Strongbow identified $4.4M (~20%) in short-term savings for a Fortune 100 global bank through commercial negotiations with incumbent hosting providers.
Client Situation:
- Colocation services are critical to global service delivery and compliance
- Services are fragmented across 16 sites managed by 7 providers and governed by 50+ contracts
- Colocation contracts and service orders are non-coterminous, making it challenging to migrate to alternative vendors and/or avoid rate increases stemming from auto-renewal provisions
Strongbow Approach:
- Strongbow built a comprehensive baseline of all services and service orders, modeling the impact of rate increases over various renewal schedules
- Strongbow identified significant savings at the location level, leveraging expert knowledge about the hosting market as well proprietary details regarding pricing and commercial terms
- Strongbow prepared a detailed negotiation strategy for each supplier including rates and commercial terms
Result:
- Identified $4.4M in savings by consolidating contractual agreements, optimizing commercial terms, and restructuring existing agreements to provide greater flexibility over the long-term