BOC Gases

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BOC fulfils WebCentric vision of technology

An innovative, Web-based approach to software and services delivery has reduced IT infrastructure costs by an estimated 20 per cent in the first year for energy giant BOC Gases - with further savings expected over the next four years. The solution, developed and facilitated by Fujitsu Australia, is now being considered for the BOC organisation worldwide.

The BOC Group is an international leader in the provision of gas solutions, applications technology and related services, vacuum technology and health care. It is an FTSE 100 public company with annual revenue of A$10 billion and operations in 60 countries.

In the South Pacific, the company has production facilities in almost every Australian capital city, plus 80 retail outlets, more than 800 agents and 2000 employees servicing over 600,000 customers throughout the region. BOC is one of the top 100 companies in Australia by revenue, with annual turnover exceeding $1 billion.

In early 2000, BOC adopted a progressive approach to technology procurement designed to reduce operating costs while improving productivity. Christened WebCentric, it involved the delivery of software and services directly to users' desktops via the Web. This supported the company's move away from distributed systems to a centralised computing environment. WebCentric was intended to help BOC change from a fixed depreciation schedule for PCs and laptops to one where end-user equipment has a considerably longer lifecycle. Instead of having to buy hundreds of desktops every three to four years, technology refreshes would predominantly involve procuring servers and other mainframe technology for its data centre.

BOC also wanted to create a more flexible workplace where staff could work from home or telecommute. Using an Internet connection, staff can have their desktop delivered securely wherever they are in the world. The company believed such flexible work arrangements would help staff maintain a healthy work/life balance, as well as build morale and assist retention.

"WebCentric is an innovative approach to buying and using information technology," says Graham Smith, Managing Director, BOC Industrial and Special Products, South Pacific. "We are always looking for new ways to improve our business, and delivering IT services over the Internet offers us better performance at reduced cost."

Testing the waters in the South Pacific

BOC began developing a five-year vision for its infrastructure services around the world in April 2000. The company spent months working on preliminary concepts for a centralised IT environment that could deliver secure, reliable access to a variety of applications through different devices and connection types across multiple regions.

After a framework was established, the company went to tender for an implementation partner, selecting the South Pacific region as a test bed for the project. According to Marc Franciosa, IM Director, South Pacific at BOC, this was because the region supported a consistent office environment.

"To move to a Web-based environment, you need to standardise your application base. South Pacific had maintained a tight IT configuration for a number of years and that reduced the complexity associated with switching to a new computing environment. This was in contrast to our UK and US offices, where we have not rationalised applications, suppliers or usage," he explains.

This is not the first time BOC Group has used the South Pacific region to pilot technology changes. In 1996, the Australian office was the testing ground for the rollout of SAP enterprise resource planning software. Lessons learned during the 18-month implementation were used to speed up the rollout of SAP to various BOC operations around the world.

After a series of evaluations, BOC awarded the outsourcing contract to Fujitsu over incumbent supplier Hewlett-Packard, and rivals EDS and Compaq. "Fujitsu was able to demonstrate an extensive delivery capability backed by service-level agreements to support our business needs," said Graham Smith.

Customised approach optimises network performance

Fujitsu worked closely with Marc Franciosa's team to develop an implementation plan. The solution leveraged Fujitsu's extensive experience using the Citrix platform to deliver applications via a standard Web browser. The applications included Microsoft Office, SAP, CAD tools and telemetry, training and project management software.

"The Fujitsu team took our concepts and came back with a comprehensive solution that covered key areas such as application hosting, email management, network management services and data storage. They demonstrated a real commitment to our WebCentric architecture," says Franciosa.

BOC's major concern was ensuring its new computing environment was resilient and secure. "Because our applications are now held in a single data centre, losing network connectivity means losing access to literally everything - software, work files and email. As a 24-hour operation, any network outages would seriously affect our business. It is a risk we cannot take," Franciosa says.

The Web-based environment also had to be responsive. BOC conducted comprehensive network performance tuning so a user downloading large files would not affect someone conducting SAP transactions. "We did experience some response issues after changing the environment, but Fujitsu quickly resolved these. Now services are delivered as fast or faster than before," says Franciosa.

Careful capacity planning enabled BOC to save bandwidth costs. Fujitsu conducted a series of tests to determine how much bandwidth a single transaction or software delivery would require. The results enabled the team to develop a system to minimise data travelling over the network and avoid large bursts of traffic associated with moving files in a client/server environment. "It meant we did not have to increase network bandwidth to accommodate the centralised approach. This saved us significant network costs," says Franciosa.

All challenges that emerged during the preparation phase were efficiently resolved by Fujitsu, according to Franciosa. "For example, we found certain applications did not work well for Web delivery. Fujitsu reviewed every application, configured special browser settings and ensured tight integration with the Citrix platform."

BOC also enlisted Fujitsu's assistance to negotiate complex licensing arrangements. "They helped assess the difference between paying per software download versus having applications available on the network that ensured a cost-effective outcome for BOC," says Franciosa.

Deployment began in October 2002, starting with the company's Sydney headquarters and followed by plants, regional operating sites, Australian and New Zealand offices and 120 retail stores around the region. The project was completed in July 2003.

User-friendly process

Access to network resources and applications was designed to be as simple as possible for BOC's 2,200 employees. A front-end portal, jointly built by BOC and Fujitsu, serves as the launch point for network connectivity. Once connected, software is loaded onto the user's laptop. The portal includes self-help facilities that allow staff to reset passwords and track the status of helpdesk queries, reducing the workload of in-house technical staff.

No software is installed on individual devices, ensuring BOC does not have to deploy patches or update applications on individual machines. "Everything is updated once on the central Citrix farm so every user gets the latest version at the same time," explains Franciosa.

Web-based model goes global

The BOC WebCentric approach to software delivery has resulted in significant savings. Franciosa estimates that BOC experienced a 20 per cent reduction in infrastructure costs in the first year, and will continue to save year-on-year for the next four years.

Maintenance costs are also lower because BOC now has a simplified support environment. Improved access to network resources and faster deployment of new applications has enhanced staff productivity. "The risk of moving to such a different way of working was minimal because service levels were agreed with Fujitsu at the outset. This gave us fixed operating costs that will reduce over time," says Franciosa.

The South Pacific project is being closely watched by senior management in BOC's global headquarters. The company is presently conducting pilots and is completing a final deployment plan. The UK and US offices will also move to an outsourced computing environment at the same time.