CUTTING OPERATIONAL COSTS WITH IAAS

THE SECRET TO RELIEVING PRESSURE FOR AN OVERWHELMED IT WORKFORCE

SUMMARY

A Canadian enterprise business (the Enterprise) sought to support their IT team and lower operational costs. TeraGo Networks, Inc. (TeraGo) offered a cloud-based Infrastructure as a Service (IaaS) solution that would help reduce operational costs for the Enterprise. The IaaS solution was customized to meet specific system requirements as well as budgetary demands.

CUSTOMER

The Enterprise is a Canadian manufacturer of building products with a large online product catalogue. Their IT department receives regular requests from internal staff to develop new solutions designed to improve customer experience and drive sales.

SITUATION ANALYSIS

The Enterprise hired a new CIO to help restructure and optimize their IT processes and find ways to reduce costs while simultaneously boosting the IT staff’s capacity for projects.  After performing an analysis, the CIO found that the IT team was devoting a significant amount of time and effort on maintaining their physical systems and their website. He looked for a partner to provide a cloud solution that would outsource the management of peripheral IT operation.

BUSINESS ISSUES

In order to meet IT goals, the Enterprise needed an infrastructure with:

  1. Proven Quality: The Enterprise needed assurance that a cloud solution had worked in the past for other businesses with similar models to their own
  2. Easy Workload Migration: The Enterprise’s existing projects would need to be moved to the cloud with minimal work interruption and a quick turnaround
  3. A Scaled Solution: Budgetary restrictions and low workload volume following the initial migration necessitated a cloud solution that could be provisioned on a case-by-case basis

INITIAL ENVIRONMENT

The Enterprise was using an SAP system for their enterprise application software, which needed a significant upgrade, triggering their investigation into cloud solutions. Their existing workloads were running on Microsoft Hyper V virtual machines, with servers housed entirely on-site. Initially, the Enterprise was focused on seeking colocation services to simply house their data o-site, but realized through discussions with TeraGo personnel that an Infrastructure as a Service (IaaS) solution could result in additional operational and capital cost savings.

SOLUTIONS

TeraGo was able to successfully provide the following solutions to meet the Enterprise’s requirements:

1: Cloud Discovery Session

Since this would be the Enterprise’s first foray into cloud computing, they needed evidence that an IaaS solution would be a better fit than colocation. TeraGo offered references to other IaaS customers and provided a capabilities demonstration to give the Enterprise full understanding of ease of use. By having the Enterprise go through a series of solution requirement workshops, TeraGo was able to build a customize implementation plan that fit the customer’s needs.

2: Workload Transfer Through vSphere

Workloads on the Enterprise’s Microsoft Hyper V virtual machines were easily moved into the TeraGo cloud and vSphere platform by using the VMware hypervisor conversion utilities. This migration process was much less expensive than offerings from competitors. The easy-to-manage vSphere platform also significantly reduced the management burden handled by the Enterprise sta.

3: Pay-as-you-Grow Infrastructure

The Enterprise did not anticipate wholly depending on the TeraGo cloud solution at the outset of the engagement, so TeraGo structured their service contract with a price reduction and contract period of 12 months. This met the Enterprise’s cost containment goals and gave them the ability to add to their services only when they were ready.

RESULTS

When TeraGo demonstrated their cloud capabilities, the Enterprise’s CIO was able to review and assess the cost benefits of their IaaS solution. After engaging in negotiations with TeraGo and agreeing to 12 months of service, the Enterprise’s cloud went live two months later. After the first year of use, the Enterprise estimated that they avoided hiring an additional four to five employees, approximately a CAD $600,000 investment.  Additionally, their existing IT sta was able to refocus their eorts toward innovation and delivering on priority projects while other background systems ran abated in the cloud environment.