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SoftwareOne case study
Cost Analysis Pays Off for IT Spend
How Techem Paved the Way for Sustainable Software Cost Savings
Measure – Analyze – Save. Providing energy and measurement services for the real estate industry, Techem’s intelligent digital resource-saving solutions record and analyze energy data precisely. Measurements help customers reduce and manage energy consumption.
Techem has successfully applied these principles to improve cost efficiency in its software environment. With SoftwareOne’s savings program SLM Cost Take-Out (CTO), the potential for cost savings and cost avoidance were identified, totaling almost €3 million over three years which represents a significant part of Techem’s annual software and cloud budget.
The CTO analysis helped Techem align its IT strategy with efficient software use and implement initial cost-cutting measures. Using SoftwareOne's Microsoft Advisory Services (MAS) in a follow-up project enabled Techem to successfully adapt its Microsoft Enterprise Agreement (EA) to new business requirements, saving more than half a million euros of the nearly €3 million identified.
- Customer
- Techem
- Industry
- Energy
- Services
- SoftwareOne SLM Cost Take-Out; SoftwareOne Microsoft Advisory Services
- Country
- Germany
SoftwareOne’s Cost Take-Out was a double win for Techem. Uncovered software savings potential has shown us where we can effectively save costs and increase our ROI. In addition, it quickly became clear to us that SoftwareOne is exactly the right partner to optimally adapt our Microsoft EA contract to our specific license requirements and negotiate with the publisher so that we can save enormous costs over the next three years.
Klaus Linderich
Head of Procurement, Techem
About the Customer
Techem is one of the world's leading energy management solutions providers for real estate. Innovative, sustainable digital technologies help Techem make buildings intelligent and climate-neutral, creating an improved quality of life.
Founded in 1952, the company’s 3,750 employees are active in 20 countries, servicing nearly 12 million apartments. The focus is on digitization to increase real estate value chain efficiencies for heat and water. Its digitally networked solutions and devices create the database to reduce energy consumption, increase efficiency, and network renewable energy generation across sectors.
As the market leader in radio remote recording of energy consumption in apartments, Techem offers a wide range of services for precise recording, billing, analysis, and optimization of energy and water consumption, and coordination of efficient energy procurement processes.
The Challenge
Techem wanted to maximize operational efficiency and optimize IT operating costs. Its goal was to successfully master the associated challenges of increasing cloud consumption and prepare for new requirements to equip the modern workplace of its employees. Using SoftwareOne’s Cost Take-Out Service, the company could access the expertise of its long-standing partner to quickly identify and implement potential areas for software cost savings with minimal internal effort.
The Solution
All critical Techem processes, responsibilities, and contractual obligations to its major publishers were recorded and analyzed in just three days. Findings identified potential savings and launched seven concrete savings initiatives to prioritize actions, time and investment requirements, and savings potential. SoftwareOne placed Techem’s potential cost savings and avoidance at almost €3 million over three years.
The Cost Take-Out analysis revealed enormous savings potential, exceeding half a million euros for Microsoft alone. A Microsoft Advisory Services project (MAS) was quickly set up to advise. Preparing for a three-year Microsoft Enterprise Agreement extension, the SoftwareOne Cost Take-Out project provided Techem valuable data to optimize Microsoft license agreement conditions and license models, wherever possible.
The Result
- Transparency as a Basis for Decision-Making: In only a few days, the SoftwareOne Cost Take-Out program provided a transparent basis for decision-making, enabling company management and stakeholders to implement software savings measures.
- Enormous Savings Potential Identified: The SoftwareOne Cost Take-Out project identified almost €3 million in potential software and cloud cost savings and cost avoidance over three years.
- Immediate ROI: The SoftwareOne Cost Take-Out Consulting Service and Microsoft Advisory Services identified immediate and medium-term savings initiatives and software cost-efficiencies.
- Optimized Microsoft EA Agreement: SoftwareOne identified an improved, needs-based product strategy for M365 Mobile Workplace licenses. The license change and contract adjustments used an optimal extension of the Enterprise Agreement for savings of more than half a million euros over three years.
- Sustainable Transformation: The Cost Take-Out program transformed Techem’s commercial assets into essential building blocks to further advance a digital transformation across the company.