The customer was using outdated technology ranging from: WAN architecture utilizing POTS (plain old telephone service) with many different carriers, phone system, servers, software, laptops and desktops and an unresponsive army of vendors supporting these systems. The network was a collection of poorly performing broadband VPNs. Outages were the norm and IT/Communications spend continued to increase rather than decrease. Service was poor throughout, and a large capital expense was looming for the customer.
It was next to impossible to seamlessly integrate other applications and services within the architecture while maintaining regulatory compliance. Adding more offices seemed to require duplicating capital investments, as well as continuing to maintain, support, and upgrade charges for each component. After working with an independent IT consultant, the customer decided to remove the existing system entirely and implement a totally new IT/Communications solution.
The solution eliminates the need for multiple on-premise systems, servers, and applications like PBXs, video and web conferencing hardware, and collaboration systems. Available service components include voice, web collaboration, in-bound and out-bound call center and messaging services. By delivering in a SaaS (Software as a Service) and DaaS (Data as a Service) model, all on-premise hardware and software, integration and maintenance costs were eliminated. An enterprise-grade integrated multicarrier communications network delivers the voice and service quality that businesses demand.
The new services delivery model satisfied the growth strategy of the customer perfectly. Their suite of services includes all IT, Desktop Support, Microsoft Licensing, Data Services, SharePoint, business voice, Mobility, web meeting, audio and web conferencing, desktop sharing, remote desktop access, as well as secure applications.
Cost savings: The customer cut costs by more than half and reduced their IT/Communication spend (as a % of Revenue) to 0.7%!
Reliability and disaster recovery: Services are now hosted at vendor’s data centers that have sophisticated equipment and full redundancy. Data is always secure and can be quickly recovered. In the case of any disaster, communications can be routed via different network connectivity.
Virtual office: Calls can be routed to anywhere that has a high-speed internet connection. Customer’s employees can be in their virtual office even when they are on the road.
No more maintenance or upgrades: There is no hardware or technology to maintain on premise, and no more software upgrades to perform. Vendor now performs all the day-to-day system operation and maintenance for the customer. All the latest technology upgrades are automatically made available from the data centers.
Performance and productivity increase: Communication and collaboration are now simple and easy to use. With cloud-based unified communication services, the customer has the tools they need to conduct business efficiently and effectively. They can focus on their core business activities and customer satisfaction.
Predictable costs: Costs are per user, per month, and easy to budget.
The customer’s environment consisted of 17 voice and data providers, 5 disparate phone systems and aging hardware that was 10 years or older (routing, switching, and telephony platform). In addition, the IT helpdesk had difficulty supporting an environment with such inconsistent hardware and too many vendors across their 35 office locations. Beyond having a challenging environment to support, the customer also lacked the resources to identify and effectively manage all of the changes necessary to service their environment.
The customer engaged Portfolio for a systematic review of all vendors for the purpose of cost reduction, consolidation, and service improvement. The goal was to have the largest impact without disrupting the lines of business and minimizing internal staff utilization.
Portfolio anonymously benchmarked six (6) vendors to replace the WAN and four 4 vendors to replace the voice system. The customer eventually elected to standardize all offices on one internet provider and one voice provider, saving enough money to fully fund both voice, routing, and switching environments. After funding the new hardware the total cost savings was still over 35%.
- Reduced the cost of all Voice and Data services by 38%
- Increased the overall bandwidth at every location by an average of 5x
- Fully funded a voice refresh and outsourced voice support
- Fully funded a new routing, switching, and wireless environment
- Consolidated vendors down from 17 to 5
- Provided project management for all move/add/change