They say black never goes out of style. It’s something the team at Nuuly, URBN’s digital rental and resale business, know well. And it’s not just true of the company’s garments but their gadgets, too.

“I was having an offhand conversation with a UX designer recently,” Rebecca Sandercock, Nuuly’s strategy and insights manager, recalled in a recent interview from the company’s sunny, South Philly headquarters. “The designer was talking about how we had chosen dark mode for a number of interfaces internally because it actually saves so much on electrical output. They had the data to back that decision up, but more importantly, it’s just the kind of thing everyone is thinking about all the time here.”

Of course most every business is thinking about sustainability in some way these days. What makes Nuuly stand out is how quickly it can act, thanks in large part to the technology platform that’s made the entire enterprise possible.

“We’re kind of sustainable by our very nature,” Kim Gallagher, Nuuly’s director of marketing and customer success, said.

While she meant the rental and resale business, which helps customers buy fewer clothes and sees Nuuly items worn many times by many people—Gallagher could just as well have been referring to the sustainability inherent in, and enabled by, cloud computing.

There are the obvious, and oft-cited, advantages, such as how centralized data centers can operate more efficiently (some have been carbon neutral since the beginning). Yet there are even more subtle yet substantial benefits. In a marketplace and climate that are both changing faster and faster, sustainability requires a certain amount of agility. Such adaptability and scalability are intrinsic to the cloud technology that threads its way throughout Nuuly.

It turns out that being cloud native also means being sustainability native—as well as growth native. Since its 2019 launch, Nuuly’s net sales have risen roughly 6x over the first three fiscal years.

Cloud fits any situation

When URBN was developing Nuuly—launching in just 10 months—it chose to create everything from scratch on Google Cloud. Despite being part of a larger organization with decades of history and expertise, the company recognized the limitations presented by legacy systems and, more importantly, the necessity of building a wholly new platform that could be fully responsive.

The company has to react not only to new fashion trends but, crucially, the changing behaviors of customers. And not just their evolving tastes but also shopping habits, delivery preferences, unexpected customer service requests—is this a pattern, or a stain?—and social media chatter.

The pressure for a successful launch was high. The URBN portfolio, which also includes Urban Outfitters, Anthropologie, and Free People, had to keep evolving to satisfy a new generation of shopper who exists in an increasingly crowded and demanding digital marketplace.

The cloud’s responsiveness has thus proven its worth in creating a financially sustainable business as well as an environmentally sustainable one. Those even go hand in hand, as Gallagher points out: “Every customer who keeps renting is one who isn’t buying more occasion-specific clothes that go unworn most of the time.”

Dr. Alan Rosenwinkel, director of data science at URBN, had heard from his team about one garment that has become an emblem for the power of the platform. “It had been rented 25 different times before someone loved it enough to buy it and keep it forever,” he explained. (It’s also an emblem of the power of the cloud, that they would have the data awareness to track a single item so closely.)

It’s a new way of shopping made possible by a new way of computing. As one writer for Business Insider cheered, Nuuly “completely cured my addiction to fast-fashion.”

It makes for a healthy business, too. Sales for fiscal year 2019 exceeded $8 million and surpassed $24 million in 2020—one of the few URBN segments to grow during a tough year for fashion—and reached $47 million in 2021. The subscriber base had grown to 51,000 at the end of January.

Agility drives sustainability drives agility

For digital retailers to achieve such customer enthusiasm often relies as much on how the clothes get there as how they look. And those deliveries turn out to be a prime example of where Nuuly’s sustainability and technology meet.

For now, all shipping is handled through a state-of-the-art distribution center in Bucks County on the Philadelphia outskirts. Garments are shipped six-at-a-time, in fully reusable packaging, using ground transportation to keep the carbon footprint to a minimum. In certain limited geographic areas, shipments were sometimes taking longer than the two to five days most members would find acceptable.

“If we were an older company or weren’t set up from a technology perspective to be agile, we might have just said, ‘All right, we’re going to just go to three-day shipping for everyone,’” Rosenwinkel said. “That would drive up the cost, and the environmental impact. But we were able to be more strategic and more targeted about it.”

By regularly analyzing customer sentiment and retention data through BigQuery and Cloud Composer, and tying those to historical shipping times, Nuuly has been able to understand how shipping speed impacts its customers. Using a custom-built order management system, deliveries can be automatically adjusted to arrive more quickly, particularly when certain regions or days of the week are proving difficult to reach customers in time. These accelerated deliveries, like all Nuuly shipments, are made via UPS’s Carbon Offset program.

“Because we have the data, and the platforms to analyze it all,” Rosenwinkel said, “we’re delivering faster with the bare minimum impact on cost and emissions.”

It’s just one example of how modern retailers must juggle so many demands from consumers, workers, suppliers, and even regulators. Adding sustainability to that mix could be seen as a burden, but Nuuly shows how the right technology can lead to a holistic approach that makes all those interests work together even better.

And it allows for more opportunities and more kinds of sustainability, reaching from the designer’s atelier to the customer’s doorstep.

Sustainable details at every level

Back at the distribution center, workers can experience sustainability in a different way, as data is leveraged to enhance their well-being.

All workers are equipped with customized Android devices that help guide order tracking and fulfillment, plus cleaning, repairs, and reselling of garments as needs change throughout their lifecycle. Yet the insights go even deeper. The data science team has closely analyzed routes and repetitive motions for workers to keep their strenuous jobs as low-impact as the company’s broader environmental footprint.

“Through machine learning, we estimate we’ll be able to save our workers over 300,000 miles of steps over a five year period,” Rosenwinkel said. That’s enough walking to circumnavigate the globe 12.5 times.

The company has also applied ingenuity to one of the most notorious aspects of digital retail: packaging. Made from 100% post-consumer recycled materials like plastic bottles, Nuuly’s reusable carriers require no disposable bags or hangers to send goods back and forth. And once the packages have reached their end of life, the team is working with designers on ways to repurpose them into items that can then be offered for rental or sale on Nuuly.

“We’re really looking at the circular economy from every angle,” Gallagher said. “It’s built into the business.”

That includes not just the research the team did on-site at the Dry Cleaning & Laundry Institute—”We went to laundry school,” Gallagher jokes—but the digital tools that take those lessons even further. The team is always looking for ways to optimize fabric care, both to cut down on chemicals and water usage and extend the life of a garment. By analyzing the lifespan of every item, Nuuly not only makes them last longer but can identify problems faster. Employees even use custom apps to mark stains and damage so repair teams can more easily identify and fix the issues.

With its meticulous inventory tracking, Nuuly can even take marginal items, like a white gown or jeans with a small stain, and turn them into a custom dye job or an upcycling opportunity with a partner. These reworked items are then inserted back into the Nuuly Rent inventory as part of a growing collection of one-of-a-kind pieces, called Re_Nuuly.

Other services have launched quickly and easily thanks to the company’s cloud-enabled backend. Wanting to encourage more community and more reuse, the company created Nuuly Thrift. Debuting last fall after just a year in development, the team built everything from new interfaces to an evolved point of sale system.

It’s enabled Nuuly to offer many garments for rent or sale simultaneously, with “truly real-time inventories,” Rosenwinkel said. “So when it’s gone on one site, it shows up as gone on every site—no more surprises.”

Except for the good kind.

“I like to think we’re helping our customers think about ownership in a completely new way,” Sandercock said. “Once they run out of a use for a garment, they can offer it back, and sell it, and someone else will get to enjoy it and give it a new life. And Nuuly, we get to keep it in the community and keep it in the ecosystem, which is really cool—we’re taking extended responsibility over what happens to the clothing we create.”

Start your 2022 New Year’s resolutions by learning at no cost how to use Google Cloud with the following training opportunities:

30 day access to Google Cloud Skills Boost 

Register by January 31, 2022 and claim 30 days free access to Google Cloud Skills Boost to complete the Getting Started with Google Cloud learning path. 

Google Cloud Skills Boost is the definitive destination for skills development where you can personalize learning paths, track progress, and validate your newly-earned expertise with skill badges. 

The Getting Started with Google Cloud learning path will give you the opportunity to earn three skill badges after you complete hands-on labs and courses designed for aspiring cloud engineers and architects. It covers the fundamentals of Google Cloud including core infrastructure, big data and ML, writing gcloud commands, using Cloud Shell, deploying virtual machines, and running containerized applications on GKE.

Cloud OnBoard: half day training on getting started with Google Cloud fundamentals

Attend the Getting Started Cloud OnBoard on January 20 for a comprehensive Google Cloud orientation. Google Cloud experts will show you how to execute your compute, available storage options, how to secure your data, and available Google Cloud managed services. 

Cloud Study Jam: expert-guided hands-on lab

Google Cloud experts will walk you through a hands-on lab included in Google Cloud Skill Boost’s Getting Started with Google Cloud learning path when you join our Cloud Study Jam on January 27. Google Cloud experts will also answer questions live via chat during this event.

Cloud migration is top of mind for most companies with SAP applications. While the advantages of the cloud for SAP customers is generally understood, the move itself can be complicated and disruptive. So what actually are the business benefits and cost savings? How long will it take to recoup such an investment? Two recently published reports from Forrester and IDC can help to quantify the benefits and ROI. 

Getting answers to the million-dollar questions
Forrester and IDC bring different methodologies to the table; they asked somewhat different questions and used different models to calculate their financial KPIs. This allows you to get two different points of view on the same basic questions about value, risk, and ROI.

As it turns out, both reports found that customers who migrate their SAP environments to Google Cloud see an impressive return on their investments. From uptime and infrastructure to efficiency and productivity—both Forrester and IDC identified major benefits to companies that have made the move to Google Cloud.

Let’s walk through some of the highlights from both reports.

Forrester’s TEI model spotlights the power of uptime improvements
Based on in-depth conversations and quantitative research with six companies, here are the key findings from the Forrester Total Economic Impact (TEI) study for companies running SAP systems on Google Cloud: 

• Direct cost savings. When they compare cloud subscription and related costs to what they spent on legacy systems and infrastructure, most IT leaders expect a cloud migration to deliver up-front savings. But according to Forrester, the companies interviewed reported average savings of more than $3 million a year, including eliminated hardware purchases, right-sized software licensing, staffing efficiencies, and other operational cost savings.

• Dramatically improved uptime. Customers told Forrester that migrating SAP to Google Cloud pretty much eliminates downtime—planned or unplanned—as a significant IT concern. According to Forrester, companies realized an average of $1.5 million in savings per year by avoiding the revenue and user productivity losses that had once been a fact of life for their IT teams.
• Significant efficiency gains. Because Google Cloud works to mitigate performance bottlenecks, infrastructure mishaps, network delays and more, the companies Forrester interviewed reported a yearly average of $500,000 in productivity gains for SAP business users and frontline workers.

Companies also reported an annual average of $500,000 in additional IT efficiency gains after migrating SAP to Google Cloud. This quantifies what happens when IT practitioners no longer have to deal with the bottlenecks that come with legacy systems, and are able to spend their time on tasks that actually build value and help the business. Based on the Forrester analysis, the companies interviewed could expect average three-year net benefits of about $15.4 million.

“We benefit from any technical innovation in the infrastructure area because Google Cloud is doing that for us,” one customer told Forrester. “So, whenever there’s new hardware available or new processes or whatever, I don’t have to run the specific project to migrate from A to B.” 

IDC finds that good things happen when SAP downtime is reduced 
The IDC report highlights four areas where Google Cloud generates the most value for customers:

1. Cutting infrastructure costs. According to IDC, customers running SAP on Google Cloud spent 31% less on infrastructure each year, or an average of $233,000 less per company. The ability to scale SAP environments dynamically and to keep them right-sized was a major factor; so were the advantages of automated infrastructure monitoring and savings on software licenses once these companies could stop overprovisioning.

2. Giving a team better things to do. IDC found that the infrastructure, database, and security teams of the companies they interviewed reduced the time they need to maintain and manage SAP environments by an average of 66% per year, for a savings of $443,000, per company. As a result, these companies got the equivalent of a major staff expansion from their SAP migrations—giving them both the staff time and the expertise to focus on far more valuable activities.

3. Limiting unplanned downtime. These companies reported to IDC an average 98% reduction in unplanned downtime. Migrating SAP to Google Cloud significantly reduces the threat of downtime and saves the business an average of nearly $770,000 per year in lost revenue and user productivity. For some firms, the downtime savings topped $1 million per year.

4. Making users more productive. The companies interviewed told IDC that by avoiding downtime and disruptions associated with upgrade and maintenance tasks for their legacy SAP systems, they saved an average of $363,000 annually in user productivity. But there’s an even more interesting under-the-hood stat contributing to these gains: These companies reduced the time required to deploy new SAP compute and storage resources from an average of 8.8 days to 1 hour.

When IDC added up these and other savings associated with running SAP on Google Cloud, it found an average three-year savings of more than $3.5 million and a five-month payback period. 

“We acquired another company, so basically overnight we needed to be able to deal with that increase,” said one customer IDC spoke with. “We doubled our footprint overnight, and we had to take on hundreds of additional employees. We needed a platform that we could easily scale up if we required, and that’s the benefit of running SAP on Google Cloud for us.” 

Explore the reports
There is a lot to think about when considering a move of SAP systems to the cloud. The cloud has many advantages, but migration can seem complicated and tricky; we appreciate that you are looking to understand the full picture. These papers are a great place to start. 

Download the reports—Forrester’s “Total Economic Impact of SAP on Google Cloud” and IDC’s “Business Value of SAP for Google Cloud Environments.” Then, get in touch.