--- title: Federal Institution Data Center Optimization | ISAM Case Study description: Discover how ISAM helped a federal institution optimize their data center, achieving over $300M in software savings and an 'A' grade in IT portfolio analysis. image: https://www.isamgroup.com/hubfs/ISAM-Featured-Image-3.jpg --- # Data Center Optimization for Federal Institution ![Industry Icon](https://www.isamgroup.com/hubfs/Industry%20Icon.svg) **INDUSTRY: **Public Sector - Federal ![Product Icon](https://www.isamgroup.com/hubfs/Product%20Icon.svg) **PRODUCT: **Data Center Optimization ![size icon](https://www.isamgroup.com/hubfs/size%20icon.svg) **SIZE: **90,000 ![established icon](https://www.isamgroup.com/hubfs/established%20icon.svg) **ESTABLISHED: **2011 ![sam tool used icon](https://www.isamgroup.com/hubfs/sam%20tool%20used%20icon.svg) **SAM TOOL USED: **ServiceNow, ILMT, TADz, SCRT, SCCM ![vendor focus icon](https://www.isamgroup.com/hubfs/vendor%20focus%20icon.svg) **VENDOR FOCUS: **IBM, Microsoft, CA, Oracle, and BMC ![KPIs icon](https://www.isamgroup.com/hubfs/KPIs%20icon.svg) **KPIS: **Cost savings, hardware capacity growth, software functionality, and vendor audit success ![ISAM Services Utilized icon](https://www.isamgroup.com/hubfs/ISAM%20Services%20Utilized%20icon.svg) **ISAM SERVICES UTILIZED: **SAM Advisory, Contract Negotiation, Benchmarking, License Optimization, Audit defense and response ## The Problem The agency was experiencing a 20% annual increase in software costs with only a modest 15% increase in capacity. With several large contracts looming, the agency felt the growth rate was unsustainable. An ongoing, proactive program was needed to review all software vendor costs and lower the overall cost structure. ## Objectives TOUCH ![cost-savings-icon](https://22043327.fs1.hubspotusercontent-na1.net/hubfs/22043327/cost-savings-icon-1.svg) Review and analyze software contracts, renewals, and cost-saving opportunities. TOUCH ![checklist-icon-1](https://22043327.fs1.hubspotusercontent-na1.net/hubfs/22043327/checklist-icon-1.svg) Conduct software cost benchmarks. TOUCH ![cogwheel-and-puzzle-icon](https://22043327.fs1.hubspotusercontent-na1.net/hubfs/22043327/cogwheel-and-puzzle-icon.svg) Assess the Software Asset Management program for completeness, maturity, and results. TOUCH ![thumbs-up-icon-1](https://22043327.fs1.hubspotusercontent-na1.net/hubfs/22043327/thumbs-up-icon-1.svg) Maintain or increase software functionality. ## The Solution ISAM combined its Greenbook℠ software cost database with industry-leading consulting experience to create a baseline benchmark and strategy for reducing software costs. ISAM also provided negotiation support for vendors and assessed the agency’s Software Asset Management program to achieve completeness, maturity, and results. ### Solution Approach 1 Utilized GreenbookSM software cost database to create a baseline benchmark and strategy for reducing software costs. 2 Set and provided a baseline for recommendations and action steps going forward. 3 Provided negotiation support as needed for vendors such as IBM, Microsoft, CA, Oracle, and BMC. 4 Directed deployment tool utilization and reporting to ensure a complete Effective License Position. ### Key Insights **Implementing a proactive program to review all software vendor costs can lower the overall cost structure.** **Assessing a company’s Software Asset Management program for completeness, maturity, and results can help identify areas for improvement.** **Negotiation support from experienced consultants can result in significant cost savings.** ## Results ![reduction-in-software-costs-icon](https://www.isamgroup.com/hubfs/reduction-in-software-costs-icon.svg) **Reduced software cost increases from 20% annually to less than 2%.** ![cost-savings-icon-2](https://www.isamgroup.com/hubfs/cost-savings-icon-2.svg) **Annual hardware capacity growth rate of 18%.** ![long-term-cost-savings-icon](https://www.isamgroup.com/hubfs/long-term-cost-savings-icon.svg) **Over $300 million in software savings.** ![improve-vendor-relationships-icon](https://www.isamgroup.com/hubfs/improve-vendor-relationships-icon.svg) **$1.2 billion in cost avoidance.** ![additional-benefits-icon](https://www.isamgroup.com/hubfs/additional-benefits-icon.svg) **The Agency was recently given the only “A” grade for IT Portfolio Analysis among all US Government agencies.** ## Real solutions, real stories, real success.   The savings we have been able to realize in our mainframe and distributed software maintenance contracts are in the millions of dollars and is a direct result of the work ISAM was contracted to perform. 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