IBM Global Financing Case Study

Construction/Architecture/Engineering

Deyle Group: Financial concept fits seamlessly in IT world
Centralization and consolidation strategy leads to significant synergy effects
The Deyle Group, headquartered in Stuttgart, has been providing support for a number of decades to numerous centres of excellence for a vast array of sports disciplines, and also develops innovative water-centric and experience-based “worlds”. The company was founded back in 1964 by Werner Deyle and currently employs about 450 people. The Group has established itself a great international reputation in the development, planning, implementation and operation of sports facilities, hotels and leisure complexes, including with the organizers of Olympic Games, as well as European and World Championships. The task profile of the planners working at Planungsbüro Deyle GmbH encompasses architecture, technical building equipment, general planning and the management of projects and outsourcing. Deyle Management GmbH is responsible for the development and conception of projects, for shouldering overall management responsibility and for running leisure facilities under its own brand, “Starwaters”.

Overview
The Challenge
More efficient operational management for companies in the Deyle Group, and of third-party systems, through a new strategic realignment of IT; discovering a sustainable financing solution appropriate to that overall IT concept

The Solution
Phasing out of the previous decentralized installations with a standardized central solution based on IBM BladeCenter and IBM System Storage; IBM Global Financing taking charge of the financing arrangements

The Benefits

Monthly fixed costs instead of high levels of initial investment outlay Substantial cost savings compared to an acquisition-based solution Reliable operation with greatly reduced administrative overhead

Many partners, heterogeneous infrastructure
Including Bodetal Therme Thale, the latest facility to be added to its portfolio in March 2011, the Deyle Group operates a total of seven leisure complexes and pool-based watersports facilities. Two of these businesses are wholly owned by the Deyle Group. Other facilities are managed and run on behalf of various municipalities through operating companies owned by the Deyle Group that enjoy financial autonomy, or which are operated on the basis of management agreements. With Deyle, every single facility is run in a commercially successful manner, and benefits from the classic benefits of Group membership without this in any way detracting from their autonomy. “On the basis of thirty years of experience as an operator, we can deliver all services associated with human resources, business management and technology in a professional manner that delivers great benefits to customers”, states Mark Tom Pösken, one of the two directors of Deyle Management GmbH. “These synergy benefits include our IT services. However, the delivery of professional operational management and the associated controlling tasks calls for a great deal more than a few PCs for in-house technical services and facility management, in-house networking and a local connection to the cashdesk systems within those facilities.”

IBM Global Financing Case Study

Construction/Architecture/Engineering

“With IBM Global Financing, we have found quick-response, highly capable business partners to manage lifetime costs and technical structure, which in turn deliver sustainability to all aspects of refinancing.”
– Mark Tom Pösken, CEO, Deyle Management GmbH, Stuttgart

Comprehensive, i.e. end-to-end IT support is instead what is required to accomplish these tasks. That also relates to business strategy in conjunction with stakes in and by the competition. As a general rule nowadays, whenever a new build or modernization project involving municipal infrastructure goes out to tender, this involves public-private partnerships (PPP). Mark Tom Pösken: “We can voice recommendations for planning and operation, both in relation to building technology and optimum business management as well as incorporation of cashdesk systems.” To derive maximum leverage from the commercially required synergy-based approaches, Deyle therefore has to be capable in technical terms to work with the IT infrastructure already installed on a given site. These businesses use a combination of standard MS Office applications as well as facility-specific, i.e. bespoke, access control and cashdesk transaction management systems. Here, a wide range of manufacturers shares the field. Mark Tom Pösken: “Irrespective of which provider actually wins the business: we can ensure that the applications, together with all aspects of data administration, can be represented by Deyle from its head office location. All you then need to have on site is a number of inexpensive terminals.”

Centralization and consolidation required
Deyle has been supported for several years by IBM Business Partner Schmid und Partner Gesellschaft für Datenverarbeitung und Kommunikationselektronik mbH. Schmid und Partner specializes in a number of things, including high-performance, virtualized memory solutions and Citrix Thin Client technologies. Back in 2008, with the support of Schmid und Partner, Deyle optimized the historical legacy IT environment at the Stuttgart head office site for architecturial and engineering services. The architects and engineers there use various programs including AutoCAD. The old infrastructure was no longer capable of satisfying the more stringent requirements, especially in the field of CAD. At this time, Deyle and Schmid and Partner were always collaborating with a specialist for access control and cashdesk systems, specifically in the fitness centre and pool-based watersports sector. Part of the IT inventory was refinanced in 2008 through a leasing service agreement. “We were aware that we were going to need a completely new solution because the IT environments were not homogeneous and future-proof”, stated Mark Tom Pösken. “With Schmid und Partner we then went on to analyze how we should best go about restructuring IT to meet the various requirements relating to planning and to decentralized operational management. In order to work more efficiently, and to avoid the need for having several hardware installations at those various sites, we endeavored to come up with one central solution for servers, computing power, data storage and failsafe backups (i.e. system redundancy).” The aim was to improve the quality of operational management through the introduction of homogeneous IT infrastructure and to simplify the administration issues associated with software license and application management. At the same time, only minimal IT components were to give rise to separate investments. Through centralization, on-site IT was to be reduced to nothing more than a
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IBM Global Financing Case Study

Construction/Architecture/Engineering

Solution components
Hardware
● ●

technical data link. Facilities which Deyle took over in fully operational status can be linked up via routers, regardless of their on-site network structure. Designed and, to a large extent, already tested and in operation, there is now a new solution comprising IBM BladeCenter HS22 servers, IBM System Storage DS3300 and EXP3000 disk drives. Citrix XEN Enterprise Engine is used for server virtualization. The planned solution needed to be set up in one single large step, and would have incurred the need for substantial investment. In collaboration with IBM Global Financing, Deyle used the opportunity to pull down a five-year refinancing package which accurately reflects the sustainability credentials of the investment. Alternative financing partners were not able to deliver any correspondingly convincing overall IT concept. “With IBM Global Financing, we have found quick-response, highly capable business partners to manage lifetime costs and technical structure, which in turn deliver sustainability to all aspects of refinancing”, stated Mark Tom Pösken. “The talks were very clear, open and binding and, despite the complexity of the technical task we faced, they were also easy to follow for our commercial guys.” It was possible to stick to the tightly specified schedule by virtue, not least, to the financing concept that had been proposed. “Reliability, quality and seamless processing confirmed our decision in favor of IBM as our financing partner. The terms and conditions were right too. We were able to compare the IBM bid for tender against two alternative quotations.”

IBM BladeCenter HS22 IBM System Storage DS3300, EXP3000

Software

Citrix XEN Enterprise Engine

Services

Financing through IBM Global Financing

IBM Business Partner

Consultancy and implementation: Schmid & Partner Gesellschaft für Datenverarbeitung und Kommunikationselektronik mbH

Financing allows on-schedule changeover
On 18 March 2011, the first facility in Thale is to be switched over to the new structure. Other sites are then to follow in sequence. Alongside these first steps twoards integration of the businesses and the basic infrastructure, AutoCAD is also running via the planners’ terminals. The enormous volume of data associated with CAD applications has already been taken into account in the sizing of the storage facilities, capable of holding up to 48 terabytes (TB) of data. The processing speed of this central solution is vastly improved, as tests with beta applications on the Citrix user interface have demonstrated. This does away with the legacy maintenance cost issues associated with software support over licenses and versions. Mark Tom Pösken: “The data administration of CAD applications on the central system already runs absolutely smoothly. The transfer of data to the ‘new world’ also took place without any problems. To date, we have not encountered any difficulties with the test runs. For that reason, we can be confident of completing the entire project successfully within the specified parameters.” In the ensuring step, all existing on-site PCs in these businesses are to be replaced with Thin Clients. This promises to deliver the requisite adjustment in terms of the performance capabilities of infrastructure and servers. Depending on the scale of the facility, operating companies will be billed for IT costs on a pro rata basis, reflecting the number of users, the extent of use made of the service and the utilization of licenses and
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network facilities. The IBM financing package fits seamlessly into that overall solution and provides financial latitude. Mark Tom Pöskens – a summary: “With the IBM system architecture and refinancing structure, we save about half the money we would otherwise have spent over a five year period on investment in hardware. Moreover, through our collaboration with IBM Global Financing, we also gain an additional bonus in terms of the bond of trust we are able to establish with our suppliers.”

For more information
To learn more about IBM Global Financing, contact your IBM Global Financing representative or IBM Business Partner or visit:
ibm.com/financing

© Copyright IBM Corporation 2011 IBM Global Financing One North Castle Drive Armonk, NY 10504 U.S.A. Produced in the United States of America March 2011 All Rights Reserved IBM, the IBM logo, ibm.com, BladeCenter and System Storage are trademarks of the IBM Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at „Copyright and trademark information‘ at
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Other company, product and service names may be trademarks or service marks of others. This case study is an example of how one customer uses IBM products. There is no guarantee of comparable results. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. IBM Global Financing offerings are provided through IBM Credit LLC in the United States and other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. Rates are based on a client’s credit rating, financing terms, offering type, equipment type and options, and may vary by country. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice.

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