CASE STUDY
38% MSU Reduction & Enterprise-Wide Encryption Modernization for a Fortune 500 Insurer
Industry | Insurance
Technology | Mainframe
Location | United States

A leading U.S.-based insurance provider was experiencing rapid MSU growth, rising software licensing costs, and increasing audit pressure across its IBM Z environment.

Core online and batch workloads relied heavily on software-based cryptographic operations, resulting in high CP utilization, inconsistent key management practices, and operational risk.
Royal Cyber partnered with the client to redesign the enterprise cryptographic architecture, enabling ICSF-based pervasive encryption, hardware cryptographic offload, and centralized security governance—delivering a 38% reduction in MSU consumption, improved compliance, and long-term cost optimization

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    Challenges

    Unutilised Hardware Security Investments

    The current Crypto Express adapters, which were dedicated to the hardware-accelerated encryption, were mostly not utilized as a result of improper configuration and integration with the mainframe security stack.

    Lack of Unified Policies on Data Protection

    Critical business information, such as DB2 databases, VSAM files and application datasets, was not encrypted in a standardized format exposing confidential information and failure to comply with compliance standards.

    Absence of Unified Cryptographic Governance

    Without a single framework, the policies on encryption were not applied uniformly, keys lifecycle was not managed, and audit reporting needed manual and time consuming activities.

    Manual, Error-Prone Key Management

    Spreadsheets and tribal knowledge were used to track the encryption keys and this posed serious audit risks, operational errors, and inconsistent application of the security in the entire enterprise.

    Creating Regulatory Compliance Pressure

    The environment was unable to provide the consistent encrypted form of data-at-rest and data-in-motion, which would fail to comply with both emerging and increasing standards such as GDPR, HIPAA, and SOX, potentially subject to major fines.

    High-Software Costs from CPU

    Overload Cryptographic processes were running on general-purpose central processors (CPs), dramatically increasing Monthly Software Usage (MSU) and inflating licensing costs by hundreds of thousands annually.

    Key Outcomes
    38%

    Reduction in Monthly Software Usage (MSU) through cryptographic offload, directly lowering IBM software licensing costs.

    100%
    Compliance across critical data assets with enterprise-wide, hardware-backed pervasive encryption.
    86%
    Decrease in encryption-related CPU overhead, accelerating online transaction response times.
    95%
    Reduction in key management errors through automated, centralized key lifecycle governance.
    $2.3M
    Annual savings in compliance and audit costs with continuous, audit-ready encryption reporting.
    Solutions

    Established Centralized Key Lifecycle Management

    Replaced spreadsheet tracking with secure, automated key management within ICSF, providing full audit trails, automated rotation, and RACF-integrated access controls.

    Migrated to Hardware-Accelerated Encryption

    We offloaded cryptographic workloads from general CPs to dedicated Crypto Express adapters and zIIP processors, drastically reducing MSU consumption and software costs.

    Implemented Automated, Policy-Based Encryption

    Enabled ICSF Pervasive Encryption across all critical assets—DB2 tablespaces, VSAM datasets, and application files—ensuring consistent, automated data protection without manual intervention.

    Architected a Centralized Cryptographic Framework

    Royal Cyber designed and deployed IBM’s Integrated Cryptographic Service Facility (ICSF) as an enterprise-wide security hub, establishing consistent encryption standards and policies.

    Optimized Performance with Strategic Workload Placement

    Tuned cryptographic operations to maximize hardware offload to Crypto Express and zIIP processors, improving transaction performance while reducing mainframe CPU burden.

    Delivered Operational Governance & Knowledge Transfer

    Implemented audit-ready controls, comprehensive reporting, and operational runbooks, enabling the client’s team to manage and sustain the modernized encryption environment confidently.

    Technology Stack

    Platform: IBM Z15 Mainframe

    Key Management: IBM Secure Service Container

    Encryption: IBM Pervasive Encryption with ICSF

    Databases: DB2 z/OS, VSAM

    Monitoring: IBM Z Security and Compliance Center

    What Customers Say about Royal Cyber

    “Royal Cyber’s expertise transformed our mainframe security from a liability to a competitive advantage. Their pervasive encryption solution not only secured decades of policyholder data but actually improved system performance. We’re now audit-ready year-round with significantly reduced operational overhead.”

    Chief Information Security Officer, Major US Insurance Provider

    86%

    Decrease in encryption-related CPU overhead, accelerating online transaction response times.

    Audience

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