IT Cost Rationalization: Building Financial Control and Eliminating Years of Accumulated Waste

Context

Following massive organizational restructuring at Seres Therapeutics, I inherited an IT budget in complete disarray - no tracking system, no governance, years of accumulated waste from orphaned users and over-provisioned resources. Beginning with implementation of a budget tracking system in Q1 2024, I executed an 18-month transformation that reduced annual IT operating costs by 65%.

While organizational restructuring naturally drove significant cost reductions through reduced headcount and associated licenses, I delivered approximately $2M+ in explicit strategic savings through systematic vendor negotiations, automation implementation, and infrastructure optimization - ensuring IT costs scaled appropriately while preserving critical business capabilities.

The transformation established sustainable financial management practices: weekly budget reviews, approval workflows, automated provisioning to prevent future waste, and governance frameworks that continue to prevent budget bloat.

Challenge

Inheriting an IT budget and portfolio in disarray presented multiple interconnected challenges:

• Financial Chaos: The multi-million dollar operating budget had no tracking system, no governance framework, and no visibility into actual spend. Previous years had operated reactively, with invoices tracked via email and no systematic approach to cost management.
• Years of Accumulated Waste: Systematic audits revealed extensive waste that had accumulated over years of reactive management. Users who had left the company years ago still had active licenses across multiple platforms. Azure resources that were no longer in use continued generating costs. Office 365 mailboxes were over-provisioned with E1 and E5 licenses assigned incorrectly. Backup systems had no data retention policies, resulting in indefinite storage of data for departed employees - in one case, backing up users who hadn't been with the company in eight years.
• Organizational Uncertainty: The initiative took place during continued organizational restructuring, including the VOWST divestiture with its associated Transition Service Agreement (TSA), multiple reduction-in-force events throughout 2024 and 2025, and the need to hire temporary staff to support TSA requirements.
• Lack of Automation and Governance: Manual onboarding and offboarding processes across all SaaS platforms meant that user accounts were not removed promptly when employees departed, creating orphaned licenses. No SAML or SSO provisioning existed, preventing automated lifecycle management.
• Scale of the Challenge: With 55+ systems across 64 budget lines requiring audit, 40+ vendor contracts needing renegotiation, and the need to maintain zero service disruption during the transformation, the scope was substantial.

Approach

Phase 1: Building Visibility & Control (Q1 2024 - 30-60 days)

The foundation of the transformation was establishing visibility where none existed. In my first 30 days, I designed and deployed a comprehensive Smartsheet-based budget tracking system that integrated with Oracle financial systems for actuals reconciliation. This system provided a single pane of glass for all IT spend, including real-time visibility into submitted purchases, approvals, actuals, budget numbers, vendor details, and spend variances.

Simultaneously, I built an enterprise IT Program Management Office (PMO) in 60 days to provide governance and coordination across the portfolio of eight in-flight projects. With these systems in place, I immediately conducted an initial assessment that identified approximately $850K in savings opportunities - contracts that could be renegotiated, systems that were underutilized, and licenses that could be optimized.

Phase 2: Establishing Financial Discipline (Q1-Q4 2024)

With tracking and governance systems operational, I established rigorous financial discipline across the IT organization. Weekly, bi-weekly, and monthly budget checkpoints became standard practice, with detailed readouts on spend against budget, variance analysis, and forward projections. Every new purchase request hitting the IT cost center went through a structured intake process requiring business justification, alternatives analysis, and budget impact assessment.

This proactive approach to financial management represented a fundamental shift from the reactive model that had preceded it. The result was spending 20-30% under approved budget despite supporting ongoing operations during organizational uncertainty.

Phase 3: Systematic Rationalization (Q4 2024 - Q4 2025)

In Q4 2024, I launched a formal cost rationalization program with executive sponsorship from the CIO and alignment with corporate objectives for 2025. This systematic, 12-month effort combined:

• Comprehensive System Audits: I led detailed audits of 55+ systems across 64 budget lines, examining every aspect of our technology portfolio. For Azure, this meant itemized cost analysis down to the penny for every resource, container, and subscription. For Office 365, we analyzed every user, mailbox type, license assignment, and usage pattern to identify over-provisioning and orphaned accounts.
• License Optimization & Cleanup: Based on audit findings, I executed systematic cleanup across the technology portfolio. Users who hadn't logged in for 6-12 months were removed after stakeholder consultation. Office 365 licensing was right-sized, with E1 and E5 licenses reassigned based on actual business needs. Azure resources no longer in use were decommissioned.
• Automation & Governance Implementation: To prevent waste from accumulating again, I implemented SAML and SSO provisioning across major SaaS platforms, enabling automated user lifecycle management. I also established data governance frameworks, including retention policies that control backup and storage costs.
• Infrastructure Optimization: I led the redesign of the Markley data center infrastructure, delivering $550K in savings over three years. Backup infrastructure was consolidated through Cobalt Iron migration to cloud-based solutions. Network circuits were downsized based on actual usage patterns.
• Strategic Vendor Negotiation: With detailed usage data from the audits, I led contract renegotiations across 40+ vendors spanning multiple technology categories:
  • Cloud Infrastructure: Microsoft Azure, AWS
  • Productivity & Collaboration: Microsoft Office 365, Zoom, Smartsheet, Jira
  • Security & Compliance: Darktrace, Rapid7, KnowBe4
  • Backup & Storage: Cobalt Iron, Kaseya, Iron Mountain
  • Data Center & Network: Data Center co-location, ISP circuits, Cisco / Palo Alto / Meraki network licensing
  • Enterprise Applications: Oracle, Veeva, Benchling, Labware
  • Professional Services: Consulting resources, managed services, outsourced IT staff

  Reductions ranged from 25-100% depending on usage optimization, right-sizing based on actual business needs, elimination of redundant services, and strategic contract negotiations timed with renewal cycles. In several cases, platforms were eliminated entirely when business justification no longer supported the cost.

Result

Overall Transformation

The 18-month cost rationalization program transformed IT financial management at Seres Therapeutics from reactive chaos to proactive control. The transformation achieved a 65% reduction in annual IT operating costs - a sustainable baseline that reflects right-sized operations with accumulated waste eliminated and governance frameworks in place to prevent future bloat. Throughout the transformation, zero service disruption occurred.

Phase Results

• Phase 1: Budget tracking system operational within 30 days, enterprise PMO built in 60 days, identified $850K in immediate savings opportunities
• Phase 2: Spent 20-30% under approved budget while maintaining operations, establishing rigorous financial discipline
• Phase 3: 55+ systems audited across 64 budget lines, 40+ contracts renegotiated delivering $2M+ in strategic savings

Vendor Optimization Across Technology Portfolio

Successfully renegotiated 40+ vendor contracts across seven major technology categories:

• Cloud Infrastructure: Optimized Azure and AWS spend through resource right-sizing and elimination of unused resources
• Productivity Platforms: Renegotiated Office 365, Zoom, and Smartsheet contracts based on actual usage patterns
• Security Tools: Consolidated security tooling (Darktrace, Rapid7, KnowBe4) to eliminate redundancy
• Backup & Storage: Migrated to cloud-based backup solutions and implemented data retention policies
• Data Center Services: Redesigned Markley infrastructure and optimized network circuits
• Enterprise Applications: Right-sized Oracle, Veeva, and R&D platform licensing
• Professional Services: Reduced consulting and managed services spend through strategic resource planning

Reductions ranged from 25-100% depending on the specific vendor, usage optimization opportunities, and business requirements. Several platforms were eliminated entirely when they no longer aligned with business needs.

Skills Demonstrated

• Financial leadership and budget management (multi-million dollar transformation)
• Rapid tool development (Smartsheet budget tracking in 30 days)
• Program management (enterprise PMO built in 60 days)
• System auditing and analysis (55+ systems across 64 budget lines)
• Vendor negotiation (40+ contracts renegotiated)
• IT automation (SAML/SSO provisioning implementation)
• Data governance (retention policies and cost control)
• Cloud cost optimization (Azure cleanup and renegotiation)
• Infrastructure optimization (data center redesign, backup consolidation)
• Change management (training administrators on cost metrics)
• Stakeholder management (business alignment and decision-making)
• Team leadership (cross-functional team through 18-month transformation)

Lessons Learned

• Visibility Enables Control: Without real-time budget tracking, cost management is inherently reactive. Building the tracking system first was critical to enabling everything that followed.
• Years of Waste Accumulate Without Governance: Orphaned users, unused resources, and over-provisioned licenses create hidden costs that compound over time. Systematic audits reveal opportunities that aren't visible without deep investigation.
• Automation Prevents Future Bloat: Manual onboarding and offboarding processes inevitably create orphaned accounts. Implementing SAML and SSO provisioning ensures licenses are removed when people leave.
• Data Governance Controls Hidden Costs: Without retention policies, backup and storage costs spiral as data accumulates forever. Establishing governance delivers immediate savings and ongoing cost control.
• Right-Sizing Requires Understanding Actual Usage: License optimization isn't simply "fewer people equals fewer licenses" - it's understanding who needs what level of access and removing over-provisioning.
• Vendor Negotiations Require Data: Detailed usage analysis creates negotiating leverage that vendors cannot dispute. Timing negotiations with contract renewals maximizes leverage.
• Financial Discipline Requires Process: Weekly checkpoints, approval workflows, and justification requirements create accountability that prevents cost creep.
• Sustainable Cost Management Requires Systems: One-time cuts don't last - costs will creep back up without systems to prevent it. The goal is creating sustainable cost management, not just reducing costs once.
• Change Management Is as Important as Technical Work: Educating platform administrators on cost-per-user metrics and proactive management practices created organizational capability for ongoing optimization.
• Transformation During Uncertainty Is Possible: While uncertainty creates challenges, it also creates opportunities. Systematic, data-driven approaches build confidence even in uncertain environments.