Scaling Retail Success with Cloud Migration and API Gateway Innovation

A leading retailer in the U.S. operates a vast network of stores in rural and suburban areas, providing everyday essentials at consistently low prices. The retailer’s existing on-premises IT infrastructure was outdated and starting to affect the performance of its coupons and cashback programs, which can impact up to 25% of its products.

It was quickly determined that retail cloud migration was required as part of a technology modernization program. However, an initial attempt by the retailer’s IT staff using an open-source Tyk API Gateway encountered significant availability challenges.

After reviewing a number of external providers, GlobalLogic, a Hitachi Group Company, was selected for its cloud migration for retail expertise and ability to enhance customer-facing digital services.

The subsequent cloud migration and technology and data modernization not only resolved the immediate technology challenges, but also better positioned the retailer for continuous growth and innovation.

Challenges

The retailer’s current on-premises platform became costly to operate, and performance issues caused downtime, impacting the customer experience. Key challenges included:

• Identifying and implementing a competitively priced solution.
• Selecting technology that could simultaneously meet rigorous performance benchmarks and stringent security compliance requirements.
• Completing a successful cloud migration and technology modernization project without affecting availability and performance.

Value Created

Recognizing the limitations of the open-source solution, GlobalLogic recommended and subsequently helped the client transition to the enterprise version of Tyk API Gateway. The technology migration demanded a scalable, cloud-native API gateway capable of supporting a microservices-based architecture and integrating complex, custom authentication business logic. GlobalLogic delivered a wide range of services, including:

• Robust deployment on Kubernetes: GlobalLogic deployed the Tyk Enterprise API gateway on Kubernetes, integrating an automation layer with industry-standard CI/CD practices.
• Advanced architecture utilization: A control plane and data plane architecture was leveraged to maximize the benefits of Tyk’s advanced features.
• Custom plugin development: Highly customizable plugins were written using in-process Golang and co-process .NET gRPC service, tailored to the client’s specific business logic.
• Streamlined API management: API configuration and deployments were efficiently managed through a Kubernetes operator.
• Best practices for installation: The entire installation process was conducted using Helm and GitOps, adhering to industry best practices.

Impact

The cloud migration and technology modernization project with GlobalLogic delivered significant and measurable technology improvements for the retailer including:

• Enhanced scalability and performance: The retailer gained a self-managed enterprise version of Tyk, providing unlimited access to APIs and requests so it can accommodate peak traffic and ensure high availability. This directly contributes to improved operational efficiency and scalability with modern, agile technology solutions.
• Accelerated development and operational efficiency: The Tyk API Gateway significantly enhanced developer efficiency, reducing pre-production cycle time. The use of pre-built GlobalLogic accelerators and customizable templates can boost speed and efficiency across the product development lifecycle.
• Cost and performance benefits: The seamless onboarding of other teams onto the Tyk platform delivered clear cost and performance benefits, directly addressing the retailer’s need for a competitively priced solution.
• Future-proof infrastructure: The API Gateway developed with GlobalLogic is now being implemented for other highly utilized APIs within the retailer’s business. This establishes a robust and adaptable foundation for sustained digital expansion, promoting technology modernization and agility, and enabling the retailer to scale rapidly and quickly adopt new technologies.
• Improved brand value: The consumption-based model accommodates peak traffic, reduced downtime, and reduced incremental cost associated with the previous on-premises platform, ultimately improving the user experience for customers.

The system now has the scalability to support 10 million customers and 20-30 million transactions (coupons and cashbacks) during the peak traffic on weekends.

This comprehensive technology and data modernization in retail solution exemplifies GlobalLogic’s commitment to Digital Business Transformation, helping clients adapt, evolve, and thrive in the digital landscape.

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