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Molina Improves Operation With VCE Vblock and all-flash

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Molina Healthcare Inc. (MOH - Free Report) is upgrading its data center with VCE Vblock System 740s converged infrastructure and the added power of all-flash.

The upgrade is expected to enhance service deployment and the infrastructure supporting Molina’s high-volume call center. Concurrently, the all-flash will endow Molina with superior performance, density and economies of scale offered by cutting-edge flash storage media.

Vblock is the brand name that VCE uses for racks containing the components of its data center products. Its “converged infrastructure” enables customers to select preconfigured and integrated solutions with predictable units of power, weight, cooling, and geometry for data center planning purposes.

This VBlock installation with all-flash will benefit Molina by reducing 30% of engineering and operational efforts and right-sizing the capacity of each application with proper storage resources. This would also reduce the need of hardware maintenance by minimizing risk of ages and change control. The deployment time required in new infrastructure is expected to decrease drastically – from months to just hours. Increase in the speed of implementation would facilitate the fulfillment of key business objectives. These apart, it will free up 24% of critical data center space to accelerate new projects as well as lower response time to a minimum level, thereby ensuring consistency and high availability for all applications. All these will help the company save capital expenditure with an all-flash platform lifecycle of 7–10 years.

Molina has experienced rapid growth over last five years. The company is set to benefit from the all-flash Vblock Systems through critical agility and speed for the IT organization to promptly respond to the continuously rising business demands. Molina’s growing enrolment, which has resulted in to higher call volume, is its key growth driver. This call centre infrastructure is expected to be highly improved with the Vblock and all-flash. Consequently, total phone capacity will increase 350%, total member call center agents would grow 400%, and inbound simultaneous call capacity would be up 570%, once it starts operation.

Zacks Rank and Stocks to Consider

Currently, Molina carries a Zacks Rank #4 (Sell). Some better-ranked stocks from health, maintenance industry are Select Medical Holding Corporation (SEM - Free Report) , Wellcare Health Plans Inc and Centene Corp. (CNC - Free Report) . Both Select Medical and Wellcare Health sport a Zacks Rank #1 (Strong Buy), while Centene holds a Zacks Rank #2 (Buy).

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