Global enterprise achieves additional 30% annual operating cost reduction

Global enterprise achieves additional 30% annual operating cost reduction 2017-04-10T21:48:01+00:00

A global financial services provider achieved additional cost savings of approximately 30% per year with Sumerian Capacity Planner CPaaS.

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Challenge

As part of a cost reduction program, the customer wanted to integrate a datacenter it had inherited through a recent acquisition and rationalize its regional datacenter estate. The customer had identified that closing the acquired datacenter would save approximately $3.2M in IT operating costs. However, it believed taking its usual approach of integrating the acquired resources on a like-for-like basis into its existing regional datacenters would leave further, potentially significant, cost savings on the table.

Why Sumerian?

The customer believed Sumerian’s CPaaS would provide the accurate, statistical evidence needed to establish an optimal datacenter consolidation plan and maximize the cost savings it could generate.

Sumerian solution

Sumerian’s starting point was to create an accurate Baseline model of the customer’s current, combined datacenter estate and its associated workload profile. The analysis was conducted over an extended data set to ensure that any cyclical variations in consumption patterns were captured and factored in. Our models were generated using 3 sets of existing data from the customer’s estate: CMDB inventory, SCOM systems utilization logs and SiteScope performance logs.

We then used our predictive analytics capability to model various consolidation scenarios, calculating the capacity required to execute the combined current workload while at the same time ensuring current service performance and availability levels remained in tact. For example, Sumerian used its modeling to identify where stacking or sharing applications across a reduced number of server instances could be applied. Our modeling factored in considerations such as security policies, availability targets and customer business rules.

Finally, Sumerian created cost models to analyze the cost implications of alternate optimization scenarios and accurately calculate the potential cost savings.

Outcome and result

Sumerian CPaaS delivered results to the customer 4 weeks after the initial data was uploaded.

By gaining an accurate understanding of current workload profiles, along with performance and capacity across the acquired and existing datacenter estate, Sumerian was able to identify an optimal datacenter consolidation plan for the customer. We were able to specify the exact sizing and capacity requirements needed across the 2 existing regional datacenters to support the new combined workload.

In addition to identifying the savings that could be achieved by a reduction in the overall size of the server estate, Sumerian’s CPaaS was able to identify how further gains could be achieved through application level consolidation and deployment.

As a result, in addition to achieving the originally targeted $3.2M operating cost savings from closing the acquired datacenter, the customer was able to generate a further 30% in annual operating cost savings.

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