MPLS Technology consolidation nets organizational efficiency, cost reduction and future savings for a global hospitality and recreation company.
The Company is a publicly traded international holding organization with multiple lines of business in the USA, Canada, Europe, Asia and the UAE. Over the years, the Company has acquired, integrated and divested dozens of companies resulting in disparate communications networks. As IT services were centralized, it became difficult to manage the multiple technologies, providers, contracts and support structures efficiently. It was common for local sites to purchase services without corporate IT sponsorship. Standardization was often overlooked in lieu of a local relationship or a regional provider that fit a particular business unit’s geography. The Company’s annual telecom budget of $2.3M was comprised of dozens of service providers and equated to more than 100 telecom invoices per month. This created accounts payable backlog and occasional service interruptions. With so many service providers involved, it was a nightmare to manage all the respective contracts. Each service provider had a different set of terms and conditions, different methods to calculate term liability, expiration dates, and revenue commitments. Contract management was placing a great burden on the legal resources at the Company, resulting in negative impact on other corporate initiatives.
Staffing for network support was often challenging, as it was difficult and costly to find a support professional versed in the mix of technologies in use: Private Line, Static and Dynamic VPN, Frame Relay, MPLS, and Satellite networks.
The Provision Networks’ team evaluated the existing state of the Company’s network infrastructure. The Company’s leaders and staff were very candid about their challenges and provided clear direction on their desire to create efficiencies by consolidating carriers, increasing bandwidth, reducing the telecom budget by 10% and providing higher quality IT service to the organization. The Provision team became an extension of the IT staff and collaborated with Company leaders across multiple business units to develop a consolidation strategy and technology roadmap. The technology goal was to create a ubiquitous network capable of supporting SIP on a global level.
Provision Networks collaborated with the Company’s network team to design a global WAN to meet their current and future bandwidth needs. Once the new global MPLS network architecture was
designed, Provision conducted an RFQ with qualified providers who met the technical, geographical and support requirements of the Company.
Provision Networks analyzed the financial impact of the project and wrote an Investment Proposal for the Board of Directors to evaluate during their due diligence. Once the Company selected their future vendor, Provision changed its focus to deployment. The project management team developed a deployment strategy, attended weekly project meetings, and coordinated individual site test and turn-up in order to maintain financial accountability. Upon project completion, the Company consolidated five disparate WAN technologies into a single homogenous global MPLS network. The new network not only created efficiencies in internal communication but also allowed the business to staff technical support employees with a more focused skill set. This consolidation also reduced the monthly volume of invoices from over 100 down to one.
Legal review and contract management were simplified by consolidating dozens of service contracts to one which led to a common set of terms & conditions, a single revenue commitment, and one contract term to manage. Network support was streamlined by utilizing a single common support process across the enterprise.
By concentrating their purchasing power to a single network provider, the Company realized an 18% cost reduction in their monthly services fee yielding a total project savings of over $2 million. The new network doubled the available bandwidth and positioned the Company with a platform to support future technology enhancements. In the future, this technology will support global voice and video communications from a consolidated VoIP and Unified Communications environment.