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I.T. & ENGINEERING SERVICES, MANUFACTURING
2,100 EMPLOYEES
BENEFITS
• Reduced IT operating
system, middleware, and
virtualization costs by an
average of 50% compared to
proprietary solutions
• Established a collaborative,
innovative corporate culture
to better develop and deploy
stable, competitive solutions
• Enhanced IT skills and
knowledge on multiple
open source solutions to
better take advantage of
emerging technologies
such as big data, IoT, and
cloud computing
SOFTWARE
Red Hat® Enterprise Linux®
Red Hat Virtualization
Red Hat JBoss® Enterprise
Application Platform
To help its parent company meet evolving industry and technology needs, POSCO ICT sought
to cost-effectively create an intelligent factory that uses real-time data from Internet of Things
(IoT) sensors to monitor and control facility conditions, maintain a stable operation environment,
and extend the lifespan of the facility. POSCO ICT decided to deploy open source software from
Red Hat to establish a scalable yet stable infrastructure to support this facility, including
Red Hat Enterprise Linux, Red Hat Virtualization, and Red Hat JBoss Enterprise Application
Platform. With these solutions, POSCO ICT has not only reduced related costs but also gained
opportunities to enhance staff knowledge, foster improved collaboration with a DevOps
approach, and continue to compete in global markets.
HEADQUARTERS
“Compared to UNIX, we reduced our operating system costs by more than 10
times with Linux. With middleware and virtualization products from Red Hat, we
saved about 40-50% compared to our proprietary solutions.”
TEAM LEADER
I.T. INFRASTRUCTURE TECHNICAL SUPPORT TEAM,
POSCO ICT
Pohang, South Korea
CUSTOMER CASE STUDY
POSCO ICT BUILDS INTELLIGENT FACTORY WITH OPEN SOURCE I.T. FROM RED HAT
2redhat.com CUSTOMER CASE STUDY POSCO ICT builds intelligent factory with open source IT From Red Hat
BUILDING AN INTELLIGENT FACILITY
POSCO ICT is an IT and engineering services provider that designs and maintains IT systems for its
parent company in the steel industry.
To keep pace with the rapid changes caused by the Fourth Industrial Revolution — the latest industrial
era, characterized by a shift toward uniting the physical and digital worlds — POSCO ICT was assigned
a task to create a robust facility that would help its parent company not only navigate the slowing
global steel industry, but also establish a future-ready foundation. Existing factory operations
needed to be optimized to reduce the requirements on the limited IT budget. In addition, there was a
need to better monitor the production process in order to enhance the efficiency of the facility and
ensure the quality of the resulting products.
To address these challenges, POSCO ICT sought to create a smart factory that takes advantage
of the latest technology developments. With this factory, POSCO ICT’s parent company could
automatically control and monitor the health of its facility and production system, preventing
failures and ultimately improving service quality through information analysis using big data,
Internet of Things (IoT), and artificial intelligence (AI) tools and technologies.
In addition, POSCO ICT needed to improve management and use of the extensive amount of data
received from its production processes and facility in order to accelerate the changes needed and
more effectively respond to industry demands. POSCO ICT sought to take full advantage of this
data using IoT sensor technology and big data infrastructure to improve facility management and
quality assurance.
DEPLOYING AN OPEN SOURCE SOFTWARE FOUNDATION
Data from the smart facility must be optimized to fulfill a variety of requirements and respond to
rapid change. As a result, POSCO ICT decided to build the new facility IT environment using open
source solutions.
“We expect the cloud ecosystem to move toward open source solutions, such as OpenStack, and
there is a possibility we might incorporate these solutions in the future,” said a team leader in IT
infrastructure technical support at POSCO ICT. “As Red Hat is close to the upstream communities,
we believe that they will play an important role in the shift to open source, so we decided to
implement their software in our project.”
POSCO ICT deployed several Red Hat solutions, including Red Hat Enterprise Linux as an open
source foundation for its critical systems, such as its enterprise portal and collaboration systems.
All of the servers used in the smart factory project — and over 60% of its systems — are now running
on Linux.
After a pilot test, POSCO ICT also migrated from costly proprietary virtualization and middleware
solutions to open source solutions, including Red Hat Virtualization and Red Hat JBoss Enterprise
Application Platform, to support data analysis conducted at the smart factory. By building a cloud
with Red Hat Virtualization, POSCO ICT can scale its use across the enterprise at its pace.
With these technologies, POSCO ICT developed an intelligent IT platform that optimizes self-
learning and control through real-time data collection and analysis. This environment also supports
predictive analysis and data standardization for better data capture and consistency.
“Red Hat is the most reliable partner in
the open source field. Whenever we have
an issue, we can fully depend on Red Hat.
We’ve worked together to run open source reliably for the last
10 years, and we plan to continue working
together to identify and take advantage of new growth opportunities.”
TEAM LEADER
I.T. INFRASTRUCTURE
TECHNICAL SUPPORT TEAM,
POSCO ICT
3redhat.com CUSTOMER CASE STUDY POSCO ICT builds intelligent factory with open source IT From Red Hat
GAINING NEW OPPORTUNITIES WITH I.T.
REDUCED SOFTWARE COSTS
For POSCO ICT, the key factor in choosing to build its smart facility using open source software
was cost.
With a limited IT budget, the company could not keep innovating using costly proprietary technology
solutions. By migrating to Red Hat’s software, the company can scale its IT environment as needed —
at minimal cost and without high maintenance or licensing fees.
“Users expect a system that is highly efficiency and reliable, but we need to make sure we’re
spending our money wisely,” said the team leader. “Open source software is the best choice for
providing the flexibility required to maximize a limited budget. Compared to UNIX, we reduced
our operating system costs by more than 10 times with Linux. With middleware and virtualization
products from Red Hat, we saved about 40-50% compared to our proprietary solutions.”
INCREASED STABILITY AND COLLABORATION TO SUPPORT INNOVATION
To take full advantage of its new smart factory, POSCO ICT decided to optimize collaborative work
between its IT development and operations teams by unifying the teams with a goal of responding
more efficiently to external changes.
With both business- and technology-related expertise, supported by Red Hat’s enterprise-ready
software and security, this new team can focus on developing innovative services, rather than
maintaining operational stability.
“The IT operations team is essentially risk-averse, with a strong preference for keeping things at the
status quo,” said the team leader. “We realized that when we maintain our IT environment in the
name of operational stability, we become exposed to far greater external risks due to technological
changes. We adopted open source and DevOps to speed our innovation and better protect ourselves
against such risks.”
NEW LEARNING OPPORTUNITIES
Adopting open source software also brought unexpected benefits to the employees of POSCO ICT.
Using proprietary solutions meant learning technologies and features offered by the vendor, but
using open source solutions offers the chance to keep up with rapid development changes. As a
result, POSCO ICT’s system operators and IT staff can hone their knowledge on related technologies
and trends.
“It’s often hard to acquire talent with the technological expertise we require, and it’s important
to equip our existing staff with the skills to solve issues ourselves instead of relying on external
vendors,” said the team leader. “With open source, we can learn independently and keep expanding
our technological knowledge beyond traditional IT.”
In addition, partnering with Red Hat helps POSCO ICT stay informed on the latest open source
developments.
“Red Hat updates us on related trends as they continue to invest heavily in new technologies globally,”
said the team leader. “By working with Red Hat, we can maintain technological competitiveness in
the steel industry, the core of our business, and reinforce our position as a global leader. We also
gain the opportunity to enter new markets by preparing our skills related to emerging technology.”
Copyright © 2017 Red Hat, Inc. Red Hat, Red Hat Enterprise Linux, the Shadowman logo, and JBoss are trademarks of Red Hat, Inc., registered in the U.S. and other countries. Linux® is the registered trademark of Linus Torvalds in the U.S. and other countries. The OpenStack® Word Mark and OpenStack Logo are either registered trademarks / service marks or trademarks / service marks of the OpenStack Foundation, in the United States and other countries and are used with the OpenStack Foundation’s permission. We are not affiliated with, endorsed or sponsored by the OpenStack Foundation or the OpenStack community.
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ABOUT RED HAT
Red Hat is the world’s leading provider of open source software solutions, using a community- powered approach to provide reliable and high-performing cloud, Linux, middleware, storage, and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As a connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT.
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CONTINUING TO PARTNER FOR INNOVATIVE SUCCESS
After the initial success of its smart factory project, POSCO ICT plans to expand its use of open
source even further. The company is looking to build a hybrid cloud computing environment,
as well as big data and development platforms, using Red Hat software such as Red Hat
OpenStack® Platform.
“Red Hat is the most reliable partner in the open source field,” said the team leader. “Whenever we
have an issue, we can fully depend on Red Hat. We’ve worked together to run open source reliably
for the last 10 years, and we plan to continue working together to identify and take advantage of new
growth opportunities.”
ABOUT POSCO ICT
POSCO ICT is a IT and engineering services provider that designs and maintains its parent
company’s IT systems. The main areas of business are engineering, process automation, IT services,
and smart grid. POSCO ICT went public in 2000 and has 2,100 employees.
CUSTOMER CASE STUDY POSCO ICT builds intelligent factory with open source IT From Red Hat
