Supply and Trading is one of the core business units within an International Oil Company (IOC). The business operates a large global estate of over 2,400 servers and thousands of databases, with 24x7 energy trading of gas and oil products out of the ground and in transit around the world.
The IOC’s challenge was to save costs without impacting critical trading and compliance systems. To do this they evaluated a number of suppliers with expertise in the area of IT infrastructure capacity management, and selected Capacitas to identify cost savings.
Capacitas ran a pilot with business units and IT teams which identified significant cost reduction opportunities and which subsequently led to the broader adoption of capacity management across the organisation. The programme of work delivered reductions in cost of millions of dollars, as well as a saving of over $10m in the avoidance of downtime to services.
Capacitas ran a pilot to understand how to collect data on services and analyse the current usage of assets at the IOC. A large, representative service – the Credit Risk Service - was chosen for the pilot. This service produces a key business outcome each day showing the overall dealer position of the Supply and Trading division. The service is critical to maintaining market compliance and hence the ability to trade.
The Capacitas pilot identified very significant cost reduction opportunities, many of which have already been delivered, as well as exposing risks to be eliminated. The pilot:
Following the pilot, Capacitas developed and rolled out a division-wide Operational Capacity Management (OCM) service which delivered ongoing business benefits, including:
Over the last two years since Capacitas has been engaged, the IOC has retired 1,000 servers, realising savings of $25m per year.
IST has now targeted a further reduction of 25% of the remaining server estate and CMIS will play a central role in identifying and verifying the targets for removal. A 25% reduction in the estate will deliver a further $7m in additional cost reduction.
If you want to see big boosts to performance, with risk managed and costs controlled, then talk to us now to see how our expertise gets you the most from your IT.