Speedy Hire lays the foundations for business growth with centralised licence procurement strategy

Customer challenge

Speedy Hire is the UK's leading provider of equipment hire services. Growing at a rate of up to 30 per cent a year, the organisation is planning an IT transformation programme over the next three years to support this massive expansion. To ensure new IT initiatives are not delayed by software licensing issues, the organisation needed a future-proofed, compliant and cost-effective Microsoft licensing strategy.

Computacenter solution

To maximise its investment in Microsoft licences, Speedy Hire partnered with Computacenter to conduct an Effective Licence Position review and help establish a centralised procurement strategy. Computacenter was able to identify saving opportunities for Speedy Hire, and negotiated a new Microsoft Enterprise and Select agreement that covers 3,200 devices.

Results

In addition to cost-avoidance savings of nearly £2 million over six years, the new agreement provides the flexibility necessary for Speedy Hire's IT transformation programme and expected growth. As a result, the organisation will be able to improve the efficiency of its IT team, reduce business risk and focus on successful expansion of its business.

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Customer profile

Providing the right tool set
Formed in 1977, Speedy Hire is the leading provider of equipment hire services to the construction industry, utilities and the public sector. Although traditionally focused on tool hire, the Speedy Hire Group now includes 10 complementary businesses that also provide portable accommodation, surveying, compressed air systems, pumping and power generation equipment.

With the motto: 'Keep it simple, do it well', Speedy Hire has flourished and now has more than 5,000 employees and over 500 depots in the UK and Ireland. The company is listed on the FTSE 250 and is growing at 25 to 30 per cent a year.

Business challenge

Managing growth and a new focus on IT
As a result of this expansion, the organisation has undergone massive change over the past three years, which has created a number of challenges, particularly for Speedy Hire's IT department.

Historically, technology played an insignificant role in the organisation's business processes. Speedy Hire recognised, however, that to maintain its position as a market leader and drive efficiency gains, it needed to change its approach to IT.

James Fleming, Infrastructure Manager at Speedy Hire, comments: "We only implemented IT on an enterprise scale in 2002, before which our depots used facsimile to communicate within the business. In 2006 we appointed a CIO for the first time, and we now recognise IT as a key enabler for the business in the future, so are keen to get our IT infrastructure up to date."

To achieve this goal, Speedy Hire has created a single IT department to implement a number of projects across all its 10 constituent companies, including deploying data warehouse software, a standardised email infrastructure and a Citrix environment at its depots.

Before embarking on these extensive upgrade projects, Speedy Hire had to address its Microsoft software licensing requirements. Microsoft forms the foundations of the company's server and desktop infrastructure and also features strongly in Speedy Hire's plans for establishing a standardised IT environment across the Group.

Due to the nature of the Group and its acquisitive growth pattern, managing its software licences was extremely complex. Although Speedy Hire had an existing Microsoft Select Agreement, it was no longer offering the best value for a dynamic and expanding company.

"We wanted to adapt software procurement to fit a centralised model which would enable us to take advantage of benefits of scale and ensure we were fully compliant," comments James. "To accomplish this, we needed to ascertain our current assets and identify our requirements for the next three years, taking into account our plans for developing the company's IT infrastructure."

Computacenter solution

Centralised and future-proofed software procurement strategy
To assist with Microsoft licence management and establish a centralised agreement, Speedy Hire turned to the licensing experts at Computacenter.

After conducting an Effective Licence Position (ELP) review of the company's Microsoft licence entitlements, Computacenter initiated a benchmarking service and presented Speedy Hire with a shortlist of five different licensing options. "Unlike other providers, who recommended a single specific solution, Computacenter outlined a number of alternatives and advised on the pros and cons of each type of licensing agreement, so we were able to make an informed decision in line with our business strategy," comments James.

Computacenter also identified a number of cost-saving opportunities for Speedy Hire. For example, by deploying Appsense, the company no longer needs to provide as many desktop software licences for a depot – instead it can use a single licence with 'read only' options for additional users.The new Microsoft Enterprise and Select Agreement covers more than 3,000 licences for a range of applications, including Exchange, Sharepoint, Office and Server.

Computacenter's involvement has not come to an end now the agreement is in place. "Computacenter provides us with ongoing licence advice," adds James. "Understanding the requirements around new acquisitions is particularly complex, but Computacenter's experts are able to advise whether we can transfer existing licences or need to purchase fresh licences to ensure compliance."

Results

Building on success
The new agreement is nearly £2 million less over a six-year period, than the licensing option considered by Speedy Hire before they partnered with Computacenter.

The flexibility of the new agreement means that Speedy Hire can upgrade to the latest versions of Microsoft applications without additional upfront licence fees. "With our extensive IT transformation programme, it was critical that we had the correct agreement in place so we can deliver new projects without being held up by licensing issues," comments James.

In addition to aiding business agility, the agreement has also helped Speedy Hire:

Improve the efficiency of the IT department: Simplified licence management reduces the administrative burden, freeing up IT staff to focus on more strategic activities.

Make cost savings: In addition to massive cost-avoidance savings, the consolidated agreement has cut the cost of purchases through the Microsoft Select agreement by around 10 per cent, and will improve cost control on an ongoing basis.

Reduce risk: Speedy Hire is able to demonstrate compliance more easily, thereby reducing business risk, which is particularly important now that the organisation is FTSE-listed.

Enhance competitive advantage: The organisation can now implement applications and services faster, which will help Speedy Hire maintain its position as a market leader

"The new software licensing agreement lays the foundation for our future investments in IT," comments James. "By equipping our staff with the latest software, we will be able to maintain our growth pattern and drive efficiency throughout the organisation."