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OnX Case Study: Downsizing; Is it right for you?

The Challenge A heavy-hitter that distributes fossil fuels in the Energy industry wanted to determine if cost and efficiency savings could be gained by consolidating their four data centres into two. Many companies in today’s economy are interested in downsizing their footprints while still managing their data needs. The utilities company wanted to opt for only one data centre in each province respectively (down from two in two provinces) to cut costs.

The Solution OnX introduced and leveraged a Technology Cost Management Assessment. This program allowed OnX consultants to determine the current financial and technical output and create a modeling of the prospective financial and technical output based on decreasing their data centres from four to two. They also tried a model utilizing three data centres instead of four. OnX presented the information garnered from their study to the Energy company. The TCM study determined that there was clear justification that the Utilities Company should continue with their current Data Centre model.

The Impact Any cost savings from reduced facilities and management costs would have been negatively offset by the increased cost of telecommunications and production applications between the two provincial sites. OnX understands that sometimes consolidation isn’t advisable if your models are not going to give you maximum value. We want you to maximize your company’s earning potential without limiting its productivity, and sometimes that means keeping things the way that they are.