Cleaning House: Managing IT Assets. Delana Nading, Contract Administration Manager, EFH Dan Bryan, Managing Director, Alsbridge
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1 Cleaning House: Managing IT Assets Delana Nading, Contract Administration Manager, EFH Dan Bryan, Managing Director, Alsbridge
2 Agenda EFH Case Study Background EFH Approach Realized Savings Alsbridge IT Asset Management Overview and Capabilities Results 2
3 In the beginning. EFH has partnered with Alsbridge since Initially, EFH engaged Telwares/Alsbridge for advisory services, contract review and contract negotiations to review and consult on the optimization of our Telecom Services. Telwares/Alsbridge managed the RFP process for EFH Telecom Services (MPLS, Internet, Call Center SIP, Corporate Site SIP, Call Path Optimization and decommission and migration of Toll-Free lines to DID/VTN. This effort resulted in $2M in realized savings 3 3
4 EFH Approach to Alsbridge Engagement Following the successful execution of the telecom optimization, EFH entered into a longer term relationship with Alsbridge. The overarching purpose was to consult and negotiate hardware and software purchases and renewals with large suppliers such as; Oracle, Microsoft, EMC, VMWare and Cisco. Our goal is to achieve material cost optimization and savings The EFH approach: EFH Vendor Management will initially work with the supplier to create a baseline (quote) for the procurement event (purchase or renewal). EFH validates the bill of materials for the purchase or renewal with the functional team/stakeholder. Once the EFH team is confident in the purpose and objective for the procurement effort (whether new purchase or renewal), the Vendor Management team will engage Alsbridge in an initial call. EFH provides written and verbal introductions of the Alsbridge team and the supplier representative. Alsbridge is presented as an extension of the EFH team. 4 4
5 2013 Realized Saving Results: June 2013 Alsbridge renegotiated the EFH renewal of EMC VMAX-Centera hardware and software support. The objective was to co-term multiple contracts under one renewal and achieve more favorable pricing. Alsbridge took the lead on negotiations and EFH realized over $74K in year 1 savings. Alsbridge took the lead on the negotiations and met objectives lowering our annual support cost by $43K annually. October 2013 Renegotiated VMWare ELA. Bundled VMWare licenses and Technical Account Manager Services. October 2013 Alsbridge renegotiated the EFH purchase and renewal of IBM Maximo licenses. Alsbridge took the lead on negotiations and EFH realized over $273K in year 1 savings. 5 5
6 2014 Realized Saving Results: April - December 2014 Alsbridge renegotiated the EFH Microsoft ELA and True-up. There were multiple objectives for this renewal; (1) Disentanglement from the regulated subsidiary, Oncor. (2) Reduce license footprint to right-size for the new EFH virtual/converged infrastructure. In addition, Microsoft had delivered notice to EFH of their intent to perform a formal software license assessment. Alsbridge provided a highly-skilled MS license expert (SME) who reviewed our license entitlements and deployment. He reviewed our end-state architecture and worked with our technical teams to determine the appropriate license model. The Alsbridge SME consulted with EFH to navigate and respond to the software license assessment. The effort resulted in over $263K in year 1 savings for EFH. 6 6
7 2015 Realized Saving Results: January - May 2015 Alsbridge renegotiated the Oracle 2015 Software Renewals. The main objective for this renewal was to reduce our license footprint and right-size for the new EFH virtual/converged infrastructure. Alsbridge provided a highly-skilled Oracle license expert who reviewed our license entitlements and deployment. He reviewed our end-state architecture and worked with our technical teams to determine the appropriate license model. The effort resulted in over $977K in first year savings for EFH. 7 7
8 IT Asset Management Sourcing Overview Negotiation services with limited risk to our clients yielding substantial ROI per project with rapid closure of complex sourcing projects. Cost Reduction Efficiency Performance Software / Hardware Sourcing Asset Rationalization Contract Advisory Services Education/Training Customized sourcing strategies by software/hardware provider Develop strategies to identify and eliminate cash drains Market pricing insight Software Audit & Compliance ELA/ULA Renewal & Optimization/Rationalization Cost Management Merger and Acquisition review and opportunity identification SW/HW Contract Advisory Negotiation Services Develop cost reduction roadmap for organization Develop Expense and Capital savings strategies Develop Vendor Sourcing Strategy based on client needs 8 Audit and Compliance readiness
9 Engagement Components People Average of 25 years experience, mixture of procurement, vendor and IT Former CPOs, senior IT and sales executives and vendor executives Previous experience includes Oracle, Microsoft, HP, IBM, EMC and Cisco. Data Real-time insight into industry pricing, contract terms, license structure, vendor motivations and trends, sales drivers and deal structure Process FastSource process aggregates strategic data from the client or Alsbridge s P1 effort and enables solution design, provider selection and evaluation Flexible sourcing model adjusts to provide client appropriate level of assistance 9
10 Alsbridge ITAM Focus and Specialization HARDWARE (Hardware, Maintenance) SOFTWARE (Software, Maintenance, Audit) 15% 24% Average cost savings Typical ROI on our fees Alsbridge improves clients total Software & Hardware spend category 10
11 QUESTIONS? 11 11
12 Americas EMEA Asia-Pacific Corporate Headquarters Dallas Parkway Suite 200 Addison, TX USA Tel: +1 (877) Canada The Exchange Tower 130 King St. West, Suite 1800 Toronto, ON M5X 1E3 Canada Tel: +1 (416) United Kingdom 3000 Hillswood Drive Hillswood Business Park Chertsey Surrey KT16 0RS Tel: +44 (0) Germany Bahnhofsplatz Montabaur Germany Tel: +49 (0) germany@alsbridge.com India Alsbridge Advisory Private Limited 3 rd Floor Embassy Classic 11 Vittal Mallya Road Bangalore India Tel: bangalore@alsbridge.com
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