Microsoft Office System Customer Solution Case Study WD Improves Productivity and Cuts Phone Costs with VoIP Communication Overview Country or Region: United States Industry: High-tech and electronics manufacturing Customer Profile Headquartered in Lake Forest, California, the 45,000 employees at Western Digital design, manufacture, and sell hard drives. In the 2007 fiscal year, the company earned $U.S.5.5 billion in revenue. Business Situation In 2007, the company began looking for ways to reduce phone costs and boost communication among employees with technologies like voice over IP and instant messaging. Solution WD deployed a unified communications solution built on Microsoft Office Communications Server 2007 and Microsoft Exchange Server 2007. Benefits Facilitates communication Increases mobility Accelerates productivity Reduces costs Office Communications Server 2007, with its voice and conferencing features, will certainly help us drive costs down. Tee Lay Kern, Senior Principal Engineer, Information Technology, WD Western Digital (WD), a leading hard drive manufacturer, employs more than 45,000 people in 38 offices around the world. Frequent travel and geographic distance make it challenging for employees to communicate and the sheer size of manufacturing facilities often make it difficult to locate people. To overcome these obstacles, WD relied on mobile phones and several third-party conferencing services, which resulted in substantial costs. To help reduce expenditures and boost communication, WD deployed a unified communications solution built on Microsoft Office Communications Server 2007 and Microsoft Exchange Server 2007. The new solution provides features such as voice over IP, instant messaging, and Web conferencing. Such capabilities help WD reduce costs, facilitate communication, increase mobility, and accelerate productivity.
Situation Founded in 1970, Western Digital (WD) designs, manufactures, and sells hard drives to leading systems manufacturers, resellers, and retailers. The company s products are marketed under both the Western Digital and WD brand names. Approximately 45,000 people work for the company from eight major global locations that include the corporate headquarters in Lake Forest, California. In fiscal 2007, the company earned U.S.$5.5 billion in revenue. As one of the lowest-cost manufacturers in the global hard drive industry, WD has continuously sought ways to improve efficiency and productivity and to reduce communication costs. For example, WD Malaysia spends a large sum annually on fixed-line and mobile telephone services, in addition to a voice bridge service for audio conferencing. A major portion of the telephone calls were made between employees in the United States and Asia. In addition, with many employees traveling, some found it easier to call a person s mobile phone rather than guess which location they were at. And the sheer size of facilities made it challenging to locate people, so employees often used their mobile phones to make contact. Employees also used e-mail to communicate, but only had access to instant messaging on their mobile phones. Without an enterprise instant messaging solution, many employees used free instant messaging services like MSN Messenger. Some employees also used Web telephony services like Skype to make voice over IP (VoIP) calls. The company did not support the free communication methods for several reasons. Not only did they lack administrative controls, but because the free services were not used by all employees, people wasted time determining which method of communication should be used email, IM, standard phone, mobile phone, or Skype. And perhaps more importantly, Services like Skype were not allowed because they took up too much Internet bandwidth, explains Tee Lay Kern, Senior Principal Engineer, Information Technology at WD. WD realized it needed a solution that could reduce telephony costs, boost communication among employees, and deliver services employees wanted like IM and VoIP while also providing for greater levels of administrative control. In early 2007, the information technology (IT) department at WD Malaysia was tasked with selecting and implementing technologies that could meet these goals. Solution Soon after it began to evaluate offerings, WD learned about Microsoft Office Communications Server 2007 and Microsoft Exchange Server 2007. Office Communications Server 2007 provides an integrated suite of unified communications technologies that include instant messaging, VoIP telephony, on-premise Web conferencing, and presence. Presence gives employees immediate insight into their coworkers availability through a color-coded icon that appears in all Microsoft Office applications, including Microsoft Office Communicator 2007 the client application for Office Communications Server 2007. The icon s color indicates people s availability status. Additional information about the person displays in the Office Communicator 2007 window, such as the person s contact information and preferred method of contact whether IM, e-mail, or phone. The integrated VoIP telephony functionality works with existing Private Branch Exchange (PBX) systems so that users can make, receive, and manage phone calls from their computers using Office Communicator 2007, or from their existing PBX phones.
The fact that Office Communications Server 2007 only requires a media gateway to communicate with our legacy PBX system has made it very easy for us to introduce VoIP into the organization. Tee Lay Kern, Senior Principal Engineer, Information Technology, WD Exchange Server 2007 provides unified messaging by delivering e-mail and voice mail to users inboxes. Users can manage that information from familiar clients like the Microsoft Office Outlook 2007 messaging and collaboration client, or from mobile devices and ordinary telephones. By deploying both Office Communications Server 2007 and Exchange Server 2007, users would be able to move seamlessly between e-mail, IM, VoIP phone calls, and multiparty audio, video, or Web conferencing. Impressed by the capabilities of the products, WD decided to deploy Office Communications Server 2007 and Exchange Server 2007 to 500 employees at the WD Malaysia office in Petaling Jaya. In addition, the company would deploy Web conferencing and instant messaging supported by Office Communications Server to another 2,400 employees at the WD Malaysia facilities in Penang, Johor, and Kuching. In March 2007, the company engaged Microsoft Certified Partner VADS Berhad to help. A team of engineers from VADS Berhad and WD deployed Office Communications Server 2007 and Exchange Server 2007 on HP DL380 server computers. To facilitate communication between the company s existing PBX system and Office Communications Server 2007, the team deployed a Dialogic DMG2030DTI Media Gateway. Dialogic offers a range of enterprise-class media gateway products to support Microsoft unified communications solutions. Dialogic media gateways are designed for simplicity, PBX interoperability, and price performance and they are backed by a worldwide distribution and support organization. The fact that Office Communications Server 2007 only requires a media gateway to communicate with our legacy PBX system has made it very easy for us to introduce VoIP into the organization, Tee notes. We didn t need to replace the PBX system, which would have been very costly about $295 per extension. Initially, WD Malaysia deployed the new solution to 80 people who accessed it from their desktops using Office Communicator 2007 or from mobile phones, such as the Palm Treo smartphone, using Microsoft Office Communicator Mobile. Palm Treo smartphones deliver rich, intuitive, and seamless communication capabilities that enhance productivity and collaboration by streamlining how people communicate. Palm Treo smartphones connect directly with Exchange Server 2007 to deliver access to wireless voice, e-mail, the Web, and Microsoft Office Mobile applications while minimizing total cost of ownership. The 80 employees also selected a VoIP device to make and receive phone calls from their desktop and portable computers. Commenting on the amount of choice employees had in selecting a device, Tee notes, Office Communications Server 2007 allows us to use telecommunication equipment from different manufacturers in our facilities. We don t have to be tied down to a particular manufacturer because of proprietary restrictions. WD Malaysia will continue to deploy Office Communications Server 2007 to the remaining 2,920 employees at its Malaysian facility by the end 2007. The company will then consider deploying the solution to its facilities in the United States and Thailand. Benefits After its initial deployment of Office Communications Server 2007 and Exchange Server 2007, WD has found that the solution facilitates communication, increases mobility, accelerates productivity, and reduces costs.
Office Communications Server 2007 will transform the way we communicate. Employees will be able to call any Western Digital facility in the world and it will be just like calling an extension in the same factory. Tee Lay Kern, Senior Principal Engineer, Information Technology, WD Facilitates Communication In the past, employees often found it challenging to contact each other. Today, employees can quickly determine the availability of another user through presence, and get in touch with them using the preferred method of contact. As long as the user is logged into the system, we can communicate by instant messaging or a voice call through Office Communicator 2007, says Tee. WD employees previously conducted phone conferences using a third-party service. However, Office Communication Server 2007 provides for multiparty phone conferences and multimedia Web conferences that are hosted internally. In addition, system users can participate in desktop video conferences. As a result, employees can communicate more effectively, and the company can minimize third-party conferencing costs. Office Communicator 2007 can potentially replace much of the communication that currently goes through the voice bridge service, notes Tee. Increases Mobility Office Communications Server 2007 provides a virtual office environment that employees can take with them wherever they travel. Once users have logged into the system, they can gain access to all Office Communicator 2007 features, including presence, instant messaging, Web conferencing, and VoIP telephony. For example, when employees who usually work at a facility in Malaysia travel to a factory in Bangkok, they can still receive all the calls made to their regular extensions; Office Communications Server 2007 simply routes the calls to the system or mobile device that they log in from. With Office Communications Server 2007, we are no longer confined to a certain location, explains Tee. Our office has become virtual. This is a more efficient way of working. People can be contacted regardless of where they are, and colleagues don t have to guess where people are or how best to contact them. There s no looking back for us, continues Tee. Office Communications Server 2007 will transform the way we communicate. Employees will be able to call any WD facility in the world and it will be just like calling an extension in the same factory. Accelerates Productivity In the past, employees had to use disparate systems to manage voice mail, e-mail, and phone conferences. In addition, employees used unsupported applications such as MSN Messenger and Skype or relied on their mobile phones to IM. Today, employees can use the new unified solution to manage all their digital communications. The key benefit of Office Communications Server 2007 is that it makes communication seamless for our employees, says Tee With Office Communications Server 2007, all of the tools that you need to communicate are accessible from any Microsoft Office application. For example, if you want to schedule a meeting, just open your calendar. To make a call, just click a person s presence icon. To schedule a conference call or Web conference, just click the toolbar. At the end of the day, the level of integration among Microsoft applications makes the system very user-friendly. That translates into improved productivity and accelerated collaboration and decision making. Reduces Costs The new solution gives WD greater control over its digital communications, and this results in reduced costs. For example, WD spends a large sum of money each year on its mobile phone bill. However, once WD Malaysia deploys Office Communications
Server 2007 to all its employees, the company expects to cut its mobile phone bill by at least 30 percent. We have many users who rely on mobile phones, and they often make international calls, Tee says. Now with Office Communicator 2007, they have another, more cost-effective, option. As long as you can get WiFi or Internet access, you can make and receive calls with your computer or mobile device. Office Communications Server 2007 will also reduce the company s reliance on external conferencing services. When the solution is fully deployed, WD Malaysia expects to cut its annual voice bridge service charges by 50 percent to 60 percent over time. Another area that WD expects to realize cost savings is in its small office telephony costs. Not only can the company save money by using VoIP telephony rather than the Public Switched Telephone Network (PSTN), but the administrators can also rapidly setup the system themselves. If we are setting up a sales office with four to five staff, there s no justification for a key telephone system, says Tee. Instead, we can deploy Office Communications Server 2007 in a day or two, compared with a key telephone system, which may take two to three weeks. The potential cost savings from the new unified communications solution will help WD strengthen its position as one of the world s lowest-cost hard drive manufacturers. WD is a very cost-conscious company, concludes Tee. Office Communications Server 2007, with its voice and conferencing features, will certainly help us drive costs down.
For More Information For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. Customers who are deaf or hard-ofhearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234 in the United States or (905) 568-9641 in Canada. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to: www.microsoft.com Microsoft Office System The Microsoft Office system is the business world s chosen environment for information work, providing the programs, servers, and services that help you succeed by transforming information into impact. For more information about the Microsoft Office system, go to: www.microsoft.com/office For more information about VADS Berhad products and services, call (603) 7712-8888 or visit the Web site at: www.vads.com For more information about Western Digital products and services, call (949) 672-7000 or visit the Web site at: www.westerndigital.com Software and Services Microsoft Office Microsoft Office Communications Server 2007 Microsoft Office Communicator 2007 Microsoft Office Communicator Mobile Microsoft Office Outlook 2007 Microsoft Server Product Portfolio Microsoft Exchange Server 2007 Hardware Dialogic DMG2030DTI Media Gateway Palm Treo smartphones HP DL380 server computers This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Document published October 2007