KLP's long-term cloud strategy
In 2018, KLP Group took a long-term strategic decision to apply a Software as a Service (SaaS) model where appropriate, driven by the need to balance the right level of resources to maintain applications in-house with the increased need to always keep skills and IT capabilities up to date. They initially kicked off a 5-year long program to develop a new pension platform, rewriting most of the old legacy applications and implementing this in new technology. KLP Group is now in the process of defining their cloud strategy for the entire group, including all their subsidiaries. The cloud strategy is due to be presented to the management team and board of directors in early 2021, and the company has already taken strides in executing on this strategy.
KLP’s operations had grown significantly in both size and complexity since they started using SimCorp Dimension as their core investment management platform in 1998. Combined with the corporate cloud strategy, this presented itself as an opportunity to create more scalability and elasticity in their operations as well as optimize their total cost of ownership.
Transitioning the SimCorp Dimension deployment model from “on premise” to “managed operations”
After discussing options for moving to the cloud with some of its regional peers, KLP found that SimCorp’s managed application services could help mitigate risks and scale up operations to eliminate capacity issues. It also provided a great intermediary step to lift SimCorp Dimension to the cloud. In May 2019, KLP reached an agreement to gradually transition their on-premise installation of SimCorp Dimension to a managed operations environment and reconfigured its servers as part of the transition phase. In October 2019, KLP went live with SimCorp’s Application Management Service (AMS) and Validation and Test service. In addition, the company licensed Oracle via SimCorp.