Cisco licensing optimization saves broadband provider $16M
About the customer
Customer challenges
Our customer’s networking infrastructure investment had grown substantially, with Cisco equipment and software forming the backbone for their services. However, annual operating expenditures (OpEx) for Cisco infrastructure had continued to rise year over year, making the cost of supporting and maintaining their Cisco assets unsustainable.
Furthermore, from an administrative standpoint, the FLEX consumption model was complex, and our customer found Cisco licensing optimization, administration, and renewals unclear and time-consuming.
Customer requirements
Protecting their Cisco investment while achieving measurable savings was essential. Our customer needed a solution that would:
- Reduce annual support and operating costs.
- Simplify the licensing and procurement process.
- Consolidate renewals into a cost-effective buying model.
- Provide clarity around Cisco’s software consumption models.
GDT solution: Consolidated buying program and Cisco licensing optimization
To help resolve their Cisco licensing challenges, GDT kicked off the engagement with our Cisco software and maintenance lifecycle assessment. This assessment combines an automated review of a customer’s Cisco estate with GDT’s deep Cisco buying program expertise. The goal of this assessment is to surface opportunities to streamline and save money by consolidating Cisco software and maintenance contracts into enterprise agreements. The assessment also allows GDT to identify opportunities to achieve outcomes like Cisco licensing optimization, standardized support, and streamlined software asset management.
Based on the assessment, GDT worked with the customer and Cisco to design a new buying program around Cisco’s IOS-XR product families. A five-year Integrated Purchase Agreement (IPA) formed the cornerstone of this solution, which included a Service Provider Network Agreement (SPNA) for routing, Service and Support (SFC for SNT), and expanded hardware discounting. By structuring the agreement this way, GDT was able to consolidate our customer’s software and maintenance agreements under a common renewal date, align Cisco’s program flexibility with the customer’s financial objectives, and simplify procurement.
Our customer praised GDT’s ability to analyze and interpret their historical purchasing data, which far surpassed what they could have achieved internally. They also appreciated GDT’s ability to guide them through multiple theoretical scenarios over a two-month evaluation period. By modeling different outcomes and comparing the new program to their previous approach, our customer gained the insights and confidence they needed to move forward with the new approach.
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Benefits
As a result of the new Cisco buying program, our customer realized several benefits:
Expanded hardware discounting to simplify procurement and accelerate company growth targets.
Improved Cisco licensing optimization, reducing waste.
Streamlined procurement management through consolidation of software and maintenance agreements to a common renewal date.
Increased clarity around Cisco software consumption.
Tighter strategic alignment with Cisco, ensuring continued innovation and support.
GDT’s partnership demonstrates how an experienced advisor with deep Cisco buying program expertise can deliver measurable business outcomes beyond technology deployment. By simplifying licensing, optimizing support, and aligning with corporate cost-reduction goals, GDT helped our customer protect its Cisco investment while reducing OpEx by $16 million over five years.
Save 15% or more across your Cisco estate
Are you making the most of your Cisco investments? GDT has helped countless customers save and streamline through Cisco EAs and spend optimization. Our process begins by gaining a deep understanding of your environment and business objectives through a complimentary Cisco software and maintenance lifecycle assessment. We collaborate closely with you to build a plan that offers better pricing, better coverage, and better management, all in alignment with your financial strategy and technology roadmap. By consolidating a la carte investments into cost-effective EAs, we’ve found that the average customer can save 15% — more than $1.75 million.
Get started today. Schedule your complimentary Cisco software and maintenance lifecycle assessment.
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