ITCarveOut
IT is the decisive factor for asuccessful merger or acquisition

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IT is the decisive factor for successful mergers and acquisitions

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Main IT challenges during a Carve out*

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How can we help our customers

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Migrating old systems versus innovating: these are the options

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Finding a balance between speed, costs and innovation

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HSO Carve out* approach

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Carve out* Assessment

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Reference: Heras

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IT is the decisive factor for a successful merger or acquisition

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In mergers and acquisitions of businesses, it is necessary

How HSO can help

to separate all operational activities. This can involve

As a leading IT business transformation partner, HSO is experienced in thefield of advising on and implementing IT Carve outs*. From data center andlegal, business, process and organization-related activities.

workplace migrations to migrating application and data landscapes.

Disconnecting or connecting IT systems within the specified

HSO can also play a role in increasing insight by linking, structuring andperiod (TSA) is the critical success factor of a carve out or avisualizing different (potential) data sources in dashboards, so that you quickly
get an accurate picture of the financial health of the various business units.

carve in.
For a merger or acquisition to be profitable, it is important that it is executedcorrectly. The complexity of IT aspects is often underestimated, as is the impactof wrong decisions early in the process. Be aware of the importance of IT fromthe start of the process. An IT landscape that performs well, meets all security
requirements and is cost-optimized must be created during the transition, andnot in a later phase when the focus must be on value creation.

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Main IT challenges during a Carve out*

The complexity of IT aspects during a Carve out* is often underestimated. Wrong decisions at
the start of the process can have an impact later in the process. Below is a top 8 of the mostimportant IT challenges to be taken into account.

Overlapping

Migrating old systems

applications and(lift & shift) versus

infrastructuretransforming

Speed and pressure due

Cost savings toto TSA datebe realized

Responsibilities,
implementation andImpact of changing

Security andalignment of various

business model on IT

compliance risks

suppliers*Carve out of Carve inCarve Out / In

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How can we help you?

A carve out* focuses on quickly getting to know the acquired company and assessing its
technological status and associated risks in order to arrive at a clear, structured exposition ofthe transformation scenarios.

Does your need consist of obtaining:

The services of HSO are aimed at:•	Insight into the business and IT objectives•

Identifying IT-related risks•	An inventory of IT operational capabilities, technology•The readiness for transition to the cloud

quality and status, organizational and process maturity,•The possibilities for synergy

and operational costs•

The execution of the carve out/ carve in•Operational management of the IT landscape•	
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Migrating old systems versus innovating:these are the options

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RehostRehosting is typically performed with an infrastructure as a service (IaaS) offering and is oftenreferred to as a "lift and shift". With this approach,
we move the existing applications out of the data

PaaS

center and from the hardware to someone else's
data center and hardware.

SaaS

Rearchitect
Refactor

Refactor

Rebuild

With refactoring, we prepare the applications forthe cloud. This is a subsequent phase of migration

RehostIaaSand modernization. In this phase, the emphasis isReplaceon making changes to the application rather than
Migrate Strategy

to the infrastructure.

Rearchitect

Rebuild

Replace

With rearchitecting, we breathe new life into

With rebuild you choose to build new legacy

With replace you choose to replace existing

your legacy applications. In this migration andapplications using cloud-native technologies orapplications for SaaS alternatives for fastermodernization phase, we try to get the most out

the low-code Power Platform.

development and innovation possibilities suchof your historic investments.

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Finding a balance between speed, costs and innovation

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TSA date

this up and down as needed. You also get a platform on which technologicalThe hard deadline for converting all business and IT processes to the new

innovations such as AI and IoT are automatically available. The same applies

organization influences choices. The goal is to quickly unbundle and secure theto security, in which context you benefit from the latest security technology.

IT landscape, while the business continues to operate as normal. A partner that

Such an investment also often increases the business value.

meets its commitments and has experience with merger processes is essential
in this regard.

Costs
A Carve out* should lead to greater efficiency and the prevention of double

HSO is an experienced business transformation partner in the field ofcosts. A cloud solution offers insight into monthly costs, but also the flexibility

advice and implementation of IT Carve outs*. From data-center andto scale up or down as needed to respond to peak or seasonal moments.

workplace migrations to migrating application and data landscapes.
In addition, HSO can play a role in increasing insight by linking,Innovation

structuring and visualizing different (potential) data sources inFuture profitability requires an agile organization that can respond to rapidly

dashboards, so that you quickly get an accurate picture of the financial

changing markets. The cloud offers space for technological developments andhealth of the various business units.

insights, and enables growth.
A new cloud-based solution for IaaS, PaaS or SaaS is more sustainable thanduplicating existing solutions that are integrated into the buyer's environment.
By opting for a transition to the cloud, you can respond more quickly to market
developments, you have a clear picture of the monthly costs and you can scale*Carve out of Carve inCarve Out / In

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HSO Carve out* approach

The 5 steps of the Carve out* approach

In a Carve out* there is a great deal of involvement from various stakeholders,from IT to Finance. In addition, the short time frame in which the Carve out* has
to take place has a big impact. With the HSO Carve out* approach, we ensurethat expectations and needs are clear, the tight schedule is monitored and thereis insight into the impact and risks.

1

Define the optimum strategy
Do you opt for a lift & shift approach

2Plan and make agreements
Because of the TSAs, things will have to4Transform or migrate
the workloads

in which existing workloads and legacy are

move quickly. Make sure there is a tight schedule,

The actions required to migrate the workloads falltransferred to the new environment or do you opt

make clear agreements and divide the tasks andinto three iterations per workload: assessment,

for a digital transformation to the cloud, whichactivities among the people involved.

implementation, and deployment.

makes the organization future-ready, innovation ispossible and you add value to the organization.

3Start with the cloud
foundation

Governance, maintenanceand optimizationOnly once the foundation is solid can theWith a cloud migration, we recommend thatnext step be taken; the network, IAM, policy,

you periodically evaluate, and optimize wheremanagement and monitoring must be available toappropriate. HSO offers various Cloud Operations

help streamline the application migration process.

services for this.

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Carve out* Assessment
Get started with an HSO Carve out* assessment. During this assessment you will
gain a clear understanding of the current infrastructure, network and hardware.
Other aspects covered by the assessment are the digital workplace and the security
architecture. The scope and activities are summarized in a set of recommendations,so that you can make an informed decision about how you can support the neworganization with the right cloud strategy and migration.

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What you can expect

Migration Analysis: Desired future state of IT:

Through various workshops, we quickly achieve insightAnalyzing cloud migration activities to be executedin a relatively short period of time.

for the first milestone of the cloud roadmap.
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Presentation of results, recommendations and nextStrategic IT workshop: Understanding your strategy,steps: The result is an advice that includes a solution

operation models, organization, and markets. Andoverview, roadmap and projected investments.

how IT supports all of this.
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Assessment of current IT Estate: How does theBased on these recommendations, you can make ancurrent IT landscape and security architecture looks

informed decision about the further course of the Carvelike.

Out*.

Desired future state of IT: Designing a future ITenvironment that meets the desired organizational

Durationstrategy and IT objectives

From 10 days, depending on the complexity

Defining a roadmap: Define the prioritization, routeand program to realize at the future desired state

Investmentof IT in the cloud.

From 15,000 euros

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Reference: HerasPaul Vos,
Director cloud transformation HSO“Instead of a traditional 'lift & shift' approach, in which you
take the existing applications with you and migrate to a cloudenvironment, we saw opportunities to transform different applications and replace them with better solutions.”

When Heras became independent in 2019, it became clear thatthe carve out of the IT systems and infrastructure would be achallenge. The entire IT landscape, built up over 25 years, had

Diana Stan,
Digital transformation manager Heras:“We saw this carve out as an opportunity to transform andto be dismantled, migrated and transformed in a short time,modernize our landscape and application platform. Together

including business-critical applications, such as SAP and NAV.

with HSO we designed a new, cloud-based architecture,including the modern workplace. In this carve out we identified

Heras and HSO took on this challenge together.

four important elements:
1. Replace the network, hardware and infrastructure.
2. Migrate everyone to Office 365.

Read the full story of Heras.

3. Move all our data, files from our former file shares to Teams,in the cloud.
4. Move all business applications to the cloud.”

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After reading this white paper, hopefully you will have a clear pictureof the importance of a quick and thoughtful IT Carve out or Carve in,Contact me at:and you will have confidence in the process. It is of course possibleHans Broer

that you still have a question, or want to know something for sure.

hbroer@hso.com

If so, please do not hesitate to contact us. It will be our pleasure toensure that your IT Carve out or Carve in is a pleasant journey.

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11 / 12+31 318 509 400

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Newtonstraat 27 | 3902 HP Veenendaal | T +31 (0)318 - 509 400 | info-nl@hso.com

HSO has been active as a Microsoft Solution Integrator since 1989 and has grown into a successful ICT company with more than 1400 employees and offices in Europe, North America and Asia. HSO
supports local and international companies in retail, wholesale, industry and (technical) services to make a difference with digital technology. The foundation for this is Microsoft Dynamics 365: acomplete platform of CRM, ERP, Office 365 and BI software. HSO takes care of the implementation, optimization and 24/7 management of these cloud solutions. HSO belongs to the Microsoft Dynamics
Inner Circle and is proud to have been awarded the title 'Microsoft's most customer-oriented partner'. More information about HSO can be found at http://www.hso.com/nl or follow HSO on Twitter via@HSO_NL.

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