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Targeted Savings for Colocation Services

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


  • Identified $4.4M in savings by consolidating contractual agreements, optimizing commercial terms, and restructuring existing agreements to provide greater flexibility over the long-term