Background
Client, a Software as a Service company faced the challenge with increasing costs and expenses following the turbulence in the market and the inflation in Sweden resulting in heavily impacting the bottom-line result. The Client had traditionally operated with a focus on cutting-edge technology, often resulting in higher operational expenses. As market dynamics evolved and competition intensified, the need for a leaner and meaner cost structure became apparent without compromising innovation and quality.
Checker Consulting and the Client embarked on a journey to identify and implement a cost-saving opportunity that would, not only enhance efficiency, but also contribute to long-term sustainability.
Solution
Checker Consulting initiated a comprehensive review of the company’s external spend, involving input from various departments. Through spend analysis by reviewing and classifying all expenses by spend category along with ranking these categories by their business impact (strategic vs. routine), level of difficulty (complex/high risk vs. low risk/less complicated), value improvement potential (low vs. high savings potential), time and speed to complete.
One of the high priority areas was review and consolidate the cloud-based infrastructure in order to receive most potential impact. Following the review of the spend, a more thorough due diligence is required for the prioritized areas. This involved data mining and information gathering i.e., a complete understanding of annual and monthly volumes, specifications, requirements etc.
Once the data review, value analysis, internal interviews, market analysis were completed, the strategy was developed for the RFP (including negotiation, selection and awarding)
Results
The impact of the cost-saving initiative was felt across the organization, leading to remarkable results, with a total saving of 26% (through cost avoidance and cost reduction) of the cloud-infrastructure.
Cost Reduction: The migration of the various cloud providers to a one partner resulted in substantial savings in prices and optimization to a leaner cost structure.
Client went from showing red numbers in the income statement to black number by engaging Checker Consulting in this turnaround.
