iStore iSend accelerates growth with Oracle Cloud Infrastructure

The ecommerce logistics company from Malaysia doubles its cloud footprint and reduces costs by 30% for greater development across Asia.

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By migrating our critical systems to OCI, we can continue to drive success, expand the business to new markets and improve services to our customers.

Joe KhooCofounder and CEO, iStore iSend

Business challenges

iStore iSend, Malaysia’s fastest growing ecommerce fulfillment business, uses cutting-edge technology to meet the needs of leading fashion retailers and manufacturers of consumer goods. The company operates fulfillment centers in Malaysia, Singapore, Indonesia, and China. These centers are the heart of an end-to-end operation that covers warehousing, ecommerce order processing, last-mile deliveries, and returns management.

Annual business growth is around 20%, but 60% of that generally occurs in the final quarter of the year because customers tend to buy more goods online prior to public festivals and traditional holiday seasons. To ensure smooth business operations as volumes peak, iStore iSend runs business-critical infrastructure, such as order management, warehouse management, and transport management systems, in the cloud.

The company investigated ways to double capacity with its existing systems, but doing so would cost five times as much as it was paying at the time. To ensure better scalability, iStore iSend decided to look for alternative cloud services, including Oracle Cloud Infrastructure (OCI). Any migration to another cloud service would also require expert support, given the critical nature of the organization’s systems.

Oracle has always played a key role in our technology stack. So migrating to OCI seemed like a natural transition.

Joe KhooCofounder and CEO, iStore iSend

Why iStore iSend chose Oracle

iStore iSend has been using Oracle products since the company launched, with Oracle Database supporting all of its critical management applications. The company began talking with its Oracle account team about migrating to Oracle Cloud Infrastructure (OCI) to run its critical workloads. OCI offered all the services required to migrate the company’s systems from the legacy cloud, as well as to build new cloud native applications and data platforms in the future.

In addition, compared to AWS and other cloud providers, OCI’s flexible Infrastructure E4 platform offered the latest generation of AMD processors that could be scaled up one OCPU at a time, have better memory ratios, and better price-performance. With OCI, iStore iSend was able to scale more cost-effectively, while gaining warehouse data and data replication capabilities not available from the previous cloud service. The company also appreciated Oracle’s security-first mindset, which compartmentalized the security for different workloads.

Migrating to OCI helped iStore iSend to double the size of its cloud footprint while reducing costs by up to 30%.

Results

After migrating to OCI Enterprise Database Service, iStore iSend continued driving double-digit growth while keeping control of its IT costs. In turn, this freed up resources for the company to invest back into the business in efforts to accelerate expansion. 

The move to OCI resulted in an immediate cost reduction of up to 30%, to the delight of Khoo and other senior executives. “The figure aligned with our estimations and validated our decision,” says Khoo.

With more funds to invest, iStore iSend doubled the size of the cloud infrastructure behind its critical management systems on OCI to better align with the needs of the company. For example, iStore iSend can now create cloud native applications on OCI where application programming interfaces (APIs) connect to customers’ back-end systems. This integration allows the company to supply its ecommerce fulfillment technology under a software-as-a-service (SaaS) model in some regions.

As a result of the new SaaS model running on OCI, iStore iSend broadened its target market to small retailers who are looking to run their own local ecommerce fulfillment service but would require the technology to successfully manage the process end-to-end.

Oracle Enterprise Database Service also supports higher cores on the company’s AMD processor, provides high availability with the use of Oracle Data Guard, and enables security features such as data masking or data redaction. OCI gave iStore iSend the freedom to evolve its systems for improved customer experience. Thanks to the performance of its order management system on OCI, customer inventories are updated in near real time with less chance of a misalignment between items advertised for sale and current stock available. Consequently, customers are no longer disappointed by canceled orders due to lack of availability.

In the future, iStore iSend plans to use the scalability and cost-effectiveness of OCI to help launch operations in Vietnam. “It’s what we’ve been planning over recent months, and with OCI in place, we’re ready to go,” says Khoo.

Partners

iStore iSend had access to Oracle Premier Support at no extra cost during the migration process. It worked with Oracle Premier Support throughout the migration, with access to the service team day and night to answer any questions. As a result of the collaboration, the company made the migration to OCI seamlessly within a short period of planned downtime while conducting the switchover.

Published:November 29, 2023

About the customer

iStore iSend is a holistic end-to-end e-fulfillment company, providing warehousing as a service (WaaS) that comprises all aspects of ecommerce.