Fortune 500 Insurance Provider’s Data Center Consolidation Boosts Profitability

 NPV of $29.6 Million

“Our goal was to reduce our data center footprint from 28 to 8 and leverage a hybrid cloud model for non-critical workloads. Jackyl delivered on these objectives with an NPV of $29.6 million and completed the project in 20 months.” CIO ~ Insurance 

Key takeaways:

  • Of the 3,700 applications, 1,100 were shed or sunset
  • 152 applications were eliminated using public cloud available technologies
  • Another 935 applications were targeted for future elimination


This client is a leading provider of Insurance products in the Commercial and Consumer business lines with a presence in over 40 countries around the globe. Our client is a Fortune 500® company and is a member of Standard & Poor’s 500® Index.





Business Objectives:

  • Reduce Data Center footprint
  • Consolidate into large regional mega-centers
  • Leverage a hybrid cloud model for non-critical workloads

Project Goals

  • Design to avoid single points of failure
  • Build-in failover during transition and production
  • Sequence events to achieve quick wins while meeting overall timelines


Million NPV

Reduction In Data Centers From The Migration

Month Time Frame

Applications Eliminated

Overview of the Project

Over the past decade, our client grew through acquisition which allowed their business to operate autonomously. With increased pressure from competitors, it was critical for their business units to rationalize their cost base to increase their net operating margins. Their goal was to harmonize cost centres where increased leverage would drive down expenses like IT, Finance, HR, Legal, and Security. Important IT cost savings were seen in the case of network operations and data center facility & floor space. 


Jackyl Consulting’s solution involved developing a practical and timely set of recommendations.

Our Discovery Audit involved a comprehensive review of the:

  1. Client’s Data Center & Network Optimization
  2. Client’s Application Workload Rationalization

Using Jackyl’s Workload Assessment Tool (WAT) it became apparent that of the 28 data centers, many were ideal candidates to consolidate in fewer key clusters. Our plan used our client’s Impact Assessment Criteria where weighing was assigned based on latency, usage patterns, and the greatest ability to leverage common infrastructure.

We also worked with the CIO organizations to determine ideal workloads that could be migrated to larger data center hubs and the public cloud. Both recommendations culminated into a single business case with an NPV of $29.6M over 5 years, spanning a 20-month time horizon, involving 3 separate tranches with staggered starts.


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Jackyl Consulting Partnership specializes in Program Management and Delivery for Infrastructure and Security Enabling Technologies in high intensity, complex, and time sensitive situations. Contact us if you want your IT program back on track or if you are embarking on a Business Transformation journey.

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