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CDN Negotiations for a Fortune 10 Healthcare Company

Strongbow drove $1.7M in annual savings (net run-rate reduction) and eliminated annual overages of >$1M while at the same time purchasing more services that were of true benefit to the CDO organization (removing services that were not of value from the contract)

Client Situation:

  • Fortune 10 Healthcare company with 10,000 locations across North America
  • Current annual expenses with a leading content distribution and internet security services provider spanned multiple contracts for different services with various expiry dates and conflicting terms
  • Due to increased usage under the current billing model, cost increases of ~25% year over year were expected to continue without corrective action
  • In addition, the un-managed use of professional services was adding to the budget challenge and creating an internal skills gap

Strongbow Approach:

  • Strongbow developed a detailed services inventory, quantified savings potential, and identified additional opportunities for commercial improvements
  • Although the service provider was given specific rate and commercial guidance, the long term incumbent didn’t feel any threat of loss, and resisted offering appropriate financial and commercial concessions
  • In response, Strongbow launched an executive escalation strategy that highlighted the even greater savings which could be achieved through the introduction of competitive alternatives


  • By leveraging a different channel partner, the client realized $1.7M in run rate savings without the cost and disruption of switching providers
  • In addition to negotiating a pricing model that provided a buffer against future cost overruns, Strongbow recommended additional actions to diversify the supplier base to help avoid future supplier complacency