By Rich Popper, Veramark Director of TEM Product Management
I don’t have time to watch much TV, but I recently saw a Capital One commercial where Jimmy Fallon asked, "Who doesn't like fifty percent more cash back?" In corporate America today, I don’t think anyone would raise their hand in response. In fact, many companies are happy with much smaller returns to offset rising costs, as every dollar saved helps the bottom line.
With telecom costs being one of the largest corporate expenses, organizations are looking at lots of different ways to get that cash back. One way that companies try to save money is to only sign up for one-year service terms on circuits. They do this hoping that technology advances and competitive pressure will drop the pricing enough year over year to generate more savings than signing up for a longer term upfront. The annual renegotiation strategy may generate some savings, but it is time consuming and can result in much lower savings than expected.
Longer term commitments have built-in savings versus the base one-year term price, but few companies themselves do the full analysis of the savings of a three-year term against the one-year price of all three years. Utilizing Veramark’s TEM Professional Services team, this exact type of analysis for a customer found that across all of their circuits, they would have saved an average of 24% by selecting three-year service terms instead of the one-year terms they had signed up for. The average savings was 24%, but there were many individual circuits where savings topped out at over 50%.
Picture that – more dollars back to the bottom line by doing less work. Who doesn’t like that?
LEARN MORE – Visit http://www.veramark.com/ to learn more about TEM solutions that help you do more with less.
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