Capgemini provides a spot-on assessment to save millions of dollars in hardware for client
A leading health and beauty products manufacturer had plans to expand its ERP system landscape and its supporting infrastructure, in order to support the next phases of its SAP Strategic Modernization Initiative (SMI), a global roll-out for all divisions and affiliates. During an initial landscape and design discussion prior to Capgemini’s involvement, a hardware vendor provided the manufacturer with a $42 million price tag to implement the next phase of the SMI global roll-out. This design equated to a massive amount of additional hardware and associated maintenance costs. The health and beauty products manufacturer sought a second opinion, and requested that Capgemini assess the quotation.
Capgemini spent one month understanding the specifics of the situation and developed its own assessment. Specific recommendations were made for server consolidation as the first stage in a plan that reduced the company’s non-prime landscape at a 2:1 ratio, giving the company the additional processing power it needed for about one-third of the cost of the original vendor estimates. In addition, Capgemini also reviewed the database and SAP software stack, recommending additional steps outside of the traditional infrastructure to further drive out costs, whilst allowing the manufacturer to more easily manage its vast SAP environment. After pricing the program, Capgemini ascertained that $7 million of additional infrastructure would be sufficient to efficiently support the roll-out. This $7m was to cover the entire life of the project — a significant reduction from the $42m quoted by another vendor for Phase 1 of the process. The manufacturer chose to proceed with Capgemini’s approach, adding a buffer to the figure to make it $11million. A year and a half later, this amount has still not been spent in full — confirming the accuracy of Capgemini’s research and assessment. Capgemini then worked in collaboration with the manufacturer to design, implement, and install the infrastructure, software, and processes to ensure success going forward.
At the time of Capgemini’s involvement, the client was undertaking an SAP rollout and deploying new functionality. The timing of Capgemini’s intervention enabled the manufacturer to achieve significant cost savings and implement this roll-out more efficiently. It was able to meet all of its business Service Level Agreements for a third of the budget, and this smaller footprint could thus be managed more cost effectively over the long-term. The manufacturer is currently continuing its rollout of SAP, a project that is ongoing until 2013. Capgemini provided a clear roadmap and direction along with the infrastructure design, so as to provide opportunities for growth and expansion as requirements dictate.