Case Study · Healthcare · IT Cost of Service & Compliance

Unified cost of service across a healthcare system.

A multi-hospital, multi-supplier organization operating under HIPAA — three managed service providers, no unified view of SLA performance, cost of service, or asset inventory. FogLifter® changed that.

Healthcare deployment
$55M+ Total documented savings
$40M /yr Patching labor savings (client calc.)
98.7–99.1 % Patching compliance, ~55K servers
70K + Servers validated
27 PB Storage under management
3,300 Applications in scope

The environment

This engagement involved one of the largest integrated healthcare delivery systems in the United States — a multi-hospital, multi-supplier organization operating under strict HIPAA and regulatory compliance requirements. IT infrastructure was managed across three major managed service providers, with SLA performance previously tracked manually from numerous sources in varying formats.

The IT environment comprised 70,000+ servers, 27 petabytes of storage, and 3,300 applications. At the time of engagement, there was no unified view of SLA performance, cost of service, or asset inventory across all three suppliers.

The challenge

Four operational problems converging at once across a complex multi-supplier estate.

  • SLA measurement across 3 suppliers. SLA data was being processed manually. There was no real-time visibility and no ability to dispute missed SLAs within the contractually required 10-day window.
  • Invoice accuracy. Manual reconciliation of contract costs against actual infrastructure usage was producing delays and disputes.
  • Patching compliance. 1,100+ critical applications required coordinated patching. Application administrator hours were being consumed at an unsustainable rate.
  • CMDB accuracy. Asset data in ServiceNow® did not reflect the actual infrastructure, preventing reliable reporting or financial modeling.

What FogLifter delivered

Capability by capability, mapped to the FogLifter pillars: Count, Cost, Caliber, Compliance.

Caliber

SLA performance measurement

FogLifter automated SLA data processing across all three managed service providers, feeding validated SLA performance data programmatically into a single ServiceNow® dashboard drillable to individual incidents and tickets. This gave the client the ability to dispute missed SLAs within the contractually required 10-day window — previously impossible.

Cost

Cost of service transparency

FogLifter provided cost-of-service transparency tied directly to contract costs and billing across 70,000+ servers, 27 petabytes of storage, and 3,300 applications. This moved the organization from spreadsheet-based reconciliation to automated, evidence-based invoice validation.

Compliance

Patching compliance at scale

FogLifter enabled the client to achieve 98.7–99.1% patching compliance across approximately 55,000 servers. Client-internal calculations show 36 application administrator hours saved per application per month — valued at $2,880 per application per month. Across 1,100+ critical applications, this produces $3.3M in savings per month, or $40M annually.

Count + Compliance

Multi-party validation

FogLifter's Validation View allowed both the client and their primary managed service provider to comment, reconcile, and agree on asset counts and SLA results — creating a defensible, multi-party audit trail for HIPAA compliance and security mandate reporting.

The financial detail

Where the headline savings come from, line by line.

Line itemValueHow it's calculated
Patching labor savings$40M / year36 application-administrator hours saved per app per month, valued at $2,880 per app per month, across 1,100+ critical applications — the client's own calculation.
Per application, per month$2,880The unit-economic figure underneath the $40M annual headline. 36 admin hours at the client's loaded rate.
OpEx cost savings$1M / yearRecurring operational expense reduction unlocked by automated SLA measurement and invoice validation.
Licensing cost avoidance$2M / yearAnnual avoidance from validated inventory eliminating duplicate, orphaned, and over-licensed entitlements.
Critical applications under managed patching1,100+The denominator for the labor-savings calculation; coordinated patching across all critical apps.
Managed service providers under unified SLA measurement3One ServiceNow® dashboard, drillable to incidents and tickets, replacing manual SLA reconciliation across all three providers.

“FogLifter validates the operational data across Cost Pools, Resource Towers, and IT Services so TBM models reflect the real technology environment.”

— FogLifter product documentation

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