- Industry: IT service provider
- Region: APAC
- Location: Seoul, South Korea
- Company size: 2,500
Lotte Data Communication Company (LDCC), is a South Korean IT service provider with offices across Asia. LDCC wanted to prepare for the future by building a cloud platform to grow its business, integrate IT resources, and increase efficiency. LDCC also wanted to expand to a new service model and become an external cloud service provider, offering a public cloud for businesses. Using Red Hat® solutions, LDCC built an OpenStack®-based cloud platform. The move is expected to reduce 5-year total cost of ownership (TCO) by 30% and floor space and power costs by 80%.
LDCC knew that to grow its company, increase efficiency and agility, and offer new services to its customers, it needed to transition to a cloud platform. By moving its business systems to the cloud, LDCC could integrate its disparate systems and create new commercial opportunities to sell public cloud services.
LDCC decided to build an OpenStack-based cloud environment and adopt complementary technologies, such as software-defined storage and networking, as well as Kernel-based Virtual Machine (KVM) hypervisors. However, LDCC did not have many in-house OpenStack experts. “A community version of OpenStack would not have worked, as we lack the expertise and manpower,” said Yoon-soo Kim, cloud service manager at LDCC. “We selected Red Hat primarily for its reliability.”
With the Red Hat solution, LDCC expects to reduce TCO by 30% over a 5-year period, with floor space and power costs falling by 80%. It has also improved request response time; establishing a new server now takes minutes instead of hours. LDCC is using the new solution to grow its business, now offering an external public cloud. “We embraced the cloud to standardize and integrate our group’s ‘silo’ systems to increase efficiency,” said Kim. “But we were also able to provide a public cloud service after creating an environment with minimal trial and error.”