Cost reduction
B2B industrial services
Cloud migration of on-premises technology
Context
When conducting a due diligence on a tech-enabled energy services business, we identified that the cost of maintaining and operating the on-premises service-delivery platform was materially higher than industry benchmarks.
Our work
We mapped out several scenarios for migrating the technology to the cloud, from a simple ‘lift and shift’ to a full redevelopment into cloud-native architecture. For each scenario we modelled the implementation costs, cost of maintaining the existing technology during the transition, and the longer-term operating cost for the duration of the investment thesis. We also modelled the risk of service interruption. And we designed the optimal software architecture for the different degrees of cloud transformation. This modelling identified the best technology solution for the investor.
For the chosen option we then designed a detailed implementation plan, taking account of skills requirements and current market hiring conditions, and a communications plan for each stakeholder group. A key part of the plan was the KPIs for implementation, milestones with metrics for success, and governance structures and processes. We also revised the Business Continuity and Disaster Recovery plans and associated communications strategy, as well as the RTO and RPO for contracted service level agreements.
We also designed the technical architecture of the chosen cloud-native solution.
Outcome
Our work led to a sustained increase in EBITDA in the portfolio company.