Challenge

The client was facing a challenge with their legacy applications, which were costing them more to maintain than the more modern elements of their portfolio. The majority of their IT budget was being consumed by the maintenance spend, leaving little room for innovation and growth.

Legacy applications are outdated software systems that are no longer supported by their vendors and can be challenging to maintain. As a result, legacy applications often require more time, money, and resources to keep running than modern applications. This can create a burden on a company’s IT budget and limit their ability to invest in new technology or initiatives.

In this case, the client recognized the need for modernization of their legacy applications to reduce maintenance costs and free up resources for innovation. By modernizing their legacy applications, they could improve their operational efficiency and competitiveness, and ensure that their IT budget was being used effectively.

Solution

The solution involved moving from a full-time equivalent (FTE)-based application management model to a consumption-based model with service level agreements (SLAs) and key performance indicators (KPIs). This allowed the client to have greater financial transparency, as business units were rewarded with immediate savings based on usage.

The adoption of an agile and flexible consumption-based managed services model allowed the client to scale their operations up or down based on their needs. This also enabled the client to be more responsive to changes in the market and to reallocate resources where they were needed most.

The deployment of self-healing and automation technologies allowed for improved productivity, as the system could now identify and fix issues automatically without human intervention. This resulted in a reduction of downtime and an increase in operational efficiency.

Additionally, the client leveraged “A-1 teams” and shared resource pools to maintain operational excellence. This meant that the client had access to the best talent available and that resources could be shared across business units as needed.

Overall, the solution helped the client to optimize their IT spending and improve their application management capabilities, resulting in increased operational efficiency and the ability to quickly respond to market changes.

Benefits

Overall, the solution helped the client to optimize their IT spending and improve their application management capabilities, resulting in increased operational efficiency and the ability to quickly respond to market changes.

Budget freed up for reinvestment: The move to outcome-based application management allowed the company to reduce its year-over-year spend on app management by 10%, freeing up significant budget for reinvestment in other areas.

Increased customer satisfaction: With the implementation of an agile and flexible consumption-based managed services model, the company was able to provide better services to its customers, resulting in customer all-time highs in satisfaction.

Business value delivery: The solution was able to deliver over $1M in business value, which helped the company to achieve its strategic objectives.

Self-healing and automation: The deployment of self-healing and automation improved productivity by reducing the need for manual intervention and allowed the team to focus on more strategic work.

Machine learning-based incident prediction: The solution leveraged machine learning to predict incident trends with 85% accuracy. This enabled the company to proactively address issues before they could become bigger problems, reducing downtime and improving overall service levels.