AGL Energy thrives with FinOps and cloud optimization

AGL Energy, Australia’s leading electricity provider, undertook a significant cloud transformation program to virtualize all corporate applications and migrate workloads to Microsoft Azure. With expertise from NetApp, AGL improved its business continuity, cybersecurity, and resilience posture. Explore how AGL combined technologies and teams to deliver top-tier FinOps and cloud optimization capabilities, driven by a cultural shift towards sustainable and cost-effective operations.

AGL Energy Ltd. is a prominent energy enterprise headquartered in Sydney, Australia. Established in 1837 as The Australian Gas Light Company, it provides a range of services including natural gas, electricity, and telecommunications to some 4.5 million customers. With generation capacity exceeding 10 gigawatts, AGL holds about a fifth of the market share in Australia’s National Electricity Market. Though most of its electricity is produced from conventional sources, AGL has ambitious plans to shutter coal generators and transition to fully renewable sources by 2035. ^[1]

Proactive investments in cybersecurity reflect AGL’s commitment to safeguarding essential services. This helps maintain uninterrupted service and gives customers confidence that their power supply is well-protected.

AGL Energy encountered significant challenges while navigating the dynamic landscape of energy provision. Grid security was paramount: The company needed to make sure that its infrastructure could withstand increasing cyber threats while averting outages and maintaining reliability for its millions of customers. Additionally, technological barriers arose from disparate legacy systems that hindered innovation and adaptability in a fast-evolving industry.

The company also grappled with environmental concerns, particularly the urgent need to reduce carbon emissions and comply with regulatory standards as public pressure mounted for sustainable practices. To stay ahead, AGL had to not only modernize its operational frameworks but also adopt more resilient and environmentally responsible energy solutions.

In 2019, it launched a cloud-first transformation initiative aimed at virtualizing all corporate applications and migrating most workloads from its physical data centers to Microsoft Azure by 2024. This meant shifting complex workloads like SAP HANA-based applications from 3,000 servers located in Sydney and Melbourne. Additionally, the company sought to transition its non-production development and testing resources from another 1,500 servers. This process required seamless integration with existing systems while minimizing operational disruption.

It was crucial that AGL’s infrastructure team contain the costs of data storage and virtual machine management.

Driven by clear objectives around security, operating efficiencies, flexibility, and sustainability, AGL selected Azure NetApp Files and NetApp^® Cloud Volumes ONTAP^® file services to support its cloud migration. Key benefits included:

• Ease of migration. AGL found familiar product features and an intuitive user experience.
• Guaranteed performance and reduced risk. A first-party Microsoft service, Azure NetApp Files satisfied performance demands and reduced risk.
• Flexibility and control. Cloud Volumes ONTAP gave AGL full control, using familiar on-premises features in the cloud.

Solution components

• Azure NetApp Files offers performance guarantees, SLAs and reduced risk for core applications. The managed Azure storage service mimics AGL’s on-premises features and integrates with AI services to enhance automation and efficiency.
• NetApp Cloud Volumes ONTAP replicates on-premises NAS features in the cloud, optimizing storage costs by reducing redundancy and enhancing utilization. It provides high performance and data security while unifying operations across on-premises and Azure environments.
• NetApp Data Infrastructure Insights enhances security and performance across hybrid environments by offering comprehensive monitoring and optimization. It provides full-stack visibility, proactive troubleshooting, resource optimization, and improved security.

By implementing cloud solutions built around NetApp ONTAP storage management software, AGL achieved notable outcomes. Its recent annual report highlighted these areas as critical achievements, showcasing the effectiveness of the cloud transformation program:

• Business continuity. Investments in observability, virtualization, and automation allow AGL to maximize grid utilization, preserving reliable and uninterrupted service delivery for customers, even during peak demand.
• Cybersecurity. AGL prioritizes cyber resilience to protect sensitive customer data against rising threats. Advancements in cloud optimization and security maintain a secure, uninterrupted power supply, fostering customer trust and loyalty.
• Risk management. Effective monitoring and automated reporting equip AGL to manage and mitigate operational risks, assuring resilient operations across all sectors.
• Sustainability. AGL enhances environmental responsibility by optimizing on-premises and cloud assets. The NetApp BlueXP^™ sustainability dashboard provides actionable insights, helping AGL conserve resources and meet climate commitments.

AGL uses Microsoft and NetApp technologies to manage dynamic workloads, achieving unified control over storage and data services. Its cloud transformation sets a benchmark in the energy sector for operational excellence and sustainability. AGL plans to expand its use of NetApp solutions, focusing on enhancing sustainability, driving cultural change, and maximizing FinOps benefits beyond cost savings.