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Headergrafik

Optimising hosting services

Willhaben.at is Austria’s largest online classified advertisement portal with over 4 million ads in real estate, cars & motors, jobs & careers, and its own market place for private listings. The portal offers users a platform on which suppliers and prospective customers can find each other quickly and easily. The company was formed in 2006 as a subsidiary of two large media corporations, Schibsted (Norway) and Styria (Austria), and has since become the largest service provider in Austria.

 

Initial situation / Challenges

Willhaben’s starting point can be summarised as follows:

  • Growing hosting infrastructure which is based on past CAPEX investments and current OPEX contracts
  • Extremely high requirements and SLAs since the willhaben.at website is the heart of the company and every second of downtime equals lost revenue
  • Huge traffic increase in recent years due to the company’s two-digit percentage growth
  • High levels of satisfaction with a long-standing, external hosting service provider

Objective

The following project objectives were defined for INVERTO:

  • Benchmarking of current conditions based on the INVERTO benchmarking database, as well as current hosting market data
  • Negotiating a new, transparent framework contract based on individual statements of work, service level agreements (SLAs) and growth-orientated pricing
  • Setting up a three-scenario approach for the future IT hosting strategy

Measures prior to invitation to tender

In the run-up to the re-tendering of hosting services, measures were taken such as:

  • Readjustment of requirements and SLAs based on future needs, taking into account traffic growth
  • Creation of a price request grid on an individual component basis to allow like-for-like comparison of service components
  • Pre-briefing service providers from all over Austria about the increase in competition

Tender procedure

The tender procedure was carried out in the following steps:

  • Setting up a price/performance comparison based on the INVERTO benchmark database and the tender results in Austria
  • Negotiation preparations with the customer and drafting the key points and strategy
  • Workshops with top two service providers to ensure high quality standards and comparability of offers
  • Challenges: Several rounds of negotiations, internal opposition based on many years of cooperation and dependency on the external service provider (infrastructure setup)
  • Price/performance comparison based on providers’ different SLAs, services and billing types
  • Findings: Service provider workshops and top management attention crucial to the final round of negotiations and negotiation breakthrough

Result

The results of the optimisation process can be summarised as follows:

  • Results directly improving EBIT in 2017
  • Evaluation of three scenarios for the future hosting and service provider strategy of SMG
  • Improvement to SLAs (including introduction of spatial redundancy), integration of a benchmarking clause, re-specification of service components as well as conclusion of a framework agreement
  • Knowledge/information gain for the customer from supplier workshops
  • Growth-orientated pricing and high quality standards

Projects

Indirect Spebd Optimierung bei INVERTO Diskussion im Serverraum

How INVERTO supports procurement of IT requirements to achieve professionalisation

printmedien einkauf druckerei

Reducing costs and increasing performance: How INVERTO is helping Styria to prepare for digitalisation

Kostenreduzierung Kleine Zeitung

Cost savings through improved supplier and waste disposal management at Styria Tiskara Zagreb.



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