CASE STUDY

Manufacturer Saves $1.07M in Cloud, Mobile, and Telecom Costs

Tangoe One Expense Management Solution Maximizes Value of IT Spending

The Challenge:

Controlling IT costs was the issue of the day at a global manufacturer, where IT financial managers were lacking clear visibility into the company’s network services, mobile device usage, and communications expenses. Through the years, the manufacturer acquired a large portfolio of telecom assets and cloud infrastructure services, and its growing list of providers made financial management difficult.

$1.07K

total savings

$579K

mobile savings

$250K

in IaaS savings

The Solution:

The manufacturer partnered with Tangoe to gain better visibility and control over their IT expenditures. To help rationalize costs and determine which services were still active and necessary, the Tangoe Advisory Services team performed an audit, evaluating services across all North American locations to ensure each expense was contributing value to the business.

The solution established an up-to-date inventory of all telecom, mobile, and cloud costs. The Tangoe One expense management platform aided in identifying and optimizing services for the company’s fixed telecom network, mobile fleet, and cloud infrastructure.

This single source of truth helped the manufacturer:

  • Discover unused services and many missing contracts from vendors
  • Validate the actual cost of business-critical network services, verifying how much money was needed for critical system backups and how much could be reallocated to other departments
  • Identify remaining expenses as waste and a potential opportunity for cost savings

This laid the groundwork to help the manufacturer turn insights into dollars saved. Tangoe identified how effectively the company was using its services, bringing forward plans to cut costs by removing unnecessary spending, reallocating any unused resources, and optimizing rates for mobile wireless plans.

Tangoe handled the administrative work, monitoring the usage of 4,500+ mobile devices and adjusting plans, discontinuing services at closed offices and for devices no longer in use, disputing all incorrect charges, and working with IT to upgrade Plain Old Telephone Systems (POTS) lines.

Most of the manufacturer’s cloud infrastructure costs were deemed necessary, however the Tangoe team didn’t stop there. Tangoe worked with the cloud service provider to review available discounts and ensure long-term commitments would generate the highest payouts. Once the discounts and reserved instances were applied, the manufacturer saved another significant amount of money.

Tangoe Advisory Services:

Audit & Optimization

Tangoe One Telecom :

Telecom Expense Management

Tangoe One Mobile :

Managed Mobility Services

Tangoe Bill Pay:

Automated Invoice Payments

The Outcome:

The manufacturer saved $1.07M in total annual technology costs. This included $579K in mobile savings, $250,000 in savings after long-term commitment discounts were applied to cloud infrastructure services, $180,000 in cost avoidance from removing unused fixed telecom network services, $62,000 in reductions after modernizing legacy POTS lines, and $50,000 in credits from service providers. Additionally, Tangoe’s Bill Pay services paid 941 invoices on behalf of the manufacturer, generating 290 hours of productivity gains.

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