Savenet Eyes Growth After Major Cloud Transition Amid Industry Shifts

Savenet, a prominent player in the cloud services sector, recently secured its third consecutive Project of the Year award at the TechExcellence Awards, highlighting its resilience amid significant industry changes. The company’s founder and Chief Technology Officer, Lorcan Cunningham, reflected on this achievement and discussed the future of Savenet following a challenging transition to a new cloud infrastructure.

In January 2024, Savenet faced a critical decision after Broadcom acquired VMware, prompting a mandatory shift to a new partner program. This required Savenet to purchase approximately 3,500 CPU licenses at an annual cost of around €1 million, a drastic increase from its previous expenditure of about €50,000. The new licensing model, which charges for every physical CPU core rather than active virtual machines, proved unsustainable for the business.

To adapt, Savenet migrated over 1,000 virtual machines to Microsoft Azure within a tight timeframe. Cunningham described the pressure of this transition, stating, “We were operating under the pressure of ensuring our survival as a business.” The successful re-architecture was crucial; without it, Savenet could have faced significant operational challenges.

Adapting to a Changing Landscape

Cunningham expressed concern about the future relevance of VMware, noting that the company once commanded about 75% of the virtualization market. He predicted a significant decline in VMware’s presence as companies increasingly turn to alternatives like Nutanix or public cloud solutions such as Azure. “You simply couldn’t have predicted [this shift] even two years ago,” he explained.

The landscape is further complicated by the rise of artificial intelligence and increasing cybersecurity threats. Cunningham highlighted a dramatic uptick in ransomware attacks, which has prompted businesses to bolster their cybersecurity investments. As a response, Savenet is intensifying its focus on maintaining rigorous security standards, including achieving ISO 27001 and Cyber Essentials certifications.

Strategic Growth Plans

Looking ahead, Savenet is pursuing an ambitious growth strategy. The company aims to replicate its impressive 350% growth over the next five to six years by investing in AI tools to streamline operations and enhance efficiency. Cunningham emphasized the importance of recruiting more staff as part of this strategy, stating, “We are ambitious and growth-oriented.”

Cunningham is confident about Savenet’s trajectory, projecting that it will take around five to six years for the company to be recognized as one of the top IT managed service providers in the country. He underscored the significance of their recent project, which he described as “really important” for Savenet’s future.

Savenet’s recent accolades and strategic initiatives underscore its commitment to navigating a rapidly evolving industry while ensuring its long-term viability. The company’s proactive approach to technological challenges and market shifts positions it well for future success.