Manufacturer Saves $668K in Cloud Infrastructure and Telecom Costs

Technology Expense Management Solution Maximizes Value of IT Spending

The Challenge:

Controlling IT costs was the issue of the day at a global manufacturer, where IT financial managers were lacking clear visibility into the company’s network services and communications expenses. Through the years, the manufacturer acquired a large portfolio of telecom and cloud infrastructure services, and its growing list of providers made financial management difficult.


total savings


saved in
IaaS costs


saved in POTS

The Solution:

The manufacturer partnered with Tangoe to gain better visibility and control over their IT expenditures. The Tangoe One technology expense management (TEM) platform aided in identifying and optimizing all network, telecom, and cloud services.

To help rationalize costs and determine which network services were still active and necessary, the Tangoe Advisory Services team performed an audit, evaluating telecom services across all North American locations to ensure each expense was contributing value to the business. The solution established an up-to-date inventory of all North American network costs.

This single source of truth helped the manufacturer:

  • Discover many missing contracts from telecom vendors
  • Validate the actual cost of business-critical network services, verifying how much money was needed for critical system backups and how much could be allocated to other departments
  • Identify remaining expenses as waste and a potential opportunity for cost savings

This laid the groundwork to help the manufacturer turn insights into dollars saved. Tangoe’s Optimization Services identified how effectively the company was using its services, bringing forward plans to cut costs by removing unnecessary spending and reallocating any unused resources. Tangoe handled the administrative work, discontinuing services at closed offices, disputing all incorrect service charges, and working with IT to upgrade obsolete telecom technologies – including any remaining Plain Old Telephone Systems (POTS) lines.

Most of the manufacturer’s cloud infrastructure costs were deemed necessary, however the Tangoe team didn’t stop there. Tangoe worked with the cloud service provider to review available discounts and identify which long-term commitments would generate the highest payouts. Once the discounts and reserved instances were applied, the manufacturer saved another significant amount of money.

Tangoe One Telecom Expense Management

Tangoe Audit Services

Tangoe Optimization Services

The Outcome:

The manufacturer saved $668,000 in total annual technology costs. This included $250,000 in savings after long-term commitment discounts were applied to cloud infrastructure services, $180,000 in savings from removing telecom services from locations where they were no longer needed, $62,000 in cost reductions after migrating legacy POTS lines (Plain Old Telephone Services) to more modern communications systems, and $50,000 in credits from service providers, among other savings.