IBM and stc group co-create a dynamic hybrid cloud foundation—automating operations, cloudifying apps and accelerating digital transformation across the enterprise
stc group, a leading digital enabler, embarked on cloud modernization initiatives to support its rapidly expanding portfolio of digital services. To build a more scalable, efficient and cost-effective foundation, stc set out to elevate its cloud maturity by integrating the power of its private cloud with the flexibility of public cloud solutions. This strategic approach aimed to deliver a unified, future-ready architecture capable of high performance across all environments.
Taking a strategic leap beyond a conventional lift and shift migration, stc redefined its operating model to unlock the full potential of cloud. The transformation emphasized enterprise-wide enablement through cloud-native tooling, reinforced by strong governance frameworks to manage security, compliance and scalability. Anchored in a forward-looking multicloud strategy, the program was designed to accelerate value realization, foster continuous innovation and enhance organizational agility in an increasingly dynamic market landscape.
This required a holistic approach across people, processes and technology, along with clear standards and reusable automation patterns. Mindful of regional regulations and the unique demands of a fast-growing company, stc is committed to a blueprint that integrates agility and automation with robust governance and security compliance.
To advance its digital ambitions, stc partnered with IBM Consulting® to design a hybrid cloud target architecture anchored in platform engineering principles for scalability and resilience. IBM mobilized a cross-functional team of architects, consultants, program managers and telecom-focused SMEs to lead transformation across key workstreams. The transformation included hybrid cloud platform design, application modernization for the cloud, infrastructure cost optimization and enhancement of disaster recovery (DR) capabilities.
The hybrid cloud platform engagement began with a co-creation workshop, during which the team conducted an assessment of the current cloud landscape, including private cloud and its underlying infrastructure. They identified several gaps and challenges, which were prioritized based on business needs. Using these insights, along with global trends and industry best practices, a target state and transformation roadmap were defined.
The key component of the target architecture is the control plane, built on platform engineering principles. This approach enables unified policies, automated infrastructure provisioning and standardized operational governance.
New technological capabilities were proposed as part of the hybrid cloud target architecture, including Multi Cloud Management Platform (MCMP), FinOps, DevSecOps, AIOps, cloud foundation, sustainability and DR.
The application cloudification engagement began with a collaborative discovery process where the teams built a detailed view of stc’s IT landscape. All applications were evaluated using BlueCat and ICCA tools, leading to the development of a tailored roadmap—including cloud dispositions—and a scalable target architecture to balance performance, compliance and growth.
Aimed at reducing both capital expenditure (CapEx) and operating expenditure (OpEx), stc and IBM undertook a comprehensive infrastructure cost optimization initiative. This revealed long-standing pressures related to hardware maintenance, vendor lock-in, reliance on proprietary databases, inefficiencies in virtualization and limited scalability. To address these issues, stc and IBM developed a governance framework along with executable plans.
Resilience was as important as scale and efficiency. To deliver that, IBM and stc developed a target DR blueprint, which included a comprehensive study of DR capabilities and guidelines, and a governance framework to enable DR and business continuity plans for stc applications. Architectural assessments were conducted across applications, infrastructure and network layers to facilitate adherence to guidelines and regulatory compliance. With clearly defined test scenarios and architectural validation, stc strengthened its ability to protect critical business services while ensuring continuity and readiness across the enterprise.
IBM and stc fostered a culture of co-creation, ensuring leadership alignment, seamless knowledge transfer and sustained momentum across workstreams. This collaborative approach significantly enhanced the business continuity of mission-critical applications and enabled more effective and timely response strategies.
stc’s hybrid cloud platform is already driving improvements in agility, resilience and cost efficiency. Its processes are further enhanced by the introduction of new capabilities such as MCMP, DevSecOps, AIOps, FinOps, hybrid cloud interconnect and an upgraded private cloud foundation. These additions have laid the foundation for a more intelligent, automated and scalable digital environment.
To further improve operational efficiency, stc upgraded its private cloud functions with features such as auto-scaling, auto-decommissioning and auto-power-off.
Through the implementation of MCMP, stc achieved seamless multicloud connectivity across three leading hyperscalers. This enhanced architectural flexibility has empowered teams to deploy workloads in environments optimized for performance, scalability and compliance.
Some of the key initiatives delivered measurable financial and operational efficiencies.
- To drive agility and cost efficiency, stc migrated selected workloads to a consumption-based infrastructure model, unlocking greater flexibility and lowering CapEx.
- By diversifying its infrastructure stack, stc reduced single-vendor dependency, enhancing resilience and increasing leverage in vendor negotiations.
- By replatforming to a high-performance solution, stc achieved nearly one-third reduction in containerization costs while enhancing performance and scalability.
- The self-service portal could cut provisioning time by half through increased automation.
- Adoption of open-source database nearly doubled, helping to reduce licensing costs and improve agility.
- In line with its sustainability goals, stc embraced green IT by introducing energy-efficient hardware and eco-conscious infrastructure strategies.
- Operational costs related to hardware were lowered by adopting new support and services models.
- stc strengthened its overall resilience through a comprehensive DR approach—developing application-specific continuity plans and conducting DR drills to validate preparedness.
- Hundreds of applications were modernized, delivering strong returns on investment (ROI).
- Comprehensive end-to-end architecture compliance assessments were conducted, covering all infrastructure domains to ensure alignment with the strategic direction and industry best practices.
Together, these initiatives reflect stc’s commitment to building a future-ready digital enterprise—one that is agile, resilient and optimized for long-term value.
stc group (link resides outside of ibm.com) is a leading digital enabler headquartered in Riyadh, Saudi Arabia. Founded in 1998, stc provides telecommunications, digital services and enterprise solutions to millions of customers across the Middle East, North Africa and Europe. As the Kingdom’s largest telecom operator, stc plays a vital role in advancing the region’s digital transformation. With around 20,000 employees and a strong presence in key regional markets, stc reported revenues exceeding SAR 75.89 billion in 2024.
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Examples presented as illustrative only. Actual results will vary based on client configurations and conditions and, therefore, generally expected results cannot be provided.