Vingroup to run SAP systems on Google Cloud

The Vietnam conglomerate and EV maker is planning to migrate all its SAP systems to Google Cloud in a move that is expected to reap cost savings and improve product quality

Vietnam conglomerate Vingroup is planning to migrate its SAP systems in its on-premise datacentres to Google Cloud to boost its production capabilities and improve product and service quality.

The move will involve the company’s entire SAP footprint, including supply chain management, enterprise resource planning (ERP), finance management, human capital management (HCM) and manufacturing operations, among others.

Apart from generating significant operational cost savings over the next three to five years, the migration will enable Vingroup to operate in a “scalable and reliable cloud environment that delivers global access to its applications with maximum uptime and extremely low latency”, the company said.

“With Google Cloud’s leading cloud infrastructure and unified data platform, we can now access data-driven insights to better understand our customers’ needs, respond with personalised products and services, and create more compelling customer experiences,” said Le Thi Thu Thuy, chairperson of Vingroup.

“We also believe that this collaboration will help to enhance the security and efficiency of Vingroup’s business systems and applications across the world,” she added.

These includes systems used by the company’s electric vehicle (EV) arm, VinFast, which will be running SAP S/4 Hana on Google Cloud in the US, France, Germany and the Netherlands under the Rise with SAP offering.

And by connecting its SAP software systems to its data warehouses in Google Cloud, VinFast will also integrate and analyse petabytes of historical and real-time data from its manufacturing lines and its digital estate for EV sales and aftercare.

This will enable VinFast, which operates a 335-hectare digital automotive factory in Vietnam’s Hai Phong province, to improve decision-making, facilitate advanced automation to enhance production yield and explore new ways to assist customers throughout the vehicle ownership lifecycle.

Other Vingroup subsidiaries in other sectors such as hospitality are also expected to benefit from the move to Google Cloud.

For example, by analysing product, customer, and supply chain datasets, teams at both Vinpearl, a hotel and theme park operator, and VinHMS, a supplier of hotel management software, can create personalised vacation experiences for guests.

“With three decades of market leadership and sustainable development under its belt, Vingroup is now bringing its mission-critical SAP systems and data services onto Google Cloud to create a robust digital foundation for enhanced employee experiences, new competitive advantages, and future innovation and growth,” said Ruma Balasubramanian, managing director of Southeast Asia at Google Cloud.

“Our collaboration with Vingroup is a great example of the next-generation, enterprise-ready capabilities and unique value that Google Cloud can bring to local enterprises – including those with plans to transition to more environmentally sustainable business operations, as they accelerate their digital transformation strategies, elevate Vietnam’s position in the global value chain, and contribute to its dynamic economy.”

Besides Vingroup, Inchcape, Whirlpool and Vodafone have also made moves to run SAP systems on Google Cloud, which has made considerable investments in datacentres catered for SAP applications.

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