| Client: | NYSE major Investment Bank |
| Category: | IT Infrastructure (hardware) |
| Scope: | Enterprise servers covering major vendors for global spend |
| Savings: | 34+% CAPEX budget |
Background
Major NYSE investment bank, with diverse infrastructure hardware portfolio (dictated by legacy applications, and business application requirements set by their customers). The firm had mounting problems with variety of hardware requirements, in addition to dealing with “private” cloud (bandwidth and storage) development.
Goal
Work with all major internal (revenue generating) stakeholders to standardize specification, and to rationalize and consolidate assets. Identify and realize immediate savings, and develop a road map for intermediate and long-term savings in line with corporate strategy and goals.
Results
Significant savings (34%) was realized by centralizing a portion of the US (server) operations. The approved budget was reduced by 40%, with no compromise on performance, by re-specification and migration to a new generation of hardware with 2x -3x improved performance (compression ratio 2:1 and 3:1) at only 10% additional cost. Furthermore, volume discounts of 20% were negotiated, by standardizing the specifications and aggregating the global spend.
Approach (simplified)
Significant results achieved through a customized sourcing process:
- Phase I: Spend & Demand (volume, specs and requirement) Analysis
- Phase II: Review: Contracts, “As-Is” processes, and Demand Drivers
- Phase III: Benchmark analysis, scenario and risk analysis
- Phase IV: Strategy and Operational Plan Development
- Phase V: Strategic Sourcing and Negotiation
- Phase VI: Contract Closure and Migration