LCH.ClearnetLCH.Clearnet is the leading independent central counterparty (CCP) group in Europe, serving major international exchanges and platforms, equity, exchange-traded derivatives, energy, interbank interest rate swaps markets and the majority of the Euro-denominated and sterling bond and repo markets.

Paying over the odds as the business changes with the market

LCH Clearnet has, like many other organisations, a large complex multi-vendor business platform. They had invested invested heavily in Oracle licenses in order to support a business integration project, but changes in the nature of the business forced them to re-evaluate their options. This left LCH Clearnet with an ongoing liability in terms of the support costs for the licenses they had purchased. They could either keep paying support and upgrade fees for licenses they were gaining no business benefit from, or stop paying support costs and risk an expensive repurchase of the licenses, once again when they were required.

Rigorous assessment creates clear basis for license renegotiation

Scale Abilities provided a number of key consultants who made a full assessment of all of LCH Clearnet's applications making use of legacy database systems. Working with LCH Clearnet's technical personnel Scale Abilities was able to estimate the effort required and the hardware requirements if all of these applications were rewritten to run against the Oracle database platform. As a result of hardware improvements since the time of the original license purchase, a liberal estimate of the number of CPUs required to run all of LCH Clearnet's applications came out at approximately a tenth of the number of licenses owned by LCH Clearnet.

Massive savings, plus a safeguard for the future

With Scale Abilities’ help LCH.Clearnet were assured that they could never use all of the licenses they had originally purchased. They were then in a position to re-negotiate their commitment with Oracle to reflect a number of licences appropriate for their business requirements. As a result the company were able to save hundreds of thousands of pounds on unnecessary licenses and on-going maintenance costs.

Skilled Scale Abilities consultants make their experience pay dividends for LCH. Clearnet

Scale Abilities were able to bring key experience and consultancy skills from the areas of software development, capacity planning and Oracle's licensing agreement terms, in order to give LCH Clearnet an estimate of the effort required to port their applications to Oracle. More significantly they could be confident of the maximum hardware required to perform their processing and were able to renegotiate their license terms with Oracle and so remove a large ongoing liability.