local system, usually in 

preparation for an outsourcing.


Choice of Managed Storage 

LANXESS evaluated the different types, ranging 

from in-house self operation to Outsourcing. 

Based on previous experience and present 

proposals LANXESS decided for a Managed 

Service for their storage. 

16 


24-Nov-2010


LANXESS‘ Decision Criteria 

• Reduction of investments, IT-budget becoming more constant and 

calculable 

• Flexible an SLA-based IT-Service 

17 

• Pay as you Use 

• On Demand (capacity may be resized within few hours / days) 

• Entrance to up-to-date technology with reduced risk 

• Reduced complexity of IT Infrastructure Management 

• Optimized skill-profile for the selected technology 

• Savings / benefits take effect in the actual year 

• Option for a later Insourcing 

• Choice of the hardware location (at the service provider or on-site in 

LANXESS‘ data center) 


24-Nov-2010 

� 

� 

� �� 

� ��


From the first Contact to Operation Takeover 

1. The idea of Managed Storage occurred on an exhibition. 

2. LANXESS-view: How could we compare in-house self operation, total 

Outsourcing and managed Service under the aspects of total costs 

analysis, SLA and requirements coverage? 

18 

Decision 


24-Nov-2010 

RFP 

13 Months 

Choice 

Project 

Transition 

Operation


Timeline of the Transition Stage 

until the Operation Takeover by Fujitsu 

19 

setup systems 

and other 

infrastructure 

Phase 1 

19.10.2009 04.12.2009 01.02.2010 

31.01.2015 


24-Nov-2010 

Transition 

migration data Operation: 

further expansion 

according to growth 

Phase 2 

19 

Operate (60 Months)


RACI*1-Matrix: Responsibilities 

Aktivität Lanxess Fujitsu 

Beistellen der Storage-Infrastruktur und aktiven SAN-Komponenten V 

Monitoring: Überwachung der Storage-Infrastruktur und aktiven SAN-Komponenten V 

Release- und Patchmanagement der Storage-Infrastruktur und aktiven SAN-Komponenten V 

Beistellen der RZ-Infrastruktur (Stellfläche, Strom, Klimatechnik, Höheneinheiten, etc.) V 

Durchführen der storageseitigen Verkabelung (Storage-Switch) V 

Durchführen der serverseitigen Verkabelung (Server-Switch) V 

Durchführen der raumübergreifenden Verkabelung (Rack-Rack) V 

Beistellen der Netzwerk (LAN) Infrastruktur V 

Beistellen der Management-Infrastruktur (Mgmt.-/Reporting-Server, etc.) V 

Monitoring: Überwachung der Management-Infrastruktur V 

Release- und Patchmanagement der Management-Infrastruktur V 

Beistellen des Remote-Zugangs für das Remote Management V 

Volume-Management (Anlegen, Verwalten, Mappen, Löschen) V 

Snapshot/Checkpoint (Anlegen, Ändern, Löschen, Überwachen) V 

Capacity Management: Überwachen der Vorhaltekapazität V 

Virenscanning V 

Vorgaben für Setup der LAN-Controller/HBAs V 

Setup der LAN-Controller/HBAs inkl. Firmware V 

Backup V 

20 


24-Nov-2010 

*1 Responsible - Accountable -Consulted - Informed


Fujitsu / LANXESS Operation Model 

21 


24-Nov-2010 

ITIL based 

SPOC for 

LANXESS


Operation Characteristics 

Operation Time 

Service Time 

Standby Time 

Response Time for 

incidents 

Time to Fix 

Max. Workorder 

Flexibility 

SLA 

22 


24-Nov-2010 

Monday 0:00 till Sunday 24:00 (7x24) 

Monday till Friday from 8:00 to 18:00 (5x10) 

Monday till Friday each from 18:00 to 8:00 

+ weekends and holidays 

Depending on incident-classification and date/time 

from 15 up to 480 minutes 

Depending on incident-classification 4 hours up-to 

next business day 

3 business days for Change Requests 

15% of the capacity booked per performance class 

98-99,5% availability per month 

22


100 Days Operation: Experience 

23 

Positive Experience Lessons Learned 

� Very reliable operation 

� High SLA fulfillment 

� Professional services 

� Flexibility of costs via projects 

� Technology leap achieved 

� Flexibility of costs achieved 

� Complexity reduced 

� Important IT resources now 

available for projects again 


24-Nov-2010 

� The requirements aligned on the 

existing data centre infrastructure 

had been underestimated. Here we 

should have planned more 

conservative. 

� Contact design for the first Managed 

Service contract was complex, since 

many legal questions were 

answered for the first time. 

� Service Management and Interface 

Management needs another skill 

profile which needs to bee planned 

and built up parallel.


Yes, Managed Services Pay Off 

• Invoicing depending on consumption „pay-as-you-use“ 

• Speed-up for processes of procurement and usage 

• Possibility for flexible reaction on storage demands from business 

units 

• Transparent and foreseeable storage costs 

• No assets included in property 

• Option to use expert skills which internal are not available 

• SAL supporting business‘ requirements 

• Standardized operation processes and interfaces 

• 7x24h ITIL-based operations 

• maximum flexibility in future options 

24 


24-Nov-2010


Next Steps …. @LANXESS IT Roadmap 

• Managed Backup 

• Transparency of performance 

• Backup as service not as technology 

• Different SLAs to support the business requirements 

25 

• Transparency of costs 

• Foreseeable backup costs (Budget) 

• Ability for usage based cost allocation 

• Proportion for future increasing capacity demand 

• Improved rate of equity 

• Assets do not appear in LANXESS’ balance sheet 

• Concentration on core competencies 

• Own employees are available for more valued tasks 


24-Nov-2010


Questions ? 

26 


24-Nov-2010


27 

Thank you for your attention 


24-Nov-2010 


LANXESS Deutschland GmbH 

Information Technology 

Head of 

Global Infrastructure 

Chemiepark Leverkusen 

Gebäude: E60, Raum: 643 

D-51369 Leverkusen, Deutschland 

e-Mail: christian.guenther@lanxess.com

Warum sich Managed Services doch lohnen - Fujitsu

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