Michelin Accelerates Transformation Into a Data-Driven Services Powerhouse with Confluent

Rhea-AI Summary

Confluent, Inc. (NASDAQ: CFLT) announced that Michelin leveraged Confluent Cloud to enhance its global inventory management system. The partnership resulted in a 35% reduction in operational costs and accelerated time to market by 8-9 months. Michelin transitioned from managing self-hosted Apache Kafka operations to a fully managed service, addressing scalability challenges and enhancing real-time data capabilities. Confluent's 99.99% SLA ensures high availability for Michelin’s critical data streams, allowing for greater efficiency and a high ROI on projects.

Positive

• 35% reduction in operational costs for Michelin using Confluent Cloud.
• Achieved faster time to market by 8-9 months through enhanced data streaming capabilities.
• Confluent’s 99.99% SLA provides reliability and peace of mind for Michelin's operations.

Negative

• None.

Using Confluent Cloud, Michelin streamlined Apache Kafka^® operations to achieve a 35% reduction in operating costs and eight-to-nine months faster time to market

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- Confluent, Inc. (NASDAQ: CFLT), the data streaming pioneer, today announced that Michelin, the leading mobility company, is using Confluent to power its global inventory management system. By leveraging Confluent Cloud, Michelin was able to quickly scale its real-time inventory system to meet global demand while cutting operational costs by 35%. This is a major step in Michelin’s evolution from a manufacturer that makes and sells tires to a leader of data-driven services and customer experiences.

“Confluent plays an integral role in accelerating our journey to becoming a data-first and digital business,” said Yves Caseau, Group Chief Digital and Information Officer, Michelin. “Today’s customers demand rich, personalized experiences, and business operations must be optimized to stay ahead of the competition. We use Confluent Cloud as an essential piece of our data infrastructure to unlock data and stream it in real time, with use cases like customer 360, e-commerce, microservices, and more.”

Michelin’s Challenges with Self-Managed Apache Kafka

As one of the world’s largest tire manufacturers, Michelin’s teams require constant access to up-to-date information. For example, accurate status updates on raw and semi-finished materials are needed to ensure success across global supply chains and logistics operations. And, Michelin’s mobility solutions like predictive insights for tire replacements and route recommendations for fuel optimization are dependent on frequent updates. To power its business with real-time data, Michelin initially turned to Kafka’s open source data streaming platform.

Kafka provided Michelin with a real-time view into its business with the ability to collect, store, and process data as continuous streams. This was a significant improvement from legacy applications that delivered daily or hourly updates using batch processing. However, as they expanded Kafka’s footprint across the business, Michelin’s teams found Kafka increasingly difficult to scale and manage. A full-time team was needed to babysit Kafka clusters and maintain its complex, distributed infrastructure, causing both costs and risks to rise. Also, the open source technology did not provide a clear path to the cloud, which held Michelin back from a company mandate to transition off of monolithic, on-premises systems.

Finding Cloud-Native Agility with Confluent

“Given today’s economic pressures, many businesses are faced with the challenge of cutting costs while also keeping ahead of the competition and customer expectations,” said Erica Schultz, President of Field Operations, Confluent. “We’re proud to help companies like Michelin achieve success on both fronts. With a truly cloud-native data streaming platform that goes above and beyond Apache Kafka, we help offload the costs and risks of self-managing Kafka while also helping drive real-time, data-driven decisions and operations.”

With Confluent’s fully managed Kafka service, Michelin addressed the challenges of Kafka operations and accelerated their journey to the cloud. They built a centralized data streaming hub with Confluent Cloud on Microsoft Azure, which helped:

• Reduce costs – Michelin estimates a 35% savings with Confluent compared to on-premises operations, thanks to the cloud-native platform that greatly reduces the operational issues of self-managed Kafka.
• Achieve faster time to market – Confluent helped Michelin save an estimated eight to nine months of time to market due to Confluent’s millions of hours of experience running Kafka in production in the cloud for customers.
• Improve uptime – With Confluent’s 99.99% SLA, the Michelin team can offload operations and have peace of mind that mission-critical data streaming workloads in the cloud are resilient and highly available.

Michelin expects widespread adoption of data in motion across a number of new use cases as the business continues to experience a high ROI on Confluent projects.

Additional Resources

• For a deeper look into Michelin’s data transformation, read its full case study here: https://www.confluent.io/customers/michelin/
• Read the blog for more details on Michelin’s story: https://www.confluent.io/blog/how-michelin-cut-kafka-costs-by-using-confluent-cloud/
• Hear directly from Michelin in this video interview: https://youtu.be/WM3QtyNWmoI
• See how Confluent is helping its other customers transform their businesses: https://www.confluent.io/customers/
• Learn how Confluent can be 10x better than Kafka for businesses: https://www.confluent.io/10x-apache-kafka/

About Confluent

Confluent is the data streaming platform that is pioneering a fundamentally new category of data infrastructure that sets data in motion. Confluent’s cloud-native offering is the foundational platform for data in motion—designed to be the intelligent connective tissue enabling real-time data, from multiple sources, to constantly stream across the organization. With Confluent, organizations can meet the new business imperative of delivering rich, digital front-end customer experiences and transitioning to sophisticated, real-time, software-driven backend operations. To learn more, please visit www.confluent.io.

Confluent and associated marks are trademarks or registered trademarks of Confluent, Inc.

Apache^® and Apache Kafka^® are either registered trademarks or trademarks of the Apache Software Foundation in the United States and/or other countries. No endorsement by the Apache Software Foundation is implied by the use of these marks. All other trademarks are the property of their respective owners.

This press release contains forward-looking statements. The words “believe,” “may,” “will,” “ahead,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “seek,” “plan,” “project,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Confluent assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230214005080/en/

Lyn Eyad

pr@confluent.io

Source: Confluent, Inc.

FAQ

What operational benefits did Michelin achieve using Confluent Cloud?

Michelin achieved a 35% reduction in operational costs and faster time to market by 8-9 months.

How has Confluent impacted Michelin's data management?

Confluent Cloud allowed Michelin to offload management issues of self-hosted Kafka, enhancing scalability and real-time capabilities.

What is the significance of Confluent's 99.99% SLA for Michelin?

The 99.99% SLA ensures high availability and reliability for Michelin's critical data streaming operations.

What challenges did Michelin face before using Confluent Cloud?

Michelin found Apache Kafka difficult to scale and manage, requiring a full-time team to maintain operations.