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How a Federal agency right-sized its complex cloud ecosystem without compromise.

How can Australian Federal government agencies tackle complex cloud optimisation projects while keeping the lights on? Delivered by an ITIL-accredited team in one of Australia’s largest privately owned ICT organisations, this customer story shares how Kinetic IT partnered with a public sector customer to do just that.

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A Federal government agency was facing rising cloud costs and growing complexity across its environment.

Multiple workloads were over-provisioned and storage was misaligned with performance needs. As well as these, backup processes were run ad hoc and were not aligned to any formal recovery or data retention policies.

The impact? Unnecessary monthly spending added pressure on operational teams, with limited time available to understand where savings could be made without putting data integrity or compliance at risk.

That’s when the federal agency turned to Kinetic IT for guidance.

THE CHALLENGE

Cloud complexity meets compounding costs.

The organisation’s cloud environment had expanded rapidly over several years. While it supported critical systems, it was consuming far more resources than necessary.

Several challenges stood out:

  1. Over-provisioned infrastructure, with nine virtualisation nodes and multiple Premium SSD disks running below capacity.
  2. Excess storage costs due to backup snapshots and file shares being retained well beyond operational requirements.
  3. Manual administration was the norm, with routine cleanup tasks relying on staff intervention, increasing the risk of error and inconsistency.
  4. Limited visibility, creating a lack of clear insight into usage patterns, performance, and cost drivers.
  5. Compounding budget pressures as costs continued to rise across the board, making it difficult to forecast or justify ongoing spend.

The organisation needed a solution that would reduce costs while keeping systems stable, secure, and compliant.
THE SOLUTION

How Kinetic IT helped.

Kinetic IT collaborated with the customer to design and deliver a structured cloud cost optimisation and backup rationalisation program, combining deep technical analysis, automation, and careful change management.

Cloud specialists began with a detailed assessment of the organisation’s Azure workloads, focusing on virtualisation nodes, backup workloads, and file share storage.

“Before any changes were made, we mapped exactly where the money was going and which workloads truly required premium performance,” explained Rajesh Reddy, one of Kinetic IT’s Solutions Architects.

“The team then developed a step-by-step plan to right-size infrastructure, retire redundant components, and introduce automation to simplify ongoing governance.”

Key activities included:

  • Conducting a full Azure environment audit to identify underutilised nodes, costly disks, and outdated snapshots.
  • Designing a new backup and storage architecture using Standard LRS storage and URL-based SQL backups.
  • Introducing automated cleanup and retention enforcement through PowerShell scripting.
  • Validating all restore and rollback points to protect data integrity and ensure compliance.

What we found.

The audit revealed significant cost-saving opportunities:

  • Nine underutilised Azure VMware Solution (AVS) nodes could be decommissioned.
  • 16 Premium P80 SSDs were over-specified for performance needs.
  • 85 backup snapshots were retained beyond policy requirements.
  • File share storage was over-provisioned by more than 13 TB.
  • Backup data was being stored on high-cost premium storage, pushing monthly costs to around $370,000.

By redesigning the architecture to use Standard LRS storage and automating retention policies, the same level of protection could be maintained for just $6,000 per month; a 96% cost reduction. Data migration took place over 25 days, primarily after business hours to avoid network congestion.

Kinetic IT worked with the department to define a clear roadmap for achieving and sustaining savings:

  1. Decommissioning redundant infrastructure to align capacity with actual demand
  2. Migrating workloads to cost-effective storage tiers without compromising IOPS or resilience
  3. Automating backup and snapshot lifecycle management to eliminate manual effort
  4. Establishing centralised reporting using Azure backup reports for full visibility and auditability
  5. Implementing governance policies to ensure all future workloads adhere to cost and performance benchmarks

Together, these changes set the foundation for continued cost control and improved operational efficiency within the customer’s ecosystem.
THE OUTCOMES

A sustainable cloud cost model built to perform.

By partnering with Kinetic IT, this government organisation now operates with a sustainable cloud cost model, improved governance, and confidence in its operational resilience.

When customer time is scarce, Kinetic IT’s partnership increased capacity and capability to realise savings and efficiencies; digital transformation was achieved in collaboration with the customer while maintaining always on service delivery.

Through automation, visibility, and right-sizing, the agency has reduced costs without compromising performance – proving that efficiency and reliability can go hand in hand.

The transformation delivered immediate and measurable results:

  • Annual savings of approximately $5.8 million have been achieved through AVS optimisation, storage right-sizing, and automated backup management. These savings were achieved without compromising performance, data integrity, or compliance, and have simultaneously streamlined daily backup operations and improved overall cloud governance efficiency.
  • The customer has had a 96% reduction in monthly backup storage costs – from $370,000 to $6,000.
  • With automation solutions, there has been a 60% reduction in administrative effort, with zero backup job failures since migration.
  • Full compliance and audit traceability is now readily available to the customer, with automated retention policies and immutable storage controls.
THE NEXT PHASE

Innovation never sleeps.

Building on these outcomes, Kinetic IT is now working with the customer to implement additional savings – targeting data bricks, backup lifecycle management, and disk tier migration – projected to deliver a further $1.08 million in annualised savings.

This project illustrates how Kinetic IT delivers tangible financial outcomes for customers with measurable operational benefits. This is achieved through real partnership with customers to build capacity within large, complex ecosystems where stopping always-on service delivery to address challenges is not an option.

Beyond the cost optimisation itself, business as usual teams now operate with improved visibility, simplified recovery processes, and significantly reduced administrative overhead.

By transitioning to a Standard-based, automated, and validated architecture, the customer has achieved a sustainable cloud cost model which now enables ongoing innovation without financial or operational friction.

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