Hardware Optimisation to Reduce Costs: Top British Bank

This client is a British banking and insurance company based in Edinburgh, Scotland. The group operates personal, business, corporate, institutional and private banking services and insurance through its offices located in Europe, North America and Asia. Before the 2008 financial crisis, the group was briefly the largest bank in the the world. Subsequently due to a major loss of confidence and fall in share price, it received support from the UK government, which in August 2015, held a large stake in the group. The subsequent business transformation included the need to radical reduce the size and cost of the Investment Bank.

• A target was set  to reduce the size of the physical server estate by 40% (5,500 servers) in two years to the end of 2016.
• The bank was struggling to mobilise an effective Hardware Optimisation programme with disparate engagement, lack of focus and inability to execute.
• Reductions were tracking at 22% forecast over the two years.
• Teams were not providing any time to review costs and poorly engaged with minimal understanding of what was expected from them and the impacts.
• In the last quarter of 2014 the group had decommissioned less than 40 servers due to the introduction of new change control procedures.

• Astute IT resources were initially engaged in the Trading Technology department to provide an understanding to the estate size, indicative costs and how to approach the reductions.
• After identifying how a two year 40% target could be met the role of the team was asked to expand their remit across further Business Units.
• A set of masterclasses with the background, vision, targets and approach was developed and presented across the business.
• The Engage, Enforce, Embed approach was used to gain partnership, understanding and agreement to committed plans with deep-dives and monthly estate reviews established across the organisation to increase momentum, ensure the delivery of committed saves and embed cultural change.

• Delivered 40% physical server estate reduction three months ahead of the two year target
• Enabled Simplification, Virtualisation, Datacenter Exits, License Reductions and reduction in physical orphan servers (from over 1,000 to less than 10)