SEARS Roebuck de Mexico

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1 1 of 6 12/01/ :00 Offering Information Customer Reference Search> SEARS Roebuck de Mexico IBM Customer Reference Published 26 Sept 2003 Last updated/reviewed 11 Sept 2006 Solution synopsis Customer information Special handling instructions Business need Solution implementation Benefit of the solution Contact information Customer printable version Additional reference details Solution synopsis Leading retailer in Mexico taps IBM Global Services - Worldwide Strategic Outsourcing to help it migrate from an outdated mainframe to the robust IBM eserver pseries and IBM eserver iseries platforms running IBM AIX, IBM DB2, IBM Tivoli and IBM TXSeries software to reduce costs, gain flexibility and take advantage of a broad range of available solutions Customer information Customer name: Location: Annual revenue: Employees/Students: SEARS Roebuck de Mexico Industry: Retail Mexico City Mexico <$5M Focus area: Customer Relationship Management, Systems & Network Management, Business Integration, High Availability Geography: Americas Customer background: Sears Roebuck de México is a multi-line retailer that offers an array of merchandise and related services. It operates 64 mall-based retail stores in Mexico, most of which have co-located Sears Auto Centers, as well as boutique stores. The company's services include product installation and repair, service contracts and installed home improvements. Sears also offers direct response marketing, clubs and services memberships and merchandise through specialty catalogs. The company provides professional opportunities in administration, credit and financial services, customer relationship management, human resources, information technology, marketing, sourcing and imports and strategy and new business development. Sears recently opened a new store in El Salvador, begininng its expansion in the Latin American market. Sears Roebuck de Mexico is an independent retailer in Mexico that has a commercial agreement with Sears Corporation to use the company's name for similar purposes.

2 2 of 6 12/01/ :00 URL: Project start: 1999 Project end: 09/2009 Special handling instructions The customer has agreed to be a reference for sales situations. The status of any installation or implementation can change so you should always contact the IBM person named in the reference prior to discussing it with your customer. Any public use such as in marketing materials, on WWW sites, in press articles, etc. requires specific approval from the customer. It is the responsibility of the IBM person or any organization planning to use this reference, to make sure that this is done. The IBM account representative will, as appropriate, contact the customer for review. You should not contact the customer directly. Business need Sears has had an outsourcing contract with IBM since In 1999, Sears made a major technological change, upgrading its out-of-date mainframe applications to a midrange platform, which required the implementation of new UNIX-based applications. The company's prior mainframe solution would not support the year 2000 conversion, and it was costing the company more money than if it migrated to a solution running IBM AIX software. The transition to the new solution needed to be performed smoothly and quickly to conform to Y2K standards, as well as to support the peak sales that typically happen at year's end. Sears was looking to the new solution to help it reduce infrastructure costs and enable the company to reach a steady operative state. Due to its established relationship with IBM and the fact that IBM had always been flexible to adapt to Sears' changing business conditions, Sears decided to stay with an IBM solution. Solution implementation IBM performed Sears' migration to the IBM eserver pseries platform and also provided related infrastructure services to support the company's applications. IBM TotalStorage Enterprise Storage Server (Shark) technologies helped improve Sears' application performance and increase availability (avoiding outages due to disk crashes). As a result of the successful 1999 engagement and to continue the progress made, IBM and Sears renegotiated Sears' contract in vember 2002 to review price and scope and to include a ten percent reduction in both. The new contract included datacenter and infrastructure services. Additionally, IBM equipment supported in the datacenter features the IBM eserver iseries platform; IBM AIX platform for credit, merchandising, sales audit, payroll, logistics and service and maintenance activities; IBM Enterprise Storage Server; IBM 3900 and IBM 4247 printers; and technical support on Sears' operating systems, IBM DB2 information management software, IBM WebSphere, IBM Tivoli Storage Manager and IBM Tivoli Workload Scheduler software. IBM is performing hardware maintenance, such as logical security, change and problem management, performance and capacity planning, disaster recovery planning, batch services and printing services that are delivered onsite. In 2004, IBM deployed an IBM eserver pseries 670 machine to begin upgrading Sears' IT infrastructure. The solution also featured a single IBM eserver iseries server Model 820 running OS/400 V5R1, on which Sears runs its own developed financial applications. TXSeries is running on AIX and was used to migrate the outdated mainframe CICS application to AIX. Sears is also using TXSeries with DB2 to run its credit application, which was previously running on CICS and VSAM. Tivoli Storage Manager is running on one server as well as on seven clients. Sears is taking advantage of the robust DB2 and Informix platform for its database needs, and leveraging the Enterprise Storage Server (1.6TB) to manage all its data and file systems. The scope of the eight-year IBM Global Services - Worldwide Strategic Outsourcing Contract with Sears includes datacenter infrastructure, technical support on the operating system, and on DB2, TXSeries, Tivoli Storage Manager, Tivoli Workload Scheduler; disaster recovery planning services, operations services and performance, change and problem management; and security. IBM also performs batch processing and mass printing onsite at

3 3 of 6 12/01/ :00 Sears. Benefit of the solution The contract negotiations in 2002 and 2004 have enabled Sears to achieve significant cost reductions. The stability of the solution has allowed Sears to maintain an average of 99.5 percent availability. By migrating from the mainframe to IBM eserver pseries running AIX, Sears has been able to become more flexible, reduce costs and take advantage of the broader solutions available on the AIX platform. iseries provided the most robust platform on which to run Sears' local financial application. Solutions/Offerings Hardware: System i: iseries Model 820, iseries running OS/400 V5R1 System p: pseries 670 Storage - Disk: Storage: Enterprise Storage Server Software: Tivoli Storage Management: Tivoli Storage Manager for Databases, Tivoli Storage Manager Services: IBM Global Technology Services - Worldwide Strategic Outsourcing (SO): IBM EDI Services, Data Center High-end Server Outsourcing, Data Network Contact information Contact information for this reference: Patricia Juarez Rubio Gerente de Ventas, Asociados de Negocio IBM Div 12 Mexico Phone: Fax: Tie Line: Patricia Juarez Rubio/Mexico/IBM@IBMMX pjuarezr@mx1.ibm.com Customer printable version

4 4 of 6 12/01/ :00 This document describes IBM products and services used to solve IBM customer problems. Situations can and do change; therefore, you should always obtain approval from the IBM contact listed for this reference in the Worldwide Customer Reference Database before this document is shown to your customer. View customer printable version Additional reference details Total Contract Revenue: (in US $) $12,600,000 Revenue US$12.6 million Competition: EDS IBM competed against EDS and Sun for this engagement. Competitive winback: Key factors that led to the IBM sale: The IBM team was always flexible and delivered everything Sears asked for. This resulted in improved customer satisfaction. Reference type: The following reference uses are ones which the customer was willing to do at the time of publication. This may or may not reflect the current situation. Customer Phone Call, Customer Visit Please be aware that in some countries English may not be the language of choice for communications. Contact with the reference customer may require use of another language and/or translation. You should take advice from the IBM contact named in the reference before contacting the customer. Did the customer use IBM Global Financing? Other Hardware used in this solution: iseries, S/390, pseries Other Software used in this solution: AIX, OS/400 Storage - Disk Disk Products

5 5 of 6 12/01/ :00 Enterprise Storage Server Details How many host servers are attached to the ESS and indicate operating system: All the AIX servers described above, all on AIX and AIX 5.2 Please list any Storage Management Applications used in this environment: Tivoli Storage Manager Storage Hardware ENVIRONMENT pseries and 7017/S7A and S80; storage area network (SAN) using fiber optic switches; DB2 and Informix databases; Tivoli Storage Manager DB2 System i Type/model/features of iseries and number installed: One iseries 9406/820 Date of installation: June 2001 Specify the type of applications being run on the iseries (please provide version number): Financial applications developed by Sears are running on the iseries. Please select the topology: Ethernet Include what, if anything, the iseries replaced and why the customer chose iseries: The previous services Sears received were on the mainframe. Systems QUANTITY One Software Group Please indicate if this solution is being used in production or is still being implemented: In production Tivoli Storage Management: Tivoli Storage Management Solutions Details Installation Date: 2003 Production Date: 2003 Version of Tivoli Storage Manager: 5.2 Disaster Recovery Manager (DRM): Hierarchical Storage Manager (HSM): Backing up: xxgb backed up to (disk, tape, or optical. Include make and model):

6 6 of 6 12/01/ :00 Backing up to 3590 cartridges. Database: Does customer backup a database? Yes/ (include vendor and release of database): DB2 7.1 and Informix 7.31 IBM Global Services Describe the applications/infrastructure involved in this solution: Platforms involved: pseries, iseries and one old mainframe IBM Global Technology Services - Worldwide Strategic Outsourcing (SO) Worldwide Strategic Outsourcing (SO) Details Describe the implementation. Delivery location: IBM data center Network Station Management Win? Customer Satisfaction rating: 9 out of 10 Customer Satisfaction survey date: April 2004 Did IBM team with another vendor or consultant in this solution?

IBM. iseries Solution Sales (Including eserver i5 and i5/os V5R3) (New)

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