A Global Automotive Company
Update the stack to a modern hybrid-cloud platform
Objectives
The objective was to refresh the infrastructure platform, simplify the global operating model with standard service definitions, and reduce the number of strategic partners.
Sourcing Topics
Hybrid-cloud Platform
Vendor Rationalization
Standard Service Definition
Situation & IT Landscape
The challenge was to align services with market best practices while accommodating internal delivery groups, especially in cross-functional areas. Additionally, defining the right fixed versus variable pricing metrics required careful consideration across different demand scenarios.
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Portfolio consisted over 5,000 applications hosted in datacenters and in the Cloud across Europe. Cloud hosting was minimal at the beginning of the journey.
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The application stack was heterogeneous (including the SAP stack).
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The hosting landscape included 4 datacenters per region mainly on VMWare with a significant increase in Edge infrastructure (plant or road-proximity).
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Our Approach
Establish market-oriented standard services that closely mirrored on-demand hyperscaler services, encompassing a comprehensive infrastructure service catalogue.
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Following the definition phase, the organization engaged in exploration activities, conducting co-solutioning workshops with two vendors to explore private Cloud and platform approaches. These workshops provided valuable insights into new market options and helped refine the organization's strategic direction in leveraging Cloud technologies.
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Subsequently, the organization focused on consolidation efforts, attempting to streamline application operations and infrastructure vendors wherever feasible. This consolidation aimed to reduce complexity, improve operational efficiency, and optimize resource allocation within the organization's IT landscape.
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Moreover, in the vendor consolidation phase, the organization split the tender process into specific lot requirements and an overall common stream. This approach facilitated the selection of 1-2 vendors capable of covering all requirements, thereby simplifying vendor management and fostering stronger partnerships to support the organization's objectives.
Our Impact
The organization implemented provider-aligned service definitions to facilitate easy benchmarking, ensuring clarity and consistency in evaluating service offerings across providers. This approach aimed to streamline procurement processes and enable effective comparison of services, ultimately leading to better-informed decision-making.
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The organization established scalable internal infrastructure and cloud offerings to support its evolving needs and growth objectives. By adopting scalable solutions, the organization enhance flexibility, agility, and resilience in managing its IT infrastructure, enabling it to adapt to changing demands and market conditions effectively.
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The organization entered into agreements with two service providers to foster healthy competition and scalability in service delivery. By engaging multiple providers, the organization sought to leverage competitive pricing, innovative solutions, and service quality improvements, ultimately enhancing the overall value proposition for the organization.
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As a result of these strategic initiatives, the organization achieved significant cost reductions, optimizing its IT spending while maintaining or improving service quality and performance. These cost reductions not only contributed to the organization's financial health but also freed up resources for investment in other strategic initiatives and business priorities.