Project Overview
Today we present the case of Company B, a financial services firm with 500 employees. Through their migration from on-premises to cloud and simultaneous Software Asset Management (SAM) optimization, they achieved a 40% reduction in IT operations costs.
Company Profile
- Industry: Financial Services
- Employees: Approximately 500
- Project Duration: October 2024 - September 2025 (12 months)
- Project Scope: Complete system overhaul
Pre-Migration Situation
Key Challenges
Company B had been operating on-premises systems for many years but faced the following challenges:
Infrastructure
- Aging Hardware: Multiple servers over 5 years old
- High Maintenance Costs: Over $180,000 annually
- Lack of Scalability: Unable to support business expansion
- Insufficient BCP: Concerns about business continuity during disasters
Software Licensing
- License Management Chaos: Unclear who was using what
- Over-Purchasing: Discrepancy between actual usage and license count
- Compliance Risks: Significant effort required for audit responses
- Contract Complexity: Individual contracts with multiple vendors
Annual IT Operations Costs (Pre-Migration)
- Hardware maintenance: $180,000
- Software licenses: $315,000
- Operations personnel: $225,000
- Power & facilities: $45,000
- Total: $765,000
Solution Implementation
Phase 1: Assessment and Planning (2 months)
We first conducted detailed current state analysis:
-
Infrastructure Survey
- System configuration visualization
- Dependency analysis
- Performance measurement
- Security audit
-
License Audit
- Complete license inventory
- Actual usage investigation
- Compliance status verification
- Cost analysis
-
Migration Planning
- Cloud architecture design
- Migration priority determination
- Risk assessment
- Schedule development
Phase 2: Cloud Migration (6 months)
Phased approach to migration:
Step 1: Non-Critical Systems (Months 1-2)
- Development/test environments
- Internal portal
- File servers
Step 2: Business Systems (Months 3-4)
- CRM
- Sales support tools
- HR systems
Step 3: Core Systems (Months 5-6)
- Accounting system
- Customer management system
- Databases
Phase 3: SAM Optimization (Concurrent)
License optimization alongside cloud migration:
-
Usage Analysis
- Actual usage data collection through log analysis
- Department/user-level usage patterns
- Seasonal variation identification
-
License Structure Review
- Microsoft 365 consolidation
- Migration to subscription model
- Volume discount utilization
-
Continuous Management Framework
- Automated monitoring tools deployment
- Monthly reviews
- Standardized approval processes
Phase 4: Optimization and Stabilization (4 months)
Post-migration adjustment and optimization:
- Performance tuning
- Cost optimization (resource rightsizing)
- Security enhancement
- Operations procedure establishment
Results
Cost Reduction Impact
| Category | Pre-Migration | Post-Migration | Savings | Reduction % |
|---|---|---|---|---|
| Infrastructure | $180,000 | $72,000 | $108,000 | 60% |
| Software Licenses | $315,000 | $189,000 | $126,000 | 40% |
| Operations Personnel | $225,000 | $162,000 | $63,000 | 28% |
| Power & Facilities | $45,000 | $0 | $45,000 | 100% |
| Total | $765,000 | $423,000 | $342,000 | 45% |
Additional Outcomes
Business Impact
- Enhanced Scalability: Instant resource addition as needed
- New Service Launch: 3 months → 2 weeks
- System Availability: 99.5% → 99.9%
- BCP: Complete disaster recovery framework established
Operations Impact
- Maintenance Effort: 200 hours/month → 80 hours/month
- Incident Response Time: Average 4 hours → 1 hour
- Security Patching: Automated immediate response
- Audit Response Effort: 200 hours/year → 50 hours/year
License Management
- Compliance Achievement: 100%
- Unused Licenses: 85% reduction
- Vendor Consolidation: 12 vendors → 4 vendors
- Management Effort: 60 hours/month → 15 hours/month
Client Testimonials
“Initially, we had concerns about cloud migration, but Targetbase’s meticulous planning and phased approach allowed us to migrate while minimizing business impact. We were particularly surprised by achieving greater cost savings than anticipated through SAM optimization. Now we can leverage IT as a strategic asset.”
— CIO, Company B
“Post-migration operations are extremely smooth. Previously, we needed server expansion at month-end, but now it scales automatically, allowing us to focus on business with peace of mind. It has also facilitated remote work, significantly contributing to work style reform.”
— Systems Department Manager, Company B
Success Factors
1. Comprehensive Approach
Not just cloud migration, but simultaneous SAM optimization for maximum impact
2. Thorough Planning
Two months of detailed investigation and planning minimized risks
3. Phased Implementation
Sequential implementation starting with lower-risk items rather than everything at once
4. Continuous Improvement
Ongoing review and optimization post-migration
5. Leveraging Expertise
Support from specialists in both cloud and SAM
Lessons Learned
Do (Should Do)
- Accurately understand current state
- Communicate closely with stakeholders
- Take phased approach
- Conduct regular reviews
- Maintain documentation
Don’t (Should Avoid)
- Attempting to migrate everything at once
- Skipping current state analysis
- Focusing solely on cost reduction
- Neglecting employee training
- Neglecting post-migration optimization
Next Steps
Company B is currently working on further optimization:
- AI/ML Utilization: Business process automation
- Data Analytics Platform: Business intelligence enhancement
- Multi-Cloud Strategy: Optimal cloud combination
- Continuous Optimization: FinOps practice
Summary
As this case demonstrates, combining cloud migration with SAM optimization enables:
- Significant cost reduction
- Improved business agility
- Enhanced security and compliance
- Improved operational efficiency
- Strategic IT utilization
Does your organization face similar challenges? Our free consultation can propose the optimal strategy for your enterprise.
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