I worked in IT at a university for 7 years. I do not see this saving money over the 5 year term. It probably would have made more sense to relocate the IT staff out of the Bay area to a less costly location, but still be in the same time zone and able to be on site if needed. Looking at the map, the university looks land-locked and unable to expand. The idea of getting more office or classroom space by eliminating onsite IT was probably enticing, in addition to the expected cost savings.