In 2014, one of Procurri’s customers, an Indian MNC corporation, whose end user is a global specialist in energy management, was looking for a solution to optimize its resources and improve its profit and loss (P&L) statement by converting its capital expenditure (CAPEX) into operating expenditure (OPEX).
The major transformation project involved relocating excess enterprise devices that were part of a project that was canceled in Japan to other countries in Asia. It spanned over a period of one and a half years and was carried out in multiple stages across the region. At the initial phase of this project, our customer was seeking a reliable IT service provider that has cross-country capabilities to assist the company in the re-deployment of its servers to different countries in Asia.
Solution
Being a global independent provider of data center equipment and life-cycle services, Procurri was able to provide our customer with a single point of accountability for redeployment, delivery, installation, and maintenance of its hardware in Asia. Most importantly, we are able to adapt our solution to meet their multifaceted needs, through our Hardware Resale buy-and-leaseback model that is further enhanced by our Independent Maintenance Services.
To maximize the value of its servers that were meant for a project that was eventually not carried out in Japan, our customer has chosen our hardware solution or Hardware Resale solution. The sale of their surplus enterprise hardware in Japan to Procurri allowed it to remove these assets from its balance sheet, and subsequently reduce its Capex. Our customer was then able to redeploy these servers in five other countries in Asia from us through an Opex leasing model. These countries are namely Indonesia, Thailand, the Philippines, South Korea, and Vietnam.
Together with our proven reverse logistics framework and expertise in cross-country relocation from handling international shipment to custom clearance and documentation declaration, our customer was able to enjoy a smooth relocation and installation of 35 servers and five Tape Libraries to these five countries.
On top of our quality delivery and deployment services, our customer leveraged on our strength in having a growing partner ecosystem in Asia and adopted our Independent Maintenance Services. We facilitated in warranty transfers and provided 24×7 after-sales regional maintenance and professional services with our skilled team of engineers, ensuring that the redeployed IT infrastructure is always up and running. As a result, they were able to receive quality assurance with our consistent delivery of the Service Level Agreement (SLA) across the region.
Business Outcome
A partnership with Procurri has allowed our customer to enjoy a uniquely integrated solution that encompasses three business aspects – finance, logistics and technology. Time was saved and coordination problems between multiple vendors were minimized via a single point of contact, allowing them to manage their IT operations effectively across borders under the first phase of the transformation project. Additionally, they were given the freedom of choice to decide on their preferred payment method and hardware selection.
Under our buy-and-leaseback solution, unused hardware in one country can be fully utilized by other regional projects. Our customer was also able to adopt an alternative business model that led to a reduction in its capex, allowing it to enjoy a boost in its profits, with great cost savings of approximately 20%.
