Success Story

KT Corporation improves IT costs and efficiency with open source

Fast Facts

Industry: Telecommunications
Region: APAC
Location: Seoul, South Korea
Company size: 23,500+ employees

We decided to move away from proprietary software systems to open source architecture to reduce costs, eliminate vendor lock-in, and enhance the reliability of our service delivery.

Eunjung shin, deputy general manager, I.T. asset planning team, KT corporation

Overview

About the Company

KT Corporation (formerly Korea Telecom) is South Korea’s largest telecommunications company. Facing increasing proprietary software maintenance costs, it wanted to migrate to cost-effective open source solutions. Using Red Hat® solutions, KT Corporation established a standardized, flexible IT architecture, reduced 5-year total cost of ownership (TCO) by 89%, and improved efficiency and reliability.

Path to Success

Challenge: Reduce growing proprietary software costs

KT Corporation wanted to reduce costs and improve performance with an open source IT infrastructure. “We were experiencing performance issues with our legacy systems, and the maintenance costs of our existing commercial software were increasing at 20% annually,” said Eunjung Shin, deputy general manager of the IT Asset Planning Team for KT Corporation. “We decided to move away from proprietary software systems to open source architecture to reduce costs, eliminate vendor lock-in, and enhance the reliability of our service delivery.”

Case study

KT Corporation improves IT costs and efficiency by adopting open source

Solution: Adopt open source technology

KT Corporation engaged kt ds, a subsidiary, to design and implement its new IT architecture. After evaluating a number of open source solutions, and completing a successful pilot, KT migrated its proprietary operating system and middleware to Red Hat solutions. During the transition, KT and kt ds worked closely with local Red Hat technical support staff. “It was pretty impressive to have Red Hat’s technical support team working alongside us to solve problems throughout the transition,” said Sang-gab Lee, assistant director of open source technology at kt ds. “Our well-trained team helped make our switch to open source and Red Hat software a lot easier.”

Results: Transform IT for better costs and innovation

With its new open source IT environment, KT Corporation eliminated vendor lock-in and related ongoing maintenance costs. As a result, the company reduced its 5-year TCO by 89%. It also improved IT productivity and agility—particularly in application development and cloud operations. “Red Hat JBoss EAP is very lightweight and reliable. With the agility it offers, we achieved an incredibly fast boot time of less than 8 seconds and minimized app development time and downtime,” said Shin. “This allowed us to enhance the performance of our IT system and respond reliably in the cloud environment.”

With the help of our subsidiary kt ds and Red Hat, we gained new, valuable capabilities that contributed to both our IT operations and service offerings.”

Eunjung Shin, deputy general manager, I.T. asset planning team, KT corporation