IBM i5 server delivers global consolidation for Greif

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1 IBM Case Study IBM i5 server delivers global consolidation for Greif Overview Challenge Overcome high cost and inefficiencies caused by multiple, diverse ERP systems and computing platforms Solution Consolidate multiple applications on a IBM _` i5 model 570 server running i5/os, AIX 5L, and Linux Key Benefits Dramatically reduced support, licensing and maintenance costs; improved performance; enhanced flexibility and scalability With over 160 operating locations in more than 40 countries, Ohio-based Greif, Inc. is a world leader in industrial packaging products and services. The 9,000 employee company, which generates some $2 billion in revenue each year helps to create a competitive advantage for its customers through extensive experience in steel, plastic, fibre, corrugated and multi-wall containers and protective packaging for various industries. Greif also produces containerboard and manages timber properties in the United States and Canada. Acquisitions bring IT complexity Recently, Greif has been experiencing rapid and continuing growth through acquisition. Through global acquisitions, we inherited a lot of legacy IT infrastructure and applications. So we had a need to consolidate in order to make them more manageable and efficient, according to Ken Andre, CIO at Greif. Before consolidation, none of the companies that are now part of Greif possessed a single global ERP system. All were running a diverse collection of

2 The idea of putting multiple ERP systems in one box was very interesting, because it would let us evolve our BAAN and BPCS platforms into a global single-instance ERP system, again without disrupting business. Ken Andre, CIO, Greif applications, some of which were off-the-shelf ERP applications, some proprietary. Also, those systems were running on a variety of platforms. The most standardized of the group was running SSA Global Business Planning and Control System (BPCS) on IBM AS/400 servers, but only at Greif s larger sites outside of North America. Greif s sites located in the U.S. and Canada were for the most part running a BAAN solution based on an Oracle database. This diversity made operations inefficient and drove up support, licensing and maintenance costs; there was a clear need to consolidate systems. ERP merger eases the decision Thanks to the recent purchase of BAAN by SSA Global, the task was simplified: there would be no need to migrate to a whole new ERP vendor. The decision to stick with SSA was an easy one, Andre notes. We ve now got 80 percent of our ERP eggs in one basket, with only one software vendor to deal with. SSA has introduced new products that are platform-independent, so we can add functionality on top of our existing BAAN and BPCS systems and those new applications will connect with both of them. Over time we plan to have a single global instance ERP, but we plan to do it in a way that s evolutionary and not disruptive to business. Aligning hardware forms the foundation In keeping with the idea of global convergence, Greif decided on the IBM _` i5 server as the means to consolidate. We became aware of IBM development plans for the POWER5 processor to be able to run multi-partitioned, multi-operating system solutions in one server. The idea of putting multiple ERP systems in one box was very interesting, because it would let us evolve our BAAN and BPCS platforms into a global, single-instance ERP system, again without disrupting business, Andre says.

3 Working closely with IBM Premier Business Partner Sirius Computer Solutions, Greif has not only consolidated the total number of data centers (previously more than a dozen) down to three, but also has further consolidated servers within the data centers. In the Americas data center alone, a single _` i5 model 570 has replaced 17 separate servers, including IBM AS/400 and HP servers with EMC storage. Andre is very pleased with the total package of hardware, software, services and support. I can t say enough good things about the IBM _` i5 server or the support we ve had from IBM, Sirius and SSA, he says. Greif s North American _` i5 model 570 is presently running nine partitions (a mix of AIX 5L and i5/os) with a Linux partition to come. Applications include BPCS, BAAN with Oracle, Tivoli and Lotus Notes /Domino. Other partitions are devoted to newly acquired operations. The partitioning has allowed us to rather rapidly consolidate the systems of a newly acquired business into the Greif data center less than a year in this case where in the past it might have taken years, Andre says _` i5 enables cost-effective scalability Currently, Greif has eight processors installed in the _` i5 server with more under consideration. So much of our business is interested in moving onto this common platform for the enhanced performance, reliability and cost savings associated with running fewer technologies and having fewer vendors involved, explains Andre. With the extra processors, we ll be able to leverage Capacity on Demand installing the processors but not activating them until needed. We won t have to say to one of our businesses that adding the capacity they need is a big jump financially; we can do what s needed as it makes sense and not have to worry about some financial threshold. So much of our business is interested in moving onto this common platform for the enhanced performance, reliability and cost savings associated with running fewer technologies and having fewer vendors involved. With the extra processors, we ll be able to leverage Capacity on Demand installing the processors but not activating them until needed. We won t have to say to one of our businesses that adding the capacity they need is a big jump financially; we can do what s needed as it makes sense and not have to worry about some financial threshold. Ken Andre, CIO, Greif

4 Simplicity is very important; I m a simple guy, and the number one to me is a very powerful number. We want to get down to one platform, one system, one tool. Having one ERP and one platform is great. It s simple; it s elegant. Ken Andre, CIO, Greif Hardware consolidation boosts performance Overall, Greif s systems can run much more efficiently because of the server consolidation. For example, one of the applications being consolidated is a bar code solution for the company s US factories. Previously, it ran on an Intel server, but can now run in a Linux partition on the _` i5 server. Putting that application on the _` i5 should provide a significant performance increase, because the applications will be talking on the back plane instead of over the network, Andre says. IBM s dynamic resource allocation technology can also enable Greif to adopt a follow the sun strategy, automatically shifting processing resources from one partition to another as workloads peak in different parts of the world. In this manner, Greif will be able to optimize the use of its computing resources. Simplicity is the key According to Andre, the real benefit of consolidation on the _` i5 server is that it can enable Greif s vision of global IT. What this does is allow us to manage the company in a more standardized way and to be able to implement our transformation-enabling tools around the world quicker and cheaper. Andre says. Simplicity is very important; I m a simple guy, and the number one to me is a very powerful number. We want to get down to one platform, one system, one tool. Having one ERP and one platform is great. It s simple; it s elegant.

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6 For more information Please contact your IBM sales representative or IBM Business Partner. Visit us at: ibm.com/server Copyright IBM Corporation 2004 IBM Systems and Technology Group Route 100 Somers, NY Produced in the United States November 2004 All Rights Reserved IBM, the IBM logo, AIX 5L, AS/400, the e-business logo, _`, Domino, iseries, i5/os, Lotus Notes, OS/400, POWER5 and Tivoli are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries or both. IBM and Sirius Computer Solutions are separate companies and each is responsible for its own products and services. Neither IBM nor Sirius Computer Solutions makes any warranties, express or implied, concerning the others products or services. Linux is a trademark of Linus Torvalds in the United States, other countries or both. IBM hardware products are manufactured from new parts, or new and used parts. In some cases, the hardware product may not be new and may have been previously installed. Regardless, IBM warranty terms apply. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. All statements regarding IBM s future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. ISC00898-USEN-00