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Oracle Customer Success—ICA AB, ICA Gruppen AB
ICA AB Saves 85% in Total Cost of Ownership with Private Cloud
ShareOracle Private Cloud Appliance has been the key enabler for ICA Gruppen AB’s Oracle-as-a-Service platform. With this simple out-of-the-box converged infrastructure solution, we slashed our operating expenses by up to US$2.5 million over three years and achieved 85% lower total cost of ownership.
ICA Gruppen AB is a retail corporate group that includes ICA Sweden and RIMI Baltic grocery stores, ICA Bank, ICA Insurance, ICA Facilities, and ICA Pharmacy. With annual revenue of US$10 billion, ICA Group is responsible for grocery sales of 1,500 independently owned stores. ICA Group manages all central functions, such as IT services, marketing, sourcing, and supplies.
Business Challenge
- Modernize 350 databases on over 70 diverse and legacy servers with low utilization and high maintenance costs
- Cut long service delivery time caused by low level of automation, lack of standardization, and highly manual tasks to install and configure these diverse platforms
- Streamline complicated troubleshooting process due to involvement from several internal teams, including systems, network, storage, database, and application teams
- Establish baseline benchmarks and standards to measure performance of outsourcing partner for ICA Group IT
- Deliver new strategic projects with requirements for short time-to-market and an out-of-the-box solution
- Select a solution with a simple license model and lower operating expenses
Results
- Established Oracle Private Cloud Appliance as the standard delivery platform for ICA AB’s database and middleware services to replace the company’s antiquated infrastructure and systems
- Saved 85% in total cost of ownership with Oracle Private Cloud Appliance compared to competitive commodity x86-based infrastructure
- Lowered total acquisition, license, support, and maintenance costs over three years by more than US$15 million
- Improved operational efficiency and cut operational expenses by up to US$2.5 million over three years by using Oracle Private Cloud Appliance
- Achieved faster time-to-market, agile test and development activities with improved automation and reduction of manual processes and errors
- Provisioned a new database or application server virtual machine within one hour instead of several weeks, allowing ICA Group IT to deliver business value quickly
- Standardized services with a new service catalog based on Oracle Private Cloud Appliance with standard configuration for all services
- Reduced number of service orders from twelve to one single order
- Allowed ICA Group IT to create baseline benchmarks for setting service level agreements and pricing for services with the new outsourcing partner
- Easily scaled up Oracle Private Cloud Appliance by adding one compute node at a time to match ICA AB’s growth
We evaluated several options, and only Oracle Private Cloud Appliance could meet our requirements for short time-to-market and high agility for fast business value. We realized significant cost savings driven by infrastructure consolidation, license optimization, and operational efficiency. These factors weighed heavily in our decision to select Oracle Private Cloud Appliance.