Strategic Review

Client Overview

ExcelSource were approached by a client, a global software and services company to the Telecommunications industry, to carry out a strategic review of the data centres in its global IT function.

Challenge

Our client’s organisation had grown rapidly globally to include some 30+ countries and believed their IT provision could benefit from consolidation. Their 11 data centres were singled out for potential cost saving opportunities. ExcelSource were asked to explore data centre consolidation and see if this could be carried out more cost effectively through the use of 3rd party providers.

Solution

ExcelSource carried out a cost evaluation that included a thorough review of internal data centre costs, as well as work with a number of suppliers to gain a comparable cost for co-location, managed IT infrastructure and fully outsourced IT infrastructure services. A business case was drawn up that compared three internal and 7 external scenarios in terms of NPV (Net Present Value). The project took two months to complete.

Benefit

The outcome of the evaluation was that when limiting the scope of the project to data centre consolidation, the benefits derived didn’t warrant the investment needed to deliver with a relatively small (£0.5m) saving over a 5 year period. However, when broadening the scope to an IT-wide review, an improved business case could be created. ExcelSource were subsequently contracted to deliver this improved business case.