How a global retailer eliminated costly POS transaction failures

Tata Communications IZO^TM+ Multi Cloud Connect is a cutting-edge, software-defined interconnect-as-a-service solution meticulously designed to streamline multi-cloud connectivity. It empowers enterprises to establish secure and seamless connections across their diverse applications, data centres, branches, and various cloud environments, all managed through a unified “single pane of glass.”

This case study focuses on reducing cloud latency from global sites and builds on our previous success in solving Azure latency issues between regions. It’s part of a series showcasing real-world customer transformations through our solutions.

The pervasive impact of cloud latency

As many in the industry understand, cloud latency is not solely a concern for inter- or intra-cloud communication. Its pervasive impact extends significantly to the performance of applications when accessed by multiple sites, users, and applications attempting to connect to the cloud. This delay, inherent in network communication, directly influences the responsiveness and reliability of cloud-based services.

For businesses relying on real-time data processing, such as Point-of-Sale (PoS) transactions, high latency can lead to failed operations, frustrated users, and ultimately, lost revenue. Factors like geographical distance to the cloud data centre, network congestion, inefficient routing paths, and protocol overhead all contribute to this critical performance bottleneck.

The customer’s challenge: Global PoS transactions are hindered by latency

This critical scenario was precisely what our customer, a prominent global retail company, was grappling with. Their operational model relied on a centralised database hosted at the Microsoft Azure UAE North location, which served as the backbone for all their global PoS transactions. Multiple retail stores, situated across various international locations, constantly accessed this single database to initiate and fulfil customer transactions.

However, the customer’s original setup utilised the public internet for these critical connections. This reliance on an unmanaged, best-effort network resulted in significant cloud latency. The delays were so pronounced that transactions frequently failed, creating a direct negative impact on their business operations and, crucially, on the end-customer experience at each retail endpoint. The inherent unpredictability and high Azure latency over the public internet between their global stores and the centralised Azure database were severely hindering their ability to conduct business efficiently.

Also Read: Seamless OMS integration for fintech firm via IZO™+ Multi Cloud Connect.

Tata Communications solution: End-to-end committed latency

When the retail customer approached Tata Communications, our solution experts quickly identified the core problem and proposed a comprehensive architectural overhaul. The solution revolved around the strategic implementation of IZO^TM+ Multi Cloud Connect nodes at each of the customer’s key store regions globally. These nodes were then seamlessly “strung together” by Tata Communications’ robust MPLS backbone. This private, high-performance network was then extended directly to the Microsoft Azure UAE North cloud location, establishing an end-to-end committed latency pathway.

To facilitate this, Virtual Network Function (VNF) devices – specifically Cisco 8Kv – were hosted directly at the IZO^TM+ Multi Cloud Connect nodes in each of the major store regions, including the USA, UK, Singapore, and Australia. These VNF devices were meticulously configured with the necessary internet and MPLS ports to ensure optimal connectivity. Subsequently, local peering or site-to-site VPN connections were established with these VNF devices for individual stores within each respective region. This meticulous setup effectively onboarded each store onto the Tata Communications MPLS network, creating a secure, reliable, and low-latency pathway directly to their centralised Azure database.

Transformative benefits: Performance and scalability

The implementation of this solution brought about profound and immediate benefits for the customer:

• Dramatic latency improvement: The most impactful outcome was an astounding 90% improvement in cloud latency for the customer’s PoS transactions. This significant reduction in delay directly translated into successful transactions, a smoother checkout process, and a vastly improved experience for their end customers at every store globally.
• Enhanced customer experience: By eliminating transaction failures and speeding up processing times, the solution directly contributed to higher customer satisfaction and operational efficiency at the retail front lines.
• Future-ready scalability: The new architecture is inherently scalable. The customer now possesses the flexibility to seamlessly open newer stores within existing regions or even expand their operations into entirely new geographical regions, without facing the same connectivity challenges. The IZO^TM+ Multi Cloud Connect framework provides a robust and adaptable foundation for future growth and expansion.
• Optimised multi-cloud connectivity: This use case vividly demonstrates how Tata Communications IZO^TM+ Multi Cloud Connect can solve critical cloud latency issues not just between clouds, but also from distributed on-premises locations to the cloud, reinforcing its role as a versatile solution for comprehensive multi-cloud connectivity.

As is evident, even while specifically solving for a critical use case like reducing latency from sites to the cloud, Tata Communications IZO^TM+ Multi Cloud Connect proves its adaptability across multiple complex business scenarios.

Also Read: Solving high Azure latency & costs with IZO™+ Multi Cloud Connect

Your next steps towards optimised cloud performance

If your organisation identifies with this scenario and is grappling with site-to-cloud latency issues or any other multi-cloud connectivity challenges, we encourage you to explore the transformative potential of Tata Communications IZO^TM+ Multi Cloud Connect.

1. Dive deeper into the capabilities of Tata Communications IZO^TM+ Multi Cloud Connect to understand how it can revolutionise your cloud strategy.
2. Schedule a consultation: Connect with our experts to discuss your specific setup and discover how we can help address your unique use cases. Start your trial today!