- Industry: IT & engineering services, Manufacturing
- Region: APAC
- Headquarters: Pohang, South Korea
- Company size: 2,100 employees
POSCO ICT, an IT and engineering services provider that designs and maintains IT systems for its parent company in the steel industry, needed to create a smart factory. The company wanted to use real-time data from Internet of Things (IoT) sensors to monitor and control facility conditions, maintain a stable operation environment, and extend the lifespan of the facility. Using Red Hat® open source solutions, POSCO ICT reduced costs, established a collaborative corporate culture with a DevOps approach, and took advantage of emerging technologies to better compete in global markets.
POSCO ICT needed to help its parent company navigate the global steel industry and establish a strong foundation for the future. As a result, POSCO ICT needed to optimize its existing factory operations to maximize its limited IT budget and better monitor the production process. POSCO ICT also wanted to improve management and quality assurance by taking full advantage of the large amount of data it receives from its production processes and facility.
POSCO ICT builds intelligent factory with open source IT from Red Hat
POSCO ICT sought to create a smart factory that would let its parent company control and monitor its facility and production system using information gathered from big data, IoT, and artificial intelligence (AI) tools and technologies. It partnered with Red Hat to build its new IT environment, switching from costly proprietary virtualization and middleware solutions to open source solutions. “Red Hat is the most reliable partner in the open source field,” said a team leader in IT infrastructure technical support at POSCO ICT.
With its new open source environment, POSCO ICT can scale its IT environment with minimal cost—and without high maintenance or licensing fees. “Compared to UNIX, we reduced our operating system costs by more than 10 times with Linux,” said the team leader. “With middleware and virtualization products from Red Hat, we saved about 40–50% compared to our proprietary solutions.” The company also used DevOps to increase team collaboration and respond more efficiently to external changes. POSCO ICT used its new environment to reinforce its position as a global leader and enter new markets.