CASE STUDY

Manufacturer Drives $1.4M in Telecom Savings during SD-WAN Modernization

Renegotiated MPLS contracts offer fast savings as circuits migrate to internet connectivity

The Challenge: Telecom Auditing and SD-WAN Modernization

With customers in more than 100 countries, this leading manufacturer drives the next generation of smart manufacturing. But when IT leaders looked to the future, they knew they needed a stronger corporate network that could deliver on the company’s vision for innovation and automation. The plan: tap into Tangoe’s Advisory Services digitally transform using software-defined wide area network (SD-WAN) technology to achieve greater agility, resiliency, and cost savings.

SD-WAN modernization has its benefits – savings of 20-30% or double the amount of bandwidth for the same price – but projects can be a significant undertaking with phased deployment schedules that can take years to fully implement.

The IT leaders knew their modernization journey would be slow to start due to their complex list of MPLS circuit locations as well as their outdated inventory of services, usage, and costs. The team needed help plowing through these logistics to design a modernization plan capable of earning some quick victories while also establishing a strategy for long-term savings success

$400K

short-term
savings

$1M

long-term
savings

600+

hours productivity
gains

The Solution: Smart SD-WAN Design that Optimizes Costs at Every Turn

As an extension of the manufacturer’s IT team, Tangoe’s technology consultants immediately went to work conducting an audit of all fixed wireline services to establish an accurate list of services and benchmark of current spending. With this, the IT team had an informed needs assessment with a clear view of who uses each service and how. Notably, Tangoe helped identify over $1M in savings through the discovery of legacy services that were largely obsolete or no longer used, working to develop a plan to disconnect any unnecessary services, utilize cost-effective internet connectivity wherever possible, and keep a limited number of MPLS circuits.

Tangoe also supported the establishment of an SD-WAN solution to optimize service costs wherever possible. While Tangoe worked alongside the IT team to initiate SD-WAN changes, they also turned to the manufacturer’s MPLS contract renewals for some quick wins. Tangoe’s negotiation professionals played an integral role in renegotiating MPLS costs, saving $400,000 — even as they focused on procuring internet connectivity as part of the long-term SD-WAN migration.

The Outcome: $1.4M in SD-WAN Savings and 600+ Hours in Productivity

While internet connectivity can cut costs, fixed-line services also offer significant savings potential, and Tangoe stepped in to help IT leaders take advantage of both:

Uncovering optimization opportunities, introducing more internet services and keeping a few renegotiated MPLS circuits for business-critical operations
Ensuring the lowest available price for internet and the best terms for MPLS contract renewals
Exploring market prices and comparing service costs to leading offerings using Tangoe’s automated quote management and ordering platform

Delivering more than 600 hours in productivity gains, Tangoe Advisory Services provided a competitive leg up in the manufacturer’s journey to SD-WAN — from a team of auditors with experience in solution design to negotiators to lock in the best contract terms, the team left no stone unturned for optimization. Today, telecom savings are a gift that keeps on giving. To date, the manufacturer has identified over $1.4M in savings and will pocket more as they continually modernize their network.