The Benefits of Integrated CPQ and Contract Management
CA - AT&T Agreement driven by IPM (Phill Glass)
1. AT&T chooses CA Wily
Introscope to support entry into
major new consumer market.
“When this kind of money is in play, everybody gets involved. Having allies at multiple levels
within the customer is what you need to make a deal like this happen.”
— John Dorr, Account Director, CA
SALES SUCCESS STORY:
AT&T
Customer Profile:
AT&T
Dallas, Texas
www.att.com
Industry:
– Telecommunications
Date of Sale:
– March 31, 2008
Sales Cycle Timeline:
– 18 months
Revenue:
– Product Revenue:
$10M — CA Wily Introscope
$875,000 — CA Access Control
– Education/Training: $225,000
– License Type: NCV
Sales Team:
– John Dorr, Account Director
– Ellianne Rivers, Account Manager
– Keith Wolters, Wily Sales
– Vince Witte, Wily Pre-Sales
– Todd Noles, Customer Solutions
Architect
Customer Overview
AT&T is the leading U.S. provider of local and long distance voice services and the largest
communications company in the world by revenue. AT&T also is the leading worldwide
provider of IP-based communications to businesses, and the top U.S. provider of wireless,
high speed Internet access, Wi-Fi, and directory publishing and advertising services. AT&T
currently ranks 10th among the 2008 Fortune 500 companies.
Business Challenge
AT&T has a new initiative called Lightspeed, which will enable AT&T to offer fiber video
services to the residential market, branded U-verse. This is a brand new space for AT&T and
will allow them to compete with the large cable companies for market share. AT&T plans to
grow Lightspeed rapidly over the next few years with the goal of 10 million customers by
2010. The company was seeking an Application Performance Management architecture to
support this new business model and revenue stream.
Sales Engagement
AT&T has been a long-time customer of CA and CA Wily. When Keith Wolters came to CA
after an 18-year career at AT&T to work in the Wily division and manage the AT&T account,
Wily had recently been purchased and still operated as a stand-alone business unit within
CA. Three years later, Wolters is still on the account, and his years spent building
relationships within this customer have paid off in the success of this deal, the largest
CA Wily deal ever completed.
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2. This deal has multiple parts with the largest revenue driver being the Wily NCV. Wolters
knew of AT&T’s new requirement for Application Performance Management to support the
Lightspeed initiative. He and his team set out to demonstrate to AT&T how large their
demand for Application Performance Management tools would be with their initiative
coming to fruition. The CA team’s goal was to get as much NCV as possible from AT&T
while giving them a bulk deal. CA wanted to sell the product they would need to get the job
done, which included forecasting inventory demand over the next 24 months based on the
Lightspeed project advancement, as well as other mission-critical applications.
The CA team spent the next nine months generating demand within AT&T for the Wily
products. The team outsourced to a lead generation company, IPM, to support their efforts.
From Wolters’ network of contacts at AT&T, coupled with the research IPM provided, the
team developed a long list of names and contact information. IPM then proceeded to make
contact and set up meetings, both in person, and via LiveMeeting to these target audiences.
First, the CA Wily technical team built and performed web demos specific to key application
groups within AT&T. This activity spread the demand for Wily. The next target audience was
the VP level at AT&T. Account Director John Dorr and his team began a series of meetings
with this level of management to show them the demand they had uncovered and offered
validation of this demand through internal testimony.
The final step was to go to procurement. The timing was good as it was approaching the end
of AT&T’s fiscal year. They wanted to make this investment in their current year and so
would have to make a decision soon.
Actual negotiations began in early January 2008. It began with talks about the new Wily
product demand, but quickly turned to negotiating an entire Master License Agreement
(MLA) for all CA products owned. In addition, AT&T wanted to include a renegotiated
maintenance deal on all their CA products.
Another issue was a relationship AT&T had with EDS that was coming to an end. EDS was
running the Access Control implementation (with CA Access Control) for the former
BellSouth. AT&T was bringing this back in house, and so EDS was handing back the
CA application. AT&T wanted to include a one-time license for CA Access control in the
overall agreement.
During these negotiations, the CA team met with VPs down to technical directors and
business analysts, to put together the most comprehensive and effective deal for everyone.
Dorr and Wolters worked together to keep front and back channels open. While Dorr worked
the front-end sales negotiations, Wolters kept his ears open on the back end to see what
was actually going on in AT&T procurement. Wolters got feedback from the customer
through his contacts, and passed this information up to Dorr, who could use it to strengthen
his front-end negotiating. This flow of information worked very well for the team as it gave
them inside scoop on what the customer wanted, with the goal of putting together the most
attractive package possible for them. The team’s strategy was to leverage concessions on
the MLA and maintenance contract in order to optimize the Wily NCV with AT&T.
Capability Solutions:
– CA Application Performance
Management
– CA Identity & Access
Management
CA Products:
– CA Wily Introscope®
– CA Access Control
Key Business Benefit:
– Support new business unit (fiber
video delivery to residential
market) and revenue stream
Key Solutions Benefits:
– Proactive detection, triage and
diagnosis of performance
problems
– Reduced mean time to repair
– Root cause analysis
SALES SUCCESS STORY:
AT&T
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