The Doppler Quarterly Spring 2016 | Page 53

CASE STUDY
25 % Savings in 18 Months
A multinational software and manufacturing firm faced rapidly growing IT operating costs tied to its legacy IT outsourcing provider . With a monthly IT spend of $ 14.5M , the company identified cloud adoption as a key driver for cost reduction . To determine the potential savings , CTP conducted a TCO study comparing the current environment to target cloud endpoints . In the graph below we show the company ’ s 18-month TCO . In this case , the TCO compares using an IT outsource model vs . a hybrid cloud ( public cloud services + an IT outsource provider ). This TCO model calculates a payback period of 6 months for a hybrid environment , with savings growing to $ 4M per month ( 25 % reduction ) at month 18 .
Monthly TCO : IT Outsource vs Hybrid ( Cloud + Outsource )
18-Month TCO for an enterprise manufacturing company highlighting growth to a 25 % savings .
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