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“We have reduced the perceived capital 
expenditure or opportunity costs for 
going from the old architecture to the 
new HP architecture by US$3 million 
to US$5 million over the refresh period 
of three years. From an operating cost 
perspective, by the time this programme 
is done we will be saving US$1 million a 
year in operating expenses.”
 
Sundi Balu, chief information officer, 
Reach Global Services Ltd
REACH was running a mixed IT infrastructure of 
HP, Dell and Sun equipment with seven different 
operating systems and decided that it was time for 
a refresh. Analysis revealed that maintenance of the 
infrastructure was costing nearly US$1 million a year 
so a reduction in operating expenditure was vital. 
Cost cutting aim
“We also needed to reduce capital expenditure 
because we wanted to implement a whole utility 
computing/cloud computing paradigm,” says 
Sundi Balu, chief information officer for REACH. “In 
addition we wanted to extend the ‘maintainability’ 
of the infrastructure from the standard three or four 
years to five or six years. This required technology 
which would enable us to do phased refreshes rather 
than a big bang every three years.”
Wanting to switch to a close partnership with a 
single vendor, REACH considered HP and another 
major hardware and services vendor. It chose HP 
because of its extensive Communications, Media 
and Entertainment (CME) practice backed by strong 
operational support systems. HP equipment would 
support REACH’s internal cloud computing model 
where the IT department would offer services to its 
internal customers. An HP solution would also meet 
REACH’s criteria on reduced capital expenditure, 
operating expenditure, longevity and capability.
Blade solution
An initial benefit of this decision was that REACH’s 
landscape of over 150 servers in Hong Kong and 
Sydney was reduced to 68, mostly HP blade servers 
with some rack mounted boxes. Thirty two servers 
(HP ProLiant BL460c and BL860c blade servers and 
HP Integrity rx6600 servers) were installed at the 
main Paddington data centre in Sydney and ten at 
the secondary Oxford Falls site in Sydney. Twenty 
three similar server models were installed at the 
principal Telecom House data centre in Hong Kong 
and three (HP ProLiant DL380 and DL580 server 
models) at the secondary Hermes House site in 
Hong Kong.
As part of the refresh, REACH decided to put more 
emphasis on generic, open source Linux operating 
systems rather than UNIX. It has reduced the number 
of operating systems from seven (TRU64, HP-UX, 
Solaris, Windows, RedHat Linux, FreeBSD and 
CentOS) to just three (HP-UX, RedHat Linux and 
Windows). HP-UX is used at the high end, Windows 
at the departmental level and Linux for more 
corporate and critical systems.
HP also assisted REACH with a refresh of its Storage 
Area Networks (SAN), including the installation 
of three new HP StorageWorks 6400 Enterprise 
Virtual Arrays (EVA6400). Two disk arrays at the 
Paddington data centre provide storage capacity of 
nearly 28TB and one at Oxford Falls has capacity of 
8.6TB. 
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