Case Study:
TF Value-Mart

By migrating to the AWS Cloud, TF Value-Mart saves 35 percent on infrastructure costs and ensures the business can securely scale to serve its expanding operations. TF Value-Mart operates hypermarkets across Malaysia. The company is using Savings Plans to control costs, Amazon EC2 R5 Instances to optimize performance, and AWS VPN for a secure connection to its 37 stores. 

Introduction

Started in 1990 by a local family, TF Value-Mart is a Malaysian hypermarket chain with 37 stores across the country. The company operates a chain of hypermarkets across states in Malaysia, offering fresh produce, grocery products and general merchandise to local consumers. Their business plan is to open at least three new stores a year and continue to attract shoppers with its low prices. 

The Challenge

In early 2016, a private equity firm took over the business and decided that TF Value-Mart’s Microsoft Excel spreadsheets, disparate software offerings, and private email accounts were no longer sustainable; The company needed to modernize its processes. As such, TF Value-Mart migrated to the cloud the following year to improve speed, security, and scalability in line with its business expansion.

Post-migration to AWS, they faced challenges related to managing its AWS infrastructure. Specifically, there was a lack of expertise needed to ensure high availability and optimal performance of the cloud environment. Additionally, insufficient resources meant that adequate support was not always available outside of normal office hours.

Risks and Impacts

  • Data breaches: Sensitive information could be exposed due to inadequate security measures in private email accounts and spreadsheets.
  • Operational inefficiencies: Disparate software systems hinder data sharing and collaboration, leading to errors and delays.
  • Scalability constraints: These outdated methods could not support the company’s rapid growth and expansion plans.
  • Service disruptions: The company was unable to guarantee consistent availability of its business services, especially during peak periods and festive seasons, potentially leading to customer dissatisfaction and lost revenue.

Solutions from G-AsiaPacific

TF Value-Mart began its cloud journey with another provider but transitioned to AWS in 2018, following the advice of its managed IT partner, G-AsiaPacific. Maintaining a lean IT team, TF Value-Mart depends on partners like G-AsiaPacific to implement solutions aligned with its business goals, particularly cost control, which is crucial for remaining competitive in the hypermarket sector. To optimize costs, TF Value-Mart utilizes AWS Saving Plans, achieving approximately 35% savings on its Amazon EC2 instance usage. Additionally, with branches spread across West Malaysia, TF Value-Mart uses AWS Virtual Private Network (VPN) to establish secure connections between its on-premises servers and the AWS Cloud, enabling convenient access to data and reports from any location.

G-AsiaPacific's Managed Services

Infrastructure Management: G-AsiaPacific provides complete management and oversight of TF Value-Mart’s AWS resources, ensuring the optimal performance and stability of its critical business systems, including:

      • Enterprise Resource Planning (ERP) system
      • Customer Relationship Management (CRM) system
      • E-commerce platform
      • Redeem System
      • Retail Management System (RMS)

    • Cost Optimization: GAP leverages its deep expertise in AWS cost optimization to identify and implement strategies that reduce TF Value-Mart’s cloud expenditure without compromising performance or functionality.

Support Services: G-AsiaPacific’s support services span the entire lifecycle of the solution:

    • Pre-Implementation: GAP conducted a thorough infrastructure audit, analyzed Service Level Agreement (SLA) requirements, and designed a tailored solution to meet TF Value-Mart’s specific needs.
    • Post-Implementation: GAP provides ongoing support, including continuous monitoring of the AWS environment, proactive incident management, and cost reviews conducted upon TF Value-Mart’s request.

Metrics for Success

    • Uptime: Consistently exceeded uptime requirements as defined in the Service Level Agreement (SLA), ensuring high availability for TF Value-Mart’s critical business systems.
    • Cost Optimization: Achieved a significant reduction in AWS costs through the implementation of proactive cost optimization strategies.
    • Customer Experience: Enhanced customer experience across various touchpoints, including online platforms and in-store systems, due to improved performance and reliability.

TCO analysis is conducted upon TF Value-Mart’s request to provide a comprehensive view of cloud expenditure and identify further cost optimization opportunities.

The Outcome

Since 2016, TF Value-Mart has doubled its number of stores from 18 to 36 and has increased its annual revenue by 60 percent. The AWS Cloud architecture has scaled seamlessly to support this growth, and the company has experienced no downtime. To maintain a smooth user experience for its employees, TF Value-Mart has upgraded most of its virtual machines to Amazon EC2 R5 Instances, which are memory optimized for accelerated performance. TF Value-Mart plans to launch at least three new stores a year and continues to build brand value in the eyes of consumers. 

Lessons Learned:

    • Cost Optimization: Regular cost reviews and optimization efforts are essential for maintaining sustainable AWS spending and maximizing the value of cloud investments.
    • Proactive Management: Proactive monitoring and alerting are critical for ensuring adherence to SLAs and preventing potential issues from impacting performance or user experience.
    • Preparedness for Peak Demand: Planning ahead and allocating resources strategically before peak seasons, such as holidays and promotional campaigns, ensures that support teams are well-prepared to handle increased demand and maintain service levels.

Testimonial

The G-AsiaPacific and AWS team were proactive and approached us to offer their support in improving the technology running our business

The G-AsiaPacific and AWS team were proactive and approached us to offer their support in improving the technology running our business. I was pleasantly surprised by the level of service offered. With AWS, we have a reliable cloud infrastructure that provides regular updates on our stores’ performance. Besides, we needed a robust cloud provider to expand with us in terms of scalability and security, which we found in AWS.

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