Cloud Business Case G-Cloud 5 Framework Cloud Business Case Service Definition Document April 2014 Warnford Court, 29 Throgmorton Street, London, EC2N 2AT T: +44 20 7947 4176
Table of contents 1 Cloud Business Case 3 1.1 Hudson & Yorke Cloud Service Offerings 3 1.2 Service Description 3 1.2.1 Hudson & Yorke Approach 4 1.2.2 Key Deliverables 4 1.2.3 Value to Client 4 1.3 Fee Proposal 5 1.4 Supporting Documents 5 Page 2 of 6
1 Cloud Business Case 1.1 Hudson & Yorke Cloud Service Offerings Hudson & Yorke is a specialist management consultancy focused on strategic ICT advisory that delivers commercial, service and operational benefits to our clients. Hudson & Yorke s Cloud Advisory services help organisations to assess the strategic and commercial benefits of Cloud computing and consider how best it could integrate with current and future strategies. We have expertise in understanding various cloud delivery models and cloud service models. We help organisations to assess the use of private, public clouds or hybrid cloud delivery models as well as the various on demand, pay as you go, as a service models e.g. IaaS or SaaS. Hudson & Yorke offers a number of related Cloud services on the CloudStore as set out in the diagram below: Cloud Strategy Cloud Sourcing Cloud Business Case Figure 1 - Hudson & Yorke Cloud Service Offerings 1.2 Service Description Hudson & Yorke s service offering will help build a robust, fit for purpose Cloud business case. This will include: summary of the business reasons for undertaking the project itemisation of the necessary information to make an informed decision on whether funding should be provided and/or whether an investment should proceed Page 3 of 6
description of the quantifiable and unquantifiable characteristics of the proposed project alignment of technology investment to business/service delivery interests of key stakeholders provision of a useful tool to track benefits and continually assess the viability and success of the proposed Cloud project 1.2.1 Hudson & Yorke Approach The diagram below sets out Hudson & Yorke s structured approach to building and developing a Cloud business case. We will deliver an investment appraisal identifying Total Cost of Ownership (TCO) and potential Return on Investment (ROI). This approach will help to meet Crown Commercial Service (CCS) and Government Digital Service (GDS) buyer s guide requirements that necessitate the need to understand the whole-life costs of the Cloud services bought on the CloudStore. 1. Business requirement and objectives strategic fit /alignment of the IT and business vision 2. Benefits and risks tangible and intangible justification 3. Develop an investment appraisal detailing whole life costs incl. Total Cost of Ownership and Return on Investment 4. Baseline tracking tool to continuously measure the validity of the Business Case and demonstrate achievements against an agreed baseline 5. Conclusions and recommendations to provide concrete reccomendations that will allow stakeholders to make informed decisions Figure 2 - Cloud Business Case Methodology 1.2.2 Key Deliverables We will deliver a Cloud business case which will provide decision makers with the information they need to make an informed decision on funding and /or investment, as set out in the CCS and GDS buyers guide. The business case will provide insight into the Total Cost of Ownership of the current internal environment as well as a whole life costs analysis of the proposed Cloud solution. Through the engagement, we will calculate an expected Return on Investment for the project. 1.2.3 Value to Client Hudson & Yorke bring deep commercial understanding and a rigorous approach to business case design and management that ensures consistency, clarity and completeness, and alignment to your finance processes. Page 4 of 6
Our knowledge of Cloud computing, the Digital by default strategy and the CloudStore will equip our business case approach to add value. The resulting business case will enable you to: 1. Ratify your Cloud strategy by: clearly demonstrating why and how it supports your objectives 2. Develop the investment appraisal by: quantifying the financial impact of the project (Total Cost of Ownership, Return on Investment etc.) and providing a solid commercial analysis baseline to use during the sourcing phase 3. Maintain control by: providing a benefits tracker identifying ways to mitigate key risks associated with the Cloud project 1.3 Fee Proposal We will deliver this engagement over 6 weeks on a fixed fee basis. Fixed fee: 84,000 +VAT Our fees are exclusive of VAT, which will be charged at the prevailing rate. This fixed fee is valid provided that: all information requested is provided in a timely manner suitably knowledgeable representatives will attend requested workshops. The workshop / interview schedule will be agreed at the start of the engagement no unnecessary delay is introduced the scope of the engagement is not expanded 1.4 Supporting Documents The following case studies demonstrate some of our experiences and capabilities. More detailed versions are available in a supporting documents pack to this service offering: Case Study Description Value add Department of Energy and Climate Change GB-wide sourcing strategy & management of competitive dialogue for procurement Hudson & Yorke developed a unique commercial strategy and successfully executed the resulting complex procurements to establish and shape the market for smart metering data and communications services in Great Britain. Hudson & Yorke architected the service integration function that sits at the heart of the GB smart metering rollout. We successfully delivered complex parallel procurements, resulting in the award of a licence and four ICT contracts, worth more than 2.2bn to provide the shared infrastructure required to roll out smart meters. National Grid National Grid s global voice and data services sourcing programme Hudson & Yorke was engaged by National Grid to run its global voice and data services outsource programme aiming to rationalise National Grid s IS supply chain, moving to a new multi-supplier IS ecosystem. Page 5 of 6
Case Study Description Value add Hudson & Yorke supported National Grid to design the common incentivisation scheme that governed the outsourced towers and SIAM function. Hudson & Yorke s experience in sourcing large scale global voice and data contracts enabled National Grid to obtain service and contractual gains whilst reducing the total cost of ownership for the global delivery of its communications technology requirements. United Utilities United Utilities wanted to establish a clear way forward for delivery of a core infrastructure to better meet current and future business needs Hudson & Yorke undertook a detailed review of the United Utilities ICT environment and developed a strategy that: established a Target Operating Model to ensure that future ICT delivery and management is more effective and better able to meet business needs provided a clear sourcing framework to engage the market and increase competition identify change and technology initiatives, with a clear roadmap, that will transform delivery of ICT services to more consistent and cost effective capability The strategy was used to get buy-in from senior business stakeholders on the investment needed to transform services in the future. Barclays Moving from a fully outsourced model to a hybrid delivery model Hudson & Yorke was brought on board to help Barclays write and negotiate the new complex telecommunications services contracts and to aid the delivery of the transformation programme from a fully outsourced ICT model to a hybrid model where some of the key services were managed in-house, whilst others were managed or outsourced. Hudson & Yorke helped Barclays deliver significant cost savings whilst giving Barclays strategic control of its business critical sites through the delivery of a model which is now perceived as leading edge technically, operationally and commercially. BP Global telecoms sourcing programme to support them in consolidating 500+ contracts by moving to a lead integrator model covering data and voice Hudson & Yorke was engaged to run the strategic sourcing programme, with a global scope covering approximately 750 sites in 60 countries and included mobile services covering 23 countries across 3 continents. Hudson & Yorke provided direct support to BP during the vendor contract negotiations and the sourcing programme resulted in BP signing a new 5 year global network and telecommunications services contract worth $500m, with Deutsche Telekom s T-Systems. Heineken Global WAN sourcing programme Hudson & Yorke was able to consolidate Heineken s supplier base; increase transparency and control by providing a single view on network costs, standards and SLAs; achieve a future ready network allowing operating countries to plug in value added services such as VoIP, video and Cloud solution and increase flexibility. Hudson & Yorke helped Heineken sign a 5 year, 61.2m global WAN, security and remote access services contract with significantly improved terms and service levels whilst obtaining a 5.5m cost saving. Page 6 of 6