Strongbow secured 25% annual cost savings and eliminated risk of future budget overages by right sizing and optimizing this Fortune 50 firm’s WebEx license agreement.
Client Situation:
- Fortune 50 health care services company with nearly 10,000 locations across North America
- Current Webex agreement was scheduled for annual true-up; unplanned growth in end users was driving significant cost increases and unfavorable budget deviations:
- Client running 2X budget given voice port overage was not appropriately sized at initial deployment
- Overage costs were expected to continue given ongoing end user adoption
- Additionally, both license and metered usage costs lagged the competitive market for Webex pricing
Strongbow Approach:
- Developed a comprehensive inventory of both license counts and voice usage patterns
- Modeled optimal purchase scenarios to minimize current cost and eliminate risk of continued voice port overages
- Provided specific rate guidance and commercial requirements to both the reseller and Cisco
Result:
- Strongbow drove $800K (more than 25%) in savings by negotiating a new licensing model to accommodate growth and eliminate the risk of budget overruns:
- End user license count reset to an appropriate level with no additional cost to the client
- Voice port costs bundled into the end user license cost eliminating future overage costs (~$1.2M annually)
- Contractual provision included to re-open the contract as volumes increase in the future