Transforming Enterprise IT from a Cost Center to an Innovation Center
Read the Forrester case study now.
One of our ServiceMesh customers, Commonwealth Bank of Australia (CBA), has decided to publicly share some of the results of their cloud IT transformation efforts. We’ve been working with CBA for 4 years, and although they have been receiving incremental value and ROI from their new cloud-based operating model since the beginning, they’ve been keeping these results close to their vest (like most financial services firms). This year, CBA decided to share some of this information publicly, and the results are nothing less than stunning.
Any large enterprise with significant IT operations should examine what’s happening at CBA. Financial industry analysts like Morningstar and mainstream business publications like Wall Street Journal are taking notice. Forrester Research also took the time to document CBA’s IT transformation in a new case study, available here.
What are some of the business benefits?
- More Innovation: Redeploy IT resources to increase IT innovation investments by 48% while keeping the overall IT budget constant.
- Reduced Costs: Cut IT infrastructure costs by $100 million a year.
- Improved Agility: The pace of new code deployment has almost tripled, from 1,200 to 3,000 changes a month.
- Resource Optimization: Reduced the number of data centers from 23 to two.
- Improved Service Quality: Reduced the total number of “severity one” outages from 70 to seven.
These are the hallmarks of a true IT transformation – one that really moves the needle in terms of making a strategic business impact. Morningstar is a financial analysts firm that tracks CBA and provides investment guidance. Here is what Morningstar said recently:
Morningstar analyst David Ellis wrote in a note this May (2012) that “new high-profile products and services are impressive and will boost customer retention, draw new customers to the bank and lower the cost of doing business.” He wrote that the bank’s “major IT refit” is critical to the business and reinforces his confidence “in the bank’s financial strength and the ability to take a long term view of the business.”
We are extremely proud of what CBA has accomplished and the role our Agility Platform has played to enable many of these benefits. From all indications, CBA is going to generate even more impressive results to follow.
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