Delana Nading, Contract Administration Manager, EFH
Agenda
EFH Case Study
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Background
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EFH Approach
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Realized Savings – 2013-2015
Alsbridge IT Asset Management
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Overview and Capabilities
In the beginning….
EFH has partnered with Alsbridge since 2012.
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.
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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.
2013 Realized Saving Results:
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.
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.
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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.
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.
IT Asset Management Sourcing Overview
Software / Hardware Sourcing Asset Rationalization Contract Advisory Services Education/TrainingNegotiation services with limited risk to our clients yielding substantial ROI per project with rapid closure of complex sourcing projects.
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
Audit and Compliance readiness
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
Alsbridge ITAM
– Focus and Specialization
15%
Average cost savings
24%
Typical ROI on our feesHARDWARE (Hardware, Maintenance) SOFTWARE (Software, Maintenance, Audit)
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