Cisco Business Transformation Series SEGA Corporation CASE STUDY

CUSTOMER PROFILE

Customer: SEGA® Europe, Ltd. Background: SEGA Corporation is multinational video game developer based in Japan whose famous protagonists include Sonic the Hedgehog and the Total War franchise. After exiting the gaming console market in 2001 to focus on video games, SEGA needed to rethink its entire networking architecture to improve collaboration, eliminate redundancy and inefficiency, and lower costs. Region: London Industry: Entertainment Employees: 550 Business Issue: Network-based transformation of international development processes

HIGHLIGHTS Strategic Network and Collaboration Technology Helps Propel SEGA to the Top of Its Game Goal: ■■ Replace inadequate and cumbersome legacy network system with a new, Unleashing Sonic the Hedgehog’s power consoles were. The company began in streamlined architecture capable of to run faster than the speed of sound and Hawaii in 1940 as Standard Games, which delivering massive amounts of bandwidth, roll himself into a lethal blue ball in pursuit provided coin-operated amusements for sophisticated collaboration tools and the heightened security levels needed to of the evil Dr. Robotnik, are just some of American servicemen on military bases. secure SEGA’s position in the gaming the action-packed plot lines, stunning In 1983, the company, by then renamed industry and lay the foundation for visuals, and tactical challenges that have SEGA, released its first gaming console, future expansion. captivated millions of gamers worldwide the SG-1000. SEGA followed this with a Solution: and propelled SEGA Corporation into a top series of console platforms, including the ■■ Backbone based on Cisco Catalyst 6500 tier international video gaming company. Genesis, Saturn, and Dreamcast. Until Series switches, Unified Communications Manager, Unity Connection. WebEx, and the year 2000, SEGA ranked as the MeetingPlace Express for collaboration; Although video games power the business world’s No. 3 console seller, behind 5500 Adaptive Security solution to manage today, they were not always SEGA’s core the Sony PlayStation and Nintendo Wii. all voicemail, online meetings, video conferencing, and security for 200 business: for several decades, game developers across five European offices and Australia. Results: ■■ Reduced file transfer time from hours to minutes “ Cisco and Cisilion provided architectural and ■■ Doubled data throughput ■■ 80% reduction in time dedicated to technical expertise, knowledge of SEGA, and supporting and maintaining the network ■■ 60% cut in licensing costs and streamlining a ‘get it done’ approach.” networking vendors from 30 to five ■■ Freed IT and engineering staff to focus on – Stuart Wright, IT & Network Director, SEGA Europe higher-value work

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Eventually, however, growth prospects for MASTERING THE GAME The trend toward larger-scale, higher game consoles dimmed, leading to SEGA’s graphics and performance related games In an industry fueled by creativity and strategic decision in 2001 to exit the console as well as a wider diversity of game innovation, video game companies must business and shift its focus to developing platforms has made the technical and negotiate the fine line between giving software and game titles for third-party collaborative challenges even greater. creative latitude to their star developers platforms such as the Microsoft Xbox, It has pushed the average size of games while staying on track to meet strict Nintendo Wii, and Sony PlayStation. to more than 25 GB (see Figure 1) while development cycles and marketing dead- The decision proved to be a smart one. increasing the number of file transfers lines — as well as adhering to stringent Opportunities in video game development and game-building cycles needed during security standards and budget constraints. were just beginning to explode and by the development process. Moreover, game makers are entering the 2008, revenue for the industry reached business in record numbers, forcing $11.7 billion, according to the At SEGA, these challenges are com- established companies to continually Entertainment Software Association. pounded by the company’s global reach deliver faster, better, bug-free games. and its extreme production volumes. Poor coordination between teams or As part of its new strategy, SEGA Each of its titles under development technical delays can be costly, impacting consolidated operations to create SEGA involves multiple teams, including a both revenue and market share. Europe, and plans were laid to expand design team or partner company, a into Eastern Europe and other new quality-assurance testing team, a Timeliness is everything, acknowledges markets. Sonic the Hedgehog and other production team, and a platform partner Mark Nutt, senior producer at SEGA games made famous by SEGA were on such as Microsoft or Nintendo. Each Europe. “At SEGA, we develop many their way to going global, multilingual, of those teams is constantly moving high-visibility titles in which success is and “platform agnostic”. Today, the files between SEGA’s offices in Paris, tied to making the release date,” he said. London-based SEGA Europe, a division Munich, London, Madrid, Amsterdam, “Football Manager is one of our most of Japan’s SEGA Sammy Holdings, and Sydney. Each game can average popular titles, and it’s very important that develops some 40 game titles a year for between 100 to 200 file transfers across we release the new version of that game the international video game developer. the developmental lifecycle, accelerating just before the start of the new English SEGA consistently ranks among the top rapidly as the game gets closer to its Premier League season. Having a fast 12 video game publishers worldwide, release date (Figure 2) to work out any and secure network to ensure that with annual revenue in excess of $1.6 kinks and make last minute adjustments. product development teams can work billion. In Japan, SEGA holds the top collaboratively, without impediment, is spot among gaming software makers in imperative to our business.” revenue, topping Konami.

Figures 1 and 2: Growing File Sizes, Faster Turnaround

Product Development—File Transfers Product Development—File Size

150 25 GB

* Average development cycle:

ransfers** 50 Sequels can take one year ile Size T and some new titles up to F ile F three years ** Average le transfers— 0 100x-200x per product 250 MB 0 12 24 2005 2010 Time* (months) Year

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“We needed to build a new network and “ Online gaming is all about your network. Without [a] collaboration platform from the ground up.” high-quality kit, you haven’t got a business. Not only NEW NETWORK FOR A NEW ERA do we now have a superior network infrastructure, SEGA Europe started its transformation project in 2009, turning to Cisilion Limited to we’ve gone one better and set ourselves up for the design and build a new unified networking emerging opportunities that will keep the SEGA brand and collaboration platform from Cisco. A Cisco UK Gold Partner, Cisilion is a major at the forefront of the industry where it belongs.” provider of converged network solutions in – Stuart Wright, IT & Network Director, SEGA Europe the United Kingdom. The initiative consolidated SEGA Europe’s architecture, eliminating more than half of the company’s network devices as it standardized on the Cisco Catalyst 6500 OVERCOMING LIMITS Over time, these impediments grew as the Series switch, which formed the backbone company’s 200 developers tried to collaborate of the new high-bandwidth network. By 2008 — seven years after its strategy and share large game build files over a shift — SEGA found itself at another cross- limited network infrastructure. Rich graphics Integral to the project was the roll out of a roads. Years of robust growth had left the capabilities, a must for platforms such as unified communications system relying on game maker with a patchwork of networks Blu-ray and 3-D play, had swelled with game Cisco Unified Communications Manager and systems that were driving up costs and file sizes up to 25 GB per game. Furthermore, and Unity Connection technology, and a erecting barriers to precisely the kind of titles needed to be developed in multiple sophisticated collaboration platform built collaboration and rapid workflows it needed versions to accommodate various platforms, around WebEx and MeetingPlace Express to succeed in a fast-evolving marketplace. languages, and regions. With all this size to support online meetings and on-demand Bandwidth limitations got in the way of and complexity, transferring game build files videoconferencing. To address security file transfers, conferencing options were could take up to a day, disrupting Europe’s concerns, SEGA selected Cisco’s 5500 limited, and supporting multiple networks tight design schedule. Security was also a Adaptive Security solution creating a ‘self was time-consuming and expensive. concern as piracy has been a challenge for defending’ network architecture. the industry. “We had been growing organically without Implementing a unified architecture was a a lot of centralized planning and strategic The patchwork of networks was also forward-thinking break with precedent, and thinking about our business infrastructure,” needlessly expensive, requiring too many one calculated to change SEGA’s IT network said Stuart Wright, IT & Networks Director vendors and licenses, too much power from a liability to an asset. “Traditionally, for SEGA Europe. “Our legacy environment consumption, and too much time spent SEGA viewed its information technology was becoming increasingly fragmented and by SEGA’s IT and engineering staff putting system as a support function rather than as eventually bottlenecks developed across out fires and apply temporary fixes. “What an enabler,” Wright said. “I saw two factors our sites that created latency problems we really needed was a more strategic, as critical in changing this perception: when we transmitted files.” forward-looking view of how technology having a staged implementation and could support our business,” says Wright. choosing the right partners for the job.”

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Taking this approach, Cisilion designed a three-stage implementation process that would give users adequate time to acclimate “ Traditionally, SEGA viewed IT as a support function to the new options and changes: rather than as an enabler. I saw two factors as critical Phase 1 – Network Re-Architecture: in changing this perception: having a staged A unified, resilient and high performing network architecture was implemented. implementation and choosing the right partners for the job.” Phase 2 – Intrusion Prevention and Security Solutions: Security solutions – Stuart Wright, IT & Network Director, SEGA Europe were then added to the network architecture to protect against piracy and malicious cyber-attacks.

Phase 3 –Collaboration Productivity BUSINESS TRANSFORMATION from developers to QA testers was taking With a robust and secure network hours and now only takes minutes,” said Solutions: The benefits of the new Cisco network in place, SEGA added collaboration Kelvin Pritchard, a Cisilion director. “This and collaboration technologies have been productivity solutions such as Cisco’s is a critical improvement, especially when nothing short of transformational, removing WebEx online videoconferencing and deadlines approach and SEGA needs to bottlenecks, cutting costs, and accelerating MeetingPlace Express tools. make extremely fast changes to games.” collaboration across multiple business and game development teams. SEGA considers the timetable and project Likewise, workstation speeds have doubled a complete success. “Cisco and Cisilion from 100MB per second to 200MB per With more network capacity and advanced provided architectural and technical second; and Cisco 5500 Adaptive Security router technology, SEGA has reduced the expertise, knowledge of SEGA, and a has delivered integrated firewall, intrusion, average file transfer time from several hours ‘get it done approach,’” Wright says. and content security. to minutes (Figure 3). “Transmitting files

Also boosting efficiency and productivity is the addition of a range of new collaboration Figure 3: Figure 4: options. SEGA’s product development team Average File Transfer Latency Network Device Consolidation can now select the best communications medium for the moment, including e-mail 100 Several for less pressing queries to desktop video- conferencing for complicated, real-time Hours 80 66% resolution of issues. For example, QA testers ime T 60 Reduction now use video conferencing technology to show game designers where bugs are

ransfer 40 T cropping up, helping accelerate fix turn- ile F Several Number of Devices 20 around time. “Everyone is connected now,” Minutes says Nutt. “We’re really benefiting from higher 0 Legacy Cisco Legacy Cisco levels of participation and collaboration from all our teams and stakeholders.”

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Figure 5: Figure 6: IT Network Support Personnel Network Power Consumption

5 100 50% 4 80 Reduction 78% 3 Reduction 60

2 40 Number of FTEs 1 20 wer Consumption (indexed) Po 0 0 Legacy Cisco Legacy Cisco

Also, by simplifying and consolidating its Eliminating redundancy and inefficiency advantage of high growth areas such as network, SEGA has seen IT costs drop has also brought substantial savings in online gaming and social media gaming. dramatically. Since the Cisco rollout, more power usage: consumption has dropped In fact, explains Wright, “Online gaming is than 60 percent of the company’s network 50 percent (See Figure 6), and SEGA all about your network, without [a] high- devices have been eliminated (see Figure 4). expects to reap an additional 50 percent quality kit, you haven’t got a business.” savings by 2011. Furthermore, the amount of time needed This would not have been possible with to support and maintain the network has As SEGA further taps the potential of its the previous system, Wright acknowledges. dropped by nearly 80 percent (see Figure new network, it looks forward to extending “Not only do we now have a superior 5), freeing SEGA’s IT staff and engineers the workstation throughput from 200 MB network infrastructure, we’ve gone one from putting out fires to working on to 1 GB. It also intends to use the system better and set ourselves up for the higher-value projects. The number of as the foundation for a vigorous expansion emerging opportunities that will keep networking vendors has been slashed into new markets, beginning with Eastern the SEGA brand at the forefront of the from 30 to five — an 83 percent reduction. Europe. SEGA is also ready to take industry — where it belongs.”

“At SEGA, we develop many high-visibility titles in which success is tied to making the release date. Football Manager is one of our most popular titles, and it’s very important that we release the new version of that game just before the start of the new English Premier League season. Having a fast and secure network to ensure that product development teams can work collaboratively, without impediment, is imperative to our business.” – Stuart Wright, IT & Network Director, SEGA Europe

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