When companies want to reduce costs, IT is usually high on the list. And that’s proving to be the case at Woolworths, which has identified several areas of technology cost savings as part of its “Fuel For Growth” program.
The total savings for the scheme are estimated at $500 million. Application modernization and mainframe migration are two critical areas, as Woolworths estimates the following:
- Decommissioning of its mainframe, which is predicted to save $12 million.
- “Application simplication”, which is predicted to save $22 million.
Woolworths says total savings across its Mercury 2 project and its support function simplification is $100 million. Beyond cost savings, the company’s decision to leave the mainframe adds other advantages, including business intelligence (BI) and agile feature development for IT. In the mainframe environment, legacy databases weren’t able to integrate with their modern counterparts, leaving valuable data outside the scope of analysis and BI tools.