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Cloud - China Telecom Case StudyOrganic web asset

Cloud - China Telecom Case StudyOrganic web asset

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Published by: IBM India Smarter Computing on Dec 21, 2011
Copyright:Attribution Non-commercial


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IBMSystems and Technology
Case Study
China Telecom dialsup pressure on thecompetition
With an innovative internal cloud computing model based on IBMtechnology
The need
Operating in a highly competitive mar-ket, China Telecom needed to reducetime to market for new products andservices to seize greater market share.The high cost of floor space and powerin data centers was restricting growth.
The solution
Worked with IBM and BusinessPartner HCF to implementIBM Power 570 servers, usingIBM PowerVM and IBM SystemsDirector VMControl to create cloudlandscapes and to manage virtualpools. IBM SVC is used to virtualizeand manage storage.
The benefit
China Telecom slashed time to marketfor new offerings from three or fourmonths to just two or three days—representing a key competitive advan-tage. Improved utilization and cuthardware costs by over 50 percentwhile reducing power requirementsand CO2 emissions.
One of only three telecommunications operators in China, China Telecom’s Jiangxi Subsidiary is a full-service integrated informationservice operator and the world’s largest wireline telecommunicationsand broadband services provider, with 53 million broadband sub-scribers at the end of 2009. Offering services including basic andmobile telecommunications, internet access and information services,China Telecom has locations in ten provinces in China. 20,000 of the company’s 312,520 employees work in the Jiangxi subsidiary.In the fiercely competitive telecoms market, innovation is everything.China Telecom is constantly under pressure to bring new products andservices to market faster than its competitors, to increase the chance of garnering a larger market share.Dr. Lifeng Liu, Assistant General Manager in the Network Development Department explains: “Traditionally we followed a setprocess to launch a new business application. Our marketing depart-ments would identify a potential customer need, define a response andpass this back to the back-end departments to assign the necessary ITresources to turn this into a real product or service. We had a relatively mature and segmented workflow in place, which worked well—but wefelt it could be faster and more efficient.”
IBMSystems and Technology
Case Study
“Our primary estimate is that the IBMsolutionhas improved hardwareutilization by over 50percent, althoughthis may in fact behigher. Sharing resources through theinternal cloud has allowed us to consolidatehardware, translating into 50percent cost sav-ings in terms of CPU and storage.” 
—Dr. Lifeng Liu, General Manager Assistantin the Network Development Department,China Telecom
 As the company continued to grow, it found scaling up its resourcesproblematic. The high cost of data center floor space and energy presented a further obstacle to speed to market, as China Telecomtraded off the speed of new products going live against prohibitiveoperational costs. There is also an increasing demand for products which connect withmultiple services and devices, introducing a considerable challenge forChina Telecom.“Because our departments each had their own pool of resources,developing a product with numerous functionalities was often very complex,” says Dr. Liu. “For example, we offer SMS services throughboth our mobile telephone network and our website, but we had toexploit a lot of resources to get this up and running, as it involved twoseparate departments.”
Selecting IBM
China Telecom began to consider developing a private cloud comput-ing model, leveraging virtualization to optimize use of resources. The Jiangxi subsidiary was one of four sites selected for the pilotimplementation.“Cloud computing is a very popular idea in the industry at themoment: many companies are speculating about the benefits itcould provide, but are also worried about the risks inherent in newtechnology,” comments Dr. Liu. “We knew, with the right partner, wecould seize the opportunity to get ahead of the competition, while pro-tecting our shareholders’ investment.”Following a lengthy exploration of competing offerings, the company selected IBMtechnology.
IBMSystems and Technology
Case Study
Solution components
IBMSystems Director VMControl™
IBMSystem Storage
San VolumeController
IBMLab Services
IBMGlobal Technology Services – Advanced Technical Support
IBMBusiness Partner
“There were a number of reasons for China Telecom choosing to part-ner with IBMon this innovative project,” explains Dr. Liu. “We wereimpressed by their reputation, as they seem to be the leader in the fieldof cloud computing, and we had access to many case studies and cus-tomer references that confirmed this. Also, since they have a special-ized telecoms unit, we felt that they truly understand the telecomsbusiness—better than HP or Microsoft—which is a great advantage.”
Sharing resources with virtualization
 The company worked with IBMLab Services and IBMGlobal Technology Services and IBMBusiness Partner HCF to deploy IBMPower
570 servers at four sites including Jiangxu. IBMSystemsDirector VMControl™ is used to help China Telecom simplify thebuild-up and deployment of virtual servers, manage the virtual pool asa single system, and move workloads and adjust resources dynamically.IBMPowerVM™ Enterprise Edition is used to divide the servers intomultiple virtual partitions, creating a private cloud.“Ultimately, virtualization gives us the tools to transform our rigid workflows into a much more fluid and flexible business model,” saysDr. Liu. “We can efficiently form shared pools of resources, dynami-cally adjusting the server capacity assigned to each department to meetchanging workload demands.”China Telecom also chose IBMSystem Storage
SAN VolumeController (SVC), which provides highly flexible access to storageresources. SVC allows storage from multiple devices, includingnon-IBMsystems, to be pooled and presented as integrated volumesto applications.“The IBMSAN Volume Controller gives us complete control over ourstorage environment,” comments Dr. Liu. “It has really impressed withits reliability and security, leading us to believe it is truly an enterprise-level storage product. It enables us to move data within the virtualspace without the need to stop operations, leading to greater continuity of service.”

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