In this case study, WGroup designs custom, cost-cutting cloud strategy for a pioneering Healthcare technology company. WGroup’s approach would allow the large healthcare technology company’s IT infrastructure operations team to rapidly adopt an IaaS architecture while reducing costs—a savings of $12 million in the first phase; another $14 million in the second phase; and an additional $44 million in the final phase, spread out over years two and three.

1. Opportunity
A leader in developing and installing
healthcare technology, the company
wanted to deploy a cloud-based
infrastructure, to help it deliver patient-
based technology solutions faster,
stay on top of regulatory compliance
(HIPAA, PHI, PCI, etc.), and cut
datacenter costs.To help it with this
challenge, the company reached out
to WGroup, an expert in IT, business
operations, and cloud strategy.
WGroup had worked with the large
healthcare technology company on
several different IT engagements,
going back over six years. And
the firm had established good
relationships with the CIO, CTO,
and IT teams. Moreover, WGroup’s
staff of consultants, as seasoned IT
professionals with over 25 years’
experience, knew how to quickly assess
the situation and work collaboratively
with the company’s IT stakeholders.
So they were able to quickly gather
the necessary information—their
vision as well as business, IT, and
security requirements— and analyzing
it to develop a viable infrastructure-
as-a-service (IaaS) strategy and
roadmap for implementation.
Approach
WGroup’s approach to the large
healthcare technology company’s cloud
strategy solution balanced industry
best practices with the company’s
short- and long-term needs.
WGroup consultants conducted over
40 one-on-one interviews with IT
executives, technical leads, and subject
matter experts to define the company’s
IaaS vision and understand its current
IT infrastructure, installed server base,
and current level of virtualization.
WGroup also reviewed the company’s
current service catalog; analyzed
its current IT service management
processes, including monitoring,
automation, service demand/
fulfillment, and chargeback; reviewed
its current MRO (maintenance,
repair, and operations), Service Desk
incidents, problem and change data,
and configuration management
database data relative to IaaS; and
determined service level requirements.
In addition, WGroup’s team went
over the company’s current technical
and IT security standards, policies,
Drive Your Business
Cloud Strategy
WGroup Designs Custom, Cost-Cutting Cloud Strategy
for Pioneering Healthcare Technology Company
Case Study | HEALTHCARE
1
WGroup’s staff of
consultants, as
seasoned IT professionals
with over 25 years’
experience, knew how
to quickly assess the
situation and work
collaboratively with the
company’s IT stakeholders.

2. and procedures in regard to deploying
IaaS. And it determined the legal,
regulatory, and corporate ramifications
and risks associated with deploying a
cloud strategy, both internally (short
term) and externally (long term).
Insights and Advice
After gathering and analyzing the
detailed data and interview information
and analyzing it from both a business
and IT perspective, WGroup presented
the client with an IaaS strategy
and roadmap that aligned with and
leveraged the company’s current
IT capabilities, as well as provided
strategic value going forward.
Specifically, WGroup recommended
the company take a three-phase
approach that would be implemented
over an 18-to-36-month period—
deploying a private (internal) cloud
first, then moving to an public
(external) cloud structure in the future.
Results
WGroup’s approach would allow the
large healthcare technology company’s
IT Infrastructure Operations team
to rapidly adopt an IaaS architecture
while reducing costs—a savings of
$12 million in the first phase; another
$14 million in the second phase; and
an additional $44 million in the final
phase, spread out over years two and
three. Moreover, by implementing
WGroup’s plan, the company could
improve its target utilization of
assets from the current average of
15 percent to 75 percent and achieve
an 85 percent reduction in servers—
resulting in operating expenditure
benefits of $16.8 million and capital
expenditure savings of $27 million.
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Malvern, PA 19355
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Copyright © 2012 WGroup. All Rights Reserved.2
WGroup’s approach
would allow the large
healthcare technology
company’s IT Infrastructure
Operations team to rapidly
adopt an IaaS architecture
while reducing costs—a
savings of $12 million in
the first phase; another
$14 million in the second
phase; and an additional
$44 million in the final
phase, spread out over
years two and three.
HC_MCSTGYCS_082312_001
About WGroup
Founded in 1995, WGroup is a boutique management consulting firm
that provides Strategy, Management and Execution Services to
optimize business performance, minimize cost and create value. Our
consultants have years of experience, both as industry executives and
trusted advisors, to help clients think through complicated and pressing
challenges to drive their business forward.
For more information on WGroup, visit http://thinkwgroup.com