CASE STUDY: How Synyega made critical £4.2m saving for UK Bank

“I can now sleep easy knowing that for any future licence audits, I am following best practice and have a much simpler, lowest cost licence model to guarantee ongoing compliance.”

Client Sector: UK Banking and Finance

Employees in dept: 7,000

Cost saving: £4.2m (Tangible) / £19m (Avoidance)

Overview: Synyega was asked to provide specialist licence optimisation support to a UK Bank as it transformed its IT services as part of a cloud and data centre (DC) program.

Challenge: The challenge for Synyega was three-fold; to mitigate risk; optimise costs and ensure efficiency. We wanted to make sure that we helped to deliver the cloud and data centre migration project in a timely and compliant manner, avoiding any reputational damage. This included avoiding the financial risks that can sometimes be caused by cloud/ DC migrations like these, particularly when organisations inadvertently contravene the terms or limits of their existing software contracts.

We were also asked to identify opportunities to enhance the team’s software licensing arrangements for the future end state and minimise the impact of any contractual licensing issues on the agreed timelines.

Solution: After spending time analysing the client’s current software deployments and licensing agreements, we used a wide range of data to produce a “Vendor Migration Report” which modelled the software through the proposed transformation and migration plans. The report provided guidance on licensing impacts of the proposed plans and forecasted the potential financial implications.

As part of this work, the Synyega team was able to model the effect that the proposed migration would have on the licensing arrangements for the top 30 software vendors (including any periods of dual run). We produced expert guidance on how to best manage all software and included recommendations that considered the commercial precedents known to us from our work across public and private sectors.

In addition to this, we also produced a “Vendor Heat Map” for the client which identified all financial risks during the different stages of migration. At the end of the migration process, we also produced a “Vendor End State Report” which detailed all information regarding the risks and issues associated with specific vendors including recommended mitigations, optimisations and cost avoidance opportunities.

Results: The work was delivered ahead of the agreed schedule and resulted in a tangible cost-saving of £4.2m and a further £19m in cost avoidance.

For each of the software vendors included in the project, Synyega produced a one-page Early Estimator Report to provide an approximation of any potential licensing implications of the services migrating to the datacentre. This included any potential financial risks and provided a clear estimate of any future issues and potential costs. This allowed any inefficiencies to be quickly rooted out in the early design phases rather than incurring very expensive re-designs later on in the process.

In addition to the software savings that Synyega delivered, we also produced a variety of other benefits to the organisation including; helping to develop an overall software migration strategy; providing commercial benchmarking information and ongoing support to commercial and procurement teams.

Our client, Head of Infrastructure at UK Bank, said:

“I engaged with Synyega to help with the software licensing challenges caused by migrating from existing data centres to new data centres. Their breadth and depth of licence knowledge across all my software products were impressive.

“With the help and advice of Synyega, my organisation went from being sufficiently licenced to efficiently licenced, saving millions of pounds and freeing up licences. Often with no more than a few simple changes to the licence models that we were using.

“I can now sleep easy knowing that for any future licence audits, I am following best practice and have a much simpler lowest cost licence model to guarantee ongoing compliance. Easy to understand for my staff and easy to explain to auditors. Working with Synyega has paid for itself many times over and meant my teams can focus on the technical work, without having to become licence experts also on the products they run.”

With our unique mix of technical and commercial skills, our team have successfully helped deliver over £700m in savings to the world’s largest organisations. Key to this process is Synyega’s unique licensing methodology that models the licensing and financial implications of software as it moves through different deployments states as part of any cloud/ datacentre migration.

To find out more about how Synyega can support your software migration or how we can optimise your current software spend, get in touch with us on 0800 464 0365 or email