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“All looks fine and our high expectations were fulfilled. With Oracle Exadata our SAP IT infrastructure is now a step ahead. Exadata Database Machine is able to consolidate all of the SAP databases and non-SAP Databases into private cloud environment; and the extreme performance for all types of database workloads gives Mengniu the ability to run applications faster than ever with lower TCO.”

– IT member, China Mengniu Dairy Company CIO

bundle of challenges mastered at once / Pros from faster Workloads and reduced end user response times, minimized risk Mitigations and at least cost savings / first saP crM, then saP erP on new Oracle it infrastructure

O r a c l e e x a d a t a d a t a b a s e M a c h i n e f O r s a P a t c h i n a M e n g n i u d a i r y c O M P a n y : M a n y b e n e f i t s f r O M e n g i n e e r e d a n d i n t e g r a t e d s y s t e M s

China Mengniu Dairy Company Limited and its subsidia­ries manufacture and distribute quality dairy products in China. It is one of the leading dairy product manufacturers in China, with MENGNIU as its core brand. The Group’s diversified products range includes liquid milk products, such as UHT milk, milk beverages and yogurt, ice cream and other dairy products such as milk powder. Mengniu’s liquid milk products ranked first, in terms of sales volume and sales value, among similar products in China in 2012, according to China Industrial Information Issuing Centre. The fast growing company, founded in Hohhot (Inner Mongolia) reported 2.04 Billion US-Dollars in revenue 2012. In early days of using SAP ERP, CRM, NetWeaver BW, APO and other SAP Systems at Mengniu all looks fine so far with the underlay IT infrastructure. The sizing of the components was right to fulfill several defined Service Level Agreements. And the chosen hardware systems were state of art at this time.

challenges for traditional saP it infrastructure

The company’s IT challenges rose over time. The main reasons for this are: Business and the company were growing more than expected. Also the usage of enterprise applica­tions speeds up, with rising data volume as a consequence. Last, but not least the need for an adequate extension or re-positioning of the existed SAP IT Infrastructure was inevitable. Under the line Mengniu have to be focusing on an optimization of the hardware and storage systems with a long term perspective in different terms. The prominent company solved a bundle of challenges at once with Oracle Exadata for SAP and reached many benefits from engineered systems from Oracle. “This was the best choice for us”, a spokesman from Mengniu states.

Mengniu IT was faced with big challenges. Batch per­formance and also interactive performance were not fast enough to fulfill the company’s needs. Batch workload was growing – but jobs that used to complete in hours were precariously close to exceeding the overnight window. And the interactive performance frustrated the users. A member from the Mengniu IT team underlines: “Nothing ever seems fast enough for them.” At this point the five year old hardware systems seemed slow and obsolete. The database volume was growing at a rate of 100 GB per month. At this rate the data choked the current systems within 18 months. And on top of that: “Every time we want to build a new application, we had to acquire and manage a new piece of hardware and software. So we asked ourselves, why do we need a new piece of hardware and software for everything?” says an IT member.

2 Oracle e xadata for sa P at c hina Mengniu d airy c ompany

So, the Mengniu IT-team decided for a re-engineering of the existing SAP IT Infrastructure. Different alterna­tives were in focus. Oracle Exadata for SAP provides one integrated system with all the required hardware (servers, network, storage) and software (OS, Oracle database and Options). Oracle Exadata won the race – providing a single architecture for Business Suite, BW and other SAP solutions. Additionally, it’s a consolidation platform for the solutions from the German software provider and also non-SAP systems in a private database cloud.

step by step switch: saP crM, then saP erP

The result for China Mengniu Dairy Company is clear: “Oracle Exadata as an intelligent engineered system that masters the IT challenges faced by organizations and pro­vides numerous benefits. The Oracle Database machine avoids and removes database and storage silos and makes all workloads faster – not only SAP. In addition Oracle Exadata Database Machine includes future compatibility in many ways.”

Mengniu IT together with the selected Consultant Company (IBM) set up a step by step migration from the traditional SAP IT infrastructure to the new one with Oracle Exadata. First a switch to one Quarter Rack Exadata (1, X2-2) for the CRM production databases environment with planned live schedule on September 5th. Second a switch to another Exadata (2, X3-2) Quarter Rack (in the same datacenter) with ERP/ECC 6.0 production databases. Oracle Data Guard is used as desaster recovery solution for ECC and CRM as well.

Beside the two Oracle Exadata Machines Mengniu runs Intel standard servers. One for DEV and QA running virtualized with Oracle VM, and another one for the SAP application server with VMware.

There was a precision landing of Oracle Exadata for SAP CRM, on September 5th when the SAP CRM Go Live on Exadata took place. The Exadata hardware and software installation was completed at the end of June 2013, followed in August by the SAP CI installation, CRM database installation on Exadata (ABAP + Java/dual stack), and the DI installation and testing. Preliminary plans for the SAP ERP migration are in place and the Go Live on Oracle Exadata is planned for early 2014.

infrastructure now a step ahead

The change from traditional SAP IT Infrastructure to engineered and integrated Oracle Exadata systems gene­rated great benefits and a lot of opportunities for China Mengniu Dairy Company. All challenges were superbly mastered, from faster workloads and reduced end user response times, minimized risk mitigations and greater cost savings – with great flexibility, reliability, scalability and minimized complexity today and in future.

“All looks fine and our high expectations were fulfilled. With Oracle Exadata our SAP IT infrastructure is now a step ahead”, a spokesman from Mingniu explained. He also mention that Oracle Exadata Database Machine is able to consolidate all of the SAP databases and non-SAP Databases into a private cloud environment; and the extreme performance for all types of database workloads gives Mengniu the ability to run applications faster than ever with lower TCO.

www.mengniu.com.cn

Oracle customer: China Mengniu Dairy Company

revenue: 2.04 Billion US-Dollars

location: Hohhot, Inner Mongolia

industry: Dairy Products

employees: 30.000

Oracle Products and services: • Oracle Exadata Database Machine (X2-2, X3-2) • Data Guard • Oracle VM