Cambridge MC helps a large banking corporation halve their data centre operating costs

By consolidating their data centre estate and making flagship locations more efficient


The client, a major financial institution, had a large portfolio of data centres and was initially concerned that one of them was approaching the end of its life. 


After a review of their data centre estate, our consultants identified that not only were operating costs out of control (several times higher than market rates would indicate) but the team in charge of strategy was not aware of the IT strategy or its impact on data centre requirements. 


The hybrid cloud strategy adopted by the CIO team would create a significant reduction in IT load in their data centres—perhaps up to 50% in the long-term. This would have reduced the efficiency of the data centre estate even further. 


Their flagship data centre was under 50% utilised, making it highly inefficient, both in terms of OpEx and energy usage, and these costs would increase significantly if the DC estate strategy was not reviewed.

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The

Challenge


The bank had two main challenges:


1)   To ensure that their data centres were resilient and stable (a regulatory requirement) and financially efficient. They had a large estate of data centres, including several standalone facilities, and many dozens of on-premise computer rooms in corporate HQ buildings. Many of their legacy data centres were old and inefficient. 


2)   Their flagship data centre was less than 50% utilised and was costing a significant multiple of the standard operating cost for a similar facility. A significant proportion of the extra cost was due to the low utilisation.


As well as the physical and financial issues, the organisation was suffering due to a lack of coordination between the property department, who owned and paid for the buildings and power, and the IT department, who were the customer, but who made no direct financial contribution to data centre costs.


The IT strategy was to adopt a hybrid cloud platform that would reduce IT loads by up to 50%, but the property teams were not even aware of this.

The Solution


Our consultants first had to bridge the gap between the property teams and the IT department at the bank. A lack of engagement between the two teams meant that there was a fundamental lack of understanding of the requirements for data centre capacity in the medium- and long-term. The supplier (the property team) had little or no idea of what the customer (the IT department) required.


The IT department was also finding it difficult to express their requirements in terms that the property team could act on. So, the approach that had been adopted was one of over-engineering and over-provision.


Our team started by analysing the utilisation across the data centre estate and modelling the impact of the hybrid cloud strategy over time. This included a sensitivity analysis that looked at different scenarios that would affect the proportion of IT workloads migrated into the cloud. This gave a clear picture of how total utilisation was likely to look over the two-year period that the cloud migration was forecast to last.


Our main recommendation was to consolidate the data centre estate into the smallest possible footprint. Filling the flagship data centre to a reasonable level would halve the running costs overall and improve total system resilience. 


Emptying older data centres would release properties from the portfolio that could then be disposed of. This had additional benefits in HQ buildings with older computer rooms that had effectively locked the bank into buildings that were of no strategic interest to the organisation.

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Outcomes & Results


01

The bank is now on a long-term programme of consolidating their data centres

02

The target number of standalone facilities was reduced by over 50% and the target number of computer rooms in HQ buildings was reduced by over 90%

03

The hybrid cloud programme is almost complete

04

Utilisation in the flagship data centre has increased and will continue to grow as IT systems are migrated out of legacy data centres slated for disposal

05

The IT team has become significantly more involved in data centre strategy and is working more closely with the property team to ensure alignment

Get in touch with our Data Centre consultants


We are a highly collaborative team of senior level executive professionals able to adapt to any business challenge. We deliver the expected strategic outcomes on time and on budget.

+44 (0)1223 750335

info@cambridgemc.com

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Just some of our clients


Amazon

Amazon

Audi

Audi

BT
Post Office

Post Office

BA

BA

BP

BP

Amazon

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Cambridge Management Consulting is a specialist consultancy drawing on an extensive network of global talent. We are your growth catalyst.


Our mission is to help our clients make a better impact on the world.

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Industry insights


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What’s your organisation’s type when it comes to cyber security? Is everything justified by the business risks, or are you hoping for the best? Over the decades, I have found that no two businesses or organisations have taken the same approach to cybersecurity. This is neither a criticism nor a surprise. No two businesses are the same, so why would their approach to digital risk be? However, I have found that there are some trends or clusters. In this article, I’ve distilled those observations, my understanding of the forces that drive each approach, and some indicators that may help you recognise it. I have also suggested potential advantages and disadvantages. Ad Hoc Let’s start with the ad hoc approach, where the organisation does what it thinks needs to be done, but without any clear rationale to determine “How much is enough?” The Bucket of Sand Approach At the extreme end of the spectrum is the 'Bucket of Sand' option which is characterised by the belief that 'It will never happen to us'. Your organisation may feel that it is too small to be worth attacking or has nothing of any real value. However, if an organisation has nothing of value, one wonders what purpose it serves. At the very least, it is likely to have money. But it is rare now that an organisation will not hold data and information worth stealing. Whether this data is its own or belongs to a third party, it will be a target. I’ve also come across businesses that hold a rather more fatalistic perspective. Most of us are aware of the regular reports of nation-state attacks that are attempting to steal intellectual property, causing economic damage, or just simply stealing money. Recognising that you might face the full force of a cyber-capable foreign state is undoubtedly daunting and may encourage the view that 'We’re all doomed regardless'. If a cyber-capable nation-state is determined to have a go at you, the odds are not great, and countering it will require eye-watering investments in protection, detection and response. But the fact is that they are rare events, even if they receive disproportionate amounts of media coverage. The majority of threats that most organisations face are not national state actors. They are petty criminals, organised criminal bodies, opportunistic amateur hackers or other lower-level actors. And they will follow the path of least resistance. 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At the more advanced end of the Ad Hoc zone, you will find those organisations that choose a framework and aim to achieve a specific benchmark of Security Maturity. This approach ensures that capabilities are balanced and encourages progressive improvement. However, 'How much is enough?' remains unanswered; hence, the security budget will frequently struggle for airtime when budgets are challenged. It may also encourage a one-size-fits-all approach rather than prioritising the assets at greatest risk, which would cause the most significant damage if compromised. Regulatory-Led The Regulatory-Led organisation is the one I’ve come across most frequently. A market regulator, such as the FCA in the UK, may set regulations. Or the regulator may be market agnostic but have responsibility for a particular type of data, such as the Information Commissioner’s Office’s interest in personal data privacy. If regulatory compliance questions dominate most senior conversations about cyber security, the organisation is probably in this zone. Frequently, this issue of compliance is not a trivial challenge. Most regulations don’t tend to be detailed recipes to follow. Instead, they outline the broad expectations or the principles to be applied. There will frequently be a tapestry of regulations that need to be met rather than a single target to aim for. Businesses operating in multiple countries will likely have different regulations across those regions. Even within one country, there may be market-specific and data-specific regulations that both need to be applied. This tapestry is growing year after year as jurisdictions apply additional regulations to better protect their citizens and economies in the face of proliferating and intensifying threats. In the last year alone, EU countries have had to implement both the Digital Operational Resilience Act (DORA) and Network and Infrastructure Security Directive (NIS2) , which regulate financial services businesses and critical infrastructure providers respectively. Superficially, it appears sensible and straightforward, but in execution the complexities and limitations become clear. Some of the nuances include: Not Everything Is Regulated The absence of regulation doesn’t mean there is no risk. It just means that the powers that be are not overly concerned. Your business will still be exposed to risk, but the regulators or government may be untroubled by it. Regulations Move Slowly Cyber threats are constantly changing and evolving. As organisations improve their defences, the opposition changes their tactics and tools to ensure their attacks can continue to be effective. In response, organisations need to adjust and enhance their defences to stay ahead. Regulations do not respond at this pace. So, relying on regulatory compliance risks preparing to 'Fight the last war'. The Tapestry Becomes Increasingly Unwieldy It may initially appear simple. You review the limited regulations for a single region, take your direction, and apply controls that will make you compliant. Then, you expand into a new region. And later, one of your existing jurisdictions introduces an additional set of regulations that apply to you. Before you know it, you must first normalise and consolidate the requirements from a litany of different sets of rules, each with its own structure, before you can update your security/compliance strategy. Most Regulations Talk about Appropriateness As mentioned before, regulations rarely provide a recipe to follow. They talk about applying appropriate controls in a particular context. The business still needs to decide what is appropriate. And if there is a breach or a pre-emptive audit, the business will need to justify that decision. The most rational justification will be based on an asset’s sensitivity and the threats it is exposed to — ergo, a risk-based rather than a compliance-based argument. Opportunity-Led Many businesses don’t exist in heavily regulated industries but may wish to trade in markets or with customers with certain expectations about their suppliers’ security and resilience. These present barriers to entry, but if overcome, they also offer obstacles to competition. The expectations may be well defined for a specific customer, such as DEF STAN 05-138 , which details the standards that the UK Ministry of Defence expects its suppliers to meet according to a project’s risk profile. Sometimes, an entire market will set the entry rules. The UK Government has set Cyber Essentials as the minimum standard to be eligible to compete for government contracts. 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Cambridge Management Consulting is delighted to announce that we have been recognised as a Platinum-level telecommunications consultancy in Consultancy.uk’s 2025 ‘Top Consulting Firms in the UK’ ranking. This achievement places us among an upper tier of telecommunications consultancies across the UK, reflecting our continued commitment to delivering exceptional expertise and results for our clients in this rapidly evolving sector. A Rigorous Assessment The Consultancy.uk ranking represents one of the most comprehensive evaluations of the UK’s consulting landscape, assessing over 1,400 firms across the country. This methodology combines extensive client feedback from more than 800 clients and peer reviews from over 3,000 consultants, alongside detailed capabilities assessments that examine the reputation of each firm, project track records, analyst benchmarks, industry recognitions, and thought leadership. 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The telecommunications landscape continues to evolve rapidly, with exponential data growth, IoT deployment, and the infrastructure demands of generative AI driving substantial transformation in both virtual and physical infrastructure. Our team support organisations to stay afloat in this changing market, with a proven track record including managing over $5bn in client revenues, saving organisations over $2bn, and driving procurement transactions exceeding $5bn. Recent case studies demonstrate the breadth of our telecommunications expertise, from conducting technical due diligence for major investment decisions, to designing and procuring modern network solutions for leading academic institutions. Our work with the University of Bristol, helping them to complete their progressive Modern Network transformation, exemplifies our ability to navigate complex technical and commercial requirements, while delivering measurable outcomes. 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Disclaimer: The text below was originally published on the Pembroke College website. Read the original post here to read the full article, including coverage of the award's other recipients, Duncan Rule and Ian Carry. 2025 Volunteers of the Year Announced Congratulations to Duncan Rule, Ian Carry and Tim Passingham (2022) whose contributions to Pembroke have been recognised in Pembroke’s Volunteer of the Year Awards for 2025. The award was introduced in 2022 to recognise not only the particular individuals who contribute their time and expertise for the benefit of the College and its community but also the value of volunteering itself. Duncan and Tim received their awards from the Master, Lord Smith of Finsbury, last week, with Ian set to receive his at the LEAP celebration event next term. Tim Passingham Since joining Pembroke as a William Pitt Fellow in 2022, Tim Passingham has become a highly valued member of the College community. A consistent supporter of the Corporate Partnership Programme, Tim has played a pivotal role in connecting students with real-world opportunities. Through his companies—Cambridge Management Consulting and partner firm edenseven—Tim has offered numerous internships to students on the LEAP programme, helping them build professional confidence and practical skills. Beyond internships, Tim and his team have supported LEAP students through reflective post-programme interviews, offering valuable feedback for both participants and the LEAP team. His impact is visible in many aspects of College life: from advisory work on the Milstein House sub-committee to generous support for Pembroke’s musicians, including the donation of a drum kit. Tim has also brought significant visibility to Pembroke within the wider Cambridge community. Under his leadership, the College was a key host during Cambridge Tech Week 2024, welcoming visitors for lectures, panels, and a Deep Tech Gala Dinner. Regularly using College spaces for high-profile meetings and team retreats, Tim has become a recognisable and influential figure around Pembroke—embodying the spirit of collaboration and innovation that the Corporate Partnership Programme aims to foster. On receiving this award, Tim said "when I was invested as a William Pitt Fellow in 2022, I stated that my desire was to give to the College and work hard to bring the worlds of Academia and Industry closer together. Since then, me and some of my team at Cambridge Management Consulting have supported numerous LEAP interns, sponsored our first PhD student at Pembroke, supported the CARA charity and initiative, supported the Mill Lane site programme, and given as much time and money as we have been able to support the Development Team and the growth of the College. I feel enormously honoured to receive this award which, for me, represents very much the beginning of a partnership which I hope will deepen and grow over many years to come. I look forward to the years ahead and to serving the College as we seek to continue to build on the incredible legacy of Pembroke by having a disproportionate impact for good on the world around us.”
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