Impact Study: A Healthcare Company's Journey to the Cloud (J2C)
A U.S. based healthcare conglomerate wanted to pivot from an aging on-premise technology environment, to a future proof Hybrid Cloud model to drive improved business outcomes, while managing its bottom line.
A large U.S. based healthcare conglomerate wanted to pivot from an aging on-premise technology environment, to a future proof Hybrid Cloud model to drive improved patient and business outcomes, while managing its bottom line.
Client: $1B U.S. Health Provider
Industry: Healthcare Services (Health Network)
Sponsor: Chief Information Officer (CIO)
Locale: Domestic, U.S.
The Challenge
This regional healthcare conglomerate with services ranging from Medical Centers, to Community Health and Research, to Healthy Communities via basic infrastructure services recognized the need to transform its technology landscape and migrate key capabilities to Cloud Services. However, their legacy systems, and technical debt had accumulated over years of organic growth created a complex web of technological dependencies and processes that hindered this crucial transition. The organization needed expert guidance to navigate this transformative journey, assess their current technology ecosystem, and develop a strategic roadmap for Cloud Services.
Engagement Description
The Mesh Digital LLC team started with a comprehensive assessment of the client's technological environment and Cloud readiness. Identification of critical gaps led to the formulation of pragmatic, and sustainable go forward recommendations based on both industry best practices and Mesh's own experiences in the healthcare space and cross industry. Our team then crafted a tailored Hybrid Cloud Strategy developing detailed reference architectures, design patterns, and domain models specific to the healthcare sector. Then provided a multi-year roadmap and restructuring plans to support the organization's shift, while building the financial case for change, while concurrently underpinning a Corporate Transformation Strategy.
Outcomes Delivered
Gap Assessment of Existing Infrastructure
We preformed a rapid, but thorough application, infrastructure, and facilities landscape deep dive to inform Cloud Strategy, mapping existing capabilities and identifying candidates for transition while formulating recommendations for legacy rationalization. Through this effort, significant opportunities where found to right-size and sunset a significant number of systems and platforms, supporting less expense and decreased operational burdens.
Strategy & Framework for a Hybrid Cloud
We then architected a comprehensive Cloud Strategy anchored by four strategic pillars forming the "North Star" to guide decision-making and prioritization. We then integrated this vision with strategic themes encompassing over 35 critical activities in a capabilities roadmap, taking into account technological, business, and human capabilities along the way. All designed to drive progress and balance practical pacing with tangible cost savings, and measure success through data-driven insights.
Comprehensive Cloud Migration Plan
To ensure actionable outcomes, we architected a preliminary migration and refactoring wave plan and multi-year migration roadmap; aligning business objectives, technological advancements, and talent development to drive holistic organizational transformation.
Financial Evaluation of Cloud Migration
Additionally, we conducted a Cost-Benefit Analysis (CBA) to inform Cloud service adoption, quantifying internal costs, labor requirements, CapEx to OpEx shifts, and to support a longer term transition in allocating capital for a hybrid cloud model. The CBA with multi-dimensional modeling demonstrated clear ROI in as little as 2 years when compared to a Business As Usual (BAU) base case, reducing annual expenditures by ~52%. Ultimately, providing a conservative estimate of a reduced Total Cost of Ownership (TCO) over a 5 year time horizon by conservative $2.7M - $3.5M in fully loaded savings. All while decreasing the cost to deploy and operate a Virtual Machine (VM) in many cases by an astounding 9x lower, when compared to on-premise BAU VMware virtual hosting.
Beyond the forecasted savings, further opportunities to lower Operating Expenditures (OpEx) and better align IT with business goals by reallocating resources to higher-value patient and business initiatives were also identified.
Improved Service Levels and ESG Benefits
Lastly, but certainly not least Mesh over delivered, planning for a primary Amazon Web Services (AWS) GovCloud environment that planned for a separate DR site, yet offering an improved 2-hour Recovery Time Objective (RTO) for the firm's mission and business critical systems. Backups were streamlined by removing offsite storage needs and significant, value additive Environmental Social and Governance (ESG) benefits were able to be introduced that the firm wouldn't have been able to achieve otherwise. Those ESG benefits forecast Energy Efficiency 3.6x more efficient and Emissions Savings of 88% when compared to BAU. All while doing so with investing in their existing teams to "sophisticate up" and continue to ensure every colleague had the opportunity to participate in this new operating paradigm.