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.

Download the Full Case Study


Contact Form - Technology Practice

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.

DOWNLOAD CASE STUDY

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

Contact Form - Technology Practice

Just some of our clients


Amazon

Amazon

Audi

Audi

BT
Post Office

Post Office

BA

BA

BP

BP

Amazon

A little bit about Cambridge MC

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.

ABOUT CAMBRIDGE MC

Industry insights


Wind farms  and solar panels in the countryside at dawn
by Scott Armstrong 27 March 2026
Sustainability | Energy, risk and competitiveness – find out why sustainability is no longer just about reporting, but about resilience, cost control and long-term advantage | READ FULL ARTICLE
Yello and turquoise neon lights.
24 March 2026
International consulting firm, Cambridge Management Consulting has acquired telecommunications cost-reduction specialist, The Carrier Club, strengthening its ability to help organisations reduce their telecoms and network infrastructure costs.
Pembroke College lawn bathed in sunlight
by Tim Passingham 12 March 2026
CAMBRIDGE | See how Cambridge MC and Pembroke College are creating mutual value through a unique corporate partnership spanning student opportunities, academic collaboration and industry events | READ FULL CASE STUDY
Neon sharks made out of code.
by Simon Crimp 9 March 2026
Cyber Security | Ransomware in 2026 is a board-level resilience issue. Learn the key risks, weak spots and practical questions boards should ask to improve readiness, recovery and response.
The Top 21.2026 at the awards event in Cambridge, UK.
6 March 2026
The #21toWatch Top21.2026 winners have been announced at an awards ceremony at The Glasshouse innovation hub in Cambridge.
Asian business woman near a long window and looking at a tablet.
by Arianna Mortali 6 March 2026
BLOG | A student’s perspective on why women shouldn’t have to ‘play masculine’ to succeed at work – and how valuing empathy, confidence and inclusive leadership can help close gender gaps and build healthier organisations.
Abstract squiggle of circles
by Simon Crimp 19 February 2026
Where should leaders start with AI in 2026? A practical guide to moving beyond pilots, clarifying risk appetite, strengthening governance, improving data readiness, and delivering measurable enterprise value from AI at scale | READ FULL ARTICLE
Close up of a data centre stack with ports and wires visible
12 February 2026
We were approached by one of the fastest growing data centre providers in Europe. With over 20 data centres throughout the continent, they are consistently meeting the need for scalable, high-performance infrastructure. Despite this, a key data centre in Scandinavia had become reliant on a single, non-redundant 1 Gbps internet service from a local provider, posing significant risks to operational continuity. To enhance the reliability of its network and resolve these risks, our client needed to establish additional connectivity paths to ensure the redundancy of its infrastructure. The Ask Cambridge Management Consulting was engaged to address these connectivity challenges by identifying and evaluating potential vendors and infrastructure options to create second and third connectivity paths. This involved exploring various types of connectivity, including internet access, point-to-point capacity, wavelengths, and dark fibre. Additionally, Cambridge MC was asked to provide recommendations for building a local fibre network around the data centre to control and maintain diverse paths. This would allow the data centre to connect directly to nearby points of presence (PoPs) and reduce dependency on external providers, thereby enhancing network resilience and operational control. The goal of this project was to ensure that the Nordic data centre could maintain continuous operations even in the event of a failure in the primary connection. Approach & Skills Cambridge MC approached the project with a focus on ensuring operational continuity and resilience for the data centre. By identifying multiple connectivity paths, we aimed to mitigate the risk of network failures and ensure that the data centre could maintain continuous operations even in the event of a failure in the primary connection. This approach allowed Cambridge MC to provide a comprehensive solution to address both immediate and long-term connectivity needs. We employed a combination of Agile and Waterfall methodologies to manage the project. The initial investigative phase allowed a Waterfall approach, in which our team conducted thorough research and analysis to identify potential vendors and connectivity options. This phase involved detailed interviews with various telecommunications providers and an assessment of publicly available information. Once the initial analysis was complete, the workflow transitioned to an Agile approach for the implementation phase. This allowed Cambridge MC to adapt to new information and feedback from stakeholders, ensuring that the final solution was both flexible and robust. Challenges Lack of information: One of the primary obstacles we faced was the lack of detailed network maps and information from some of the potential vendors. To overcome this, the team conducted extensive interviews with contacts at these companies and leveraged its existing network of industry contacts to gather as much information as possible. Remote location: Another challenge was the remote location of the data centre, which limited the availability of local infrastructure and required us to explore creative solutions for connectivity. Cambridge MC addressed this by proposing the construction of a local fibre network around the data centre, which would allow for greater control and flexibility in connecting to nearby PoPs. Fragmented factors: Additionally, coordinating with multiple vendors and ensuring that their services could be integrated seamlessly posed a logistical challenge. We mitigated this by recommending a phased approach to implementation, starting with the most critical connectivity paths and gradually expanding to include additional options. Outcomes & Results Increased Connectivity: Cambridge MC successfully identified and evaluated multiple connectivity paths for the data centre. By exploring various types of connectivity, including internet access, point-to-point capacity, wavelengths, and dark fibre, we provided a comprehensive solution that significantly enhanced network resilience and reliability. Greater Control & Flexibility: Our recommendations for building a local fibre network around the data centre allowed for greater control and flexibility in connecting to nearby points of presence, ensuring continuous operations even in the event of a failure in the primary connection. New Vendors: The team’s extensive network of industry contacts and deep understanding of the regional telecommunications landscape allowed for a thorough and nuanced evaluation of potential vendors and connectivity options. Scope for Future Work: Cambridge MC identified several future developments with the potential to further enhance international connectivity and provide additional redundancy for the data centre. We also proposed further assistance, including a site visit for a more in-depth analysis of options, issuing RFI/RFP to vendors for capacity and fibre, and conducting similar connectivity studies for other candidate sites in the region.
Neon discs fading from blue to green to purple, cascading diagnolly across the screen.
by Cambridge Management Consulting 28 January 2026
Thames Freeport this week revealed the eight companies selected to participate in the Freeport’s Connectivity Lab, an initiative focused on validating commercially proven technologies in live port and logistics environments.
SHOW MORE