The incoming CFO needed to know how much was being spent on IT and where, with the goal of identifying technical projects to optimize operations and reduce overall spend. Most IT business services (e-mail, SharePoint) were outsourced to Application Service Providers (ASPs) and servers hosted with two separate providers. Analysis was to include:
- Telecommunications/Mobile service
- Wireless service
- Other third-party services (e.g. GoToMeeting, Salesforce, etc.)
Inventoried IT business services and created a report providing spending breakdown and recommendations:
- Introduced IT governance process to track users, licenses, and spending and outsourced support reducing manpower needs to 20 hrs/wk
- Consolidated satellite office, saving $3k/month in telecommunications costs
- Virtualized to consolidate data center services and found an alternative data center for physical machines saving $300/month
- Immediately inventoried and recommended cutoff of unused services (license, third-party contracts, etc.)
- Shifted from ASP outsourcing to in-house support of Exchange, SharePoint, and SQL servers
Project was delivered under budget and once recommendations were accepted, MRE was subsequently hired to perform the migrations and implement the cost cutting provisions.
After introducing IT governance, the client realized considerable and immediate savings on hardware, software, and services spend on a month-to-month basis. Additionally, through consolidation and standardization of systems, there were fewer service interruptions and faster problem resolution.
Project ROI was projected at 10 months, but was realized in just over 8 months.
- Reduced spending by 70% ($260,000 per year)
- In-house SharePoint, Exchange, Backups
- Implemented IT governance processes