Steven Zolman

Jun. 27,2022 | Operations, Digital Transformation, Vendor Management, Private Equity

Preface

In 2007, NET(net) developed a program for Private Equity firms to improve the operational efficiencies of their portfolio companies by reducing IT costs with no diminution of business value. As our Private Equity partners went through the global financial crisis in 2008, they modified their approach to the capital markets, extending their holding horizons, and looked to make up the difference in missed returns with improved value (predicated on the operational efficiencies they created). No category performed as well as IT spend, and no partner performed as well as NET(net).

In 2022, we see a similar situation as many of our clients are bracing for the impact of a looming global recession and hardening their organizations with a renewed focus on operational efficiencies. Once again, IT is the highest indirect spend category targeted for investment, and NET(net) is once again the leading partner to help clients minimize cost and risk, while maximizing the realization of value and benefit.

Read more below.

In a crowded and confusing industry sub-segment of IT Cost Reduction specialists (often filled with sourcing advisors, process procurement companies, consultants, resellers, industry analysts, legal firms, software tools companies, and other types of organizations), NET(net) stands alone as the market leader with over $1 Trillion of negotiated deals, $250 Billion of negotiated savings, and a proven 20-year track record of performance and results.

See how we further differentiate here.

NET(net) is also the preferred partner for Private Equity Firms delivering over a 500% hard dollar return on investment across its Private Equity partnerships on average. If you are a Private Equity Firm and you are not strategically partnered with NET(net), your portfolio companies are paying way more than they need to for the technology that runs their businesses, and you are leaving considerable money on the table.

Here are some of the ways, NET(net) can help:

If you are anxious about:

• rising input costs
• softening business forecasts
• potential impact of a global recession
• or simply looking for the greatest value...

Then you should seriously consider a strategic partnership with NET(net) to ensure your portfolio companies are getting the best from their technology at the lowest possible costs.

As the market-leading category expert in IT Cost and Value Optimization, NET(net) helps your portfolio companies significantly reduce technology-related costs and mitigate risks by providing bespoke IT optimization and commercial and contractual negotiations assistance across the IT value chain, which helps your portfolio companies maximize the realization of value and benefit.

By working with NET(net), you ensure that your portfolio companies significantly reduce stranded costs on existing solutions and optimize new technology spends, enhancing organizational EBITDA, improving cash flow and profitability, enhancing the balance sheet value of your holdings, and maximizing market capitalization for the greatest returns for your firm.

We work with over a dozen of the world's largest, and best Private Equity firms as their exclusive or preferred partners in this space, and our Private Equity partners overwhelmingly view us as their top performing partner across all spend categories and Savings programs. 

For example, one of our partners manages over 75 Savings Programs targeted to deliver cost-out to their portfolio of companies, and NET(net) is the #1 performing partner in (i) Savings achieved, (ii) Contract Value impacted, and (iii) Retention of Value - the Top 3 Measurements of Program Success, thirteen years running. Last year alone, we helped our partner deliver over $1.5 Billion of increased market value in their portfolio.

We invite executives charged with organizational performance to evaluate our programs designed to help you reduce IT costs, and we believe it is #1 thing CEOs can do to prepare and protect their organizations from the negative fallout of a looming global recession.

Why are IT costs the best area to target for cost reductions?  

1. Highest Spend. For most modern enterprises, IT is the largest indirect cost category.
2. Lowest Risk. Paying less for technology with the same use case doesn’t increase business risk.
3. Best Yield. Optimizing IT costs returns between 200-2000% returns (.95 Probability).
4. Accelerate digital transformation with better technical solutions that offer greater value but cost less.

See our recent blog on this topic for more information.

Summary

NET(net) can help your portfolio companies minimize costs and risks, while maximizing the realization of value and benefit of all their technology agreements, investments, and relationships. So, if you are looking to help them improve operational efficiency and/or modernize their enterprise to enhance organizational value, Act Now.

Call to Action

Contact us today to learn more about how we can help you save on all your technology agreements or Sign up now for a Savings Cloud subscription, and we will get started right away.

About NET(net)

Founded in 2002, NET(net) is the world’s leading IT Investment Optimization firm, helping clients find, get, and keep more economic and strategic value in their technology supply chains. With over 2,500 clients around the world in nearly all industries and geographies, and with the experience of over 25,000 field engagements with over 250 technology suppliers in XaaS, Cloud, Hardware, Software, Services, Healthcare, Outsourcing, Infrastructure, Telecommunications, and other areas of IT spend, NET(net) has the expertise you need, the experience you want, and delivers the performance you demand, resulting in incremental client captured value in excess of $250 billion since 2002. Contact us today at info@netnetweb.com, visit us online at www.netnetweb.com, or call us at +1-866-2-NET-net to see if we can help you capture more value in your IT investments, agreements, and relationships.

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.