About the Company

HD Hyundai Oilbank Co., Ltd. is a subsidiary of HD Hyundai and the first private oil refinery in Korea. Located in Daesan-eup, Seosan-si, Chungcheongnam-do, Daesan Plant has a crude oil refining facility with a capacity of 6.9 million barrels per day. Its main business includes the manufacture, sale, transportation, import and export of refined oil, lubricating oil and petrochemical products, and its subsidiaries include Hyundai Shell Base Oil, Hyundai Oil Terminal, and Hyundai Chemical.

The Challenge

HD Hyundai Oilbank wants to respond to the rapidly changing business environment by eliminating the inefficiency of existing business processes based on data and establishing a fully automated smart factory through the establishment of a big data organization to become a digital company. As a result, HD Hyundai Oilbank aims to establish a new business model and increase corporate value by changing the corporate ecosystem of employees, customers, and partners.

 

In order to achieve the goals, HD Hyundai Oilbank plans to promote work efficiency and smart factory through data management as a key means.

 

However, the existing IT systems were constantly increasing their operational and management costs as the number of operating hardware increased, and HD Hyundai Oilbank needed to reduce costs.

 

Replacing an old system with another hardware cost a lot of initial investment, and service flexibility is low to reflect HD Hyundai Oilbank’s internal and external customer requirements to transform the corporate ecosystem through digital innovation.

The Solutions

As a way to solve problems and increase productivity, HD Hyundai Oilbank decided to migrate to the AWS cloud and use the workload for all tasks except in-factory Infrastructure as the main IDC to reduce initial investment costs, secure service flexibility, and streamline operations.
HD Hyundai Oilbank chose AWS’s No. 1 MSP company in Korea and Asia, MegazoneCloud, which has a lot of experience in large-scale migration business

• 1. Deep Assessment

  • Mass Migration Center (MMC), organization to conduct large-scale migration of the MegazoneCloud, offers cloud infrastructure design through detailed analysis of the migration target infrastructure, resource optimization by application through source analysis of migration target application, and performing a migration plan and pilot for Open Source and Oracle DB through detailed analysis of DB environment by configuration DBMS.

• 2. Perform migration with cloud standardization

  • Through designing a To-Be architecture that takes into account business agility and improvs business speed, customers’ services are transformed through 7R transformation methodology into modernization.
  • A foundation configuration that enables operational stability and efficiency through CI/CD standardization.

• 3. Modernization

  • The work method within the project phase reflects accurate requirements through the Agile Scrum method, processes and resolves issues quickly, and migrates most services to container-based EKS services in consideration of cost and service flexibility when migrating workloads.
  • Architecture is constructed by making the most of AWS services to minimize operational personnel.

 

In addition to building the solutions, the following training and support were provided by MegazoneCloud to adapt the HD Hyundai Oilbank ‘s existing operational personnel to the sequential cloud environment due to the nature of Mass Migration.

• Sufficient training and handover of cloud standard configuration and modernized systems.
• Improves capabilities through AWS’ technology enhancement programs.
• Enables personnel to seamlessly adapt to AWS cloud environment.

The Results

HD Hyundai Oilbank has established a new cloud operation strategy aimed at optimizing costs through continuous inspection rather than traditional IDC operations, securing business flexibility, agility, and stability through cloud technology reflection, adopting digital transformation (DT) and new technologies, and transforming the office environment into the cloud.

• 1. Gain business agility with system deployment speeds more than twice as fast as traditional On-Premise system deployment periods when new projects are in progress.
• 2. Ensure superior service operational stability compared to existing systems. (Reduced failure rate)
• 3. Acquire a system that can flexibly respond to large amounts of traffic with Auto Scaling capability.
• 4. Reduce IT system operating costs by more than 10% per year, and expect to reduce system deployment costs in the future.
  • Right-Sizing reduces costs
  • Additional RI/SP adoption reduces additional costs
  • Reduce costs by streamlining resource use with EKS

Lesson Learned

HD Hyundai Oilbank’s migration to the cloud is represented by a variety of environmental changes, such as way of doing business.

• 1. Changes in capacity payment methods have led to constant reduction in user fees.
• 2. In the existing On-Premise environment, infrastructure configuration took a lot of time for simple testing, but AWS EKS-centric environments made it possible to quickly build test environments.
• 3. In particular, programs and services were fragmented because there was no standardized development method, but HD Hyundai Oilbank could be standardized by providing cloud-based CI/CD.
• 4. IT infrastructure technology and program development technology have been internalized through modernization of development and maintenance operations that depend on outsourcing companies, thereby increasing work efficiency.