This will be a tough year for many in the IT industry as companies are challenged on many fronts. However, for those with the fortitude and the right partners - it can also be a transformational year for forward thinking strategic companies.
Our Top 3 Market Messages for 2023:
1. Clients are Clamoring for Savings in 2023.
What we know - this has largely been brought on by several factors. First, since 2020, with few exceptions, clients have largely been suffering from...
- rising input costs, and
- softening business forecasts and
- the economic outlook for 2023 is dire at worst, and gloomy at best.
This is causing many clients to re-evaluate spending plans and behaviors, often resulting in cost-cutting targets.
2. IT is the Number One Cost Savings Category of the Modern Enterprise.
IT is typically the highest indirect spend area for modern enterprises and is also a cost category with the highest potential yield (we average about 33% savings on addressable spend).
In addition, clients have largely exhausted conventional cost savings countermeasures such as canceled projects, delayed spending plans, and cuts in discretionary spending, and many have even gone through Reductions In Force (RIFs), and/or even facility closures. As a result, clients are somewhat out of ideas for cost savings in 2023 and therefore at risk of cutting muscle and bone as savings demands persist, but why do that when you can harvest considerable value from your IT supply chain, do so with minimal risk, and perhaps even get additional value from modernization and other benefits?
3. NET(net) is the Number One IT Cost and Value Optimization Provider.
We are fresh off from celebrating our 20-year anniversary, and since 2002, we have informed and shaped over $2 Trillion of investment, captured well over $400 Billion of incremental value for our clients and partners, and have an 85% probability of achieving savings ranging between 13-53%.
In the most demanding industry on earth, we are on a 15-year run as the Number One cost savings partner across more than 75 'cost-out' programs, and for one partner alone in 2022, we put $94 Million to their bottom line, and boosted balance sheet value by over $1.5 Billion. We are the best in the world at what we do, and we will put our numbers and performance up against anyone to prove it.
Savings in 2023 will be difficult to get and will require a fierce but skillful contest with an IT supply chain that will be completely disruptive to any sort of cost savings initiative, as they are resolved on jamming through their own price increases. Going it alone in 2023 will result in a lot of work and very little to show for it.
However, we do see incredible savings opportunities in 2023. Not since 2008 has there been as much downward pricing pressure on technology incumbents, and we believe meaningful savings targets can be achieved, but it will require a commitment to transform the way clients manage cost and value from their IT supply chain. If you're ready to learn more and are dedicated to putting in the hard work with us, 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.
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. Over the last 20 years, NET(net) has influenced trillions of investment, captured hundreds of billions of value, and has helped clients cost and value optimize XaaS, Cloud, Hardware, Software, Services, Healthcare, Outsourcing, Infrastructure, Telecommunications, and other areas of IT spend. NET(net) has the experience you want, the expertise you need, and delivers the performance you demand and deserve. Contact us at firstname.lastname@example.org, visit us online at www.netnetweb.com, or call us at +1 (616) 546-3100 to see if we can help you capture more value in your IT investments, agreements, deployments, and relationships.
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