To help its media properties like Huffington Post and TechCrunch innovate faster and more profitably, AOL used its cost and performance model to determine it should embrace public cloud. It has already retired 14,000 servers, sold off a data center and lowered its carbon footprint 42%. Deep understanding of its service costs, capacity and performance was also a critical factor in AOL’s decision to acquire the majority of Microsoft’s advertising business this summer.
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Strategy & Planning Leader
Nearly 1/3 of IT leaders spend 50+% of their budget on external IT services. The resulting multivendor landscape presents a challenging management scenario for IT.
If you are trying to accelerate a transformation in your IT organization, you've likely found that it's the organizational challenges, not technical ones, holding you back. How do you get IT staff, lines of business leaders and your C-suite on board when the destination is outside their comfort zone? Come listen to how AOL CIO James LaPlaine used Apptio data to make his business case.
In 2016, according to CIO.com, 8 CIOs not only responded to market changes related to rapid digitalization—they embraced them, adopting new digital strategies that deliver business-integrated IT innovation at a much faster and agile pace.
Kim Manigault, EVP and CFO, Technology & Operations at KeyBank, and Amy Brady, Key Bank CIO, EVP Technology & Operations Executive, held leadership roles at the same nationwide bank before they joined KeyBank. In addition, they both came to KeyBank with the same idea: elevate the relationship between Finance, IT and the KeyBank business units into a business partnership across the bank.
Given aggressive asset growth plans for the business, CHRISTUS Health created new levers for cost savings and cost avoidance in order to contain IT spending and improve IT leverage. By modeling and reporting on the TCO of 1,200 applications, they were able to identify spend per service category and applications on a monthly basis. This helped tie a $60 million growth in application spend to increased demand for resources, leading to more productive C-suite conversations about consumption.
In the last couple of years, Cargill has brought all of its IT spend into global IT owned and managed service lines. Global financial data is pulled together to create a service-oriented bill of IT that has shifted conversations with the business to value vs. cost. Now, Apptio IT Planning is helping the team push accountability to business owners, promoting a focus on value creation and innovation instead of the cost of the IT bill. New efforts to plan and forecast in real-time are helping the team evolve from order takers to innovative leaders within the organization.
Hewlett Packard Enterprise needed to move away from being an unexplainable tax to the business and toward becoming a true strategic partner. They needed to shift substantial funds used to run the business into changing the business while, at the same time, offering complete cost transparency into technology expenses. With the help of TBM, Hewlett Packard Enterprise is on track to do all this and save $330 million over three years.
For Royal Bank of Scotland, the TBM team was formed to understand and effectively map technology cost to business consumption of that technology. Today, TBM underpins strategic decision-making and is driving front and center of cost takeout aligned with business objectives. Application rationalization is more effectively considered for all related costs and across the entire stack that supports the application, enabling the business to look at every facet of cost reduction and make decisions about priorities based on complete information.
TBM provides the lens to enable real-time decisions during the year and provides a fact-based baseline to accelerate work at Xerox. With TBM as a foundation for readily-available cost metrics, Xerox IT can support a planned $2.4 billion in savings, was able to quickly and accurately evaluate and optimize the separation into two companies, and has become a partner to the business units in making technology decisions.