Kodak Polychrome Graphics Partners with VeriCenter for SAP Platform

VeriCenter, Inc. (www.vericenter.com) announced today that Kodak Polychrome Graphics (www.kpgraphics.com) has outsourced its U.S. - based managed services and enterprise hosting requirements to VeriCenter as a cornerstone of KPG's replacement of 40 legacy systems with a single SAP platform.

"The results of using VeriCenter have been outstanding. Kodak Polychrome Graphics has experienced stepped-up service levels, zero outages, and speed-to-implementation, as SAP drives our business for planning, manufacturing, distribution and financials," Daignault said.

KPG expects to realize a $12.5 million return on investment in this solution over four years.

Since KPG's inception, a large global IT services company had managed KPG's applications development and data center hosting. Then, in 2002, KPG made a strategic decision to deploy SAP and in-source certain IT functions.

"The whole thing became a ‘can of worms' and forced us to reconsider our initiatives," said Sandra Daignault, head of IT for the Americas, Kodak Polychrome Graphics. "What we outsourced and what we kept in-house required realignment with overall business goals."

After analyses by outsourcing experts TPI, Inc. and industry analyst Gartner Inc. in 2004, KPG decided to change its managed services and enterprise hosting provider.

VeriCenter now administers the data centers and help desks for KPG, and hosts the SAP system, while the company retains LAN administration, application development and desk-side support. The SAP system is used by KPG facilities on four continents, including North America, Asia, Europe, and South America.

Norwalk, Connecticut-based KPG has 2,500+ employees worldwide and revenues of $1.7 billion in 2004. Eastman Kodak Co. announced earlier this month the company is acquiring the other 50 percent stake in the jointly owned commercial graphic arts business from Sun Chemical Corporation.

The acquisition expands Kodak's global distribution network for digital printing systems and places a strategic emphasis on filmless technology -- from digital cameras and online photofinishing to photo kiosks and minilabs, X-ray systems and commercial printers.

"Kodak Polychrome Graphics is among the leading companies recognizing the value of predictable cost, reliable service, and utility-like access all from one source," said Gray Hall, VeriCenter president and CEO.

Recent Saugatuck Technology research (April 2004) indicates that nearly one-fifth of firms in the U.S. are already taking advantage of some form of utility computing, mostly in the form of "pay as you go" outsourced IT functions, or outsourced business processes and applications that ride on top of the IT infrastructure.