ITX360 - IT Cost Optimization

Effective IT spend management is not a simple exercise in cost-cutting. The hallmarks of a well crafted IT spend and cost management strategy are:

    • Optimization and utilization of current and planned spend.
    • Minimizing cost on an on-going basis.
    • Alignment of IT spend with the organization’s strategy.
    • Informed future planning.

Our Approach.

Our ITX360 consulting service delivers on the promise of optimization and cost control with a three-phased approach: 

Initial Scoping.
  • Perform initial scoping to identify  best candidates of IT spend to focus on. 
  • Scope may be limited to certain areas of IT spend or be “full scope” to include all IT spend. 
Identify IT spend.
  • Quantify and allocate all IT spend for in-scope areas.
  • Calculate TCO for each area of spend.
Utilization & alignment assessment.
  • Calculate estimated ROI.
  • Assess relevant factors like alignment with need, usage, requirements, user satisfaction, etc.
  • Calculate Spend Quality Score (SQS). Assess and score applicable criteria on objective and subjective criteria.
  • Determine dependencies between different areas of spend.
Optimization recommendations and initiatives.
  • Deliver optimization recommendations and document cost reduction initiatives.
  • Score and rank initiatives and recommendations based on applicable criteria, including potential benefits, initiative cost, potential “hard savings”, potential “soft savings”, upstream/downstream impacts, time requirement, business impact, and other factors.

In addition to the above, we will also assist with designing and deploying guidelines and frameworks to enable on-going IT cost optimization.


Each engagement is unique. Our ITX360 service can be narrowly focused on specific areas, or broadly across all IT spend. Typical areas of IT spend we assist with include, but are not limited to:

    • On-premise software.
    • Cloud: PaaS / IaaS / SaaS.
    • On-premise and data center hardware.
    • Recurring hardware and software support.
    • IT Security.
    • Hosting, Infrastructure and DR.
    • IT professional services. 

Our Capabilities Statement can be accessed here:
RedwoodCompliance Capabilities Statement ITX360 (MS Word)
RedwoodCompliance Capabilities Statement ITX360 (PDF)

Past Client Successes (Anonymized)

Case #1

We engaged with a major public-sector to assist with cloud procurement planning and software license compliance.

  • We scanned their existing on-premise environment and modeled migration options with target pricing for major cloud vendors. We reduced the initial quote of $800k+ to a final procurement below $250k, saving our client over $550k in 1 years’ worth of cloud services.
  • We identified over $175k of unused annual software support spend that client could unilaterally drop in the next round of renewals. 
  • Advised on key cloud contract terms and negotiation.
  • Performed a rapid self-audit and identified over $650k in license compliance gaps. Subsequently, we assisted our client with the license remediation.
Case #2

The VP of IT at a major retail chain requested assistance with workload consolidation, license usage assessment, and net-new software license procurement for Oracle and Microsoft products. We rapidly engaged and assisted with the following:

  • Performed a rapid deployment and utilization scan of the client’s IT landscape, including deployments in AIX/LPARs, VMware, physical on-premise, and cloud.
  • We analyzed and advised on VMware workload consolidation, and repurposing of existing unused hardware to balance additional compute needs with unused hardware, while reducing software license requirements.
  • We also analyzed non-VMware workloads and advised on cost saving consolidations that helped reduce required software procurement, while better leveraging existing hardware resources (like AIX CPU pool resources).
  • We reduced the overall net-new procurement in hardware down to $0, and reduced Oracle and Microsoft procurement needs by a total of $1.1M.
  • We identified license compliance gaps of over $1.7M and then assisted with remediation and validation.
Case #3

A Fortune 500 client approached us for support during a software vendor audit support. We engaged rapidly and directly with the vendor auditors to manage the audit and minimize the total resolution cost. Our support included:

  • Performing a rapid self-audit and identified over $13.5M in compliance gaps. Subsequently, we assisted with validation to ensure that the residual procurement was minimized. We worked with the auditors towards audit closure that was acceptable to all parties.
  • Worked with several different technical teams to present a coordinated response to the auditors.
  • Assessed software deployments in AWS and the corresponding licensing impact, in light of the vendor’s contracts and cloud licensing policy.
  • Advised client on go-forward compliance management.

Discovery and Scoping.

Ready for a conversation and reduce your cloud spend? Let’s schedule a complimentary consultation.