Strategic Partnership Helps Liberty Mutual Advance Toward 100% Digital Core | Insurance

CUSTOMER PROFILE

Liberty Mutual is the sixth largest global property and casualty insurer, with an annual consolidated 2021 revenue of $48.2 billion. Headquartered in Boston, the Fortune 100 company has been in business since 1912 and employs over 45,000 people in 29 countries and economies around the world.

INDUSTRY:

Insurance

COMPANY SIZE:

Large

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LOCATION:

US

PRODUCTS

IBM® Cognos
IBM® WebSphere
IBM® MQ
IBM® Db2
IBM® Content Manager
IBM® FileNet
IBM® Spectrum Protect

“We knew high support costs for legacy would continue to hinder our digital agenda, so third-party support made good business sense. We didn’t know we’d gain a strategic partner capable of helping us reach our goal of 100% digital core by 2024.”

THE PROBLEM

LACK OF TIME | MONEY | PEOPLE TO ADVANCE A BOLD MODERNIZATION AGENDA

Liberty Mutual has been leading the industry charge toward modernization for nearly a decade. External benchmarks put the company well ahead of most industry peers in terms of technological and organizational transformation.

Its digital agenda is largely driven by a desire to provide an exceptional customer experience with modern virtual platforms that leverage data to deliver high customer value, increased speed, and reduced expense at scale.

The company embraced a hybrid private cloud/public cloud ecosystem that uses modern systems of engagement to give its core systems of record the agility, speed, and mobility of serverless technology.

The goal was to move from a lifecycle patch management approach to an agile model of continuous deployment that actively reduces technical debt and become 100% “digital first” by 2024.

But to advance such an ambitious modernization agenda, Liberty Mutual had to take a hard look at its software supplier costs. The traditional vendor-dependent approach of keeping the lights on legacy — comprising 90% of the typical IT budget — required a big rethink.

With a three-year IBM® Enterprise License Agreement up for renewal – and no plans to invest in an IBM® Cloud Pak — Liberty Mutual turned to third-party support for help

THE SOLUTION

A STRATEGIC SHIFT THAT SAVED MILLIONS AND SUPPORTED CONTINUED INNOVATION

Selection criteria were high. Liberty Mutual knew that moving IBM® products to a hybrid cloud provider would require customization, a deep knowledge of IBM® interoperability issues, solid expertise in IBM® cloud migrations, and adherence to security best practices.

It wanted a level of support that would surpass what the company had previously received from vendors.

While Liberty Mutual’s initial decision to partner with Origina was largely driven by the need to reduce software support spending, the company soon saw that Origina brought much more to the relationship.

Four million dollars in hard savings was a good start, and certainly propelled the company’s modernization efforts, but it was Origina’s responsive, expert-led support that impressed Liberty Mutual.

Origina quickly demonstrated its ability to go far beyond break/fix support and cost savings. Liberty Mutual gained a strategic partnership — with premium quality support, fast response times, proactive security advisory services, a licensing and contract advisory team, and skilled experts with deep expertise across all Liberty Mutual’s IBM® products.

It’s a great fit for Liberty Mutual’s forward-thinking hybrid approach.

Liberty Mutual’s hybrid strategy has won its IT team the trust of the business, with observable results including clear cost savings, faster performance, more secure environments, better platform stability, and more business resiliency.

The company has successfully decommissioned 5,540 servers and migrated over 8K distributed database servers to more modern, lower-cost storage with 100% continuity throughout the process.

According to Liberty Mutual VP and Senior Director of Application Environments Jesse Antosiewicz, “We will continue to count on third-party support and maintenance as an enabler that helps our company on its journey from siloed technology teams to a service-oriented organization that works smarter, faster, and more securely, while adjusting quickly to fast-changing customer and business needs.”

THE RESULT

Origina’s independent IBM® third-party support model has helped Liberty Mutual make great strides toward its goal of optimizing the secure delivery of the company’s data and technology anywhere on the planet.

Liberty Mutual’s stated highlights of its engagement with Origina include:

  • $4M in hard savings shifted toward data technologies that advance customer insights
  • Dramatic reduction in software maintenance costs
  • Trusted support of multiple IBM® products
  • Expert advice for IBM® decommissions and migrations
  • Multilayer security for its dynamic hybrid environment
  • Reduction in incident outage time by 190 hours
  • Improved cost visibility and reduction in observability expenses


Origina values its long-term partnership with Liberty Mutual and aims to help it reach 100% “digital first” in 2024.

“Origina takes great care of us. They understand our hybrid mix of core and cloud, and help us maximize the value of existing systems while reaching toward a more modern cloud ecosystem.”

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