Read the case study of how DistributionNOW reduced infrastructure costs and accelerated customer innovation by migrating SAP systems to Google Cloud with support from Premier Google Cloud Partner Managecore.
A central component of DistributionNOW's (DNOW) strategy is the company’s DigitalNOW initiative, a platform of digital solutions, including e-commerce, that enables customers to access vital information and order products from online devices. DigitalNOW reduces costs to customers through supply chain and operational efficiencies while creating new revenue streams and opening the door to new markets.
SAP systems, including SAP Suite on HANA, play a central role in running these activities. They enable the company to handle millions of transactions, including order fulfillment and inventory logistics, with hundreds of customers worldwide. “SAP enables us to stand out from the competition and better support our clients. We wanted to push this even further by moving our infrastructure and applications to the cloud,” says Calvin Leong, Vice President of IT, DNOW.
He was especially keen to move IT from capital to operational expenditure. “We were managing multiple data centers across different time zones and with different SAP systems,” says Leong.
Migrating to the cloud enables DNOW to replace upfront investment with predictable monthly fees and scale up capacity when needed. “This means we can refocus capital on our customers, respond flexibly to their needs, and add overall value to their operations,” he says.
Why choose Google Cloud to host the SAP environment? “SAP is our core engine for DistributionNOW. It helps us to manage millions of transactions including order fulfillment; it is how we move our inventory and conduct electronic transactions with our customers. Google Cloud stood out for its ability to support our innovation initiatives, especially DigitalNOW, as well as robust infrastructure capabilities such as availability and a resilient network,” says Leong.
Now that the SAP migration to Google Cloud is complete, Leong and his team have already noticed a tremendous improvement in performance. “Our business users report a four to five times performance improvement in terms of month-end batch processing. Everything seems to be faster right now with no unexpected downtime.”
Post Cloud Migration Results:
- 5x improvement in the end of the month batch processing
- Shifts emphasis from infrastructure management to innovation for customers
- Ensures resilience and agility during market turbulence
- Eliminates dependency on third-party hardware and fiber networks
Supports faster operating system patching and issue resolution with enhanced monitoring
- Accelerates software release management schedule from testing through production