Steven Zolman

Jan. 31,2011

You Don't Need Us.  Or Do You?

Some prospective clients may believe they have all the right answers, get the best deals, have the best terms and conditions, have the best supplier relationships, manage their contracts and suppliers effectively, and therefore don't need services like ours.

If you're of this belief, please consider the following.  We offer a full scope of services to help clients improve sustainable value from their IT investments, but let's consider just one small area of IT Optimization for the purposes of illustration.

Supplier configurtation options and pricing models can create vast consumer inequities.  Even a simple product like Microsoft Office has over 3,000 published different types of licenses.  That number may sound like a lot, but it gets worse when you consider that the cost delta between way number 1 and way number 3,000 is a whopping 9,225.6%!  That means client A, who does everything right may pay $100k, but client B, who does everything wrong may pay $9.2M for essentially the same source code.

Now, the question becomes, how do you ensure you get all that market value?

Let's assume you have an awesome team.  Let's say they are cross functional in nature.  They have representatives from the business, IT, procurement, finance, legal, contracts, supplier management, etc.  Let's say they collaborate extremely effectively, and all are top industry professionals.  Let's say they have expert efficiency at being able to model all the variables against your custom inputs of organizational requirements, infrastructure, consumption, and planned usage.  Let's say they also have intimate first hand knowledge of the intricate inner-workings of the supplier.  Let's further suppose they have as much bargaining table experience negotiating those supplier agreements as the supplier does.  In addition, let's suppose they have great visibility to a wider market and know precisely what that supplier agrees to in other regions and industries.  Let's go way out on a limb and say this team is able to capture 98% of the market value that is there to achieve.

Well, if you were able to buy a dollar for a 98% discount (and pay 2 cents), what kind of an impact would it make if you were able to work with someone who could help you refine all those special things you do by 1 simple percentage point, enabling you to buy that same dollar for a 99% discount instead (paying only 1 cent).  Well, the difference between paying 2 cents for that dollar and paying 1 cent is a 50% reduction in cost.

We believe our organization can help yours improve your performance.  We offer federated market intelligence, from serving the unique needs of our 1500 global clients.  We have the ability to help you understand the market value for technology products and services from over 250 different suppliers in nearly every region and industry.  We offer a proven and proprietary methodology for IT otimization, that has been continually refined over the course of professionally managing over 15,000 field engagements.  And we have a long track record of proven performance, that has helped our clients capture over $50B of incremental value since 2002.

Imagine what a small improvement in this area could mean to your bottom line.  By collaborating together with our clients, on average, we help our clients save in excess of 33%.

NET(net)’s Website/Blogs/Articles and other content is subject to NET(net)’s legal terms offered for general information purposes only, and while NET(net) may offer views and opinions regarding the subject matter, such views and opinions are not intended to malign or disparage any other company or other individual or group.