Supervalu overhauls technology infrastructure to support future growth
WAYNE, Pa. — Supervalu on Tuesday replaced its mainframe technology infrastructure as part of a strategic relationship with Sungard Availability Services, a provider of information availability through managed IT, cloud and recovery services. Together, the two companies will replace Supervalu's legacy mainframe IT environment under a transformation program aimed at reducing costs, improving flexibility and supporting Supervalu's strengths as a service provider to its network of more than 2,000 grocery stores.
"We plan to strengthen operations across our enterprise and add shareholder value by transforming our approach to technology," stated Chad Mead, chief technology officer at Supervalu. "Technology has become an essential factor in competing in this market, and our planning with Sungard AS suggests that we can build a more flexible and responsive mainframe infrastructure that drives growth. We were impressed by the track-record, creativity, and commitment Sungard AS demonstrated during our discussions."
Supervalu's new mainframe technology platform will offer cloud, back-up and other solutions and services to improve operations across the independent retailers it supports. This transition is a critical step in the company's plans to use technology smartly in order to compete in a demanding and competitive grocery environment.
The agreement upgrades the technology available to Supervalu without requiring an upfront investment, and it also offers Supervalu an opportunity to move many of its workloads into a secure, highly-scalable cloud platform. Under this agreement, Supervalu will be able to replace fixed-cost, in-house equipment with variable-cost services that Supervalu can scale as needed.
Supervalu can also offer a full suite of Sungard AS cloud and recovery services to its retailers on a "white-label" basis, part of the creativity Sungard AS brought to supporting Supervalu's strategic business direction.
"Supervalu is taking its business in exciting new directions, deepening the relationship it has with its grocery retailer clients by offering value-added services," commented Alfred Binford, EVP global sales and solutions at Sungard AS. "Supervalu recognized that it needed to get out of the business of running data centers so that it could concentrate on building out its new business strategy. We are delighted that Supervalu has chosen us as the service provider underpinning its shift in transforming its business."