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I.T. SERVICE PROVIDER

2,500 EMPLOYEES

BENEFITS

• Expected to reduce five-year

total cost of ownership (TCO)

by 30% and floor space and

power costs by 80%

• Cut server establishment time

• Decreased server failures

and network downtime

through standardized

infrastructure

• Increased revenue by

launching a new public

cloud service

Lotte Data Communication Company (LDCC), an IT service provider, wanted to prepare for

the future by building a cloud platform to grow its business, integrate IT resources, increase

efficiency, and transform its organization into an external cloud service provider. By deploying

Red Hat OpenStack Platform, LDCC established private and public cloud computing environments,

which reduced costs, improved agility, and boosted reliability. It also allowed the company to

venture into a new business area—external cloud service.

Seoul, South Korea

HEADQUARTERS

“We embraced the cloud to standardize and integrate our group’s ‘silo’ systems to

increase efficiency. But we were also able to provide a public cloud service after creating an environment with minimal trial and error.”

YOON-SOO KIM

CLOUD SERVICE MANAGER, LOTTE DATA COMMUNICATION COMPANY

SOFTWARE

Red Hat® Enterprise Linux®

Red Hat OpenStack® Platform

Red Hat OpenShift

Container Platform

Red Hat Ceph Storage

SERVICES

Red Hat Consulting

HARDWARE

Cisco Unified Computing

System (UCS) Servers

CUSTOMER CASE STUDY

LDCC PREPARES FOR FUTURE WITH RED HAT OPENSTACK PLATFORM

2redhat.com CUSTOMER CASE STUDY LDCC prepares for future with Red Hat OpenStack Platform

“We can get necessary information

from Red Hat’s technical support portal

at any time, so we can solve most problems

internally without the help of extra manpower.

Thanks to Red Hat Consulting, we were able to complete the

project without any glitches.”

YOON-SOO KIM

CLOUD SERVICE MANAGER,

LOTTE DATA COMMUNICATION COMPANY

MOVING TO THE CLOUD

Lotte Data Communication Company (LDCC), a subsidiary of Lotte Group, is a Korean IT service

provider headquartered in Seoul, with overseas offices in China, Vietnam, and Indonesia.

LDCC wanted to prepare for the future by building a cloud platform to grow its business, integrate IT

resources, increase efficiency, and transform the organization into an external cloud service provider.

By moving its Linux-based business systems to the cloud, LDCC could integrate its disparate systems

and create new commercial opportunities to sell public cloud services.

IMPLEMENTING AN OPENSTACK-BASED CLOUD PLATFORM

After reviewing many cloud platforms, the company selected OpenStack, an open source set of

services that allow organizations to build private and public clouds.

“There has always been a great interest in OpenStack as it was becoming the hottest topic in the IT

industry,” said Yoon-soo Kim, cloud service manager at LDCC. “Moreover, we believed it would work

best in a Linux environment.”

LDCC decided to build an OpenStack-based cloud environment and adopt complementary

technologies, such as software-defined storage and software-defined networking, as well as Kernel-

based Virtual Machine (KVM) hypervisors.

After deciding to go with OpenStack, there was still a big challenge to tackle — LDCC did not have

many in-house OpenStack experts. As LDCC was mainly in charge of supporting the legacy systems

within Lotte Group affiliates, it needed experts on new technologies like cloud computing.

Because of an earlier successful deployment of Red Hat Enterprise Linux using Red Hat Consulting,

LDCC decided to select Red Hat OpenStack Platform, which allowed better optimization than the

community version and gave LDCC full technical support. Moreover, Red Hat OpenStack Platform

gave LDCC the flexibility to choose from multiple hardware brands to help make future cloud service

expansions easier — a key vendor selection criterion.

“A community version of OpenStack would not have worked, as we lack the expertise and manpower,”

said Kim. “We selected Red Hat primarily for its reliability. We also adopted software-defined storage

because we wanted to deploy an expandable storage farm without a controller.”

The company chose Red Hat Ceph Storage as a storage back end for the block and object storage

required in Red Hat OpenStack Platform. Red Hat Ceph Storage reduces data storage costs and

effectively and automatically manages exponential data growth. The solution allows LDCC to

prepare for future data growth without being locked into a specific vendor’s controller.

LDCC expanded its use of Red Hat Enterprise Linux to serve as an operating system for the new

cloud infrastructure and cloud services. Red Hat OpenStack Platform was built on top of and

integrated with Red Hat Ceph Storage to create a scalable public and private cloud infrastructure.

LDCC also replaced its hardware at the same time, using Cisco Unified Computing System (UCS)

servers, and moved its existing Linux-based systems to the new cloud environment.

3redhat.com CUSTOMER CASE STUDY LDCC prepares for future with Red Hat OpenStack Platform

EFFICIENT SOLUTION

COST SAVINGS

According to internal estimates, the company expects to reduce TCO by 30% over a five-year

period, with floor space and power costs falling by 80%. With the Red Hat solution, LDCC has

also dramatically improved efficiency by substantially increasing CPU usage, which used to range

between 30% and 40%.

AGILE AND RELIABLE

Since adopting the cloud solution, LDCC has improved its agility and its response time to user

requests. In particular, the time required to establish a new server has been reduced from hours

to minutes.

Reliability has also improved, minimizing unplanned outages. With the new system, infrastructure

standardization now prevents a single server failure from triggering downtime for the entire network.

A TRUSTED PARTNER

“We can get necessary information from Red Hat’s technical support portal at any time, so we can

solve most problems internally without the help of extra manpower,” said Kim. “We also sought help

from Red Hat Consulting. They helped tremendously with the implementation of our project.

Thanks to Red Hat Consulting, we were able to complete the project without any glitches.”

BECOMING A CLOUD SERVICE COMPANY

After moving its internal systems to a cloud environment, LDCC set out to tackle a new challenge.

Instead of using the cloud service exclusively within the Lotte Group, the company expanded it to

offer L-Cloud, a public cloud for businesses built on Red Hat OpenStack Platform.

“OpenStack is commonly used as the standard in the cloud market, so we used a single OpenStack

platform for our external cloud service,” said Kim. “Red Hat OpenStack Platform is effective in

enabling us to continually expand to new service models.”

Intially, LDCC’s L-Cloud offers Infrastructure-as-a-Service (IaaS) capabilities, built on the

OpenStack system. This delivers low-cost, reliable, and scalable systems, including servers,

storage, and networking.

More recently, LDCC added the capability to provide Platform-as-a-Service (PaaS), in addition to

IaaS, with Red Hat OpenShift Container Platform.

These new services helped LDCC increase revenues by broadening the range of its commercial

offerings and strengthened its marketability with other global companies. LDCC will use its previous

experience in Software-as-a-Service (SaaS) to provide highly targeted solutions for particular

industries, such as location-based marketing.

Copyright © 2017 Red Hat, Inc. Red Hat, Red Hat Enterprise Linux, and the Shadowman logo are trademarks or registered trademarks of Red Hat, Inc. or its subsidiaries in the United States and other countries. Linux® is the registered trademark of Linus Torvalds in the U.S. and other countries. The OpenStack® Word Mark and OpenStack Logo are either registered trademarks/service marks or trademarks/service marks of the OpenStack Foundation, in the United States and other countries and are used with the OpenStack Foundation’s permission. We are not affiliated with, endorsed or sponsored by the OpenStack Foundation or the OpenStack community.

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ABOUT RED HAT

Red Hat is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage, and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As a connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT.

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redhat.com f8778_201712

ABOUT LOTTE DATA COMMUNICATION COMPANY

Lotte Data Communication Company (LDCC), a subsidiary of Lotte Group, is a Korean IT service

provider, with headquarters in Seoul, and overseas offices in China, Vietnam, and Indonesia.

The company has expertise in fields including logistics, manufacturing and construction, chemical,

finance, and services. Founded in 1996, LDCC has helped customers improve their levels of

information and maximize business values by providing IT services, including system management,

system integration, IT consulting, and e-Business.

www.ldcc.co.kr/en

CUSTOMER CASE STUDY LDCC prepares for future with Red Hat OpenStack Platform