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.
$668K
total savings
15%-30%
saved in
IaaS costs
$62K
saved in POTS
costs
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:
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.
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.
