POSCO Migrates from RISC/UNIX to Red Hat Enterprise Linux to Reduce Costs and Increase Reliability

July 28, 2009

Customer: POSCO

Industry: Manufacturing
Geography: APAC
Country: Korea


Red Hat Enterprise Linux, Oracle Database


IBM xSeries, HP BladeSystem


Reduce server operating costs; achieve reliable and flexible system operation


Headquartered in South Korea, POSCO (formerly known as the Pohang Iron and Steel Co.) is one of the worldand#x2019;s largest suppliers of iron and steel products. The company produces more than 30 million tons of steel a year, employs more than 20,000 workers and includes subsidiaries: POSCO Engineering andamp; Construction (which builds steel plants, steel-related infrastructure, and energy facilities) and POSDATA (systems integration). POSCO operates iron and steel making operations in South Korea and India that are renowned for their high efficiencies throughout a physically huge and complex operational structure., so choosing a fool-proof backup and recovery system is critical to the companyand#x2019;s business health.

Business Challenge:

POSCO relies heavily on an extensive array of servers to deploy numerous applications for day-to-day operations handling a massive volume of data transactions daily, making the operating platform for the servers critical to the company’s business health.

POSCO, through its systems integrator subsidiary, POSDATA, embarked on a project to replace its aging, disparate systems with an integrated platform as the company was experiencing problems with system performance, and cost control. The company needed to identify an operating system for the system wide server refresh project that would take place over three stages from 2004 to 2009.


POSCO needed to replace its dated and costly UNIX servers with IBM and HP x86 commodity servers in order to consolidate its systems into one large-sized data center. POSCO began benchmark testing and the evaluation of operating system vendors. Paramount to POSCO’s decision was the solution’s ability to provide a flexible environment while matching, if not improving, the reliability and performance of its existing UNIX platform. POSCO also aimed to reduce operating costs. Already familiar with Linux, POSCO selected Red Hat Enterprise Linux for its server consolidation project because of Red Hat’s reliability, increased performance, security, and the resulting reduction in operating costs.

POSCO began gradually migrating its operating environment for select business systems from UNIX to Red Hat Enterprise Linux dating back to 2004 and today, Red Hat Enterprise Linux currently runs on more than 50 percent of POSCO’s servers. Due to the increased performance and cost savings, POSCO plans to continue its UNIX-to-Red Hat Enterprise Linux migration as the solution enabled the company to cut reporting time, improve data quality, strengthen accounting and financial planning, enhance asset management, and achieve integration within systems.

The organization has adopted six Sigma, in-house bulletin and data warehousing for new business systems and has performed migration of several systems, including ERP, EP/mail, KM, EDMS, and EAI from UNIX to Red Hat Enterprise Linux.


Red Hat Enterprise Linux has provided POSCO’s systems the reliability and performance expected from the operating platform systems, while providing unmatched reductions in operating costs when compared to UNIX and proprietary solutions.

“By deploying Red Hat Enterprise Linux in an industry where IT trends are changing rapidly and user demands are becoming more diverse, we can save development costs and time. In particular, we can drastically reduce maintenance costs because we are purchasing subscriptions rather than proprietary licenses. In addition, the high interoperability of Red Hat Enterprise Linux and industry-standard hardware and certified applications enables reliable systems operation,” said Oh Jong Wan, Manager of Information Planning Department Information Service Group for POSCO

In addition, Red Hat Enterprise Linux is equipped with a wide range of certifications through a broad ecosystem of hardware and software partners that allow POSCO to be flexible with their systems and selected vendors.

Because the entire deployment is open source it reduced development costs, eliminated license fees and significantly increased work productivity leading to shorter development time.

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